Vallon Pharma gains on merger agreement with GRI Bio

GRI Bio

13/12/2022 23:05

** Shares of Vallon Pharmaceuticals Inc  VLON.O  more than
double to $0.61
    ** Company enters merger agreement with biotech firm GRI Bio
Inc 
    ** GRI Bio will merge with a wholly owned unit of Vallon
through a reverse merger; deal expected to close in Q1 of 2023
    ** Following deal completion, combined company expected to
operate under the name GRI Bio Inc and trade on Nasdaq Capital
Market under the ticker symbol "GRI"
    ** Altium Capital agrees to invest ~$15 mln at deal close
and commits to an additional $10 mln future investment in the
combined company
    ** After deal close, on a fully diluted basis, GRI Bio
equity holders expected to own ~83% of outstanding equity of
combined company; Vallon equity holders expected to own ~17% of
outstanding equity of combined company 
    ** As of last close, Vallon shares down ~96% YTD
 (Reporting by Raghav Mahobe)
 ((Raghav.Mahobe@thomsonreuters.com))