Shares of Cerulean Pharma Inc. (Nasdaq:CERU) plunged more than 68% to reach the $1.06 mark during Monday's trading session after the company announced a definitive stock purchase agreement with Daré Bioscience, Inc., a sale of assets to NewLink Genetics Corp.'s (Nasdaq:NLNK) subsidiary BlueLink Pharmaceuticals, and a sale of assets to Novartis AG (NYSE:NVS).
Under the terms of the stock purchase deal, Daré Bioscience's stockholders will receive shares of newly issued Cerulean common stock, while outstanding Daré Bioscience options and convertible securities will be assumed by Cerulean. Following the issuance of the shares, depending on the relative net cash positions of both companies at the time of closing, it is expected that existing Cerulean's shareholders will own between 30% and 49% of the combined company, and existing Daré Bioscience stockholders will own between 51% and 70% of the combined company.
Cerulean sold its clinical product candidates, CRLX101 and CRLX301, for $1.5 million to BlueLink Pharmaceuticals. The company also said that Novartis will acquire - subject to certain closing conditions - all rights to its Dynamic Tumor Targeting(TM) Platform for $6 million. In connection with these transactions, Cerulean is paying off its debt facility with Hercules Capital, Inc.
Cerulean also announced that it is reducing its workforce by about 58% to a total of eight full-time equivalent employees, under a plan expected to be completed during the second quarter of 2017.
CERU stock is trading at $1.30, down $2.02 (or -60.85%) and 22.49M of its shares changed hands so far.
Cerulean Pharma Inc. is a clinical-stage, oncology-focused company.
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