Business
Vanity Capital Inc. Enters Into Letter of Intent With XynaRx Pharmaceuticals Corp.
Vancouver, British Columbia--(Newsfile Corp. - March 14, 2019) - Vanity Capital Inc. (TSXV: VY...
About this update from Vanity Capital Inc.
[{"type":"text","content":"Vanity Capital Inc. Enters Into Letter of Intent With XynaRx Pharmaceuticals Corp.Vancouver, British Columbia--(Newsfile Corp. - March 14, 2019) - Vanity Capital Inc. (TSXV: VYC) (the \"Company\") and XynaRx Pharmaceuticals Corp. (\"XynaRx\") are pleased to announce the entering into of an arm's length binding letter of intent (the \"LOI\") accepted effective March 11, 2019, pursuant to which the Company will acquire all of the issued and outstanding shares in the capital of XynaRx. The previously announced non-binding letter of intent between the Company and Akseera Pharma Corp. was terminated by agreement between the parties.It is currently anticipated that the Transaction will be effected by way of a three-cornered amalgamation involving a newly formed wholly owned subsidiary of the Company (the \"Transaction\"). The resulting issuer that will exist upon completion of the Transaction (the \"Resulting Issuer\") will change its business from mining to life sciences. The final structure of the Transaction will be determined by the parties following receipt of tax, corporate and securities law advice. Upon the closing of the Transaction (the \"Closing\") and the concurrent Offering defined below, it is expected that current shareholders of the Company will hold 13.53 percent of the common shares of the Resulting Issuer (the \"Resulting Issuer Shares\") and current shareholders of XynaRx will hold 78.61 percent of the Resulting Issuer Shares (on a non-diluted basis) (the \"Consideration Shares\"). The Consideration Shares held by the directors, officers and insiders of XynaRx will be subject to escrow requirements by the applicable stock exchange and to a performance agreement as negotiated between the parties.XynaRx is a privately held British Columbia incorporated company focused on incorporating cannabidiol (\"CBD\") in over-the-counter (\"OTC\") healthcare products and generic medication. XynaRx intends to manufacture in-house and distribute its products in global markets. Management of XynaRx has developed a pipeline to introduce 15 OTC products and generic medications with CBD as an active ingredient (the \"XynaRx Products\") over the next five years. Research and development will be conducted in-house for incorporating CBD in the 15 XynaRx Products and for conducting human trials.On completion of the Transaction, all of the...