Bone Therapeutics in merger discussions with Medsenic

Belgium’s cell therapy developer Bone Therapeutics (Euronext: BOTHE) today announced it has entered into a non-binding term sheet and exclusive discussions for a period of three months with the shareholders of Medsenic, a privately-held, clinical stage biopharmaceutical company incorporated in France and specialized in the development of optimized formulations of arsenic salts and their application in inflammatory conditions and other potential new indications.

The objective of the discussions is to explore the benefits of a potential reverse merger or a similar transaction whereby all shareholders of Medsenic would individually contribute 51% of the total outstanding share capital of Medsenic into the capital of Bone Therapeutics in exchange for a certain number of shares issued by Bone Therapeutics. The objective of the parties is that, as a result of the business combination, Bone Therapeutics would remain a Belgian listed company and own 51% of the share capital of Medsenic.

Based on the current information available and subject to due diligence, the parties expect that immediately after closing of the business combination, approximately 80% of the total outstanding share capital of Bone Therapeutics shall be held by the shareholders of Medsenic. The parties however agreed that subscription rights of Bone Therapeutics will be offered to all its existing shareholders but not to the Medsenic shareholders.