Kalytera Therapeutics, Inc. (TSX VENTURE: KLY and OTCQB: KALTF) (the “Company” or “Kalytera”) today announced that it has entered into a new agreement reached with the Salzman Group of Israel (the “Agreement”), under which Kalytera will pay the Salzman Group USD$300,000 through issuance of Common Shares of the Company (“Common Shares”) for certain services previously provided to the Company by the Salzman Group. The total amount to be paid to the Salzman Group in Common shares under this new agreement will not exceed USD$300,000. The Company had previously entered into similar payments agreements with the Salzman Group in December 2017 and June 2018, which have expired.
Under various agreements and work orders, the Salzman Group has provided certain services in connection with the Company’s programs for the development of cannabidiol (“CBD”) for the prevention and treatment of graft versus host disease (“GVHD”).
Under the new Agreement, which remains subject to TSX Venture Exchange approval, Kalytera will make payment through issuance of Common Shares for invoices in the amount of USD$300,000 (or CDN$399,150.00 based on the daily average exchange rate for February 7, 2020 published by the Bank of Canada) for these previously provided services, in accordance with applicable securities laws and TSXV policies. The number of Common Shares to be issued is based on a deemed issue price of CDN$0.05 per Common Share. The Common Shares are expected to be issued promptly following TSX Venture Exchange approval.
The Salzman Group will establish an irrevocable selling agreement with its broker to sell such shares on each of the five trading days following deposit of such shares in its brokerage account.
Kalytera Therapeutics, Inc. is pioneering the development of CBD therapeutics. Through its proven leadership, drug development expertise, and intellectual property portfolio, Kalytera seeks to establish a leading position in the development of CBD medicines for a range of important unmet medical needs, with an initial focus on GVHD.
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This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation in respect of its product candidate pipeline, planned clinical trials, regulatory approval prospects, intellectual property objectives and other statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that future clinical studies may not proceed as expected or may produce unfavourable results and the risk that applicable regulatory approvals may not be obtained. Kalytera undertakes no obligation to comment on analyses, expectations or statements made by third parties, its securities, or financial or operating results (as applicable). Although Kalytera believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Kalytera’s control. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Kalytera disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.