YOFOTO (China) Health and RepliCel Life Sciences now
cleared to close investment transaction and commence collaboration
activity in Greater China
VANCOUVER and NINGBO,
China, Sept. 24, 2018 /CNW/ -
RepliCel Life Sciences Inc. (OTCQB: REPCF) (TSXV: RP) (FRA:P6P2)
("RepliCel" or the "Company"), a company developing next-generation
technologies in aesthetics and orthopedics, is pleased to announce
it has received, from the TSX Venture Exchange, the
conditional approval required to complete the investment which is
part of a previously announced collaboration agreement (the
"Transaction") focused on commercialization of select RepliCel
products in Greater China.
The Company also announces that YOFOTO (China) Health Industry Co. Ltd. ("YOFOTO") has
received all the approvals from the Chinese regulatory authorities
required to finalize the transaction.
With the required approvals in place, the parties expect to
close the investment portion of the Transaction shortly allowing
them to then immediately and actively launch their strategic
partnership in Greater China
(Mainland China, Hong Kong,
Macau, and Taiwan) (the "Territory") and RepliCel's next
stage of activity outside of Asia.
The investment portion of the Transaction is a CDN $5,090,000 purchase of common shares (each, a
"Share") at CDN $0.95 per Share and
will include 20% warrant coverage exercisable at CDN $0.95 per Share for a period of two years. The
deal structure also includes milestone payments, sales royalties,
and a commitment by YOFOTO to finance, over the next five years,
the included RepliCel programs and an associated cell processing
manufacturing facility in Greater
China.
In addition to being a shareholder in RepliCel, YOFOTO will
collaborate with RepliCel on the further development and
commercialization of RepliCel's tendon regeneration cell therapy
(RCT-01), skin rejuvenation cell therapy (RCS-01), and its
injection technology for dermal applications (RCI-02) (excluding
hair-related treatments) in the Territory.
"This investment represents a positive valuation of RepliCel by
a commercially successful company having performed significant due
diligence," stated RepliCel President and CEO, R. Lee Buckler. "We are very excited about what
we have put in place while awaiting the completion of this
transaction. Upon the closing of the investment, shareholders
should expect to see RepliCel's programs and activity gain
significant momentum over the coming months with a particular focus
on bringing its medical device to market. We will provide
shareholders with more details on what this means in a
comprehensive update as soon as the transaction has closed,"
Buckler concluded.
About YOFOTO
YOFOTO (China) Health Industry Co., Ltd was
established in 2004 as a company engaged in the health and consumer
products industry. For example, YOFOTO has registered 31 different
nutraceuticals with the State Food and Drug Administration
(China). With a wide range of
successful commercial products in the food, personal health care,
and household categories, YOFOTO is now diversifying into
higher-value health-related products and services such as genetic
and blood testing, regenerative medicine, and destination
health-treatment clinics. As part of its strategy, YOFOTO has made
several investments outside of China. Its current expansion includes a global
R&D production base, organic food base, natural cosmetic
R&D center, a conference center, yacht club and health spa
resort.
At present, YOFOTO has registered over 700 trademarks and
attained over 60 patents. YOFOTO has 32 provincial branches in
China and, in 2009, began
international expansion into Russia, Vietnam, Thailand, and Cameroon. At the same time, YOFOTO began
active participation in the Asia-Pacific Economic Cooperation
(APEC) forum. YOFOTO Chairman of YOFOTO, Mr. Huang Jin Bao, was elected to be the member of
the first APEC Chinese Industry and Commerce Council.
About RepliCel Life Sciences
RepliCel is a
regenerative medicine company focused on developing cell therapies
for aesthetic and orthopedic conditions affecting what the Company
believes is approximately one in three people in industrialized
nations, including aging/sun-damaged skin, pattern baldness, and
chronic tendon degeneration. These conditions, often associated
with aging, are caused by a deficit of healthy cells required for
normal tissue healing and function. The Company's product pipeline
is comprised of RCT-01 for tendon repair, RCS-01 for skin
rejuvenation, and RCH-01 for hair restoration. RCH-01 is currently
being co-developed with, and under exclusive license by, Shiseido
for certain Asian countries. All product candidates are based on
RepliCel's innovative technology, utilizing cell populations
isolated from a patient's healthy hair follicles. RepliCel has also
developed a proprietary injection device, RCI-02, optimized for the
administration of its products and licensable for use with other
dermatology applications. Please visit www.replicel.com for
additional information.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking statements and
information that involve various risks and uncertainties regarding
future events, including, but not limited to, statements regarding:
(i) the completion of the Transaction with YOFOTO; and (ii) the
fact that YOFOTO will make certain milestone payments, sales
royalty payments and finance, over the next five years, the
included RepliCel programs and an associated cell processing
manufacturing facility in Greater
China. These statements are only predictions and involve
known and unknown risks which may cause actual results and the
Company's plans and objectives to differ materially from those
expressed in the forward-looking statements, including: risks
related to YOFOTO making all payments required in connection with
the Transaction; risks that the Company's products may not perform
as, or have the benefits, expected; risks that the Company's
products may not be accepted and adopted by the public; the risk
that the Company will not obtain CE mark clearance for its injector
device; the risk that there will be delays enrolling clinical trial
participants; the risk that the Company will receive negative
results from the Company's clinical trials; the effects of
government regulation on the Company's business; risks associated
with the Company obtaining all necessary regulatory approvals for
its various programs; risks associated with the Company's ability
to obtain and protect rights to its intellectual property; risks
and uncertainties associated with the Company's ability to raise
additional capital; and other factors beyond the Company's control.
Although the Company believes that the expectations reflected in
the forward-looking statements are reasonable, it cannot guarantee
future results, levels of activity or performance. Further, any
forward-looking statement speaks only as of the date on which such
statement is made and, except as required by applicable law, the
Company undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time, and it
is not possible for management to predict all of such factors and
to assess in advance the impact of such factors on the Company's
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statement. Readers should consult
all of the information set forth herein and should also refer to
the risk factor disclosure outlined in the Company's annual report
on Form 20-F for the fiscal year ended December 31, 2016 and other periodic reports
filed from time-to-time with the Securities and Exchange Commission
on Edgar at www.sec.gov and with the British Columbia Securities
Commission on SEDAR at www.sedar.com.
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SOURCE RepliCel Life Sciences Inc.