Kalytera Announces Closing of Private Placement of Common Shares and Common Share Purchase Warrants, and Provides Corporate Update - Seite 2

The proceeds from the placement will be used to pay auditor and accounting fees, director & officer insurance premiums and other accounts payable.  

Trading Halt

On June 22, 2020, the British Columbia Securities Commission (the “BCSC”) issued a Failure-to-File Cease Trade Order against the Company (the "FFCTO") due to the Company's failure to file by the prescribed filing deadlines its annual financial statements for the year ending December 31, 2019, and the accompanying Management’s Discussion and Analysis and certifications, (the “Filings”). Please refer to the Company’s press release of June 30, 2020 for more details. The Company had been granted the Order to commence the Private Placement as an exception to the FFCTO. The Company is working to complete the Filings. Upon filing of the Filings, the Company will apply to have the FFCTO fully revoked. The Company expects that the FFCTO would be removed prior to the expiration of the customary hold period for private placement offerings that affect all issuers, in which case investors would not be subject to any hold periods beyond what is expected for all private placements.

Appointment of Director

Effective July 16, 2020 the board of directors of the Company appointed Robin Hutchison to fill a vacancy on the Company's board of directors. Mr. Hutchison was previously a director of the Company and the Company welcomes his return to the board.

Salzman Group Acquisition

The Company previously announced that it has entered into a binding Letter of Intent to acquire Salzman Group. 

Transaction Highlights

• Kalytera announced on July 16, 2020 that it has entered into a License Agreement (the “License Agreement”), under which Salzman Group has granted to Kalytera an exclusive, worldwide license to develop and commercialize R-107, for the treatment of coronavirus and COVID-19 infection.
• The License Agreement is the first step in a larger transaction in which Kalytera will acquire Salzman Group (the “Acquisition”). The Acquisition is expected to close later this year, subject to customary conditions including TSXV and shareholder approvals.
• Salzman Group is the owner of R-107, a proprietary drug with issued and pending composition of matter and method of use patents in approximately 40 countries, including the U.S., Australia, Brazil, China, Europe, India, Japan, Russia and South Korea.
• R-107 is a liquid prodrug of nitric oxide. Based on the fact that nitric oxide is an approved treatment for acute respiratory failure in newborns, and the clinical evidence of nitric oxide’s antiviral activity against strains of coronavirus, Salzman Group is developing R-107 for treatment of coronavirus and COVID-19 infection.
• Salzman Group is also developing R-107 for chlorine inhalation lung injury (“CILI”). This project has been funded in whole or in part with Federal funds from the U.S. Department of Health and Human Services.

In connection with the acquisition of Salzman Group, the Company anticipates that it will announce the following matters shortly after the Company's shares resume trading after it has been granted full revocation of the FFCTO: