Cornerstone BioPharma Completes Merger with Critical Therapeutics

Posted on November 3, 2008
Filed Under Cary, Technology |

Cornerstone BioPharma Holdings, Inc., a specialty pharmaceutical company in Cary focused on developing and commercializing prescription medications for respiratory disorders, today announced the completion of its previously announced merger with Critical Therapeutics, Inc., a biopharmaceutical company focused on developing and commercializing innovative products for respiratory and inflammatory diseases. The combined company has been renamed Cornerstone Therapeutics Inc. and will continue to trade on The NASDAQ Capital Market under the ticker symbol “CRTX”.

Under the terms of the merger, which is a stock-for-stock merger intended to qualify as a tax-free reorganization, all outstanding shares of Cornerstone BioPharma’s common stock were converted into and exchanged for the right to receive shares of Critical Therapeutics’ common stock, and all outstanding Cornerstone BioPharma options and warrants were assumed by Critical Therapeutics and became options and warrants to acquire Critical Therapeutics’ common stock.

Immediately prior to the consummation of the merger, Critical Therapeutics effected a 10-to-1 reverse stock split of its common stock. As a result of the reverse stock split and the merger, Cornerstone BioPharma’s and Critical Therapeutics’ stockholders now own approximately 70 and 30 percent of the combined company’s common stock, respectively, after giving effect to shares issuable under outstanding Cornerstone BioPharma options and warrants, but excluding shares issuable under outstanding Critical Therapeutics options and warrants.