Vical shareholders agree to merger with Boulder’s Brickell Biotech, deal to close Saturday

SAN DIEGO and BOULDER  — Vical Inc. (Nasdaq: VICL) has won final approval for a reverse stock split merger with dermatology company Brickell Biotech Inc.

In a statement, the San Diego-based producer of gene-based vaccines and drug candidates said its shareholders approved the merger in a special meeting Friday. The deal is expected to close on Saturday, and Vical will rename itself as Brickell Biotech and start trading its consolidated shares on the Nasdaq Capital Market under the ticker BBI.

In a reverse merger, a private company (Brickell in this case) acquires a public company and combines the two entities, bypassing the traditional initial public offering process but potentially causing a selloff in the new stock. Vical consolidated its shares outstanding by a ratio of 1 to 7 before the merger was approved Friday.

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Vical and Brickell Biotech agreed to merge in early June, with Vical stockholders owning 40 percent of the new company and Brickell investors owning 60 percent of the company.

Vical shares fell sharply on the news, dropping 15.8 percent to close trading at 68 cents per share.