After the announcement of a business combination deal, shares of TRxADE HEALTH, Inc. (NASDAQ: MEDS) have seen a significant increase on the US charts today. As of the latest weekend session check, MEDS stock had risen by 7.78% to reach $12.61.
Closing of the Business Combination
The formal announcement of the closure of TRxADE’s business combination with Scienture in an all-stock transaction has been made by Scienture, Inc. and TRxADE (MEDS). All of Scienture’s assets, including a combination of common and non-voting convertible preferred stock, were bought by TRxADE in return for shares of TRxADE stock under the terms of this agreement.
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Prospective Name Change and Market Concentration
After the non-voting convertible preferred stock is converted, the business will be called “Scienture Holdings, Inc.” The merged company intends to carry on with Nasdaq trading. The recently established business will focus on launching cutting-edge, branded specialized pharmaceutical items that are intended to greatly raise the bar for patient care and benefit caregivers as well as the healthcare system.
Strategic Orientation and Leadership
Scienture’s current product portfolio is bolstered by a distinguished leadership and management team with extensive multidisciplinary experience in product development, clinical operations, manufacturing, and commercial operations.
The company’s mission is to improve patient outcomes by offering distinctive solutions with cutting-edge concepts for specialist products. Across a range of therapeutic areas, Scienture seeks to change the focus of treatment to be more patient-oriented through a patient-centric approach and a well-crafted development and go-to-market strategy.
Ownership Structure and Equity Distribution
All of Scienture’s existing equity instruments are traded for a combination of TRxADE common stock and non-voting convertible preferred stock under the terms of the Business Combination, which is set up as a stock-for-stock exchange.
Assuming the proposed Business Combination is completed and the non-voting convertible preferred stock is converted in the future, existing Scienture stockholders would own around 82.99% of the equity interests in the merged firm.
Meanwhile, existing TRxADE stockholders are expected to own around 17.01% of the equity interests in the combined entity. Additionally, TRxADE stockholders will retain approximately 83.34% of the voting securities of the combined company until the conversion of the non-voting convertible preferred stock received by Scienture stockholders into TRxADE common stock.
