Delhi-based biotech firm Vyome Therapeutics is set to go public in the US through a three-part transaction, including a reverse merger with California-based Reshape Lifesciences, according to statements issued by the companies.
Vyome Therapeutics, a clinical-stage company targeting immuno-inflammatory and rare diseases, backed by Manipal group chief Ranjan Pai and deeptech venture fund Navam Capital, and Nasdaq-listed Reshape Lifesciences, a weight loss solutions company, will merge in an all-stock transaction.
Pai, along with investors Remus Capital and Iron Pillar will invest at least $7.3 million in the merged entity through a private placement. The amount may increase through additional investments to close concurrently with the merger, Vyome said in a statement.
Vyome Therapeutics plans to deploy the capital raised through the private placement to expand and unlock the value of its pipeline of immuno-inflammatory assets.
“We have a very promising pipeline with potential near-term catalysts treating unmet rare and immune-inflammatory diseases,” said Shiladitya Sengupta, co-founder, Vyome Therapeutics.
Meanwhile, Reshape Lifesciences has separately entered into an agreement with Pune-based medical devices maker Biorad Medisys to sell all of its assets and liabilities for $5.16 million in cash.
“Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, existing Reshape stockholders will own approximately 11.1% of the combined company immediately following the closing of the merger, subject to adjustment based on Reshape’s actual net cash at closing compared to a target net cash amount of $5 million,” a separate statement by Reshape Lifesciences said.
Upon closing, the combined entity will be renamed Vyome Holdings Inc, and continue to have its common stock traded on Nasdaq under the new ticker symbol ‘HIND’, it said.
As part of the transaction, Vyome Therapeutics has appointed former US ambassador to India Frank Wisner on its board of directors.
“We have no debt and a clean capital structure and are positioning Vyome for success in the public markets. We intend to continue addressing the unmet needs of patients suffering from immuno-inflammatory diseases and building a broader platform that leverages our comparative advantage in the US-India innovation corridor,” said Krishna K Gupta, director, Vyome Therapeutics.
Gupta will be appointed as chairman of the merged company.
Vyome Therapeutics, founded in 2010 as a research laboratory startup in Delhi, also counts Kalaari Capital and Mariwala family’s Sharrp Ventures among its investors.
Source: Economic Times