Business
Quest Provides Additional Information on OncoQuest Transaction and Announces Delay in Annual Filings
Quest Provides Additional Information on OncoQuest Transaction and Announces Delay in Annu...
About this update from Quest Pharmatech Inc.
[{"type":"text","content":"\n\n\n\nQuest Provides Additional Information on OncoQuest Transaction and Announces Delay in Annual Filings\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prnml40{\nMARGIN-LEFT:3.33em\n}\n\n\n\n\n\n\n\nCanada NewsWire\nEDMONTON, May 29, 2020\n\n\n\nTSX Venture: QPT\n EDMONTON, May 29, 2020 /CNW/ - At the request of IIROC Market Surveillance, Quest PharmaTech Inc. (TSX-V: QPT) (\"Quest\" or the \"Company\") is providing additional information with respect to the proposed asset transfer transaction between 43% owned  OncoQuest Inc. (\"OncoQuest\"), and Korean publicly traded Dual Industrial Co., Ltd(\"Dual\"),  announced by Quest in a news release on April 22, 2020. Under the proposed transaction, OncoQuest would sell its clinical and preclinical immunotherapy development assets to Dual in transactions that would result in OncoQuest receiving a combination of Dual common stock and Dual perpetual convertible bonds with an ascribed value of US$300 million.\nThe USD$300 million value of Dual securities to be received by OncoQuest under the transaction was arrived at by negotiation between the parties.  Dual is also responsible for all of the costs of clinical and pre-clinical development of OncoQuest's immunotherapy assets following the April 20, 2020 execution of the definitive agreements by the parties until a U.S. based subsidiary of Dual is set-up to oversee all of the clinical development functions. Dual has committed to fund OncoQuest's Phase 3 clinical trial in an amount up to USD$75 million. Dual has raised USD$70 million of the committed funds, USD$10 million of which was advanced to OncoQuest on March 6, 2020 pursuant to a share subscription, and Dual expects to raise the remaining US$5 million by December 31, 2020.\nOn the April 20, 2020 execution of the asset transfer agreement between Dual and OncoQuest, OncoQuest became entitled to receive the USD$300 million consideration, and entered into certain ancillary share and convertible bond subscription and offset agreements with Dual, including for the purpose of funding USD$40 million of the rep...