Biotech Values

[DewDiligence]

ITEK reverse merges into Rocket Pharma—a private GT company:

https://finance.yahoo.com/news/inotek-pharmaceuticals-announces-merger-agreement-201500352.html

Inotek Pharmaceuticals Corporation (ITEK) today announced that they have entered into a definitive merger agreement with Rocket Pharmaceuticals Ltd., a leading US-based gene therapy company. Subject to shareholder approval, the combined company will retain the name Rocket Pharmaceuticals and will be headquartered in New York City. The combined company will focus on developing and advancing its pipeline of gene therapies based on lentiviral virus (LVV) and adeno-associated virus (AAV) gene therapy platforms, with a focus on treating devastating rare diseases.

…Under the terms of the merger agreement, shareholders of Rocket will receive shares of newly issued Inotek common shares in a private placement. Rocket shareholders are expected to own approximately 81% of the combined Company and current Inotek shareholders will own approximately 19% of the combined Company… The transaction has been unanimously approved by the Board of Directors of both companies. The merger is expected to close in the first quarter of 2018, subject to customary closing conditions, including the approval by stockholders of Inotek.

ITEK's 19% stake in the merged company is based solely on its cash and Nasdaq listing—i.e. the company is effectively a public shell.