Aequus Announces Financing to Support Launch of Zimed Preservative Free (Bimatoprost 0.03%) and Board Update

VANCOUVER, British Columbia, April 05, 2023 (GLOBE NEWSWIRE) -- Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), announced today it has entered into a loan agreement to raise $500,000 to support the launch of Zimed PF. Mr. Doug Janzen, Chairman and Chief Executive Officer of the Company, will provide financing to Aequus by way of an unsecured demand loan of C$500,000 (the “Loan”). The Loan bears interest at an annual rate of two and a half percent (2.5%) to be calculated and repaid monthly and is repayable on demand. “We are very excited about the commercial prospects for Zimed and these funds are earmarked for launch and pre-launch activities,” said Mr. Janzen.

On December 20^th, 2022, Aequus Pharmaceuticals announced Health Canada’s approval of Zimed PF (Bimatoprost 0.03%) for the reduction of elevated intraocular pressure (IOP) in patients with open-angled glaucoma or ocular hypertension. This new product is the only multi-dose preservative free prostaglandin analog (PGA) on the market, offering patients the efficacy, convenience, and safety without the use of preservatives.

Glaucoma is a serious eye condition that affects millions of people worldwide and is a leading cause of blindness. Traditional glaucoma treatments have relied on the use of preservatives to extend the shelf life of the medication in multi-dose bottles. The use of preservatives may be linked to a range of adverse side effects, including eye irritation, redness, and even damage to the ocular surface. Grant Larsen, Chief Commercial Officer notes that “many countries around the world have transitioned away from preserved eyedrop medications, and we expect Canadian Physicians and patients to adopt Zimed Preservative Free in short order.” The funds will be used for general working capital and are expected to accelerate sales efforts and digital resources to build professional education and awareness.     

The Loan involves a related party (as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), specifically a director and senior officer of the Company, and constitutes a related party transaction under MI 61-101. This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(b) and 5.7(1)(f) of MI 61-101, as the Company is not listed or quoted on any of the stock exchanges or markets listed in subsection 5.5(b) of MI 61-101, and the Loan represents a loan from a related party on reasonable commercial terms that are not less advantageous to the Company than if the Loan were obtained from a person dealing at arm’s length and the Loan is not convertible or repayable in securities.