SOUTH PLAINFIELD, NJ--(Marketwired - Dec 8, 2016) - Majesco Entertainment, Inc. (NASDAQ: COOL) ("Majesco"), announced today it had signed a definitive merger agreement with PolarityTE, Inc. ("Polarity") www.polarityte.com. Polarity is an entirely new and radically unique regenerative medicine company committed to developing the first forms of functionally-polarized autologous tissues for use in medical procedures requiring reconstructive applications by surgeons and wound care specialists.
Upon the closing of the transactions, Polarity will become a wholly-owned subsidiary of Majesco. Majesco will issue preferred stock in the transaction which, when converted, would represent approximately 50% of the issued and outstanding common stock of Majesco on a fully diluted basis. In connection with the merger agreement, Majesco also entered into stock purchase agreements for the purchase of 750,000 shares of common stock at a purchase price of $3.00 per share to accredited investors for gross proceeds of $2,250,000.
At signing of the merger agreement, Dr. Denver Lough, was named Chief Executive Officer and Chairman of the Board of Majesco (to be renamed PolarityTE, Inc.) and Dr. Edward Swanson was named Chief Operating Officer and Director. Both Dr. Lough and Dr. Swanson had worked as residents in plastic and reconstructive surgery at the esteemed Johns Hopkins University School of Medicine. In leaving Johns Hopkins careers as plastic surgeons, they hope to be able to impact as many patients as possible by developing and translating the technology of PolarityTE into a clinical reality. The company will be headquartered in Salt Lake City, Utah where the Company is establishing its biomedical R&D facilities and tissue manufacturing center.
"We did not leave our resident careers at Johns Hopkins Hospital to merely change biotech -- we left to change the future of medicine. This opportunity allows us to disrupt the field with our entirely new proprietary technology platform across a wide variety of tissues so that all patients will eventually be offered a pragmatic method of regenerative wound healing and personalized tissue engineering. Our goals are simple: A superior technology, a superior team and a superior network of world leaders in translational medicine to augment the delivery of autologous products for the regeneration of self," said Dr. Lough who continued "We sincerely wish to thank Barry Honig, the Majesco Board of Directors and Dr. Phillip Frost for their confidence in PolarityTE and we promise to not disappoint."
Newly appointed COO, Dr. Edward Swanson, echoed Dr. Lough's statements and added, "PolarityTE will change the landscape of regenerative medicine, beginning with our first target tissue: skin. Prior to the groundbreaking discovery by Dr. Lough, the world had never seen true regeneration of functional skin, including all layers and hair. Skin regeneration of this magnitude is thought of as the holy grail by burn surgeons."
Barry Honig, former CEO of Majesco, said, "We are pleased to announce that we have reached an agreement to merge with PolarityTE. PolarityTE's entirely new concept in tissue engineering will revolutionize the future of regenerative medicine and help address critical unmet medical needs. In addition to their wildly novel technology, what further lead to our excitement in this deal with PolarityTE was their unmatched clinical advisory board, signaling to us the tremendous momentum behind this company and its technology. I have no doubt that PolarityTE will be the name in autologous tissue engineering in the future after meeting with their leadership, seeing their technology, and speaking with members of their clinical advisory board."
The merger, which has been approved by the board of directors of both companies, is subject to certain closing conditions, including NASDAQ approval, approval by stockholders of Majesco, minimum cash balance of Majesco at closing, and other customary closing conditions.