miRagen Therapeutics and Signal Genetics sign merger agreement

USA-based Signal Genetics (Nasdaq: SGNL) and miRagen Therapeutics, a privately-held biopharmaceutical company, have entered into a definitive merger agreement under which the stockholders of miRagen are currently estimated to become holders of around 96% of Signal’s outstanding common stock on a fully-diluted basis.

The proposed merger remains subject to certain conditions, including approval by Signal’s and miRagen’s stockholders. Financial terms were not disclosed, but shares of Signal gained 7.8% to $0.36 by close of trading on Monday, having risen to as much as $0.38.

In conjunction with the planned transaction,an investor syndicate comprised of existing miRagen investors and new investors has committed to invest about $40 million in miRagen immediately prior to closing of the proposed merger.