Aerpio Pharmaceuticals Announces Reverse Merger Agreement With Aadi Bioscience

Aerpio Pharmaceuticals Inc ARPO has agreed to merge with a privately-held Aadi Bioscience.
Following the proposed merger, the new entity will operate under the Aadi Bioscience moniker and focus on advancing Aadi's lead product candidate, Fyarrotm (sirolimus albumin-bound nanoparticles for injectable suspension; nab-sirolimus; ABI-009).
Aerpio has entered into PIPE financing of $155 million led by Acuta Capital Partners, KVP Capital, and other institutional investors.
With the cash expected from both companies at closing, the net proceeds of the PIPE financing are expected to fund the company into 2024.
The combined company will be led by Aadi's chief executive officer, Neil Desai, and headquartered in Los Angeles, California.
Aadi's board members Neil Desai and Richard Maroun; Aadi's board observer Karin Hehenberger; and current Aerpio board members Anupam Dalal and Caley Castelein will be members of the board of directors of the combined company.
In addition, Behzad Aghazadeh, managing partner of Avoro Capital Advisors and Avoro Ventures, will also join the board.
Under the terms of the merger agreement, shareholders of Aadi will receive shares of newly issued Aerpio common stock.
On a pro forma basis, shareholders of Aadi will own approximately 66.8%, and shareholders of Aerpio will own about 33.2% of the combined company before the additional PIPE financing transaction.
The merger agreement has been approved by the boards of directors of both companies and is expected to close in the third quarter of 2021
Ladenburg Thalmann is acting as financial advisor to Aerpio for the transaction, and Perella Weinberg Partners and Piper Sandler are acting as financial advisors to Aadi.
Price Action: ARPO shares are up 17.2% at $1.36 in the premarket session on the last check Monday.

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Aerpio Pharmaceuticals Announces Reverse Merger Agreement With Aadi Bioscience

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