- Investment firm, QuestCap (CSE:QSC) has signed a binding letter of intent to acquire a 40 per cent stake in Amino Therapeutics
- Amino Therapeutics is currently exploring a potential treatment for the COVID-19 virus
- QuestCap will issue a total C$2.83 million and 15 million common shares for the transaction
- QuestCap (QSC) is currently up 10.34 per cent to $0.64 per share, with a market cap of $21.88 million
Investment firm, QuestCap (TSX:AGF.B) has signed a binding letter of intent to acquire a 40 per cent stake in Amino Therapeutics.
A subsidiary of Exponential Genomics, Amino Therapeutics has obtained the exclusive rights to use its parent company’s XenoArray platform to develop a potential treatment for the COVID-19 virus.
With research currently underway, Amino will use the investment to further the development of the potential treatment.
David Preiner, President and CEO of Amino Therapeutics, said that treatment engineering “normally requires a long process of research and development that is typically associated with long development timelines and high development costs…”
“At Amino, we are working on ways to accelerate the drug development timeline for novel biologics to start regulatory processes, demonstrate patient safety, and bring patient’s treatments,” he added.
Under the terms of the agreement, QuestCap will issue 15 million common shares, as well as a total of C$2.83 million, to Amino Therapeutics for the acquisition.
$1.41 million of this amount will be paid on closing of the acquisition, with $707,482 paid 60 days from the closing date and a further $707,482 paid 120 days from the closing date.
QuestCap will also receive a warrant to purchase an additional 9 per cent stake in Amino Therapeutics for $2.83 million, with an expiry of 24 months from the closing date.
Stan Bharti, Co-Chairman of QuestCap, also commented on the deal.
“The global COVID-19 pandemic caused by the SARS-CoV-2 virus is an emergency situation that requires immediate intervention.
“By leveraging the XenoArray technology at Exponential Genomics, Amino Therapeutics is well positioned to potentially develop the next generation antiviral therapeutic candidates,” he said.
Closing of the acquisition is subject to the the negotiation of a definitive agreement.
QuestCap (QSC) is currently up 10.34 per cent to $0.64 per share at 1:20pm EST.