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Kalytera Provides Additional Detail Regarding Terms of Stero Biotechs, Ltd. Acquisition
Kalytera Provides Additional Detail Regarding Terms of Stero Biotechs, Ltd. Acquisition.
About this update from Claritas Pharmaceuticals Inc.
[{"type":"text","content":"\n SAN FRANCISCO and TEL AVIV, Israel, March 18, 2020 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSX VENTURE: KLY and OTCQB: KALTF) (the \"Company\" or \"Kalytera\") today provided additional details regarding the terms of its planned acquisition of Stero Biotechs, Ltd. (“Stero”). Stero is a privately held Israeli company that is developing cannabidiol (“CBD”) for co-administration with steroids, so that the effective dosages of steroids can be significantly reduced, thereby potentially avoiding or reducing the many safety issues relating to steroid administration. Stero currently has two ongoing Phase 2a clinical studies evaluating CBD in steroid sparing, and has data from earlier clinical studies demonstrating that co-administration of CBD with steroids may significantly reduce the need for steroid treatment, with the potential to reduce steroid dosing by as much as 80%. Transaction TermsAs previously disclosed, Kalytera will purchase all shares of Stero for a purchase price of USD $30 million (the “Acquisition Price”), with USD $15 million to be paid in Kalytera common shares at closing; USD $10 million to be paid in Kalytera common shares upon completion of either of Stero's ongoing Phase 2a clinical studies evaluating CBD for steroid sparing in Crohn's disease and in Chronic Urticaria, or upon completion of any other Phase 2 clinical study evaluating CBD for steroid sparing in any other indication; and USD $5 million to be paid in Kalytera common shares upon commencement of any new Phase 2a clinical study evaluating CBD for steroid sparing in any other indication. The acquisition of Stero is subject to certain conditions and the receipt of all required regulatory and third party approvals, including the approval of the TSX Venture Exchange. Additional closing conditions include shareholder approvals of the transaction by both the shareholders of Kalytera and Stero; Kalytera shareholder approval of a share consolidation; and closing of a USD $10 million private placement financing (the (“Private Placement”). TSX Venture Exchange regulations do not permit the Company to issue shares below a price of CDN $0.05 per share, thus it is necessary for the Company to complete the share consolidation so that the Company's share price will be well above the CDN $0.05 threshold....