- QuestCap Inc (CSE:QSC) has acquired a 40 per cent interest in Amino Therapeutics for C$1.39 million in cash up front
- Per the agreement, QuestCap must inject two further payments of $694,000 into Amino Therapeutics, after the acquisition
- QuestCap will retain the option to purchase another 9 per cent in the company for $2 million at any time over the next two years
- Amino Therapeutics is currently developing therapies to treat COVID-19 patients, but the project is still in early stages of development
- QuestCap Inc (QSC) is down 7.46 per cent, with shares trading for $0.62 and a market cap of $21.2 million
QuestCap Inc (CSE:QSC) has acquired a 40 per cent interest in Amino Therapeutics, for C$1.39 million in cash upfront.
The company must inject two further payments of $694,000 into Amino Therapies before 60 and 120 days have elapsed.
In exchange, QuestCap will gain the 40 per cent interest in Amino’s outstanding shares.
QuestCap also retains the option to purchase another 9 per cent in the company for $2 million, at any point in the next two years.
Amino Therapeutics is currently developing therapies to treat COVID-19 patients. However, both companies have stressed that these projects are still in the early stages of development.
Stan Bharti, Co-Chairman of QuestCap, is eager to meet the challenges posed by the coronavirus pandemic.
“The current global state of emergency presented by the COVID-19 pandemic requires immediate action.
“QuestCap is pleased to support Amino’s efforts to rapidly develop the next generation of biologic therapeutics to potentially combat the COVID-19 crisis and to build a platform for future drug discovery,” he said.
QuestCap believes that Amino Therapeutic’s focus on small molecule drugs and targeted delivery systems provide a novel approach to treating COVID-19.
Small molecule drugs can act on areas of the body, which larger traditional drugs are unable to interact with.
The company is also researching cell-penetrating peptides that allow drugs to be delivered to specific locations within human cells.
By combining these two drug approaches, Amino Therapeutics hopes to target the novel coronavirus in previously unforeseen ways.
However, neither company has announced any specific drug candidates for testing as of yet.
QuestCap Inc (QSC) is down 7.46 per cent, with shares trading for $0.62 at 1:47pm EST.