Boulder, CO-based MiRagen Therapeutics has found its way into the public markets, reverse merging with struggling Signal Genetics and gaining a $40 million round to finance its next stage of development.
The microRNA biotech had completed another $40 million crossover round last fall, just as the market was shriveling for high-risk biotech plays. Its new syndicate includes Fidelity Management and Research Company, Brace Pharma Capital, Atlas Venture, Boulder Ventures, JAFCO Co., Ltd., MP Healthcare Venture Management, MRL Ventures (Merck), Remeditex Ventures, and others.
Signal Genetics, a molecular diagnostics company, had fallen deep into penny stock territory when it began looking for a way out of its bind. For shareholders, the reverse merger leaves them with 4% of the combined company’s stock.
MiRagen will control all of the board seats and takes all the executive positions, essentially extinguishing the diagnostics company. Its shares will trade as $MGEN.
CEO William Marshall says the new cash “will allow us to advance our lead assets in hematological malignancy and pathological fibrosis into later stage clinical evaluation.”
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