Adamis Pharmaceuticals has agreed to acquire Cellegy Pharmaceuticals to form a publicly traded biopharmaceutical firm focused on viral infections. In connection with the signing of the merger agreement, Cellegy provided a $500,000 loan to Adamis during the pendency of the merger transaction.
The definitive merger agreement is expected to close during the second or third quarter. Approximately 40% of Cellegy’s shareholders have voted in favor of the transaction. Cellegy estimates that its stockholders will own between 4% and 6% of the new firm.
“We like the fact that in addition to technologies in development that we believe are promising, Adamis has allergy and respiratory products already being sold in the U.S. marketplace, and a contract packaging company that provides a source of current revenue and the potential for future revenue and income growth,” comments Richard C. Williams, Cellegy’s CEO.
“This merger allows us to fulfill our strategic objective of building a publicly traded company that combines biopharmaceutical research and development with the financial stability of a company producing immediate revenues from the sale of specialty pharmaceutical products and from the packaging of drugs for major pharmaceutical distributors,” notes Adamis CEO, Dennis Carlo, Ph.D.