Closing of Additional Convertible Debt Financing, including from Knight Therapeutics, for Total Gross Proceeds of $2.6M
TORONTO, CANADA — (Nov 16, 2015) — Antibe Therapeutics Inc. (“Antibe” or the “Company”) (TSXV: ATE, OTCQX: ATBPF), a commercial-stage healthcare company with a growing portfolio of innovative products targeting inflammatory and degenerative disorders, announced today the signing of an exclusive long-term license and distribution agreement with Knight Therapeutics Inc. (TSX: GUD) (“Knight”), a leading Canadian specialty pharmaceutical company, for Antibe’s anti-inflammatory and pain drugs, ATB-346, ATB-352 and ATB-340, as well as the rights to other, future Antibe prescription drugs.
Under the terms of the license agreement, Antibe has granted Knight the exclusive commercial rights for Antibe’s drug candidates and other future prescription drugs in Canada, Israel, Romania, Russia and sub-Saharan Africa. Antibe is entitled to royalties on annual sales, along with the potential for $10 million in payments for sales-based milestones. Antibe considers this a favourable royalty scenario given its competitive anticipated cost-of-goods structure. The global market for non-steroidal anti-inflammatory and pain drugs is more than US$12 billion annually, despite serious side effects for the currently marketed drugs, especially when taken over the long-term. Antibe’s drug candidates are novel and patent-protected, and are designed to be safer versions of drugs currently on the market.
Antibe also announced a second closing of the non-brokered private placement of convertible debentures (“Debentures”) announced October 16, 2015, bringing the total proceeds to $2.6M. The first tranche of the financing was led by the Bloom Burton Healthcare Lending Trust and the major investor in the second tranche is Knight. The funds will be used to further the development of Antibe’s novel anti-inflammatory drug pipeline and to fuel the growth of Antibe following its acquisition of an 85% interest in Citagenix Inc. For further details concerning the Citagenix acquisition, please see Antibe’s news releases of October 6, 2015 and October 16, 2015.
The Debentures will mature on October 15, 2018, bear interest at a rate of 10% per year, and are convertible at the holder’s option into common shares of Antibe at a price of $0.22 per share. In addition, the new holders received an aggregate of 1.6 million warrants to purchase common shares of Antibe at a price of $0.31 which are exercisable until October 15, 2018. The Private Placement remains subject to TSXV final approval.
“The world needs safer anti-inflammatory drugs, and we are pleased to have secured Antibe’s innovative portfolio for our territories. We have come to know their management team and are also pleased to provide financial support for their strategic thrust into regenerative medicine”, said Jonathan Ross Goodman, President and CEO of Knight.
Dan Legault, CEO of Antibe Therapeutics, added “Our recent acquisition of Citagenix has transformed Antibe into an integrated healthcare and biotechnology company with a focus on anti-inflammatory and regenerative medicine, but we continue to need great partners to unlock our full growth potential. We are excited to build a strategic relationship with Knight, a partner with the resources, relationships and know-how to build exceptional companies.”
Antibe has also retained BND Projects Inc. (“BND”) to provide investor relations services. BND, based in the Greater Toronto Area, was founded by Christina Cameron. Ms. Cameron, a life sciences capital markets expert with over 14 years of experience in investor relations and investment banking, will be providing the services under the agreement. BND and BND’s principals have the right and expect, from time to time, to purchase Antibe’s securities for investment purposes. The principals of BND currently hold a total of 44,500 shares of Antibe.
The agreement with BND, which is subject to the approval of the TSX Venture Exchange, can be terminated by either party on 30 days prior notice. BND will receive a fee of $5,000 per month plus the granting of 12,000 stock options per quarter in the Company’s Stock Option Plan.
About Antibe Therapeutics Inc.Antibe develops safer medicines for pain and inflammation. Antibe’s technology involves linking a hydrogen sulfide-releasing molecule to an existing drug to produce a patented, improved medicine. Antibe’s lead drug ATB-346 targets the global need for a safer drug for chronic pain and inflammation. ATB-352, the second drug in Antibe’s pipeline, targets the urgent global need for a safer, non-addictive analgesic for treating severe acute pain, while ATB-340 is a GI-safe derivative of aspirin. www.antibethera.com
Antibe's subsidiary, Citagenix Inc. ("Citagenix"), is a leader in the sales and marketing of tissue regenerative products servicing the orthopedic and dental marketplaces. Since its inception in 1997, Citagenix has become an important source of knowledge and experience for bone regeneration in the Canadian medical device industry. Citagenix is active in 15 countries, operating in Canada through its direct sales teams, and internationally via a network of distributor partnerships. www.citagenix.com
Neither the 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.
Forward-Looking InformationThis news release includes certain forward-looking statements, which may include, but are not limited to, the growth of product sales, engaging new distributors and independent representatives, the completion of financing transactions and the licensing and development of drugs and medical devices. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “will”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “propose” and similar expressions. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in this news release. Factors that could cause actual results to differ materially from those anticipated in this news release include, but are not limited to, the Company’s ability to secure additional financing, its inability to execute its business strategy and successfully compete in the market, and risks associated with drug and medical device development generally. Antibe Therapeutics Inc. assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as required by applicable law.
Contact InformationAntibe Therapeutics Inc.
Chief Executive Officer
Tel: +1 416-473-4095