Bullish indicating open at $55-$60, IPO prices at $37
CINCINNATI - Onconetix, Inc. (NASDAQ:ONCO) and privately held Ocuvex Therapeutics, Inc. announced today they have entered into a definitive merger agreement, with Ocuvex shareholders set to receive 90% ownership of the combined company. According to InvestingPro data, Onconetix enters this merger with a market capitalization of $2.36 million and has seen its stock price decline by over 90% year-to-date.
Under the terms of the agreement, Onconetix will acquire all outstanding equity interests of Ocuvex, a biopharmaceutical company focused on ophthalmic therapeutics. Onconetix shareholders will retain 10% ownership in the combined entity, subject to adjustments related to any transaction financing. InvestingPro analysis suggests the deal comes at a crucial time for Onconetix, as the company’s current ratio of 0.17 indicates significant liquidity challenges. For deeper insights into Onconetix’s financial health and 11 additional ProTips, consider exploring InvestingPro’s comprehensive research report.
The merger has received approval from both companies’ boards of directors. Upon completion, the combined company’s board will consist of seven directors, with five designated by Ocuvex and two by Onconetix.
Ocuvex brings a portfolio of ophthalmic assets to the transaction, including Omlonti (omidenepag isopropyl ophthalmic solution) 0.002%, an EP2 receptor agonist for ocular hypertension and open-angle glaucoma that received FDA approval in September 2022.
"We continue to believe that the proposed transaction with Ocuvex, which brings a pipeline of commercial and late clinical stage ophthalmic assets, will bring significant value for our stockholders," said Andrew J. Oakley, Chairman of Onconetix’s Board. Despite current challenges, including negative EBITDA of -$5.66 million in the last twelve months, InvestingPro’s Fair Value analysis indicates Onconetix may be undervalued at current levels.
Anthony W. Amato, Chairman and CEO of Ocuvex, stated that "Gaining access to public capital markets will allow us to accelerate, what we believe to be, important new treatment options for patients and their health care providers."
The transaction is expected to close in the fourth quarter of 2025, subject to regulatory and stockholder approvals and other customary conditions.
Onconetix is a commercial-stage biotechnology company focused on men’s health and oncology solutions, including Proclarix®, an in vitro diagnostic test for prostate cancer. Recent financial data shows revenue growth of 153.7% in the last twelve months, though the company maintains a significant debt burden with a debt-to-equity ratio of 2.27.
This article is based on a press release statement from both companies.
In other recent news, Onconetix, Inc. has regained compliance with Nasdaq listing requirements after filing its first-quarter report. The Nasdaq Hearings Panel approved the company’s continued listing, contingent upon meeting specific conditions, including the Periodic Filing Listing Rule and the Bid Price Listing Rule. To address the bid price requirement, Onconetix implemented a 1-for-85 reverse stock split, effective June 13, which was approved by its board following stockholder authorization. This move aims to elevate the stock price to meet the Nasdaq’s minimum bid price requirement of $1.00 per share. Onconetix had previously faced potential delisting due to its stock price falling below this threshold and filing delays. The company also announced plans to file overdue reports to rectify compliance issues. Discussions about a potential transaction with Therapeutics, Inc. are ongoing, although no definitive agreement has been reached. Additionally, the company’s board has postponed the 2025 annual meeting of shareholders, originally set for June 4, with a new date yet to be announced.
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