Strand Life Sciences to Merge and Go Public
In addition to StrandAdvantage, Strand LS provides the Strand NGS platform for NGS data management and analysis for research applications. The Indian-based company also provides clinical reference lab services in the US and India. Venaxis is commercializing the APPY1 Test for low-risk appendicitis. The company stated in an SEC filing that it began to consider strategic alternatives last year after the FDA notified it that its test did not meet the substantial equivalence criteria for approval.
Castle Rock, CO 1/26/16—Strand Life Sciences (Strand LS), a genomics and bioinformatics firm, has announced a merger with Venaxis, a publicly held IVD company. To comply with Indian tax and financial regulations, the merger is being structured through a series of purchases. Venaxis shareholders will purchase Strand LS shares, with proceeds to be reinvested in Venaxis common stock. Strand LS shareholders will own 68% of the merged company, assuming 100% participation of Strand LS shareholders in the offering. The combined company will change its name to Strand LS and change its NASDAQ stock symbol. “On behalf of the Strand LS shareholders, we believe that this transaction represents an attractive opportunity for Strand Life Sciences, as an agile innovator in clinical genomics, to combine forces with Venaxis, a public company in the United States with experienced executives and board members to help it rapidly expand market adoption of StrandAdvantage and other future product offerings,” stated Dr. Vijay Chandru, Strand LS cofounder and executive chairman. StrandAdvantage is an NGS-based pan-cancer diagnostic panel. Dr. Chandru will serve as chairman of the merged company, and Venaxis CEO Steve Lundy will remain CEO. The new board will consist of four Strand LS board members and three Venaxis board members. The transaction requires approval of Venaxis shareholders.
