Wick & Trautwein, LLC
Call Today
Local
970-237-5694
Toll Free
866-686-1410
Broad Based Experienced Legal Help Since 1972

Creative Solutions, Exceptional Results

The law firm of Wick & Trautwein, LLC, has a long history of partnerships with the people and businesses of northern Colorado and southern Wyoming

Colorado company might offer door to public market

Last week we discussed the topic of IPOs, or initial public offerings, and when and why a company might decide to go public. Economic factors and a company's perceived strengths or weaknesses can both impact whether a business can run a successful IPO, so it's not surprising in periods where markets struggle that companies might seek different paths to going public. One Colorado biotech firm could offer that path for another company.

Nivalis Therapeutics currently trades on the NASDAQ as NVLS, but it's reportedly floundering after trials of its primary compound failed to show promising results. The company still has another trial up it's sleeve, but if things don't turn round, it could be seeking an acquisition, merger or sale.

Nivalis isn't in terrible financial shape. It reported $50 million in marketable securities and $16 million cash on hand as of September 2016, making it a tempting addition for any entity looking to go public.

Aside from assets and capital, why would another company want Nivalis? Simply put, the value of an existing tie to the public markets can be steep. Another pharmaceutical company could merge with Nivalis, keeping the name and tie to NASDAQ, but bringing on board proprietary compounds and processes that could perform better in clinical trials and have a better chance of making it to market.

This is known as a reverse merger. A smaller or newer company buys into -- or buys out -- an established but floundering company for the brand recognition or IPO shortcut. If you're considering this move from either side of the equation, make sure you protect your business legally. Work with a business law professional to vet any agreement before money and signatures change hands.

Source: Denver Business Journal, "Colorado biotech to streamline operations, explore alternatives after clinical trial failure," Greg Avery, Jan. 03, 2017

No Comments

Leave a comment
Comment Information
Watch More Videos

We Take Your
Emails Seriously

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Wick & Trautwein, LLC BBB Business Review
FindLaw Network
Firm Locations
Wick & Trautwein, LLC
323 South College Avenue #3
Fort Collins, CO 80524

Phone: 970-237-5694
Toll Free: 866-686-1410
Fax: 970-482-8929
Fort Collins Law Office Map
Wick & Trautwein, LLC
513 Big Thompson Ave
Estes Park, CO 80517

Located in Lower Stanley Village
Phone: 970-586-3505
Fax: 970-586-3269
Estes Park Law Office Map

Windsor Office
(by appointment only)
421 Main Street
Windsor, CO 80535
Toll Free: 866-686-1410
Map and Directions