Molecular Templates Inc. completed an all-stock reverse merger with Threshold Pharmaceuticals Inc. and raised $40 million in equity financing from a number of U.S.-based venture capital firms.
Takeda Pharmaceutical Co. Ltd. invested a further $20 million in the combined entity, which will continue under the Molecular Templates name and will be listed on the Nasdaq Capital Market under the MTEM ticker.
Threshold shareholders were expected to own about 34.4% of the combined company, with Molecular Templates shareholders owning the rest. The entity has about $75 million in cash balance, for use in funding research and development activities.
Molecular Templates chief scientific officer and CEO Eric Poma will head the new company by retaining the same positions within the entity. Jason Kim, Molecular Templates' president and CFO, became the president, principal financial officer and COO of the new company.
Threshold's interim CEO, Wilfred Jaeger; senior vice president of finance, Joel Fernandes; and chief medical officer, Tillman Pearce, have resigned.
Takeda Pharmaceuticals nominated Michael Broxson, its vice president and head of R&D business development, to the new company's board, joined by Scott Morenstein, Kevin Lalande and David Hoffmann, who were nominated by the venture capital firms that invested in the entity.
Poma is also a part of the new company's board.
Threshold's former CEO Harold Selick, was appointed the combined company's chairman.
Molecular Templates is developing therapies for oncology.