Kalytera Therapeutics Provides Update On Acquisition of Stero Biotechs
Kalytera Therapeutics Inc (TSXV: KLY) has released an update on the acquisition terms regarding the planned purchase Israeli company Stero Biotechs Ltd.
As announced prior, Kalytera will purchase all Stero shares, with an initial $15 million USD of Kalytera common shares paid at closing- which account for approximately 37.5% of all the company’s outstanding common shares, followed by a payment of $10 million USD if Stero successfully completes its current Phase 2 clinical trials. The last $5 million USD of Kalytera common shares will be paid out once Stero initiates any other additional Phase 2 clinical studies. The payment of Kalytera common shares is based on the price of $0.04 per common share.
Stero is currently running clinical trials to analyze the effectiveness of using CBD in steroids, as it may have the potential to reduce the quantity of steroids required while maintaining effectiveness and decreasing potential side effects.
There are however, several conditions which need to be met before Stero can be successfully acquired. The pending acquisition is subject to third party, regulatory, and TSX Venture approval. In addition, the transaction needs to be approved by both Stero and Kalytera shareholders, share consolidation approval, and the closing of a private placement financing in the amount of $10 million USD. Furthermore, as per TSX Venture regulations, issued shares cannot be below $0.05 CDN per share, therefore Kalytera must successfully achieve share consolidation in order to increase the value.
Stero Biotechs is a private Israeli-based medical research company focused on researching the effectiveness of administering steriods alongside CBD.
Kalytera Therapeutics Inc is a drug development company with a focus on cannabinoid therapeutics, and is currently trading at $0.015 on the TSX Venture.
Information for this briefing was found via Sedar and Kalytera Therapeutics Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
