Biotech

Stellar Biotechnologies (NASDAQ:SBOT) has announced it has executed a share agreement with privately-held Edesa Biotech and its shareholders to create a company focused on developing innovative therapeutics for dermatological and gastrointestinal indications with clear unmet medical needs. As quoted in the press release: Under the terms of the share exchange agreement, Edesa shareholders have agreed …

Stellar Biotechnologies (NASDAQ:SBOT) has announced it has executed a share agreement with privately-held Edesa Biotech and its shareholders to create a company focused on developing innovative therapeutics for dermatological and gastrointestinal indications with clear unmet medical needs.

As quoted in the press release:

Under the terms of the share exchange agreement, Edesa shareholders have agreed to exchange their shares of Edesa for newly-issued common shares of Stellar. At the closing, Edesa will become a wholly-owned subsidiary of Stellar. Following the closing, current Stellar shareholders are expected to own approximately 10%, and the current shareholders of Edesa are expected to own approximately 90%, of the combined company on a fully-diluted basis, subject to a 2% upward or downward adjustment based upon the amount of Stellar’s working capital balance immediately prior to the closing. Following the closing, Stellar will change its name to “Edesa Biotech Inc.”

“We believe this proposed business combination provides new growth opportunities for Stellar shareholders. We have been impressed with Edesa’s management team and are looking forward to implementing a new vision for the combined company,” said Frank R. Oakes, Stellar President and Chief Executive Officer.

“This agreement marks another milestone for Edesa and our mission to efficiently develop novel, safe and effective treatments for conditions where patients have limited treatment options available,” said Par Nijhawan, MD, Chief Executive Officer of Edesa. “We believe we are at a significant inflection point in our company’s history and look forward to offering shareholders additional value creation opportunities as we reach milestones in our clinical programs.”

Click here to read the full press release.

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