Virios Therapeutics (VIRI) and Wex Pharmaceuticals, a subsidiary of CK Life Sciences International, have announced a definitive share exchange agreement with Sealbond Limited, the indirect parent company of Wex. This agreement will facilitate a merger between Virios and Wex in an all-stock transaction, resulting in the formation of a new entity named Dogwood Therapeutics (DWTX). Starting October 9, 2024, Virios Therapeutics will rebrand as Dogwood Therapeutics. Consequently, the company's common stock will transition from trading under the ticker symbol VIRI to DWTX on the Nasdaq Capital Market from that date forward.
As part of this merger, Virios Therapeutics has secured a committed debt financing totaling $19.5 million from an affiliate of CK Life Sciences. The financing will be distributed in two phases: $16.5 million will be provided at the transaction's closing, and an additional $3 million will be injected during the first quarter of 2025. Additionally, in conjunction with this merger, Virios has announced a 25-for-1 reverse stock split, effective October 9, 2024. This will adjust the outstanding common stock to 1,110,317 shares prior to the issuance of new shares under the terms of the share exchange agreement.
