April 8, 2019 11:21am
HSGX is UP +$0.08 to $0.19 on news
Following the merger, Ocugen stockholders will hold approximately 90% of the shares of the new company, while current HSGX stockholders will have 10%. The companies are planning to sell the underlying intellectual property related to NeoCart.
Histogenics (HSGX) has signed a reverse-merger with rare eye disease … Ocugen Inc. through which the privately held company will go public. The new company will move forward with Ocugen's name and headquarters, and NO HSGX employees will have jobs at the new company. (Allison DeAngelis, BBJ)
Despite a failed P3 trial, HSGX had originally intended to move forward with the product, but ultimately halted production late last year after the FDA requested another trial be conducted that the company did not have the funds or time for.
Histogenics had $15.5 million in cash and cash equivalents at the end of 2018, which it reported would only support the company through mid-2019.
It fired all but one of its 46 employees last month, including CEO Adam Gridley, CFO Jon Leiber and COO Stephen Kennedy. The executives have continued working with the company as consultants.
“Following a thorough review of strategic alternatives for Histogenics and the NeoCart program, we have determined that a merger with Ocugen will enable Histogenics investors to participate in Ocugen’s broader pipeline of ocular disease and gene therapy opportunities, including several late-stage clinical candidates, and a robust preclinical platform," Gridley said in a statement Monday.
Shareholders get SCREWED .... yet again!