Toronto, Ontario--(Newsfile Corp. - August 3, 2022) - PharmaDrug Inc. (CSE: PHRX) (OTCQB: LMLLF) ("Pharmadrug" or the "Company"), is pleased to announce that it has closed the previously announced (see press release dated May 31, 2022) sale of all of the issued and outstanding securities of Pharmadrug Production GmbH ("Pharmadrug GmbH") to Khiron Life Sciences Corp. (TSXV: KHRN) ("Khiron"). Pharmadrug GmbH, is a German medical cannabis distributor, with a Schedule I European Union narcotics license and German EuGMP certification allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the European Union.
Pursuant to the terms of the transaction, in consideration for the acquisition of all of the issued and outstanding shares of Pharmadrug GmbH, Khiron issued to Pharmadrug 5,500,000 common shares of the Company (at a deemed price of $0.16 per share) and an additional 468,750 common shares in connection with certain closing adjustments for a total of 5,968,750 common shares, as well as a non-interest bearing promissory note that was adjusted downward pursuant to certain closing adjustments to an aggregate principal amount of $974,137. The promissory note is payable one year from the date of issue in cash or, at Khiron's option, by the issuance of additional Khiron shares. Any issuance of Khiron shares on conversion of the promissory note will be subject to the prior approval of the TSX Venture Exchange.
A total of 5,000,000 Khiron shares issued in connection with the closing are subject to a lockup agreement, pursuant to which Pharmadrug may not transfer such shares without Khiron's consent, with a quarter of the total number of shares subject to lock-up being released every 90 days following the closing date (with all such shares being released 360 days following the closing date).
Streamlined Biotech Focus
With the sale of the German asset now complete, PharmaDrug is one step closer to streamlining its focus into a pure play biotech company. The company is continuing to advance PD-001, its patented version of cepharanthine, towards potential FDA clinical trials on both the oncology and antiviral fronts. Management will update investors with the progress and advancements made for both indications in the coming weeks.
The Company also continues to advance its psychedelic biotech program for the treatment primary open angle glaucoma (POAG). PharmaDrug's DMT-analogue research program aimed to elect a drug development lead based on biological potency and toxicity and to use its development lead to engineer a medical device capable of sustained drug delivery to the front of the eye. The Company announced in a press release dated May 03, 2022 that it selected its lead candidate and had completed fabrication and initial testing of its prototype medical device designed to locally deliver therapeutic quantities of its DMT-analogue to glaucoma patients. Management is currently taking steps towards filing a provisional patent and will be moving to the next phase of development in the coming months.
About PharmaDrug Inc.
PharmaDrug is a specialty pharmaceutical company focused on the research, development and commercialization of controlled-substances and natural medicines such as psychedelics, cannabis and naturally-derived approved drugs. PharmaDrug owns 100% of Sairiyo Therapeutics Inc. ("Sairiyo"), a biotech company that specializes in researching and reformulating established natural medicines with a goal of bringing them through clinical trials and the associated regulatory approval process in the US and Europe. Sairiyo is currently developing its patented reformulation of cepharanthine, a drug that has shown substantial third party validated potential for the treatment of Covid-19 and rare cancers. Sairiyo is also conducting R&D in the psychedelics space for the treatment of non-neuropsychiatric conditions. The Company also owns 100% of Super Smart, a company building a vertically integrated retail business with the goal to elevate the use of functional mushrooms as natural based medicines.
For further information, please contact:
Daniel Cohen, Chairman and CEO
dcohen@pharmadrug.co
(647) 202-1824