Bioasis Technologies enters into Convertible Security Funding Agreement for Institutional Investment of up to C$10 million

NEW HAVEN, Conn., June 22, 2021 (GLOBE NEWSWIRE) -- Bioasis Technologies Inc. (“Bioasis” or the “Company”) (TSX.V:BTI; OTCQB:BIOAF), a pre-clinical, research-stage biopharmaceutical company developing its proprietary xB^{3 TM} platform technology for the delivery of therapeutics across the blood-brain barrier (BBB) and the treatment of CNS disorders in areas of high unmet medical need, including brain cancers and neurodegenerative diseases, is pleased to announce that it has entered into a convertible security funding agreement dated June 22, 2021 (the “Agreement”) with Lind Global Macro Fund, LP, an entity managed by The Lind Partners, a New York-based institutional investment management firm (together, “Lind”). Under the terms of the Agreement, Bioasis may issue to Lind convertible securities in the principal amount of up to C$10,000,000, with such proceeds being used for general working capital.

“This significant financing will enable Bioasis to fully focus on the execution of its business strategy. Importantly, Bioasis now has the means to leverage its existing research in lysosomal dysfunction, neurodegeneration and neuroinflammation and to generate robust licensing packages for potential partners. Whilst there have been challenges in completing certain studies this year, due to constraints at our contract research organizations, these have been overcome and the company is well placed to accomplish its R&D and partnering objectives” said Dr. Deborah Rathjen, Executive Chair of Bioasis.

Phillip Valliere, Managing Director at The Lind Partners stated, “Lind has been impressed by Bioasis’ leading blood-brain barrier drug delivery technology, its deep pipeline and strategic partnerships. The technology and pipeline are capable of providing new treatment options for patients with serious brain conditions and we are very pleased to be able to support further development of Bioasis’ therapeutic candidates.”

Pursuant to the Agreement, Lind will make an initial investment of C$3,000,000, less a commitment fee of C$90,000, in exchange for a convertible security (the “First Convertible Security”) with a face value of C$3,600,000 (the “Face Value”), representing a principal amount of C$3,000,000 (the “Principal Amount”) and a pre-paid interest amount of C$600,000 (the “Pre-Paid Interest”). Commencing 180 days from closing, Bioasis will begin repaying the First Convertible Security in C$125,000 installments. Pre-Paid Interest will accrue monthly at C$20,000 per month, and once accrued Lind will have the option, once every 90 days, to convert accrued Pre-Paid Interest into common shares of Bioasis at 90% of the market closing price on the day immediately prior to the conversion.