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Venaxis, Strand Terminate Merger Plans

NEW YORK (GenomeWeb) – Diagnostics developer Venaxis and privately held genomics company Strand Life Sciences announced today that they are terminating their proposed merger.

The companies noted that they determined they could not complete the terms of their deal in a timely enough manner and that the uncertainty was negatively affecting their respective plans.

The companies announced their intent to join together in January, as part of a strategy Venaxis started in early 2015 to look for a partner to develop and commercialize its appendicitis test portfolio. The terms of the deal were such that once it closed, Strand's shareholders would own approximately 68 percent of the combined company, and Venaxis shareholders would own the remaining 32 percent.

The deal was structured in two parts: First, Venaxis would purchase Strand's shares from its shareholders, and then Strand's shareholders were to immediately re-invest those proceeds into Venaxis common stock.

"Venaxis is evaluating the alternatives available to it in light of the termination of the master agreement and other transaction agreements, and expects to provide an update to its investors as soon as possible," said CEO Steve Lundy in a statement.

Venaxis' shares fell nearly 6 percent to $.21 in after-hours trading on the Nasdaq.