Antibe Therapeutics Announces Strategic Sale of Citagenix Subsidiary
02 May 2022 - 9:00PM
Business Wire
- $6.5 million all-cash transaction,
including milestone payments
- Enables exclusive focus on drug
pipeline
Antibe Therapeutics Inc. (TSX: ATE, OTCQX: ATBPF), a clinical
stage company leveraging its hydrogen sulfide platform to develop
next-generation safer therapies that target inflammation, is
pleased to announce the signing of a binding agreement to sell its
Citagenix Inc. subsidiary to HANSAmed Limited (“HANSAmed”), a
leading Canadian full-service distributor of pharmaceuticals and
medical devices to dental professionals.
“We are pleased with this result on several fronts,” commented
Dan Legault, Antibe’s CEO. “Upon concluding that Citagenix was no
longer a fit with our strategy, we began a process of evaluating
strategic alternatives to unlock value for our shareholders. With
today’s deal, Antibe will become a pure-play drug developer with a
sharpened focus on advancing our pipeline of novel
anti-inflammatory therapies. As an all-cash transaction, it
provides non-dilutive funds for those programs, and fortifies our
already strong balance sheet. We’re also delighted to have found
the perfect home for Citagenix while enabling HANSAmed to solidify
their market leadership.”
The $6.5 million transaction involves a guaranteed $3.5 million,
divided into four equal payments over three years, the first of
which will be received at closing. The remaining $3 million is
subject to Citagenix achieving sales milestones over the three-year
period following closing.
The transaction will close no later than 180 days following the
signing of this binding agreement. Under the terms of the
agreement, Antibe will also receive a $250,000 deposit from
HANSAmed to be held in escrow and released at closing.
About Antibe Therapeutics Inc. Antibe is a clinical stage
biotechnology company leveraging its proprietary hydrogen sulfide
platform to develop next-generation safer therapies that target
inflammation arising from a wide range of medical conditions. The
company’s current pipeline includes assets that seek to overcome
the gastrointestinal (“GI”) ulcers and bleeding associated with
nonsteroidal anti-inflammatory drugs (“NSAIDs”). Antibe’s lead
drug, otenaproxesul, is in clinical development as a safer
alternative to opioids and today’s NSAIDs for post-operative pain.
Antibe’s second pipeline drug, ATB-352, is being developed for a
specialized acute pain indication. The company’s anticipated next
target is inflammatory bowel disease (“IBD”), a condition long in
need of safer, more effective therapies. Learn more at
antibethera.com.
Forward Looking Information This news release includes
certain forward-looking statements under applicable securities
laws, which may include, but are not limited to, Antibe’s drug
development activities, including the timing, duration and
completion of certain of Antibe’s clinical trial programs and
studies and the anticipated timing for seeking market approval for
certain of Antibe’s drugs and therapies for certain additional
indications, and to the timing of and the consideration to be
received from the proposed sale of Citagenix. Any statements
contained herein that are not statements of historical facts may be
deemed to be forward-looking, including those identified by the
expressions “will”, “anticipate”, “believe”, “plan”, “estimate”,
“expect”, “intend”, “propose” and similar wording. Forward-looking
statements involve known and unknown risks and uncertainties that
could cause actual results, performance, or achievements to differ
materially from those expressed or implied in this news release.
Factors that could cause actual results to differ materially from
those anticipated in this news release include, but are not limited
to, Antibe's inability to timely execute on its business strategy
and timely and successfully compete its clinical trials and
studies, Antibe’s inability to obtain the necessary regulatory
approvals related to its activities, risks associated with drug and
medical device development generally, and, in respect of the
proposed Citagenix sale, the risk that conditions precedent to the
transaction being completed will not be fulfilled within the
allotted timeframe, or at all, and risks that Citagenix will not
achieve the milestones required for Antibe to receive full payment,
and those risk factors set forth in Antibe’s public filings made in
Canada and available on www.sedar.com. Antibe assumes no obligation
to update the forward-looking statements or to update the reasons
why actual results could differ from those reflected in the
forward-looking statements except as required by applicable
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220502005311/en/
Antibe Therapeutics Inc. Christina Cameron VP Investor Relations
+1 416-577-1443 christina@antibethera.com
Antibe Therapeutics (TSX:ATE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Antibe Therapeutics (TSX:ATE)
Historical Stock Chart
From Apr 2023 to Apr 2024