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Threshold Pharmaceuticals stockholders approve merger with Molecular Templates

Threshold Pharmaceuticals Inc.'s stockholders approved all of the proposals including all proposals related to the merger with Molecular Templates Inc. at the annual stockholders' meeting held July 31.

As a result of the stockholder approvals, Threshold's board approved an 11-to-1 reverse split of the company's common stock, which will become effective at 5 p.m. ET Aug. 1.

The merger is expected to close shortly after the effectiveness of the reverse stock split, subject to the satisfaction of customary closing conditions.

In addition, an equity financing of $40 million is expected to close after the closing of the merger and a separate $20 million equity investment is expected to close after the $40 million financing.

The combined company will be renamed Molecular Templates Inc. and its common shares will start trading on The Nasdaq Stock Market on a post-reverse stock split basis under the new symbol MTEM on Aug. 2.