Apricus Biosciences Inc. stockholders approved the company's merger with privately held Seelos Therapeutics Inc.
Seelos is focused on the development and advancement of therapeutics for central nervous system disorders, while Apricus has historically focused on seeking to advancing medicines in urology and rheumatology.
Over 95% of the votes cast were in favor of the merger, which has been approved by the boards of both companies, according to a Jan. 15 news release.
Seelos shareholders will receive common shares of Apricus upon closing of the merger. Seelos' shareholders are expected to own about 85% of the combined company, with the San Diego-based biopharmaceutical company's shareholders owning the remaining 15%.
After the closing, which is expected in January, shareholders of Apricus will receive one contingent value right for each common share they possess. The holders of these rights will be entitled to receive 90% of any cash payments exceeding $500,000 received, during a period of 10 years from the closing, based on the sale or out-licensing of the Vitaros assets, including any milestone payments, less reasonable transaction expenses.
Apricus CEO Richard Pascoe said the merger provides an "opportunity to create value from a diversified pipeline of late-stage clinical assets in areas of high unmet need."
Canaccord Genuity LLC is acting as exclusive financial adviser and Latham & Watkins is providing legal advice to Apricus, while Paul Hastings LLP is acting as legal adviser to Seelos.