Antibe Closes Previously Announced Strategic Sale of Citagenix Subsidiary

Rhea-AI Summary

Antibe Therapeutics Inc. (TSX: ATE, OTCQX: ATBPF) has finalized the sale of its subsidiary Citagenix Inc. to HANSAmed Limited for $6.5 million, providing non-dilutive funding to advance its drug development pipeline. The transaction includes a guaranteed payment of $3.5 million, with the potential for an additional $3 million based on sales milestones. This deal strengthens Antibe's balance sheet and focuses its strategy on developing non-opioid therapies. The lead drug, otenaproxesul, is aimed at treating acute pain, while the company also plans to target inflammatory bowel disease.

Positive

• Sale of Citagenix provides non-dilutive funding for drug development.
• $2.5 million proceeds received from the first payment and other adjustments.
• Strengthened balance sheet enhances financial stability and focus on core drug development.

Negative

• Remaining $3 million contingent on Citagenix achieving sales milestones, adding uncertainty.

TORONTO--(BUSINESS WIRE)-- Antibe Therapeutics Inc. (TSX: ATE, OTCQX: ATBPF), a clinical-stage company leveraging its hydrogen sulfide platform to develop next-generation safer therapies to target inflammation, is pleased to announce the closing of the sale of its Citagenix Inc. subsidiary to HANSAmed Limited (“HANSAmed”), a leading Canadian distributor of pharmaceuticals and medical devices to dental professionals.

“With the closing of this deal, we’ve evolved into a pure-play drug developer advancing a non-opioid acute pain therapy with best-in-class potential,” commented Scott Curtis, Antibe’s Chief Operating Officer. “Importantly, it provides non-dilutive funding for our pipeline and fortifies our already strong balance sheet. And of course, we wish the Citagenix and HANSAmed team the very best.”

First announced on May 2, 2022, the $6.5 million transaction involves a guaranteed $3.5 million, divided into four equal payments over three years, with the remaining $3 million subject to Citagenix achieving sales milestones in that period. In accordance with the agreement, the Company has received proceeds totaling approximately $2.5 million, comprising the first of the four guaranteed payments of $875,000, an adjustment of approximately $520,000 in estimated excess working capital and $1.14 million from the repurchase by Citagenix of preferred shares previously issued to the Company.

Antibe Therapeutics Inc.
Antibe is a clinical-stage biotechnology company leveraging its proprietary hydrogen sulfide platform to develop next-generation safer therapies to target inflammation arising from a wide range of medical conditions. The Company’s current pipeline includes assets that seek to overcome the gastrointestinal (“GI”) ulcers and bleeding associated with nonsteroidal anti-inflammatory drugs (“NSAIDs”). Antibe’s lead drug, otenaproxesul, is in clinical development as a safer alternative to opioids and today’s NSAIDs for acute pain. Antibe’s second pipeline drug, ATB-352, is being developed for a specialized pain indication. The Company’s anticipated next target is inflammatory bowel disease (“IBD”), a condition long in need of safer, more effective therapies. Learn more at antibethera.com.

Forward Looking Information
This news release includes certain forward-looking statements under applicable securities laws, which may include, but are not limited to, the amounts, timing and receipt of the portion of the sale price that is subject to the achievement of sales milestones, the anticipated scope, timing, duration and completion of certain of the Company’s clinical trial programs and studies and the anticipated timing for seeking market approval for certain of the Company’s drugs and therapies for certain additional indications. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “will”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “propose” and similar wording. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in this news release. Factors that could cause actual results to differ materially from those anticipated in this news release include, but are not limited to, Citagenix not achieving sales milestones, the Company’s inability to timely execute on its business strategy and timely and successfully complete its clinical trials and studies, the Company’s inability to obtain the necessary regulatory approvals related to its activities, risks associated with drug and medical device development generally and those risk factors set forth in the Company’s public filings made in Canada and available on sedar.com. The Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221102005398/en/

Antibe Therapeutics Inc.

Christina Cameron

VP Investor Relations

+1 416-577-1443

christina@antibethera.com

Source: Antibe Therapeutics Inc.

FAQ

What is the significance of Antibe Therapeutics selling Citagenix Inc.?

The sale marks Antibe's evolution into a pure-play drug developer and provides crucial funding for its drug pipeline.

How much funding will Antibe receive from the Citagenix sale?

Antibe will receive a total of $6.5 million, with an initial $2.5 million already paid.

What are Antibe Therapeutics' future drug development plans after the sale?

Antibe plans to focus on developing non-opioid therapies, including otenaproxesul for acute pain and treatments for inflammatory bowel disease.

When was the sale of Citagenix Inc. announced?

The sale was first announced on May 2, 2022.

What risks are associated with the Citagenix sale for Antibe shareholders?

The final $3 million of the sale price is contingent upon Citagenix meeting sales milestones, which introduces an element of risk.