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CytoBioScience Raises $1.5M for “Intended Merger,” Document Says

Xconomy Texas — 

San Antonio — [Updated 3/23/18, 4:58 p.m. See below.] CytoBioScience, a bioscience company that canceled plans to merge with a publicly traded business last year, made new merger plans this week, which the company revealed publicly Friday.

Fort Collins, CO-based WestMountain Co. merged into CytoBioscience on March 19, according to a document filed with the SEC March 23. WestMountain is a marketing, media relations, and investor relations consultant for public and private companies, according to its SEC documents. The company is traded on the over-the-counter public markets under the ticker “WASM.” [Updated to note CytoBioScience merged with WestMountain.]

San Antonio-based CytoBioScience business raised a $1.53 million equity round of funding, according to a document filed March 19 with the SEC, which states that the funds are being raised in connection with an intended merger. CytoBioScience didn’t responded to requests for comment on March 19, when Xconomy first reported a potential merger. CEO Jim Garvin confirmed the news to the San Antonio Business Journal March 23, which first reported WestMountain’s involvement.

Founded in Germany, CytoBioScience moved to San Antonio in 2015. It sells a device, the CytoPatch, for screening the safety and efficacy of drug formulations. The base CytoPatch unit sells for $175,000, and CytoBioScience also sells accessories, including microchips, buffers, solutions, cells, and specific types of shipping containers, to researchers on a recurring basis,  Garvin told Xconomy last year.

CytoBioScience announced plans to merge with Eagan, MN-based Precision Therapeutics (NASDAQ: AIPT) in August of last year but called off the merger in November, in favor of launching a joint venture focused on personalized research services. Precision, previously known as Skyline Medical, simultaneously announced a second joint venture with another precision diagnostic contract research organization, Pittsburgh-based Helomics.

The name change to Precision in January was related to the company’s interest in focusing its work on precision medicine and drug discovery—seemingly in line with its two joint ventures. Garvin said in a news release in November that the Helomics products will complement CytoBioScience’s work with Skyline, but didn’t provide additional details about how or why.

Precision has acquired a 25 percent stake in Helomics and hasn’t disclosed whether it owns any of CytoBioScience. Precision said it plans to continue selling its flagship product, which automatically collects and disposes of potentially hazardous bodily fluids produced during and after surgery.