By Kelly Cloonan
ClearOne plans to merge with Vivani Medical's brain implant device subsidiary Cortigent.
Under the deal, Vivani would receive 12.5 million shares of ClearOne common stock as consideration for all of the issued and outstanding shares of Cortigent, giving it a stake in the combined company of about 59% to 68%, ClearOne said Thursday.
Former shareholders of ClearOne, meanwhile, would own 13% to 14% of the outstanding equity in the combined company.
With the close of the deal, Cortigent would become a wholly owned subsidiary of ClearOne, and the combined company would be majority-owned by Vivani. It would operate independently under the oversight of a reconstituted board of directors, and is expected to trade on the Nasdaq under the ticker symbol "CRGT."
ClearOne said it plans to raise a minimum of $10 million and a maximum of $15 million to bolster the combined company's finances to move its pipeline forward.
Cortigent is developing brain-implant devices to help patients recover critical body functions like sight and motor function.
The transaction has been unanimously approved by the boards of directors of both Vivani and ClearOne. It is expected to close in the third quarter.
Write to Kelly Cloonan at kelly.cloonan@wsj.com