Alliqua BioMedical Inc. is merging with Adynxx Inc. to form a pharmaceutical company focused on the non-opioid treatment of pain and inflammation.

San Francisco-based Adynxx is engaged in developing a technology platform to treat pain as a disease rather than a symptom.

Under the stock-for-stock deal, Adynxx's outstanding common shares and securities will be converted into Alliqua common shares and securities. As a result of the transaction, Adynxx's security holders will own about 86% of Alliqua's outstanding and issued common stock, while the remaining 14% will be held by existing Alliqua shareholders.

The merger is expected to be completed in the first quarter of 2019, subject to the approval of both companies' shareholders and other customary closing conditions. The deal has been approved by the boards of both companies.

Following completion, Alliqua will change its name to Adynxx Inc. and will be headquartered in San Francisco. Adynxx's current management team will head the new company.

The combined company will trade on the Nasdaq Capital Market under a new ticker. Pending stockholder approval, Alliqua intends to initiate a reverse stock split of its outstanding common shares to meet the exchange's listing requirements.

H.C. Wainwright & Co. is acting as Alliqua's financial adviser in the transaction, with Haynes and Boone LLP as legal counsel. Meanwhile, MTS Securities LLC is serving as Adynxx's financial adviser, with Cooley LLP as legal counsel.

Langhorne, Pa.-based Alliqua BioMedical develops and manufactures electron-beam cross-linked sheet gels for use by the makers of medical devices, cosmeceuticals and other commercial products.