“While the announced merger agreement with Soluble Systems represented an opportunity to combine two strong regenerative technology companies, we were unable to secure the requisite financing to meet the closing conditions of the merger agreement,” said David Johnson, CEO of Alliqua BioMedical. “While we are disappointed that the public equity market conditions were not supportive of this merger, we continue to believe the strategic rationale was compelling.”
“Despite this announcement, Alliqua’s management team and Board of Directors remain committed to enhancing shareholder value. We have a portfolio of outstanding assets in the regenerative space, a dedicated organization, and a business that continues to grow well above market rates," Johnson continued. "We remain focused on driving continued execution of the company’s strategic growth initiatives in building a leading regenerative technologies company.”
The merger agreement was contingent upon Alliqua securing debt or equity financing, or a combination thereof, that results in gross proceeds of at least $45 million, inclusive of any current indebtedness of Soluble or Alliqua that is assumed, restructured or refinanced by the combined company.
Alliqua is a regenerative technologies company committed to restoring tissue. Through its sales and distribution network, together with its proprietary products, Alliqua offers solutions that allow clinicians to utilize the latest advances in regenerative technologies to improve patient outcomes.
Alliqua currently markets the human biologic regenerative technologies, Biovance and Interfyl. The company also markets its Mist Therapy System, which uses painless, noncontact low-frequency ultrasound to stimulate cells below the wound bed to promote the healing process. In addition to these technologies, Alliqua markets its line of dressings for wound care under the SilverSeal and Hydress brands, as well as its TheraBond 3D advanced dressing which incorporates the TheraBond 3D Antimicrobial Barrier Systems technology.
In addition, Alliqua provides a custom manufacturing solution to partners in the medical device and cosmetics industry, utilizing its hydrogel technology. The company has locations in Yardley, Pa.; Langhorne, Pa.; and Eden Prairie, Minn.