Aytu BioScience, Inc. (NASDAQ: AYTU), a specialty pharmaceutical corporation focusing on the marketing of new drugs targeting critical medical needs, and Neos Therapeutics, Inc. (NASDAQ: NEOS), a commercial pharmaceutical company that develops and manufactures products focused on the central nervous system, recently confirmed that they have entered into a definitive agreement in which Neos would merge with Aytu’s wholly-owned subsidiary in an all-stock deal.

Neos Therapeutics, Inc. (NASDAQ: NEOS) stock price rose 71.72% to reach $0.950 in the pre-marketing session after this report.

The merger will result in each Neos stockholder receiving 0.1088 shares of Aytu’s common stock for each share of Neos common stock held, including a one-for-ten reverse split of Aytu’s common stock on December 8, 2020. News stockholders will own approximately 30% of Aytu’s fully diluted common shares following the transaction. On a fully diluted basis, the all-stock transaction is valued at roughly $44.9 million based on the 10-day volume-weighted average price of Aytu shares for the period ended December 9, 2020.