LOS ANGELES, CA – Oct 6, 2017 –Boustead Securities, LLC client Promet Therapeutics, LLC (OTC: HUWX) (“Promet”), a clinical stage biotechnology company that develops innovative drug products (the “Acquisition”) announced it has closed on an asset purchase agreement and reverse merger with Heatwurx, Inc. (“Heatwurx”). Promet also announced an Option License Agreement with CoNCERT Pharmaceuticals (NASDAQ GM: CNCE) for new drug development and patient treatment.
Boustead Securities, an investment banking firm that executes and advises on IPOs, mergers and acquisitions, capital raises and restructuring assignments, is acting as adviser to the parties in connection with the Acquisition. The parties have raised $2.25 million to support operations and general working capital and will seek to raise a total of at least $8 million in a private equity placement available solely to accredited investors.
Heatwurx intends to change its name to Processa Pharmaceuticals Inc. (formerly Promet) and to apply for an appropriate new trading symbol to reflect the new business focus of developing drug products that are intended to improve the survival and/or quality of life for patients who have a high unmet medical need or who have no alternative treatment. Until changed, the common stock will continue to trade on otcmarkets.com under the "HUWX" symbol.
David Young, Pharm.D., Ph.D., has been appointed CEO and interim CFO of Processa. The existing Promet Executive and Development teams have also joined HUWX. The Processa team includes well-seasoned professionals who have worked closely with Dr. Young at Promet, Questcor, and other companies, and have obtained over 30 FDA approvals.
After closing, as previously reported, the Promet equity holders as a group now beneficially own 90%, and Heatwurx shareholders as a group beneficially own 10%, of the equity of the now-combined Company.
“Boustead is pleased to be advising Processa Pharmaceuticals during its successful transformation into a public life sciences company with its important mission of saving lives and improving quality of life for those with unmet medical needs,” said Keith Moore, Boustead CEO. “We are especially excited to be working alongside Dr. David Young and his accomplished management team and board of directors; as their collective track record of success and professional reputations are second to none in the biopharma sector. Boustead looks forward to being a partner to Processa in the years to come as it continues its exciting journey forward.”
Dr. David Young added, “In our continued efforts to develop treatments for patients with high unmet medical needs, the closure of our agreement with Heatwurx is the first big event of many to come. We have put together an established team, experienced in adding value to companies as they develop the drugs to help patients who have no treatment options, patients who need better treatment options, and/or patients that are not of interest to or discussed by the general public.”
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