NEW YORK (GenomeWeb) – CollabRx and Medytox Solutions today said that they have entered into a non-binding letter of intent to negotiate a merger between the firms.
In addition, Medytox is providing CollabRx with a loan so the San Francisco-based bioinformatics firm can continue to operate while the firms negotiate a potential deal.
The merger would unite CollabRx's cloud-based clinical decision support products, which are focused on genomics-based, precision medicine for cancer patients, with Medytox's variety of services for healthcare providers. Among the Palm Beach, Fla.-based firm's offerings are clinical lab services, electronic health records, lab information systems, and medical billing services.
The firms recently entered into a loan and security agreement, under which Medytox has agreed to provide CollabRx with up to approximately $2.4 million as the firms consider a merger. Thus far, CollabRx has borrowed $135,476 under the loan agreement. In addition, if CollabRx enters into a merger or other sales of its shares or assets with another party it would be obligated to pay Medytox a $1 million fee, the firms said in a statement.
CollabRx received a letter from Nasdaq earlier this week warning that the firm may be delisted from the exchange due to its falling short of an exchange rule that it maintain a minimum of $2.5 million in stockholders' equity.
CollabRx's shares were up around 7 percent at $.74 in early Thursday afternoon trade on the Nasdaq. Medytox shares were unchanged at $7.00 on the OTC Bulletin Board.