The companies plan to undertake the development of robotics based medical devices to treat cerebrospinal fluid and gastrointestinal disorders, as well as other conditions.
The merger’s completion is subject to certain regulatory approvals and customary conditions.
In order to meet several closing conditions, StemCells will be negotiating reductions in outstanding balances with its creditors.
Existing shareholders of StemCells are anticipated to own 5% of the combined company, while former Microbot stockholders would hold 95%.
StemCells is currently engaged in clinical development of its HuCNS-SC (purified human neural stem cells) platform technology to treat diseases of the human central nervous system.
Microbot Medical is specialized in the research, design, development and commercialization of the next generation of a micro-robotics assisted medical technologies.
StemCells CEO Ian Massey said: “This transaction concludes an extensive search for strategic alternatives conducted by StemCells since we failed to see robust clinical results in our Phase II clinical study of human neural stem cells in chronic spinal cord injury.
“We believe both our investors and the market at large will see the potential of Microbot’s robotics platform, specifically its catheter and shunt technologies, and will appreciate Microbot’s overall business opportunities and potential.”
Microbot CEO & chairman Harel Gadot said: “We are pleased that this transaction will give us a presence in the U.S. capital markets, and we are very excited to continue advancing the development of our proprietary technologies that we believe have the potential to improve the lives of many patients globally.”
Image: StemCells and Microbot Medical sign a definitive merger agreement. Photo: courtesy of stockimages at FreeDigitalPhotos.net.
