i) Correction: It Iooks like OncoQuest got some... cash:
In return, OncoQuest received US$125 million of OQP Korea bonds convertible into OQP Korea shares, US$8.4 million in cash, and an OQP Korea unsecured 1% interest bearing corporate bond for USD$175 million, exchangeable into 65,229,709 shares of OQP Korea with an ascribed notional value of US$175 Million subject to regulatory approval.
II) What are the chances that a payment is made in December 2023?
During the six months ended July 31, 2023 (during May 2023), the Company agreed in principle with OQP Bio Inc., to exchange the Company’s OQP Bio bonds for 77.5 billion KRW ($79,979,000) in cash and 64.6 billion KRW ($66,700,000) in bonds of Canaria Bio M (K-OTC – 118970) (“CABM”). The cash is receivable in 3 tranches (immediately – 21.6 billion KRW ($22,291,000), end of December 2023 – 25.9 billion KRW ($26,728,600) and en d of June 2024 – 30.0 billion KRW ($30,959,800)).
Good thing that legal action was taken but difficult to understand why OncoQuest/QPT accepted this deal with such a low amount of cash upfront requirement. .
Quest also announced that OncoQuest has commenced legal proceedings in Korea against OQP Bio / CABM seeking payment of approximately 18.8 billion KRW or USD$14.5 million that remains unpaid in respect of the exercise of a put option by OncoQuest in connection with the sale of its immunotherapy technology assets to a predecessor to OQP Bio in April 2020.
III) This at least is good news.
In May 2023, the Company was granted a second US patent entitled ‘MUC16 monoclonal antibodies and uses thereof’ for its lead product candidate MAb AR9.6.