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Proxy Advisors ISS and Glass Lewis Recommend Flex Pharma Shareholder Support Merger
Tuesday 11 June 2019

11 June 2019 - US-based proxy advisors Institutional Shareholder Services Inc. and Glass Lewis recommend that shareholders of Boston, US-based biotechnology company Flex Pharma, Inc. (NASDAQ: FLKS) vote in favour of all agenda items before or at Flex Pharma's June 14 special shareholders meeting, the company said.
Flex's board of directors also unanimously recommends voting "For" all agenda items as the best way to preserve future shareholder value.
ISS and Glass Lewis are leading US institutional voting advisory services. Salarius Pharmaceuticals, LLC, is a privately held clinical-stage oncology company targeting the epigenetic causes of cancers.
Early this year, an affiliate of Flex Pharma agreed to merge with Houston, US-based clinical stage oncology company Salarius Pharmaceuticals, LLC.
Salarius recently completed a USD 6.4m private placement, which combined with cash from Flex Pharma, is expected to fund the combined company to mid-2020, allowing it to report early cohort data from an ongoing Phase 1 Ewing sarcoma trial.
Additional terms of the financial transaction were not disclosed.
Upon the closing of the transaction, Flex Pharma stockholders will own approximately 19.9% of the combined company and current Salarius investors will own approximately 80.1% of the combined company.
Flex Pharma is expected to be renamed Salarius Pharmaceuticals, Inc.
Salarius Pharmaceuticals, LLC is a clinical-stage oncology company targeting the epigenetic causes of cancers and is developing treatments.
The company's lead candidate, Seclidemstat, is currently in clinical development for treating Ewing sarcoma, for which it has Orphan Drug designation and Pediatric Rare Disease Designation by the US Food and Drug Administration.
Salarius believes that Seclidemstat is one of only two reversible inhibitors of the epigenetic modulator LSD1 currently in human trials, and that it could have potential for improved safety and efficacy compared to other LSD1-targeted therapies.
Salarius is also developing Seclidemstat for a number of cancers with high unmet need and expects to commence additional clinical studies in 2019 targeting advanced solid tumors, including prostate, breast and ovarian cancers.
Flex Pharma is a biotechnology company that was founded in 2014 by National Academy of Science members Rod MacKinnon, M.D. (2003 Nobel Laureate) and Bruce Bean, Ph.D., recognised leaders in the fields of ion channels and neurobiology, along with Christoph Westphal, M.D., Ph.D.
Date Published: 11/06/2019
Target: Flex Pharma, Inc
Country: USA
Deal Size: 30m (USD)
Sector: Biotechnology
Type: Corporate acquisition
Financing: Stock
Status: Agreed
Buyer: Salarius Pharmaceuticals
Buyer Advisor: Healthios Capital Markets , Pillsbury Winthrop Shaw Pittman
Terms of the deal were not disclosed