Advaxis (NASDAQ:ADXS) and closely-held Biosight of Israel entered into a definitive merger agreement, with shareholders of Biosight becoming the majority holders of the combined company.
Advaxis will be renamed Biosight Therapeutics and is expected to trade on the Nasdaq Capital Market under the ticker symbol, BSTX.
On closing, Advaxis shareholders will own approximately 25% of the new company and former Biosight equity holders will own approximately 75%, on a fully diluted basis.
The proposed merger will create a public company that will prioritize clinical advancement and commercialization of Biosight’s lead product, aspacytarabine (BST-236), as a first-line therapy for acute myeloid leukemia for patients unfit for standard induction chemotherapy.
The combined company is expected to have approximately $50-million in cash at closing, which is expected to occur in the second half of 2021.
“We believe the combined company’s strong and diversified oncology pipeline with late-stage and early-stage assets, near-term milestones, seasoned leadership team and focus on both hematological malignancies and solid tumors have the potential to provide transformative benefits to patients while also providing value to our stockholders,” Kenneth Berlin, president and CEO of Advaxis, said in a statement.
On closing, Mr. Berlin will become president and CEO of the combined company, which will be comprised of nine directors: six designated by Biosight and two by Advaxis, with Dr. David Sidransky nominated as chairman.
Dr. Ruth Ben Yakar, CEO of Biosight, said the proposed merger with Advaxis is a unique opportunity for Biosight to build a leading public company in oncology, with a diversified clinical pipeline in both hematological malignancies and solid tumors.
“The combined company will have the demonstrated expertise and strong balance sheet to advance its lead programs towards multiple anticipated milestones over the next 12-to-18 months,” she added.
