Redx Pharma, Jounce Therapeutics Announce All-share Merger To Form Redx Inc

(RTTNews) - Redx Pharma (REDX), a British drug maker, and Jounce Therapeutics, Inc. (JNCE), a company focused on cancer treatment, on Thursday announced their all-share merger to create a combined group. The new company, Redx Inc. is expected to be listed on the Nasdaq under the ticker REDX and will be led by Redx CEO Lisa Anson.

According to the merger deal, Redx shareholders will be entitled to receive 0.2105 Jounce shares in exchange for each Redx share. If the reverse stock split is approved by Jounce, the exchange will be adjusted to 0.0421 Jounce shares in exchange for each Redx share.

Following the closure of the transaction, expected to be completed in the second quarter, Redx shareholders are projected to own around 63 percent, and Jounce shareholders approximately 37 percent of Redx Inc.

The majority of the new company's operations and headquarter will be at Alderley Park in the UK.

Anson said the small molecule drug discovery expertise of Redx will be combined the biologics and immunotherapy of Jounce to establish a biotech company with a robust pipeline, aimed at developing therapeutics for cancer and fibrotic disease.

The combined entity will further investigate opportunities of RXC007, the next-generation ROCK2 inhibitor in cancer-associated fibrosis and other interstitial lung diseases.