Acasti Pharma To Acquire Grace Therapeutics: Highlights - Acasti Pharma (NASDAQ:ACST)

Acasti Pharma Inc ACST has agreed to acquire privately-held Grace Therapeutics Inc in an all-stock transaction. After the consummation of the deal, Acasti would own approximately 55% of the combined company on a pro forma basis, and Grace would own the remaining 45%.
It is anticipated that the cash at closing of about $64 million will be principally used to pursue the clinical development of the first two assets through Phase 3.
Grace's drug development programs:
GTX-104 is an aqueous nanoparticle formulation of water-insoluble nimodipine under development for subarachnoid hemorrhage (SAH).
- PK Bridging study results expected Q1 of FY2022; Phase 3 safety study expected to start enrollment in Q3 of FY2022.
GTX-102 an oral mucosal spray formulation of betamethasone for Ataxia-Telangiectasia.
- PK study results are expected by the second half of next year. Phase 3 trial to study to start in the first half of 2023.
GTX-101 a topical bio-adhesive film-forming spray of bupivacaine for post-herpetic neuralgia.
- Phase 1 results expected 2H'22; start of Phase 2 expected 2H'22.
Jan D'Alvise will lead the company entity as president and chief executive officer, and the corporation will continue to maintain its corporate headquarters in Laval, Quebec, Canada.
All Grace employees will transition to Acasti, and they will continue to maintain an R&D laboratory and commercial presence in North Brunswick, New Jersey.
The new Board of Directors will be composed of 4 representatives from Acasti and 3 from Grace.
The Proposed Transaction is expected to close in calendar Q3 of 2021
Acasti will take steps to regain compliance with Nasdaq's minimum bid price requirements in connection with the Proposed Transaction, and if required, would implement a share consolidation.
Oppenheimer & Co. is acting as Acasti's financial advisor. William Blair & Company, LLC is serving as financial advisor to Grace.
Price Action: ACST shares are up 18.5% at $0.48 during the market trading hours on the last check Friday.

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