Innovate Biopharmaceuticals Inc. said that it plans to acquire privately held RDD Pharma Ltd., a developer of gastrointestinal drugs, and create a new combined company called 9 Meters Biopharma Inc.
Innovate has agreed to acquire all of Tel Aviv, Israel-based RDD's outstanding capital stock, receiving a combination of common and preferred shares, according to an Oct. 7 release.
The merger has been approved unanimously by both companies' boards of directors and is expected to close this year.
Innovate stockholders will own up to about 58.5% of the combined company's capital stock, and former RDD stockholders will own at least 41.5%. The companies said that allocation could be adjusted based on the final capital invested with the closing of the deal, which could be up to $25 million, including an initial $10 million.
Current RDD CEO John Temperato will take the helm at 9 Meters. Raleigh, N.C.-based Innovate's CEO Sandeep Laumas will remain a member of the new company's board of directors.
