Sevion Therapeutics to acquire Eloxx Pharmaceuticals

USA-based biopharma firm Sevion Therapeutics (OTCQB: SVON) announced on Friday that it has signed definitive agreement on May 31, 2017 for an acquisition transaction with Israel’s Eloxx Pharmaceuticals, a clinical-stage company developing therapeutics for genetic diseases caused by non-sense mutations.

Under the terms of the accord, Eloxx will become a wholly-owned subsidiary of Sevion. Upon completion of the transaction, Sevion will change its name to Eloxx Pharmaceuticals, and intends to apply to have its shares listed for trading on Nasdaq. Shares of Sevion gained 9.6% to $0.28 by close of trading on Friday.

Under the terms of the agreement, Eloxx shareholders will receive shares of Sevion’s common stock reflecting around 70% of Sevion’s issued and outstanding share capital, subject to further adjustment. The parties expect to raise at least $24 million in private equity investment rounds as a condition prior to consummation of the acquisition transaction.