Malvern-based Galera Therapeutics will be acquired by Obsidian Therapeutics in an all-stock reverse merger, writes John George for the Philadelphia Business Journal.
The two companies have secured a $350 million private stock placement commitment, which will close upon completion of the merger.
Operating under the name Obsidian Therapeutics, the combined company will apply to trade under the ticker symbol “OBX” on the Nasdaq stock exchange. It will remain based in Cambridge, Massachusetts, where Obsidian is currently headquartered, and will be led by Obsidian CEO Dr. Madan Jagasia and the rest of its management team.
The merger will allow Obsidian to go public without requiring the traditional initial public offering process.
As part of the transaction, no cash payouts will be provided to Galera shareholders. Instead, pre-closing stockholders, excluding those involved in the private placement financing, will hold a 1.8 percent stake in the combined company. Galera stockholders will also continue to hold a contingent value right that gives them 95 percent of any future milestone proceeds linked to an October 2025 deal for up to 10 years.
“We believe this transaction with Obsidian is the best path forward for Galera,” said Dr. Mel Sorensen, Galera’s CEO.
Read more about Galera Therapeutics and Obsidian Therapeutics merging in the Philadelphia Business Journal.
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