RTTR on the way to the Nasdaq.
Pharmaceuticals (RTTR) said Tuesday its all-stock merger deal with Qualigen has received approval from Ritter stockholders and should be consummated in the next few days.
Under the agreement, pre-merger Ritter Pharmaceuticals stockholders will own approximately 7.5% of the post-merger combined company. On the other hand, the pre-merger Qualigen stockholders will own approximately 92.5% of the post-merger combined company on a fully-diluted basis.
Prior to closing, the company will change its name to Qualigen Therapeutics and continue trading on Nasdaq Capital Market under the symbol "QLGN."
Mergers and acquisitions (M&A) are forms of corporate restructuring that are becoming increasingly popular. The motive for wanting to merge with or acquire another company comes from management trying to achieve better synergy within the organization. This synergy is thought to increase the competitiveness and efficiency of the company. Mergers and acquisitions are also ways for a company to acquire capabilities it either cannot or does not want to develop internally, as well as to take over a company viewed as underperforming or undervalued and unlock value by changing operations or taking the company private.
Mergers usually occur on an all-stock basis. This means the shareholders of both merging companies are given the same value of shares in the new company that they owned in one of the old companies. Therefore, if a shareholder owned $10,000 worth of shares before the merger, he or she would own $10,000 in shares of the newly formed company after the merger. The number of shares owned would most likely change following the merger, but the value would remain the same.
