Bioasis Announces AGM Results and Provides Update on Financial Position

NEW HAVEN, Conn., Feb. 03, 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, is pleased to announce that all resolutions were passed by the requisite majority at its annual general meeting (the “Meeting”) held earlier today.

All five of the incumbent directors nominated for election at the Meeting were re-elected: Deborah Ann Rathjen, John E. Curran, John Hemeon, David M. Wurzer and Mario Saltarelli. Shareholders also approved the re-appointment of Manning Elliott LLP as auditors of the Company for the ensuing year.

Bioasis also wishes to update shareholders on its current financial condition. As disclosed on January 23, 2023, following Bioasis’ termination of the arrangement agreement between Bioasis and Midatech Pharma plc (“Midatech”), Bioasis was entitled to receive a US$225,000 expense reimbursement payment from Midatech as well as the final US$250,000 bridge loan instalment payable to Bioasis by Midatech on February 6, 2023. Midatech has subsequently advised Bioasis that it is currently unable to make the expense reimbursement payment as a result of its own liquidity constraints. Midatech has also publicly disclosed that it urgently requires additional funding and that if it is unable to obtain additional funding it is likely that Midatech could be forced to enter into administration (creditor protection) proceedings under UK law.

As a result, Bioasis does not currently expect to receive the expense reimbursement payment or the final instalment of the Midatech bridge loan unless and until Midatech is able to secure additional funding. This has a significant negative impact on Bioasis’ short term cash flow projections. Bioasis has reduced its expenses to the maximum extent possible and is urgently exploring and evaluating all financing and strategic alternatives that may be available to address its liquidity requirements and enhance shareholder value. Bioasis currently expects that its remaining cash reserves will allow it to continue operations only until approximately March 2023. Bioasis requires additional financing to continue as a going concern and to satisfy its ongoing monthly payment obligations under the convertible security funding agreement between Bioasis and Lind Global Macro Fund, LP (“Lind”) and to repay the bridge loan from Midatech (current outstanding principal amount of US$500,000) and the C$350,000 bridge loan from Lind, both of which mature on June 30, 2023 and are secured by a pledge of all of Bioasis’ assets.