Somatix Therapy Corp. and GeneSys Therapeutics Corp., twogene therapy companies, said Friday that they have signed adefinitive merger agreement.
The merged company will pursue autologous gene therapyprograms in cancer treatments, cardiovascular disease andhemophilia, and a central nervous system program focused onParkinson's disease.
The agreement provides that if Somatix stock (NASDAQ:SOMA)is trading between $3.50 and $9.50 per share just prior to theclosing of the merger, GeneSys stockholders will receive0.50315 shares of Somatix stock for every share of GeneSysstock, resulting in the issuance of about 3.6 million Somatixshares. That brackets the value of the deal between $12.6million and $34.2 million. If Somatix stock trades above orbelow those prices, the number of shares GeneSys stockholderswill receive will be adjusted.
Alameda, Calif.-based Somatix and privately held GeneSys of LaJolla, Calif., announced their intent to merge in October. Somatixmerged earlier this year with cell therapy specialist HanaBiologics Inc.
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