Neothetics closes merger with Evofem
Neothetics closed the previously announced merger with Evofem Biosciences. The merged company will operate as Evofem Biosciences and will focus on the continued development and commercialization of women's healthcare products. The company will be led by the current Evofem management team under the leadership of CEO Saundra Pelletier. The stock will trade on the Nasdaq Capital Market beginning on Thursday, January 18, under the ticker symbol "EVFM" and was assigned a new CUSIP number 30048L 104. Immediately following the completion of the merger, an existing investor of Evofem, Invesco Asset Management Limited, as agent for and on behalf of its discretionary managed clients, purchased shares of common stock in the merged company for an aggregate purchase price of $20M. The total cash balance available to the merged company upon closing of these transactions is approximately $18M. As a result of the closing of the merger and the financing, the former Evofem stockholders own approximately 87% of the outstanding common stock of the merged company and the former Neothetics stockholders own approximately 13% of the outstanding common stock of the merged company. In addition, immediately prior to the merger on January 17, the company effected a 6:1 reverse stock split of shares of its common stock. Shares of the company's common stock will also begin trading on a post-split basis on the Nasdaq Capital Market beginning on Thursday, January 18.