On December 14, 2023, Aeterna Zentaris Inc. and Ceapro Inc. announced a definitive agreement for an all-stock merger of equals, aiming to close in Q1 2024. The combined entity will be listed on both the Nasdaq and TSX. Shareholders of each company will own 50% of the new company, benefiting from diversified revenue streams and a robust product pipeline in both cosmeceuticals and pharmaceuticals.

The merger, intended to create a sustainable business, promises recurring revenues from Ceapro’s existing products and licensing of Aeterna’s pharmaceutical assets, including Macrilen®/Ghryvelin®. The dual listing is expected to enhance trading volume and market profile.

Legal and financial advisors played crucial roles: Raymond James Ltd. and Norton Rose Fulbright advised Aeterna, while Bloom Burton Securities Inc. and Blake, Cassels & Graydon LLP advised Ceapro. Both boards unanimously recommended the merger, emphasizing strategic fit and growth potential.

Operational synergies will be realized through combined R&D capabilities, with Gilles Gagnon (Ceapro CEO) and Giuliano La Fratta (Aeterna CFO) leading the new management team. Shareholders will vote on the merger in early 2024, with approvals required from regulatory bodies and stock exchanges. The merged company aims to capitalize on enhanced marketability and reduced volatility through a potential share consolidation to meet Nasdaq’s standards.