EDMONTON, AB, May 30, 2024
/CNW/ - Quest PharmaTech Inc. (TSXV: QPT) ("Quest" or the
"Company") a Canadian based pharmaceutical company developing
products to improve the quality of life through investee companies
and proprietary technologies, announced today that it has restated
and refiled its January 31, 2023
annual audited financial statements and its interim unaudited
financial statements for the three months ended April 30, 2023, six months ended July 31, 2023 and nine months ended October 31, 2023 each with relevant comparative
periods, and the related management's discussion and analysis for
those periods. The restated financial statements and related
MD&A have been filed on SEDAR+ (www.sedarplus.ca) which are
available for viewing and download under the Company's SEDAR+
profile and at the Company's website.
The Company had determined that its interpretation of accounting
standards relating to the methodology used to determine the fair
value of its investment in bonds of OQP Bio Inc. ("OQP Bio") in the
originally filed financial statements was incorrect and not in
compliance with International Financial Reporting Standards
(IFRS).The Company selected a different valuation methodology for
its estimate of fair value for the OQP Bio bonds at January 31, 2023 and retained an independent
valuator to prepare a valuation of the fair value of the OQP Bio
bonds as at January 31, 2023. The
independent valuation arrived at an estimated fair value on
January 31, 2023, significantly lower
than the fair value reported in the original financial statements,
and as a result the carrying value of the OQP Bio bonds has been
written down and an impairment charge taken for such estimated
reduction in value. The Company determined that the impact was
material to its previously issued financial statements and as such,
required a restatement of the financial statements. This is a
technical accounting matter and a non-cash item and does not impact
the Company's operations or cash position.
In the original financial statements, the OQP Bio bonds were
fair valued based on the underlying fair value of cash and
publicly-traded shares contemplated to be received in exchange for
the bonds under an agreement in principle with OQP Bio. No
definitive binding agreement has been entered into to date for the
exchange of the OQP Bio bonds and there can be no assurance that
one will ever be entered into. In the restated financial
statements, the OQP Bio bonds are fair valued based on the value of
the bonds on January 31, 2023, as
supported by an independent third-party valuation using customary
valuation methods for valuations of this nature.
Based on the valuation prepared by the valuator, the OQP Bio
bonds were estimated to have a fair value of $18,832,271 at January 31,
2023 versus $76,388,109 as
originally reported in the 2023 annual financial statements.
Quest continues to hold the OQP Bio bonds that were received as
an in-kind dividend from investee company OncoQuest Inc. in
January 2022 and continues to engage
in discussions with OQP Bio and its parent company, Canaria Bio M
Co. Ltd. ("CABM"), for the exchange and monetization of the bonds.
There can be no assurance that the parties will be able to reach an
agreement or enter into a definitive agreement for any such
transaction.
Quest is also pleased to announce the appointment of Mr.
Bradley J. Glass to the Board of
Directors, subject to regulatory approval. Mr. Glass has
served as the General Counsel of Hepalink USA, Inc. and its subsidiaries ("Hepalink")
for the past two years. In that role, Mr. Glass is responsible
for managing all of Hepalink's U.S. legal issues, including matters
involving contracts, employment, intellectual property, litigation,
tax, insurance, regulatory compliance, and permitting. Prior
to joining Hepalink, Mr. Glass was in private law practice for over
twenty years and advised, counseled, and represented clients all
over the United States on a broad
range of matters. Mr. Glass has represented and litigated
numerous matters in federal, state, and local courts and
administrative tribunals on a wide range of sophisticated
regulatory and business matters.
The Company has also filed its audited annual financial
statements for the year ending January 31,
2024 and related MD&A on SEDAR+ (www.sedarplus.ca) which
are available for viewing and download under the Company's SEDAR+
profile.
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 42.5% ownership
interest in OncoQuest Inc. which sold its immunotherapy technology
assets to Korea-based Dual Industrial Co, Ltd. in April 2020. Quest also has a 23% ownership
interest in OncoVent, a Chinese joint venture developing
antibody-based immunotherapeutic products for cancer for the
Greater China territory. Quest is
also developing proprietary MAb AR 9.6 targeting truncated MUC16 as
theranostic agents for cancer. AR 9.6 was licensed from
University of Nebraska and currently is
in late preclinical stage. To learn more, visit
www.questpharmatech.com.
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.