Matinas BioPharma to Merge With GH Power; Signs Deal to Sell Subsidiary, Lead Product Candidate

Matinas BioPharma (MTNB) said Monday it has agreed to a definitive business combination with GH Power, a developer of proprietary modular reactor systems. Under the terms, GH Power and Matinas will become subsidiaries of a newly formed public parent corporation called GH Power International. Existing GH Power shareholders will own about 91% of GH Power International, while Matinas shareholders will own the remaining 9%, the company said. Additionally, each share of Matinas will be converted into a right to receive 0.1 share of GH Power International, according to a statement. Matinas further said it has signed an agreement to sell its subsidiary, Matinas BioPharma Nanotechnologies, as well as its lead product candidate MAT2203, to Azurity Pharmaceuticals for $4 million in cash and an additional $17.5 million in milestone payments, plus mid-single-digit royalties. The merger is slated to close in Q4 and remains subject to Ontario court approvals, approval from Matinas shareholders and GH Power securityholders, GH Power completing at least $15 million in financing, and approval for GH Power International's listing on NYSE American, the company said. Shares of Matinas.