NEW YORK — Theralink Technologies said Tuesday that it has entered into an agreement to merge with a newly formed wholly owned subsidiary of healthcare provider IMAC Holdings.
Following the planned stock-for-stock reverse merger, Golden, Colorado-based Theralink will become a wholly owned subsidiary of IMAC focused on proteomic testing for guiding cancer therapy and drug development.
Theralink's lead product is its Test for Advanced Breast Cancer, which measures the abundance and activation of 32 protein markers to help oncologists select patient treatments. The company is also working on a pan-tumor test for solid tumor types including ovarian, endometrial, head and neck, pancreatic, colorectal, lung, and prostate.
Theralink shareholders will own roughly 85 percent of the combined company post-merger, while IMAC equity holders will own roughly 15 percent. All current IMAC directors but one will resign following the merger, and Theralink's existing directors will be appointed to IMAC's board, with Jeffrey Busch serving as chairman.
"It is anticipated that the potential merger and listing will allow the company broader access to capital, which will be invested in our business to accelerate market access and reimbursement initiatives for our clinical patient testing, expand our product offering portfolio and research initiatives, and increase our laboratory throughput," Theralink CEO Mick Ruxin said in a statement.
The boards of directors of both firms have unanimously approved the merger, which is expected to close in the late third quarter or early fourth quarter of 2023.