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Merger & Acquisition
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
Merger & Acquisition

9. Merger & Acquisition

Pending Acquisition of Aravive Biologics, Inc.

On June 3, 2018, we entered into an Agreement and Plan of Merger and Reorganization, or the Agreement, by and among Versartis, Inc., a Delaware corporation (“Parent”), Velo Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”), and Aravive Biologics, Inc., a Delaware corporation (the “Company”). Under the Agreement, Aravive will merge with a wholly owned subsidiary of Versartis in an all-stock transaction. The transaction will result in a clinical stage, Nasdaq-listed company, based in Houston, Texas, focused on the development of innovative oncology therapeutics.

The Agreement contains certain termination rights for us and Aravive, and further provides that, upon termination of the Agreement under certain specified circumstances, Versartis or Aravie would be obligated to pay Aravive or Versartis a termination fee of $2.5 million.

Following the proposed merger, Versartis and Aravive equity holders are each expected to own approximately 50 percent of the combined company. The transaction has been unanimously approved by the boards of directors of both companies. The transaction is expected to close during the second half of 2018, subject to approval by the stockholders of both companies and the satisfaction or waiver of other customary closing conditions.