Flex Pharma is merging one of its wholly-owned subsidiaries with Salarius with the aim of accelerating the clinical development of a novel epigenetic therapy for cancer.
Salarius recently completed a $6.4 million private placement which, combined with cash from Flex Pharma, is expected to fund the combined company to mid-2020, allowing it to report early cohort data from an ongoing Phase 1 Ewing sarcoma trial.
Upon the closing of the transaction, Flex Pharma stockholders will own approximately 19.9% of the combined company and current Salarius investors will own approximately 80.1% of the combined company.
Flex Pharma stockholders will also receive a right to receive warrants, six months and one day following the closing date of the transaction, allowing them to purchase additional shares.
Upon closing of the transaction, Flex Pharma is expected to be renamed Salarius Pharmaceuticals, Inc. and be under the leadership of Salarius’ current management team, led by CEO David Arthur.
The Salarius clinical pipeline will become the lead assets of the company following the transaction.
Flex Pharma President and CEO, William McVicar, is expected to join the Board of Directors of the combined company following the closing of the transaction.