NEW YORK (GenomeWeb News) – Tegal today said that it has completed its purchase of genomics data analysis firm CollabRx for an undisclosed amount.
According to terms of the deal, which was announced earlier this month, Tegal is issuing 236,433 shares of common stock, or 14 percent of the total shares outstanding prior to the closing of the purchase, to former CollabRx shareholders in exchange for all of CollabRx's capital stock. Tegal and certain former CollabRx shareholders have also entered into a stockholders agreement that provides for registration rights, transfer restrictions, and voting and standstill agreements, or contracts that prevent hostile takeovers.
Tegal also assumed $500,000 of CollabRx's debt by issuing five-year promissory notes in substitution of outstanding notes previously issued by CollabRx.
Thomas Mika, CEO of Tegal, and James Karis, CEO of CollabRx, will serve as co-CEOs of the newly combined company, which will be headquartered in San Francisco. Karis was appointed to Tegal's board.
The new firm will operate under the Tegal name and its shares will continue trading on Nasdaq under its current ticker symbol "TGAL". At the annual shareholder meeting in September it plans to seek shareholder approval to change its name to CollabRx.
Tegal develops new and emerging technologies with a current focus on technologies in the medical device and healthcare segments. CollabRx offers cloud-based systems to inform healthcare decision-making using genomics-based medicine.