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Be the first with the news that moves the market- In a surprising move, mineral explorer, Lions Bay Mining Corp (CSE:LBM), has signed a non-binding letter of intent to acquire biopharmaceutical company BioVaxys LLC
- Through the proposed share exchange deal, Lions Bay would make a C$200,000 loan facility available to BioVaxys to aid in development of a COVID-19 vaccine based on BioVaxys’ patented technology
- In exchange, BioVaxys would become a wholly-owned subsidiary of Lions Bay Mining, which was previously solely a mineral exploration company with claims in Nevada and Yukon
- The two companies now have 40 days to propose a definitive agreement, and will need to seek regulatory and shareholder approval before the acquisition can finalise
- Lions Bay Mining Corp (CSE:LBM) is up 180 per cent, with shares trading for C$0.28 and a market cap of $3.11 million
In a surprising move, mineral explorer, Lions Bay Mining Corp (CSE:LBM), may be acquiring a biopharmaceutical company.
Late last week, Lion’s Bay signed a non-binding letter of intent to acquire BioVaxys LLC, a privately owned company based in Delaware.
Before the proposed acquisition was announced, Lions Bay was strictly a mineral explorer, with prospective claims in Nevada and Yukon.
Through the proposed share exchange deal, Lions Bay would make a C$200,000 loan facility available to BioVaxys to aid in development.
Consequently, BioVaxys would become a wholly owned subsidiary of Lion’s Bay.
BioVaxys is currently developing a vaccine technology platform to treat viral infections and cancers. BioVaxy’s technology modifies dangerous cells within the body with proteins to make them more visible to the human immune system.
Due to the ongoing COVID-19 pandemic, BioVaxys wants to apply its technology to the novel coronavirus strain and would use Lion’s Bay’s loan facility to expedite the development process.
However, neither BioVaxys nor Lions Bay have made explicit claims that the drug platform will be effective against COVID-19.
Jeremy Poirier, CEO of Lions Bay Mining, believes the timing is right for the company to branch out into the pharmaceutical industry.
“Given the current COVID-19 pandemic, governments globally are prioritizing medical research and drug development, with the race to develop a universal vaccine for this virus that has infected over 2.2 million.
“We are excited to work with Biovaxys on the development of their protein technology platforms and explore its potential,” he said.
The two companies now have 40 days to propose a definitive agreement for the acquisition. If shareholders then agree on the deal, the companies will need to seek regulatory approval before the acquisition can finalise.
Lions Bay Mining Corp (CSE:LBM) is up 180 per cent, with shares trading for $0.28 at 3:23pm EST.
