Acasti up on Buying Grace - InvestingChannel

Acasti up on Buying Grace

Acasti Pharma Inc (NASDAQ: ACST) moved north Monday on word the company has agreed to acquire privately-held Grace Therapeutics Inc in an all-stock transaction. After the consummation of the deal, Acasti would own approximately 55% of the combined company on a pro forma basis, and Grace would own the remaining 45%.

It is anticipated that the cash at closing of about $64 million will be principally used to pursue the clinical development of the first two assets through Phase 3.

Grace’s has in its drug development pipeline GTX-104 an aqueous nanoparticle formulation of water-insoluble nimodipine under development for subarachnoid hemorrhage (SAH).
Also, GTX-101 a topical bio-adhesive film-forming spray of bupivacaine for post-herpetic neuralgia is in the lineup.

Phase 1 results expected 2H’22; start of Phase 2 expected 2H’22.

Jan D’Alvise will lead the company entity as president and chief executive officer, and the corporation will continue to maintain its corporate headquarters in Laval, Quebec.

All Grace employees will transition to Acasti, and they will continue to maintain an R&D laboratory and commercial presence in North Brunswick, New Jersey.

The new Board of Directors will be composed of 4 representatives from Acasti and 3 from Grace.

The Proposed Transaction is expected to close in calendar Q3 of 2021.

Acasti says it will take steps to regain compliance with NASDAQ’s minimum bid price requirements in connection with the Proposed Transaction, and if required, would implement a share consolidation.

ACST began the week with gains of one cent, or 2.4%, to 48 cents.

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