Vaxil Biotherapeutics Ltd. will join the Tel Aviv Stock Exchange (TASE) through a reverse merger with stock market shell Sheldonco Ltd. (TASE: SLDC). Vaxil shareholders will receive 70% of Sheldonco, which will fully own Vaxil, and the holding could increase to 80%, subject to milestones.
Vaxil, based in the Weizmann Science Park in Nes Ziona, is developing ImMucin, a therapeutic vaccine to treat a variety of cancers. ImMucin is currently undergoing a Phase I/II clinical trial for multiple myeloma, a blood cancer, at the Hadassah Medical Center in Jerusalem.
In contrast to conventional vaccines, which protect healthy people, a therapeutic vaccine treate sick people and by harnessing the patient’s immune system to identify and destroy cancer cells in a safer, more specific and more efficient manner. Therapeutic vaccines, such as ImMucin, are far more specific than general cancer treatments, and have minimal side effects and hence are potentially highly effective.
The company adds that its VaxHit technology allows for the identification and development of potential vaccines for cancer as well as for infectious diseases such as TB, HIV and cytomegalovirus (CMV or herpes).
Vaxil vaccine for tuberculosis, MTbuVax is undergoing in preclinical animal studies in the US. The need for improved treatments for tuberculosis, is increasing globally, particularly in the developed world where incidences of the disease are growing rapidly and the existing preventative vaccine is largely ineffective.
The merger is subject to the raising of at least NIS 2.5 million in a private placement or offering by the end of the year. If a valuation of Vaxil gives a value of over $25 million, the deal may be amended.
Vaxil previously considered a reverse merger with stock market shell Asia Development (EDBM) Ltd. (TASE: ASDV) at a value of $30 million.
Sheldonco controlling shareholder Upswing Capital Ltd. will provide Vaxil with management services in exchange for 20% of any future offering, up to an amount of NIS 2.75 million, and warrants for the purchase of 3% of company shares. Upswing and Asia Development will convert a NIS 1 million loan to Vaxil into shares at a 22.5% discount.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2011
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