Under the terms of the $23.7 million merger, Bard1 will acquire 100 per cent of Sienna’s issued share capital by offering its shareholders 13 shares in Bard1 for every five Sienna shares held.
The offer values Sienna at $0.06 per share – representing a premium of 119 per cent to its one-month volume-weighted average price of $0.027 per share.
Bard1 and Sienna have novel technology platforms and in-development products for early-stage testing in areas of unmet medical need including pancreatic, breast, ovarian and bladder cancers.
According to Bard1 CEO, Dr Leearne Hinch, the “transformational transaction” would create a large Australian medical technology company that is better positioned to raise capital, attract new investors and pursue strategic growth opportunities.
“We are excited by the opportunity to combine businesses to create a leading Australian cancer diagnostics company,” she said.
“Sienna’s in-market bladder cancer test and new molecular NETs technology combined with our strong cancer diagnostics pipeline and scientific expertise in tumour biology will create a larger and more diversified medtech company with a clear focus on delivering innovative cancer diagnostic products to help save patient lives.”
Dr Hinch said the new entity would have a strong balance sheet, an expanded portfolio of cancer diagnostic technologies and a broader management team to help bring products to market.
Sienna chairman Dr Geoff Cumming said the merger could be a real game-changer for the cancer diagnostics industry. “There is very strong logic for this merger,” he said.
The merger is to be implemented under a scheme of arrangement and is subject to a number of conditions, including the approval of Sienna shareholders and court and regulatory approvals.