Bio-technology startup StemoniX agrees to merger with public pharma company
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StemoniX Inc. has agreed to a merger with Cancer Genetics Inc., a publicly-traded pharmaceutical company based in Rutherford, New Jersey.
StemoniX will receive about 78% of Cancer Genetics’ 2.31 million outstanding shares, making it the majority owner of the company. At Cancer Genetics’s press timeshare price of around $7, the transaction will be worth $12.6 million to StemoniX. The deal is expected to close in the fourth quarter of this year.
Maple Grove-based StemoniX uses stem-cell technology to create “micro-organs,” like heart cells or parts of the brain, for pharmaceutical companies to use in drug testing and development.
Cancer Genetics posted a net loss of $1.7 million for the second quarter of 2020 on revenues of $1.4 million. The company sold its research and development arm last year, but still supports preclinical trials through its discovery services arm. At the end of the second quarter, it only had $2.9 million in cash.