WINNIPEG, Manitoba, Dec. 20, 2023 (GLOBE NEWSWIRE) -- Kane Biotech Inc. (TSX-V:KNE OTCQB:KNBIF) (the “Company”, “Kane” or “Kane Biotech”) announces today that on December 19, 2023, it signed a non-binding offer for the sale of its interest in STEM Animal Health Inc. (“STEM”).
“In 2018, when I joined as CEO, Kane made the strategic decision to continue to build Kane’s animal health portfolio, while expanding into advanced wound care” said Marc Edwards, Chief Executive Officer of Kane Biotech. “Since that time, we have created STEM in partnership with Animalcare, received VOHC Seal of Acceptance for our pet oral care water additive, and signed licensing and distribution agreements with Animalcare and Skout’s Honor Pet Supply Company. These actions have created real value within STEM.”
The terms of the offer remain confidential but specify that Kane will sell its ownership of STEM. In addition, pursuant to the terms of the offer, Kane will receive a deposit in the amount of US $625,000 which will be applied towards the sale price of Kane’s interest in STEM. The parties have agreed to collaborate using their best efforts to enter into a binding share purchase agreement with respect to the sale of STEM within 90 days.
“We are pleased to receive an offer that reflects the full value we see in STEM,” said Philip Renaud, Chairman of the Board of Kane. “This opportunity allows Kane to focus on human health, specifically wound care and dermatology solutions, two areas where biofilms significantly impact patient health.”
In addition, the Company and Pivot Financial I Limited Partnership (“Pivot”) have agreed, to extend the term of the Company’s amended credit agreement between the Company and Pivot dated September 11, 2023, by extending the maturity date of the credit facility from November 30, 2023 to March 31, 2024 (the “Proposed Amended Credit Facility”).
The proposed sale of Kane’s interest in STEM and the Proposed Amended Credit Facility are both subject to the execution of definitive transaction documents and the receipt of any necessary approvals, including the approval of the TSX Venture Exchange and, potentially, shareholder approval.
About STEM Animal Health
In September 2020, Kane formed STEM as a joint venture with Animalcare Group plc (“Animalcare”). STEM is dedicated to treating biofilm-related ailments in animals. STEM has a global license over Kane’s existing range of animal health oral care products and in collaboration with Animalcare focuses on the research and development of novel animal treatments based on biofilm targeting technology. Animalcare has a one-third plus one share equity interest in STEM with the balance owned by Kane.
About Kane Biotech
Kane Biotech is a biotechnology company engaged in the research, development and commercialization of technologies and products that prevent and remove microbial biofilms. The Company has a portfolio of biotechnologies, intellectual property (80 patents and patents pending, trade secrets and trademarks) and products developed by the Company's own biofilm research expertise and acquired from leading research institutions. StrixNB™, DispersinB®, Aledex™, bluestem™, bluestem®, silkstem™, goldstem™, coactiv+™, coactiv+®, DermaKB™ and DermaKB Biofilm™ are trademarks of Kane Biotech Inc. The Company is listed on the TSX Venture Exchange under the symbol "KNE" and on the OTCQB Venture Market under the symbol “KNBIF”.
Notes to Editor/References:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Information
This press release contains certain statements regarding Kane Biotech Inc. that constitute forward-looking information under applicable securities law. These statements reflect management’s current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. These risks and uncertainties include, but are not limited to, risks relating to the Company’s: (a) financial condition, including lack of significant revenues to date and reliance on equity and other financing; (b) business, including its early stage of development, government regulation, market acceptance for its products, rapid technological change and dependence on key personnel; (c) intellectual property including the ability of the Company to protect its intellectual property and dependence on its strategic partners; and (d) capital structure, including its lack of dividends on its common shares, volatility of the market price of its common shares and public company costs. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by the Company with applicable securities regulatory authorities, available at www.sedar.com. The Company cautions that the foregoing list of factors that may affect future results is not exhaustive.
