Threshold Pharmaceuticals and Molecular Templates Will Merge with Counsel from Pillsbury

Having already received board approval, the deal is expected to close in the second quarter of this year after stockholder and other conditions are satisfied. Current Molecular Templates shareholders are expected to retain 65.6 percent of the combined company while Threshold shareholders will hold the remaining 34.4 percent. A $2 million bridge loan from Threshold to Molecular Templates will happen at the same time the merger agreement is executed, with up to $2 million more available if the deal does not close in the next two months.

Biotechnical and medical technology venture capital firm Longitude Capital has agreed to invest $20 million if certain conditions are satisfied when the deal closes. According to Daily Journal, Molecular Templates also has preclinical programs that have received $15.2 million in funding commitments from The Cancer Prevention and Research Institute of Texas.

Molecular Templates is privately held biopharmaceutical firm that focuses on the discovery and development of immunotoxins for the treatment of cancers and other serious diseases, especially varieties of lymphoma and leukemia. Complementing that, Threshold develops new clinical-stage therapies that target and treat cancer.

The Pillsbury team advising Molecular Templates includes Austin Mergers & Acquisitions partner Steve Tyndall; Northern Virginia Executive Compensation & Benefits partner Howard Clemons; San Diego Mergers & Acquisitions partners Mike Hird and Patty DeGaetano; Washington, DC Litigation partner Michael Sibarium and senior counsel Chuca Meyer; and San Diego Technology & Media associate Dusty Wolverton.