Antibe Therapeutics Inc (ATBPF)

[CansoSpaceMan]

Antibe signs drug licensing deal with Knight

2015-11-16 08:14 ET - News Release


Mr. Dan Legault reports
ANTIBE ENTERS INTO A GUD PRODUCT LICENSING AGREEMENT WITH KNIGHT THERAPEUTICS
Antibe Therapeutics Inc. has signed an exclusive long-term licence and distribution agreement with Knight Therapeutics Inc., 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.
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