Ruthigen and Pulmatrix agree to merge

US biopharma company Ruthigen (Nasdaq: RTGN) has entered into a definitive merger agreement with Pulmatrix, clinical stage biotechnology company, also based in the USA.

On the closing of the merger transactions, Pulmatrix will become a wholly-owned subsidiary of Ruthigen and all of Pulmatrix' debt and equity securities outstanding prior to the consummation of the merger will be exchanged for shares of Ruthigen common stock that will represent around 81% of the outstanding common stock of Ruthigen.

In connection with Pulmatrix' entry into the merger agreement, certain existing institutional investors in Pulmatrix entered into stock purchase agreements with Pulmatrix to invest an additional $10,000,000 in Pulmatrix upon the closing of the merger. Pulmatrix also raised about $4.5 million in February 2015, in contemplation of entering into the merger agreement.