Antibe Therapeutics Inc(Pre-Merger) ATBPF

Citagenix Sale Announced this AM

[TechMoose]

Antibe Therapeutics Inc. (TSX: ATE, OTCQX: ATBPF), is pleased to announce the signing of a binding agreement to sell its Citagenix Inc. subsidiary to HANSAmed Limited (“HANSAmed”), a leading Canadian full-service distributor of pharmaceuticals and medical devices to dental professionals.

Antibe Therapeutics Inc. (TSX: ATE, OTCQX: ATBPF), a clinical stage company leveraging its hydrogen sulfide platform to develop next-generation safer therapies that target inflammation, is pleased to announce the signing of a binding agreement to sell its Citagenix Inc. subsidiary to HANSAmed Limited (“HANSAmed”), a leading Canadian full-service distributor of pharmaceuticals and medical devices to dental professionals.

The $6.5 million transaction involves a guaranteed $3.5 million, divided into four equal payments over three years, the first of which will be received at closing. The remaining $3 million is subject to Citagenix achieving sales milestones over the three-year period following closing.

The transaction will close no later than 180 days following the signing of this binding agreement. Under the terms of the agreement, Antibe will also receive a $250,000 deposit from HANSAmed to be held in escrow and released at closing.

[MrMugsy]

Was hoping for $8M but this will do just fine ! Dropping the security blanket and signallying we are a drug development company. Focused on monetizing OTENA - in all its glory.

[Scotchnoice]

Trivia question from someone living in Europe: are they talking about CAN$ or US$???

[MrMugsy]

Antibe reports in CAD and the transaction is being completed between 2 Canadian businesses. I would assume it is in CAD unless otherwise stated. 

[Scotchnoice]

Ok thanks that was my ussumption but I wasn't 100% sure. As far as I know the value of CGX when ATE acquired it, in october 2015, was 4,95 m$, the cumulated loss of CGX between then and now is close to 10m$. The guaranteed payment by Hansamed is only 3,5m$ the rest is linked to milestones... and those 3,5m$ will be devided into 4 equal payments over 3 years! And I would be surprised if CGX

[MrMugsy]

If you assume Citagenix was acquired because ATE wanted to get into the dental materials distribution business - you would be wrong. In their darkest moment, ATE needed a strategic direction and they saw bone/membrane products as a way to further their H2S technology since 346 looked like it hit a dead end.  Unfortunately, CITA's products (where ATE could potentially make inroads) was at

[Scotchnoice]

I had the chance to talk directly with Dan and the CGX team about their projects and business development plans for few hours and it didn't go according to plan at all!... In 2018 they were forecasting a revenue of 46m$ for FY24! Without any revenue from ATE technology... I totaly understand why the acquisition of CGX was important for ATE towards investors but looking at CGX as a standalone

[MrMugsy]

Sure they failed w.r.t that revenue target - but also think about what it would have taken to get to $46M in annual sales.  They chose not to make those investments. - focusing financing mostly for drug development needs. As you know, not only would they have needed to considerably increase investment in the USA but that plan would have also required a full push into Europe.  Instead

[Scotchnoice]

No that's not what happened I'm sorry ... When CGX was acquired in 2013 they were losing "only" 75k$ a year but under ATE's management the loss increased every year for 8 years, reaching 2 million$ loss in 2019! For a 10m$ revenue company??? The total loss is probably 10 m$ and now they sell it for 3,5 + 3!? Excuse me but they clearly tried something with CGX but they

[StockingUp21]

it's been 1 hour since you post. Prepare for a long read  

[MrMugsy]

Not that long of a read Stockings - he was right - CITA wasn't left to fend for itself. I admit when I'm wrong. You should consider it. Hahaha !

[Jefnan1]

Mugsy, I always read your posts and for sure you have done your research. The only thing I take issue with is that you give Dan and the company too much praise when in fact they really have done quite a poor job and you seem to be holding onto the fact that they somehow are going to pull the rabbit out of the hat. I hope you are right because they owe me a lot of $$ at this time.

[MrMugsy]

Jefnan - there's no rabbit and there's no hat.  That would imply magic or a bad attempt at illusion. How you see this company and what you believe certainly depends on when you joined as a shareholder. I came in 2017 and I entered at a very low price. I've been accumulating really low as well. I believe we haven't lost one major opportunity and we're getting stronger

[Jefnan1]

Well I came in at $.54 saw it go to $.08 then to $7 plus. I own 1 million shares so I know what I'm talking about and my opinions of these guys are valid

[MrMugsy]

I have no issues with you opinions. That's the only way to use these sites - soak in everything and weed out what you don't agree with. For good or for bad - in the end we own it. You have a lot of votes you can use to show your displeasure - nothing wrong with that.

[MrMugsy]

Sorry - bad choice of words ... that CITA was asked to fend for itself. ATE money was involved and I'm not aguing that it needed to be divested - it had to go. We all know that. but ... CITA was purchased only because a new strategy was needed for corporate survival (believing 346 was potentially dead) - not because they wanted to get into dental distribution but they saw a way to move

[StockingUp21]

Please do not interfere with muggys half stories and full pumps.   

[MrMugsy]

No problem Stockings - if you can't deal with the truth and you want to make up angry stories to make you feel good about yourself ... go ahead ... I'm sure that's all you ever do. It doesn't seem you know anything about ATE anyway - might as well be a complainer ... right ? Rather than doing some leg work and helping others who ask questions - you whine !  That's the