Tocagen: Set for best day on reverse merger deal with Forte Biosciences
20/02/2020 11:42
** Drug developer's TOCA.O shares surge 77.2% to 86 cents
premarket - set to open at the highest level in 5 months
** Stock top pct gainer across U.S. exchanges; set for its
best day ever
** Privately held Forte Biosciences Inc, which develops skin
disease treatment will acquire TOCA in a reverse merger, all
stock deal urn:newsml:reuters.com:*:nPnbSpdvla
** TOCA shareholders will own ~25.5% and Forte ~74.5% of the
combined company on a fully-diluted basis on a treasury stock
method basis
** TOCA's market valuation was $11.6 mln at last close
** TOCA says an investor syndicate that includes Alger, BVF
Partners LP and OrbiMed have entered into a purchase agreement
to invest $14 mln in the combined company
** Merger expected to close in the second quarter of 2020
** The combined company will be led by Forte's president and
chief executive officer Paul Wagner
** TOCA which debuted on the Nasdaq on April 13, 2017 had
announced restructuring plan in October after its brain cancer
drug trial failure
** Up to Wednesday's close, stock had fallen 88.5% since the
trial failure on Sept. 12
(Reporting by Dania Nadeem in Bengaluru)
((Dania.Nadeem@thomsonreuters.com; within U.S. +1 646 223 8780,
outside U.S. +91 80 6182 3463;))