PharmaDrug Inc said it is one step closer to streamlining its focus into a pure-play biotech company with the closing of the sale of its cannabis assets.
The company said it has closed the previously announced sale of all of the issued and outstanding securities of Pharmadrug Production GmbH, a German medical cannabis distributor, to Khiron Life Sciences Corp. (OTCQX:KHRNF, TSX-V:KHRN)
Pursuant to the terms of the transaction, Khiron issued to Pharmadrug 5,500,000 shares of the company at a deemed price of $0.16 per share and an additional 468,750 shares in connection with certain closing adjustments for a total of 5,968,750 common shares.
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In addition, Khiron issued a non-interest-bearing promissory note that was adjusted downward pursuant to certain closing adjustments to an aggregate principal amount of $974,137, payable for one year from the date of issue in cash or, at Khiron’s options, by the issuance of additional Khiron shares.
A further 5,000,000 Khiron shares issued in connection with the closing are subject to a lockup agreement, with a quarter of the total number of shares being released every 90 days following the closing date.
With the sale of its German asset complete, PharmaDrug said it continues to advance PD-001, its patented version of cepharanthine, towards potential FDA clinical trials on both the oncology and antiviral fronts. The company said it also continues to advance its psychedelic biotech program for the treatment of primary open-angle glaucoma.
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.
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