Clinical-stage psychedelics company Reunion Neuroscience (NASDAQ:REUN) is about to close on its take-private transaction with MPM BioImpact affiliates, as shareholders voted for a special resolution approving the proposed arrangement plan on July 12. Following suit, the Ontario Superior Court of Justice granted a final order approving the proposed arrangement under Section 192 of Canada's BCA.
Both companies entered a definitive arrangement agreement for the acquisition of Reunion in an all-cash transaction of $13.1 million this past May 31. They anticipate closing on or about July 21, 2023.
The arrangement resolution required the approval of at least two-thirds (66%) of the votes cast by shareholders present or by proxy at Reunion's special meeting. Results showed 99% of the votes cast at the meeting in favor of the arrangement, moving it forward.
Following its terms and conditions, all holders of Reunion's outstanding common shares will be entitled to receive $1.12 in cash for each one held prior to the arrangement.
What Happened
Former Field Trip Health split in mid-2022 into two independent companies: Reunion, conceived as the drug R&D branch and Field Trip Health & Wellness (OTC:FTHWF) or the business providing psychedelic-assisted therapies.
While Field Trip H&W furthered its ketamine clinic offerings into what some predicted would become a market bubble, Reunion developed lead asset RE104, a novel serotonergic psychedelic compound and "the only 4-OH-DiPT prodrug in clinical development," as a potential treatment for postpartum depression (PPD.)
RE104 is protected under a U.S. patent, issued on April 5, 2022, for its composition of matter, methods of manufacturing, formulations and methods of use of multiple tryptamines; although the company entered a court battle earlier this year suing Mindset Pharma Inc. (OTC:MSSTF) over the latter's claims on a Novel Chemical Entity (NCE) reportedly identical to RE104.
This April, Reunion announced it no longer met Nasdaq's minimum bid price for continued listing in the stock and entered the "compliance period." While aiming to regain it, quarterly numbers showed a descent of liquidity and already included the take-private arrangement as the likely road to follow.
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