Dara BioSciences and Point Therapeutics have agreed to a reverse merger, with North Carolina-based Dara surviving as a wholly-owned subsidiary of Point.
Following the merger, Dara stockholders will hold 96.4 percent of Point's outstanding shares of common stock on a fully-diluted basis.
Biopharmaceutical company Point which will change its name to Dara BioSciences, will be based in Raleigh, Massachusetts.
Don Kiepert, Point's chairman and president, said: "We are excited about the opportunity to merge with Dara.
“The combination of Point and Dara will give our stockholders an opportunity to retain an equity interest in a stronger company with a broad and attractive portfolio of potential products."
Limitations
Point has recently said it is no longer funding any research due to cash limitations.
The company is hoping that the merger will enable continued listing on the Nasdaq stock exchange following its recent decline below $1 - the minimum share price for listing on Nasdaq after the clinical development program for its lead product was put on hold by the FDA.
The acquisition is intended to be a tax-free reorganization under the internal revenue code.
It is expected to close in the first quarter of 2008.
October 12 2007
Related Links
Dara Biosciences
Point Therapeutics
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