Onconetix (ONCO, Financial) has reached a definitive agreement to merge with Ocuvex Therapeutics. The boards of directors of both companies have given their approval for this transaction. Under the terms of the agreement, Onconetix will acquire all equity interests of Ocuvex. In exchange, Ocuvex's equity holders will receive newly-issued Onconetix common stock, amounting to 90% of the combined company's equity immediately after the transaction's completion, fully diluted and subject to potential adjustments from transaction-related financing.
Current Onconetix shareholders will retain a 10% stake in the new entity on a fully diluted basis following the merger. The restructured board of Onconetix will include seven directors, with Ocuvex appointing five and Onconetix appointing two. Expected to finalize in the fourth quarter of this year, the merger's completion depends on typical conditions, like regulatory, stockholder, and third-party approvals. It's important to note that there's no guarantee the transaction will proceed as planned, or at all.
