Privately held Evofem Biosciences entered a reverse stock merger agreement with Neothetics Inc. to list on the Nasdaq Stock Market.
Under the all-stock transaction, Evofem Biosciences shareholders will end up owning 87% of the combined company, with the remaining 13% owned by Neothetics shareholders.
The combined company, which will be renamed Evofem Biosciences Inc., will be headed by Evofem CEO Saundra Pelletier. It will have a board comprised of seven members.
Invesco Asset Management Ltd., an existing investor in Evofem, will invest $20 million in the combined company once the merger is complete — expected in January 2018.
The deal provides continued funding for Evofem's ongoing phase 3 study of Amphora as a vaginal contraceptive.
The company expects to close the study and file a review with the U.S. Food and Drug Administration in the second-quarter of 2019.
Oppenheimer & Co Inc. acted as financial adviser to Neothetics while RBC Capital Markets served as financial adviser to Evofem.
DLA Piper LLP (US) is acting as legal counsel to Neothetics while Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C. is serving as legal counsel to Evofem.