Adamis Pharmaceuticals Corporation (NASDAQ: ADMP) experienced a significant drop of 17.20% in its share price after revealing the completion of its merger with DMK Pharmaceuticals. The newly formed company aims to enhance sales of Adamis’ existing commercial products while advancing DMK’s leading clinical-stage compound, DPI-125, as a potential breakthrough treatment for opioid use disorder (OUD).
In preparation for the merger, Adamis underwent a 1-for-70 reverse stock split on May 22, 2023, impacting all issued and outstanding shares of common stock. This action resulted in proportional adjustments to outstanding options, restricted stock unit awards, and warrants based on their respective terms. As part of the merger agreement, Adamis issued common stock and Series E Convertible Preferred Stock to former DMK shareholders.
Following the merger’s completion and accounting for the reverse stock split, Adamis currently has approximately 2,662,632 outstanding shares of common stock, excluding options, restricted stock units (RSUs), warrants, and convertible securities.
Dr. Versi, a key figure in the merger, assumed the position of CEO and Chairman of the Board, succeeding David J. Marguglio, who previously served as Chief Executive Officer of Adamis. Marguglio will now take on the role of President and Chief Operating Officer in the combined company.
In addition to the executive changes, the Board of the combined company has undergone transformations. Dr. Versi and DMK board member Jannine Versi have been appointed as new members, joining existing Adamis directors Howard C. Birndorf, Meera J. Desai, Ph.D., and Vickie Reed. Richard C. Williams, the Chairman of Adamis, and Mr. Marguglio resigned from their prior director roles in connection with the merger.