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Posted: January 19, 2008
Arrowhead Research Units to Combine
(Nanowerk News) Nanotechnology developer Arrowhead Research Corp. said Friday its subsidiary Calando Pharmaceuticals Inc. will become part of another of its subsidiaries, Insert Therapeutics Inc.
Arrowhead said as part of the deal, the subsidiaries will be recapitalized to eliminate their preferred stock.
At Insert, each preferred share will be converted into one common share, the company said. At Calando, each preferred share will be converted into one Calando common share.
The company said shareholders of Calando stock will receive Insert shares at an exchange ratio of about 5.97 shares of Insert stock for each Calando share. Outstanding options to buy Calando stock will be converted into an option to buy about 5.97 shares of Insert stock.
If the deal is approved, Arrowhead said it will own about 66.5 percent of the combined company.
The transaction has already been approved by the boards of both companies. Shareholders must now approve the deal.
Arrowhead shares rose 12 cents, or 4.1 percent, to $2.99 in electronic after-hours trading. During regular trading, shares fell 20 cents, or 6.5 percent, to close at $2.87.