Under the agreement, subject to the satisfaction of customary closing conditions, Pittsburgh-based PTI would be the surviving corporation in a merger with a subsidiary of Oracle. PTI would retain the Precision Therapeutics name. Upon consummation of the merger, Oracle would change its name to Precision Therapeutics Corp.
Sean McDonald, president and CEO of PTI, would become president and CEO and a director of the combined company, which would be headquartered in Pittsburgh, Pennsylvania.
It is expected that Oracle would apply to have its shares trade on Nasdaq upon completion of the merger. Oracle is expected to have approximately $120 million in cash at the closing, before payment of expenses of the merger and cash paid to any PTI stockholders that exercise their Delaware law right to appraisal of their shares and existing Oracle stockholders that exercised their right to have their shares converted into cash. These funds would remain in the merged company and be available to finance sales and marketing, product development, clinical trials and research and development, and for general corporate purposes.
Sean McDonald, president and CEO of PTI, said: “The capital available to us upon the closing of the transaction would support an increased sales and marketing effort, which should allow us to continue the rapid revenue growth that we have been experiencing.”