EDMONTON, AB, March 26, 2021 /CNW/ - Quest PharmaTech Inc.
(TSXV: QPT) ("Quest") wishes to provide a further update regarding
the final payment to be made pursuant to the Immunotherapy Asset
Transfer between 45% owned OncoQuest Inc. ("OncoQuest") and
OncoQuest Pharmaceuticals, Inc. (formerly Dual Industrial Co.,
Ltd.) (KOSDAQ: 078590 or 078590.KQ) ("OQP"). A second closing of
the transaction has now occurred at which time all legal title and
registrations for OncoQuest's immunotherapy assets were transferred
to OQP. Under the terms of the transaction, the second
closing entitled OncoQuest to receive the final payment of
65,229,709 shares of OQP with an ascribed value in the transaction
of USD$175 million, subject to all
required regulatory approvals. Although OncoQuest and OQP
management continue to work diligently, Korean regulatory approval
for the share payment has been further delayed and still has not
been received. The delay relates to the audited financial
statements for its most recently completed financial year. This
delay has also resulted in trading in the shares of OQP on the
KOSDAQ Exchange being halted effective March
24, 2021. It remains uncertain at this time as to whether
regulatory approval will ultimately be received or the timing of
any such approval.
Pending regulatory approval for the final share payment,
OncoQuest has received a 1% interest-bearing unsecured OQP
corporate bond with a face value of USD$175
million which is due on February 24,
2022 and can be extended annually for up to five years.
OncoQuest and OQP have agreed that the corporate bond will be
replaced with the OQP shares if and when the shares are approved by
regulatory authorities to be issued to OncoQuest. On April 20, 2020, OncoQuest received 30-year
noninterest bearing perpetual bonds of OQP with an ascribed value
of USD$125 million and convertible
into OQP shares at OncoQuest's option.
OQP and OncoQuest continue to focus on the execution of the
Phase 3 clinical trial for oregovomab which has already received
regulatory approval to proceed in the US, Canada, Taiwan, Spain, the Czech
Republic, Hungary and
Argentina, with 9 other countries
pending. Currently, there are 28 clinical sites in the US and
Canada that have started patient
enrollment for the study. For more information, please go to
clintrials.gov (NCT04498117, FLORA-5).
"Although I am disappointed with the delays in getting the OQP
shares and monetizing the consideration received in this
transaction, I am pleased to note that our clinical program remains
on track and continues to add shareholder value", commented Dr.
Madiyalakan, CEO of Quest and OncoQuest and Chairman of OQP. "We
will work with OQP management to resolve these issues as quickly as
possible".
Shareholders are cautioned that OncoQuest's ability to monetize
the consideration received in the transaction with OQP will be
dependent upon OQP's ability to fund the repayment of any bonds
that become due or that could be redeemed (USD$62.5 million of the perpetual bonds have a
put option) and a liquid trading market being available for any
shares of OQP that are received as consideration or issued upon the
conversion of perpetual bonds held. Monetization of some of the
consideration will be necessary for OncoQuest to fund Canadian
income tax obligations resulting from the transaction.
About OncoQuest Pharmaceuticals, Inc. (078590.KQ)
OncoQuest Pharmaceuticals, Inc. is a Korean biopharmaceutical
company focused on the development and commercialization of
immunotherapies for cancer. OncoQuest Pharmaceuticals' technology
platform includes a portfolio of tumor antigen specific monoclonal
antibodies targeting CA-125, MUC1, PSA and Her2/neu. This
technology platform was acquired on April
20, 2020 from OncoQuest Inc., a private Canadian
biotechnology company, 45% of which is owned by Quest PharmaTech
Inc., a publicly traded company on the TSX Venture Exchange (TSX
-V: QPT). OQP is exploring the therapeutic potential of these
antibodies as indirect immunizers in combination with other immune
modulating drugs or drug combinations to address unmet medical
needs in oncology. Its lead product for the treatment of ovarian
cancer, oregovomab, is being tested in a Phase III double blinded,
placebo controlled multi-national clinical study (NCT04498117,
FLORA-5).
About Quest PharmaTech Inc.
Quest PharmaTech Inc is a publicly traded, Canadian based
biopharmaceutical company (QPT: TSX-V) developing products to
improve the quality of life. The company has a 45% ownership
interest in OncoQuest Inc. which sold its immunotherapy technology
assets to OncoQuest Pharmaceuticals on April
20, 2020. Once the sale is finalized, shares of OQP are
intended to be distributed to OncoQuest shareholders which would
provide Quest with a direct ownership interest in OncoQuest
Pharmaceuticals. Quest also has a 24% ownership interest in
OncoVent, a Chinese joint venture developing antibody-based
immunotherapeutic products for cancer for the Greater China territory. Quest further has a
20% ownership interest in Bioceltran which is focused on SP
Technology™ for transdermal delivery of drugs and photosensitizers
for pharmaceutical and cosmetic purposes. In addition, Quest is
developing a mutant EGF technology licensed from Stanford University for chronic wound healing
applications, and an antibody (AR 9.6) against truncated O-glycans
on MUC16, licensed from University of
Nebraska, for targeted solid tumour therapy
applications. To learn more, visit
www.questpharmatech.com
Forward Looking Statements
This press release
includes forward-looking statements including the receipt of the
final payment of shares of OQP and the distribution of such shares
to OncoQuest shareholders. In some cases, forward-looking
statements can be identified by terminology such as "may,"
"should," "potential," "continue," "expects," "anticipates,"
"intends," "plans," "believes," "estimates," and similar
expressions. These statements are based on management's
expectations and assumptions as of the date of this press release
and are subject to a number of risks and uncertainties, many of
which are difficult to predict that could cause actual results to
differ materially from current expectations and assumptions from
those set forth or implied by any forward-looking statements,
including the uncertainty and timing of Korean regulatory approvals
for the issuance of the final payment shares of OQP to
OncoQuest. The information in this release is provided only as
of the date of this release and the company undertakes no
obligation to update any forward-looking statements contained in
this release based on new information, future events, or otherwise,
except as required by law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Quest PharmaTech Inc.