Immediately prior to the merger, Paratek received gross proceeds of $93 million in new investment from a combination of certain current and new investors in Paratek. Together with approximately $14 million in available, pre-merger cash on Transcept's balance sheet, the combined company has approximately $108 million in cash available before the payment of transaction and other fees.
Previously, Transcept effected a 12-1 reverse stock split of its outstanding common stock. As a result of the reverse stock split, every 12 shares of Transcept common stock outstanding immediately prior to the merger were combined and reclassified into one share of Transcept common stock. No fractional shares are being issued in connection with the reverse stock split. Instead, cash, based on the closing price of Transcept common stock on the NASDAQ Global Market on Oct. 30, will be issued in lieu of fractions of shares.
The holders of shares of Paratek common stock outstanding immediately prior to the merger received 0.0675 shares of Transcept common stock in exchange for each share of Paratek common stock in the merger. Following the $93 million financing, the reverse stock split and the merger, the combined company has approximately 14.4 million shares outstanding.
The combined company will operate under the leadership of Michael F. Bigham, chairman and CEO. The combined company's board of directors is comprised of representatives from the former Paratek board of directors, a representative from the former Transcept board of directors and two new directors. In addition to Bigham, the directors are Evan Loh, M.D., Richard J. Lim, Thomas J. Dietz, Ph.D., Jeffrey Stein, Ph.D., and Robert Radie.
Bigham said, "These funds will enable us to develop and prepare for the potential commercialization of our phase III-ready drug candidates, with a key focus on omadacycline for serious community acquired infections."
Loh, president and chief medical officer, said, "Omadacycline is a new, broad-spectrum antibiotic we are developing for use as a first-line monotherapy for serious community-acquired bacterial infections where antibiotic resistance is of concern. We believe it has the potential to become the primary antibiotic choice of physicians for the treatment of community-acquired bacterial infections. We expect that our special protocol assessment (SPA) agreements with the FDA for the phase III trial designs in acute bacterial skin and skin structure infections (ABSSSI) and community acquired bacterial pneumonia (CABP) will enable Paratek to initiate these trials in 2015, moving us one step closer to bringing this important medicine to the patients who need it."