INTELGENX ANNOUNCES DEFINITIVE AGREEMENT WITH TILRAY® TO FORM AN EXCLUSIVE, WORLDWIDE PARTNERSHIP FOR CANNABIS-INFUSED VERSAFILM™ PRODUCTS
November 07, 2018
SAINT LAURENT, Quebec, Nov. 07, 2018 (GLOBE NEWSWIRE) -- 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.”
