IntelGenx Announces Definitive Agreement with Tilray® to Form an Exclusive, Worldwide Partnership for Cannabis-Infused Versa...
November 07 2018 - 8:00AM
IntelGenx Corp. (TSX-V:IGX) (OTCQX:IGXT) (“IntelGenx”), a leading
oral drug delivery company, today announced the execution of a
definitive license, development and supply agreement (the
“Agreement”) with Tilray, Inc. (NASDAQ:TLRY) (“Tilray®”), a global
leader in cannabis production and distribution. Pursuant to
the Agreement, the two companies will co-develop and commercialize
oral film products infused with adult-use and medical cannabis
(“cannabis-infused VersaFilm™”), in anticipation of amended
cannabis regulations that would allow adult-use consumers to
purchase edible products in Canada.
Under the Agreement, IntelGenx and
Tilray® will each fund 20% and 80% of the costs
associated with the development of the cannabis-infused Versafilm™
products, respectively. IntelGenx will have the exclusive
right to manufacture and supply the co-developed products to
Tilray®, and will also receive a fixed
single-digit royalty on net product sales. Tilray® will have
the exclusive, worldwide marketing and distribution rights for the
co-developed products.
In connection with the Agreement, the parties
have also executed a subscription agreement pursuant to which
Tilray® will make a strategic investment in IntelGenx by way of a
non-brokered private placement (“Private Placement”).
Pursuant to the Private Placement, Tilray® will purchase 1,428,571
common shares of IntelGenx at a price of US$0.70 per share for
gross proceeds to IntelGenx of US$1 million. The price of US$0.70
per share, rather than the US$0.80 per share price which had been
proposed in the non-binding letter of intent between the parties
and announced on September 20, 2018, represents the price per unit
paid by investors under IntelGenx’s recent public offering.
IntelGenx intends to use the proceeds from the Private Placement
for cannabis-infused VersaFilm™ product development in connection
with the Agreement. The Private Placement is expected to
close on or about November 9, 2018, subject to approval by the TSX
Venture Exchange and satisfaction of customary closing
conditions.
“With IntelGenx having the only Health Canada
compliant and licensed facility for pharmaceutical oral film
manufacturing, we are excited to establish this important
partnership with Tilray, a global leader in the medical and
adult-use cannabis industry, and a company that shares our
enthusiasm about the prospects for oral thin film delivery,” said
Dr. Horst G. Zerbe, President and CEO of IntelGenx. “Both
companies see a world where innovative, pharmaceutical-grade
cannabis products are made available to adult consumers and
patients, and we are looking forward to working with Tilray to make
that a reality.”
“Over the long-term, we believe a significant
portion of the global cannabis market will be focused on
non-combustible products,” said Woody Pastorius, Chief Revenue
Officer of Tilray®. “Through this partnership, we look
forward to co-developing oral film products infused with cannabis
that we intend to market and distributed in Canada and other
markets around the world as regulations permit.”
About IntelGenx
Established in 2003, IntelGenx is a leading oral
drug delivery company primarily focused on the development and
manufacturing of innovative pharmaceutical oral films based on its
proprietary VersaFilm™ technology platform.
IntelGenx's highly skilled team provides
comprehensive pharmaceuticals services to pharmaceutical partners,
including R&D, analytical method development, clinical
monitoring, IP and regulatory services. IntelGenx's
state-of-the-art manufacturing facility, which was established for
the VersaFilm™ technology platform, offers by supporting lab-scale
to pilot- and commercial-scale production. More information
about the company can be found at www.intelgenx.com.
Forward Looking Statements:
This document may contain forward-looking
information about IntelGenx's operating results and business
prospects that involve substantial risks and uncertainties.
Statements that are not purely historical are forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. These statements include, but are
not limited to, statements about IntelGenx's plans, objectives,
expectations, strategies, intentions or other characterizations of
future events or circumstances and are generally identified by the
words "may," "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "could," "would," and similar
expressions. All forward looking statements are expressly
qualified in their entirety by this cautionary statement.
Because these forward-looking statements are subject to a number of
risks and uncertainties, IntelGenx's actual results could differ
materially from those expressed or implied by these forward-looking
statements. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed under
the heading "Risk Factors" in IntelGenx's annual report on Form
10-K, filed with the United States Securities and Exchange
Commission and available at www.sec.gov, and also filed with
Canadian securities regulatory authorities at www.sedar.com.
IntelGenx assumes no obligation to update any such forward-looking
statements.
Each of the TSX Venture Exchange and OTCQX has
neither approved nor disapproved the contents of this press
release. 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: IntelGenx Technologies Corp.
For IntelGenx:
Stephen KilmerInvestor Relations (514) 331-7440 ext
232stephen@intelgenx.com
Or
Andre Godin, CPA, CAExecutive Vice-President and CFOIntelGenx
Corp.(514) 331-7440 ext 203andre@intelgenx.com
For Tilray®:
Media:news@tilray.com1 (833) 206-8161
Or
Investors:Katie Turner(646) 277-1228katie.turner@icrinc.com
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