Bioasis Provides Corporate Update and Announces Suspension of Operations

NEW HAVEN, Conn., June 20, 2023 (GLOBE NEWSWIRE) -- BIOASIS TECHNOLOGIES INC. (OTCQB:BIOAF; TSX.V:BTI) (the “Company” or “Bioasis”), a multi-asset rare and orphan disease biopharmaceutical company developing clinical stage programs based on epidermal growth factor and a differentiated, proprietary xB³ platform for delivering therapeutics across the blood-brain barrier (“BBB”) and the treatment of central nervous system (“CNS”) disorders in areas of high unmet medical need, today provided an update on its financial condition and operations.

As previously disclosed, the termination of the Company’s proposed merger with Midatech Pharma PLC (now Biodexa Pharmaceuticals PLC) (“Biodexa”) in January 2023 left the Company with limited cash and significant liabilities, including a C$350,000 bridge loan from Lind Global Macro Fund, LP (“Lind”), a US$500,000 bridge loan from Biodexa and approximately C$3.3M owing to Lind under the 2021 convertible security funding agreement between the Company. All of these debts are secured by liens over all of the Company’s assets (with Lind holding first-ranking security) and the bridge loans (including accrued and unpaid interest) mature on June 30, 2023. Bioasis is currently, or will be, in default of its obligations to Lind and Biodexa and they are, or will be, entitled to take actions in accordance with their loan and security documents with Bioasis to enforce their rights as secured lenders.

Since the termination of the merger, Bioasis has pursued numerous strategic alternatives to preserve and enhance shareholder value, including: mergers; the sale of all or portions of the Company or its assets; partnerships’ licensing and joint venture transactions; and third party financings. In pursuing these transactions, Bioasis was assisted by third party advisors, including Shadow Lake Group and Maxim Group. Since the end of January, Bioasis and its advisers have contacted numerous potential counterparties, several of whom entered into non-disclosure agreements with the Company and engaged in active discussions with the Company regarding potential transactions.

The Company has recently signed a non-binding term sheet with Swiss Biotech Advisors (“SBA”), a group consisting of certain of the vendors of the EGF therapy platform that Bioasis acquired in June 2022 (the “EGF Assets”), for an exclusive worldwide license by Bioasis to SBA of the EGF Assets along with the right to apply the Company’s xB³ platform to the EGF Assets. In return, Bioasis would receive certain milestone payments, a 5% royalty on net sales from products developed based on the licensed technology, along with a share of any sublicensing revenue generated by SBA from the licensed technology. The transaction is subject to certain conditions, including the execution of a definitive license agreement.