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Kalytera and Former Shareholders of Talent Biotechs Agree to Deferment of Milestone Payments
Kalytera and Former Shareholders of Talent Biotechs Agree to Deferment of Milestone Payments.
About this update from Claritas Pharmaceuticals Inc.
[{"type":"text","content":"\nSAN FRANCISCO and TEL AVIV, Israel, July 20, 2018 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSX VENTURE:KALY) (OTCQB:KALTF) (the \"Company\" or \"Kalytera\") today announced that it has entered into an agreement with the former shareholders of Talent Biotechs, Ltd. of Israel (“Talent“) modifying its obligation to make certain payments to such shareholders.\n Kalytera acquired its program in the prevention and treatment of graft versus host disease (\"GVHD\") in February 2017 through the acquisition of Talent. Under its agreement with the former Talent shareholders, Kalytera is obligated to make certain contingent payments to them upon the achievement of various milestones, including upon issuance of patents by the U.S. Patent and Trademark Office (the “USPTO“). On April 19, 2018 Kalytera announced that the USPTO had issued U.S. Patent No. 9,889,100 B2 with claims covering the use of cannabidiol (\"CBD\") for the treatment of severe and refractory GVHD. Kalytera has exclusive worldwide rights to this issued patent through an Exclusive License Agreement with MOR Research Applications, Ltd. of Israel (“MOR”). On May 2, 2018, Kalytera announced that the USPTO had issued U.S. Patent No. 9,956,182 with claims covering the use of CBD for the prevention and treatment of acute and chronic forms of GVHD. Kalytera also has exclusive worldwide rights to this issued patent through an Exclusive License Agreement with MOR. Upon the issuances of these two patents, the Company became obligated to make milestone payments to the former Talent shareholders of USD$2 million with respect to each such patent, or USD$4 million in the aggregate. Minimum Aggregate Milestone Payment Due on Closing of Offering Reduced from USD$4 Million to USD$1.5 Million Under the agreement announced today, Kalytera and the former Talent shareholders have agreed that Kalytera may defer a portion of these milestone payments. The agreement specifically provides that upon closing of Kalytera’s current public offering of units (the “Offering”), which Offering is anticipated to close on or about July 31, 2018, Kalytera will make a minimum payment to the former Talent shareholders of USD$1.5 million from the net proceeds of the Offering, rather than the aggregate payment of USD$4 million that is now due. The agreeme...