Ruthigen & Pulmatrix Announce Merger - Quick Facts

(RTTNews) - Ruthigen, Inc. (RTGN), a biopharmaceutical company, and Pulmatrix Inc., a Lexington, Massachusetts based clinical stage biotechnology company, announced that on March 13, 2015, they have entered into a merger agreement. Pulmatrix will become a wholly-owned subsidiary of Ruthigen and all of Pulmatrix's debt and equity securities outstanding prior to the consummation of the merger will be exchanged for shares of Ruthigen common stock that will represent approximately 81% of the outstanding common stock of Ruthigen.

Upon completion of the merger, Ruthigen will be renamed Pulmatrix, and the surviving company's common stock will continue to trade on The NASDAQ Capital Market after the merger. It is anticipated that the combined company will focus its resources and efforts on the development of Pulmatrix's next-generation inhaled therapeutic products. Upon completion of the merger, Robert Clarke, President and CEO of Pulmatrix, will be appointed as the President and CEO of the combined company.

In connection with Pulmatrix's entry into the merger agreement, certain existing institutional investors in Pulmatrix entered into stock purchase agreements with Pulmatrix to invest an additional $10 million in Pulmatrix upon the closing of the merger.