Sylmar-based Second Sight Medical Products Inc. has entered into a definitive agreement under which Nano Precision Medical, a therapeutic implant company, will merge with a wholly owned subsidiary of Second Sight in an all-stock transaction.
Second Sight will issue about 134 million shares of its common stock in order to acquire full ownership of NPM. Shareholders will acquire approximately 23 percent equity of the combined company after the transaction closes in the second or third quarter this year.
Second Sight, which has worked to develop a prosthetic system that provides partial vision to blind patients, is providing NPM with $8 million for working capital and to enable acceleration of pipeline programs prior to the merger.
The resulting company from the agreement will work on the development of drug and device medical implants that treat chronic diseases with high unmet medical need, further advancing NPM’s drug implant portfolio.
“The merger with NPM aligns with our expanded vision to become a top device and drug implant company, allows us immediate access to NPM’s experienced executive leadership team, and provides the two companies with a myriad of opportunities to leverage potential synergies,” Second Sight Chairman Gregg Williams said in a statement.
Second Sight announced the deal last week. Shares of Second Sight (EYES) closed down 3 cents, or 2.13 percent, to $1.38 on the Nasdaq Thursday, a day when the market closed down nearly 3 percent.