Claritas Announces Issuance of Shares for Settlement of Debt
SAN FRANCISCO, CA -- (April 4, 2022) – Claritas Pharmaceuticals, Inc. (TSX VENTURE
EXCHANGE (“TSXV”) symbol: CLAS and OTC symbol: CLAZF) (the "Company" or
"Claritas") today announced it has submitted to the TSXV for approval the terms of an agreement
entered into today between the Company and a creditor of the Company under which it will issue
shares to such creditor in settlement of amounts owed to such creditor, subject to TSXV approval.
Issuance of Shares to Salzman Group
The Company and its Australian subsidiary Claritas Australia Pty. Ltd. have entered into a series
of agreements (“Service Agreements”) with Salzman Group, Ltd. (“Salzman”) under which
Salzman is providing various services to the Company, including manufacturing of R-107, the
Company’s pharmaceutical product that will be evaluated in a Phase 1 clinical study in Australia.
Under the Service Agreements, payment of accounts due to Salzman for services rendered can be
paid in cash or securities of the Company as decided between the parties from time to time. Claritas
and Salzman have entered into an agreement (the “Salzman Shares for Debt Agreement”) under
which Claritas will pay to Salzman CAD $75,000 of common shares of the Company in payment
of approximately 45% of the amount currently owed to Salzman under the Service Agreements and
has submitted the terms of the Salzman Shares for Debt Agreement to the TSXV for approval.
Under the Salzman Shares for Debt Agreement, the Company has agreed to issue such Common
Shares to Salzman at a discount of 10% from the $0.155 closing market price of the Company’s
common shares on April 1, 2022. With such discount, the price at which the common shares will
be issued to Salzman will be CAD $0.1395, resulting in the proposed number of shares to be issued
to Salzman (subject to TSXV approval) at 537,634 common shares.
The Company will provide additional updates after TSXV approval of the issuance of any
securities.
Robert Farrell, President and CEO of Claritas stated that, “Salzman Group is manufacturing R-107,
has assisted with the design of our Phase 1 clinical study, and is assisting with our interactions with
regulatory bodies in the U.S., Australia, and the EU. These agreements provide Claritas with access
to Salzman Group’s research scientists and drug development experts on an as-needed, part
time basis, thereby providing a lower cost structure than Claritas would incur by hiring its own
team of such experts.”
Mr. Farrell continued, “Salzman Group’s willingness to accept Common Shares in lieu of cash
payments for services is indicative of their long-standing commitment to Claritas, and their belief
in the potential of the Company’s technology.”