Proposed merger of Tarveda and Organovo blocked by shareholders

Privately-held, clinical-stage US biotech company Tarveda Therapeutics says that the proposed merger agreement with Organovo Holdings (Nasdaq: ONVO) has been terminated following the emergence of unanticipated, late opposition to the proposed transaction by major Organovo stockholders.

The companies entered into a definitive all-stock merger agreement, which was approved by both their boards of directors, in December 2019. It was anticipated that Tarveda stockholders will own around 75% of the combined company.

Following the original announcement, Organovo’s shares rose 24% to $0.62, but were still down 40% year-to-date. The stock closed down 1.76% at $0.29 by end of trading yesterday, and were down a further 3.38% to $0.28 pre-market today.