Shares of molecular genetics diagnostic company Signal Genetics Inc. (SGNL) have gained more than 60% in the last five trading days.

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Last October, Signal Genetics and privately-held Miragen Therapeutics Inc. agreed to merge to create a clinical-stage, NASDAQ-listed, Biopharmaceutical Company developing proprietary micro RNA-targeted therapeutics.

As part of the agreement, stockholders of Miragen will become holders of approximately 96% of Signal's outstanding common stock on a fully-diluted basis.

The combined company will be named Miragen Therapeutics Inc., and will trade on the NASDAQ Capital Market under ticker symbol "MGEN." The proposed merger is expected to close in the first quarter of 2017.

Miragen has two product candidates in phase I testing - MRG-106 for patients suffering from cutaneous T-cell lymphoma (CTCL) of the mycosis fungoides (MF) sub-type, and MRG-201, an anti-fibrosis product candidate that is being tested in healthy volunteers.

On November 29, 2016, Signal agreed to sell all of its intellectual property assets relating to MyPRS test to Quest Diagnostics Investments LLC for $825,000, plus an additional $100,000 if Quest exercised the option to require Signal to operate Signal's lab beyond December 31, 2016 (but not later than January 14, 2017).

Myeloma Prognostic Risk Signature, or MyPRS, test analyses the activity of genes to predict whether an individual is at high risk or low risk for early relapse. Knowing the risk of relapse helps to predict patient outcome.

A special meeting of Signal Genetics' stockholders to vote on matters related to the proposed merger with Miragen Therapeutics Inc. and the sale of Signal's MyPRS intellectual property assets is to be held at 9:00 a.m., local time, on February 10, 2017.

In order to regain compliance with the minimum bid price requirement of the NASDAQ Capital Market, a 1-for-15 reverse stock split of common stock was implemented by Signal Genetics on November 7, 2016.

SGNL has traded in a range of $0.12 to $17.74 over the last 52 weeks. The stock closed Thursday's trading at $14.50, up 7.65%. In after-hours, the stock gained another 3.38% to $14.99.

by RTT Staff Writer

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