NeoPharm Inc announces merger with Insys Therapeutics Inc.

NeoPharm Inc has announced it has entered into a merger agreement with Insys Therapeutics Inc (Insys). Under the terms of the merger agreement, NeoPharm will issue about 19.5 M shares of common stock and 14.9 M shares of a newly-created convertible preferred stock to the stockholders of Insys, and a newly-formed subsidiary of NeoPharm will merge into Insys, with Insys surviving as a wholly-owned subsidiary of NeoPharm. Each share of the new convertible preferred stock of NeoPharm will be convertible into 35 shares of NeoPharm common stock and, until converted, will be entitled to the voting, dividend and liquidation rights of the same number of shares of common stock into which it is …