MONTREAL, QUEBEC--(Marketwired - Sept. 1, 2016) - Knight Therapeutics Inc. ("Knight") (TSX:GUD), a leading
Canadian specialty pharmaceutical company, announced today that its strategic partner INTEGA Skin Sciences Inc. ("INTEGA"), a
Montreal-based dermatology company, has been acquired by Crescita Therapeutics Inc. ("Crescita") (TSX:CTX) for base consideration
of $8.0 million payable in Crescita common shares valued at $2.44 a share.
In January 2016, Knight entered into a secured loan agreement with INTEGA pursuant to which Knight loaned over $9.0 million to
INTEGA at a minimum interest rate of 13% per year, with a term ranging from one to six years. The proceeds of the loan were used
to support the acquisition of Valeant Groupe Cosméderme, which includes Laboratoire Dr. Renaud, Pro-Derm, and Premiology, three
high-end medical skincare brands, from Valeant Canada. As part of the transaction, Knight was issued 8.0% of the fully-diluted
common shares in the capital of INTEGA, plus other consideration. Concurrent with the loan, Knight entered into an exclusive
distribution, license and supply agreement to commercialize all INTEGA's current and future products in Israel, Romania, Russia,
sub-Saharan Africa and the Caribbean.
As part of the Crescita acquisition, it was agreed that $3.0 million of Knight's secured loan will be repaid and the interest
rate on the remaining loan balance will be reduced to 9% per year.
"Our 6-year, secured INTEGA loan is now even more secure at Crescita given their approximately $17 million of non-committed
cash. This allows everyone to sleep well at Knight. We will, however, wake up each morning to help Crescita in their mission to
become a leading Canadian dermatology player," said Jonathan Ross Goodman, CEO of Knight.
"Working alongside pragmatic, fair and quick-to-close Knight and Bloom Burton has been wonderful," said Greg Orleski, former
CEO of INTEGA and newly-appointed CEO of Crescita. "Now that we are well capitalized, we look forward to working with Knight and
Bloom Burton to achieve our collective goal of touching the lives of Canadians through our unique product offerings."
Knight Crescita Ownership
As part of the transaction, Knight received 645,002 common shares of Crescita in exchange for its INTEGA shares which
represent approximately 4.6% of the outstanding common shares of Crescita. Knight now owns an aggregate of 1,513,502 common
shares of Crescita representing approximately 10.9% of the outstanding common shares of Crescita.
In addition to the above-mentioned shares, Knight expects to receive approximately $0.6 million in Crescita shares valued at
$2.44 per share or cash to be paid within 30 days following Crescita's next annual shareholders meeting, which is expected to be
held in the second quarter of 2017.
Knight also received 293,163 warrants which are convertible into 293,163 common shares of Crescita at an exercise price of
$2.44 per common share at any time until September 1, 2023. Should Knight exercise the warrants, Knight would acquire an
additional 293,163 common shares of Crescita, representing 2.1% of the issued and outstanding common shares of Crescita, after
taking effect of the exercise of the warrants.
Knight acquired the shares for investment purposes. Knight may in the future purchase or sell shares of Crescita or otherwise
trade in securities of or engage in other transactions with respect to Crescita depending on a number of factors, including but
not limited to, Crescita' s financial position, the price levels of the common shares of Crescita, conditions in the securities
markets and general economic and industry conditions, Crescita' s business or financial condition, and other factors and
conditions Knight deems appropriate.
About Crescita Therapeutics Inc.
Crescita (TSX:CTX) is a publicly traded, Canadian drug development company that owns topical products for treating medical
conditions in dermatology and pain. Crescita owns multiple proprietary drug delivery platforms that support the development of
patented formulations that can facilitate the delivery of active drugs into or through the skin. Crescita's board of directors
and management team have demonstrated success in building Crescita's predecessor company, Nuvo Research Inc., including
developing multiple drugs that are now approved and commercialized and negotiating multiple licensing transactions. For
additional information, please visit www.crescitatherapeutics.com.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or
in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight Therapeutics Inc.'s
shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web
site at www.gud-knight.com or www.sedar.com.
Forward-Looking Statement
This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward looking
statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially
from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these
forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these
assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may
ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current
expectations are discussed in Knight Therapeutics Inc.'s Annual Report and in Knight Therapeutics Inc.'s Annual Information Form
for the year ended December 31, 2015. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information or future events, except as required by law.