Kalytera Announces Second Payments Agreement with The Salzman Group of Israel
June 15 2018 - 2:55PM
Kalytera Therapeutics, Inc. (TSX VENTURE:KALY) (OTCQB:KALTF) (the
"
Company" or "
Kalytera") today
announced that it has entered into an agreement reached with The
Salzman Group of Israel (the “Agreement”) under which Kalytera, at
its option, may pay invoices for certain services provided to the
Company by The Salzman Group in common shares of the Company
(“Common Shares”). This agreement is in addition to the Services
Agreement entered into with The Salzman Group in December 2017,
which also allows Kalytera to pay invoices for certain services in
Common Shares.
Under various agreements and work orders, The
Salzman Group is providing clinical study management services and
other services to the Company. These services include, among other
things, general and administrative support services, study set-up
work for planned studies in connection with use of cannabidiol
(“CBD”) in treatment of graft versus host disease (“GVHD”), design
and management of a planned Phase 3 pivotal registration study in
treatment of GVHD, and research and development work in connection
with Kalytera’s exclusive license of cannabidiol-naproxen
conjugates for treatment of pain. Under the Agreement, which
remains subject to TSX Venture Exchange approval, Kalytera will
have the option to make payment of invoices for these services in
either cash or Common Shares, in accordance with applicable
securities laws and TSXV policies. The Agreement has a six
month term, and allows Kalytera to pay for services in shares in an
amount of up to approximately US$3,400,000 during that time period
if it elects to do so, in addition to the shares to be issued in
repayment of debts owning to The Salzman Group and its affiliates
as described below. If Kalytera chooses to pay any such invoices
through the issuance of Common Shares, the number of Common Shares
that will be issued will be based on a
ten percent (10%) discount from the
closing price of Kalytera’s Common
Shares on the TSXV on the trading day prior to the
day that Kalytera gives notice to The Salzman Group that it intends
to pay the invoice in Common Shares. The Salzman Group will
establish an irrevocable selling agreement with its broker to
sell such shares on each of the five trading days following deposit
of such shares in its brokerage account.
In connection with the Agreement, the Company
will complete a settlement of certain debts previously owing
through the issuance of Common Shares to The Salzman Group.
The total of such debts owing to The Salzman Group and its
affiliates is USD$1,026,182 (or CDN $1,339,372.75 based
on the daily average exchange rate for June 14, 2018 published by
the Bank of Canada). Subject to the approval of the TSX
Venture Exchange, these debts will be extinguished through the
issuance of 9,019,346 Common Shares to The Salzman Group. The
number of Common Shares issued was based on a deemed issue price of
CDN$0.1485 per Common Share, being 90% of the closing price of the
Common Shares on the TSXV on the trading day prior to the Company’s
announcement of the Agreement.
About Kalytera TherapeuticsKalytera
Therapeutics, Inc. is pioneering the development of CBD
therapeutics. Through its proven leadership, drug development
expertise, and intellectual property portfolio, Kalytera seeks to
establish a leading position in the development of CBD medicines
for a range of important unmet medical needs, with an initial focus
on GVHD and treatment of acute and chronic pain.
- Website Home: https://kalytera.co/
- News and Insights: https://kalytera.co/news/
- Investors: https://kalytera.co/investors/
Cautionary StatementsNeither 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.
This press release may contain certain forward-looking
information and statements ("forward-looking information") within
the meaning of applicable Canadian securities legislation, that are
not based on historical fact, including without limitation in
respect of its product candidate pipeline, planned clinical trials,
regulatory approval prospects, intellectual property objectives and
other statements containing the words "believes", "anticipates",
"plans", "intends", "will", "should", "expects", "continue",
"estimate", "forecasts" and other similar expressions. Readers are
cautioned to not place undue reliance on forward-looking
information. Actual results and developments may differ materially
from those contemplated by these statements depending on, among
other things, the risk that future clinical studies may not proceed
as expected or may produce unfavourable results. Kalytera
undertakes no obligation to comment on analyses, expectations or
statements made by third parties, its securities, or financial or
operating results (as applicable). Although Kalytera believes that
the expectations reflected in forward-looking information in this
press release are reasonable, such forward-looking information has
been based on expectations, factors and assumptions concerning
future events which may prove to be inaccurate and are subject to
numerous risks and uncertainties, certain of which are beyond
Kalytera's control. The forward-looking information contained in
this press release is expressly qualified by this cautionary
statement and is made as of the date hereof. Kalytera disclaims any
intention and has no obligation or responsibility, except as
required by law, to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise.
Contact Information
- Robert Farrell President, CEO (888) 861-2008
info@kalytera.co
- Colwell Capital Corp.Graeme
Dick1-403-561-8989graeme@colwellcapital.com
Kalytera Therapeutics (TSXV:KALY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kalytera Therapeutics (TSXV:KALY)
Historical Stock Chart
From Apr 2023 to Apr 2024