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Kane Biotech Announces Agreement to Acquire FB Dermatology

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Kane Biotech (KNBIF) has entered into a binding term sheet to acquire FB Dermatology, an Italian company with operations in Italy and Australia. The acquisition includes FB's FLETECH technology portfolio, featuring products like LumiHeal®, Kleresca®, and Lumixa® for wound care and dermatology applications. The purchase price includes $200,000 in cash at closing, 6 million Kane shares, 6 million warrants at $0.25, and potential future payments of $920,000 and $1,380,000 at 18 and 36 months respectively. The transaction is expected to close by January 31, 2025, expanding Kane's global commercial reach and strengthening its wound care portfolio.

Kane Biotech (KNBIF) ha firmato un accordo vincolante per acquisire FB Dermatology, un'azienda italiana con operazioni in Italia e Australia. L'acquisizione comprende il portafoglio tecnologico FLETECH di FB, che include prodotti come LumiHeal®, Kleresca® e Lumixa® per la cura delle ferite e applicazioni dermatologiche. Il prezzo di acquisto include 200.000 dollari in contante al momento della chiusura, 6 milioni di azioni Kane, 6 milioni di warrant a 0,25 dollari e potenziali pagamenti futuri di 920.000 dollari e 1.380.000 dollari a 18 e 36 mesi rispettivamente. Si prevede che la transazione si chiuda entro il 31 gennaio 2025, ampliando la portata commerciale globale di Kane e rafforzando il suo portafoglio per la cura delle ferite.

Kane Biotech (KNBIF) ha firmado un acuerdo vinculante para adquirir FB Dermatology, una empresa italiana con operaciones en Italia y Australia. La adquisición incluye el portafolio de tecnología FLETECH de FB, que presenta productos como LumiHeal®, Kleresca® y Lumixa® para el cuidado de heridas y aplicaciones dermatológicas. El precio de compra incluye 200,000 dólares en efectivo al cierre, 6 millones de acciones de Kane, 6 millones de warrants a 0.25 dólares y pagos futuros potenciales de 920,000 dólares y 1,380,000 dólares a 18 y 36 meses, respectivamente. Se espera que la transacción se cierre para el 31 de enero de 2025, ampliando el alcance comercial global de Kane y fortaleciendo su portafolio de cuidado de heridas.

Kane Biotech (KNBIF)는 이탈리아와 호주에서 운영되는 이탈리아 회사인 FB Dermatology를 인수하는 구속력 있는 조건 계약을 체결했습니다. 인수에는 상처 치료 및 피부과 응용을 위한 LumiHeal®, Kleresca®, Lumixa®와 같은 제품을 포함하는 FB의 FLETECH 기술 포트폴리오가 포함됩니다. 구매 가격에는 클로징 시 200,000달러 현금, 600만 Kane 주식, 600만 개의 0.25달러의 워런트, 각각 18개월 및 36개월에 920,000달러 및 1,380,000달러의 잠재적 미래 지급이 포함됩니다. 이 거래는 2025년 1월 31일까지 완료될 것으로 예상되며, Kane의 글로벌 상업적 범위를 확장하고 상처 치료 포트폴리오를 강화할 것입니다.

Kane Biotech (KNBIF) a signé une feuille de termes contraignante pour acquérir FB Dermatology, une entreprise italienne ayant des opérations en Italie et en Australie. L'acquisition comprend le portefeuille technologique FLETECH de FB, qui propose des produits comme LumiHeal®, Kleresca® et Lumixa® pour les soins des plaies et les applications dermatologiques. Le prix d'achat inclut 200 000 dollars en espèces à la clôture, 6 millions d'actions Kane, 6 millions de bons de souscription à 0,25 dollar, et des paiements futurs potentiels de 920 000 dollars et 1 380 000 dollars dans 18 et 36 mois respectivement. La transaction devrait être finalisée d'ici le 31 janvier 2025, élargissant la portée commerciale mondiale de Kane et renforçant son portefeuille de soins des plaies.

Kane Biotech (KNBIF) hat eine verbindliche Vereinbarung zur Übernahme von FB Dermatology, einem italienischen Unternehmen mit Niederlassungen in Italien und Australien, getroffen. Die Übernahme umfasst das Technologieportfolio FLETECH von FB, das Produkte wie LumiHeal®, Kleresca® und Lumixa® für Wundversorgung und dermatologische Anwendungen bietet. Der Kaufpreis umfasst 200.000 USD in bar bei Abschluss, 6 Millionen Kane-Aktien, 6 Millionen Warrants zu 0,25 USD sowie potenzielle zukünftige Zahlungen von 920.000 USD und 1.380.000 USD nach 18 bzw. 36 Monaten. Es wird erwartet, dass die Transaktion bis zum 31. Januar 2025 abgeschlossen wird, wodurch Kane's globale kommerzielle Reichweite erweitert und das Portfolio zur Wundversorgung gestärkt wird.

Positive
  • Strategic acquisition expands commercial presence into Europe, Australia, and New Zealand
  • Acquisition includes proven, patented, and commercialized technology portfolio
  • Minimal initial cash outlay of $200,000 reduces immediate financial burden
  • Potential for commercial synergies across multiple markets
  • FDA clearance and ISO certification simplify regulatory approvals in new markets
Negative
  • Future cash obligations of approximately $2.3 million
  • Potential share dilution through 6 million shares and 6 million warrants
  • Additional possible dilution from future payment conversions to shares

Transaction will Strengthen Kane’s Wound Care and Dermatology Portfolio and Expand Global Commercial Reach

WINNIPEG, Manitoba, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Kane Biotech Inc. (TSX- V:KNE; OTCQB:KNBIF) (the “Company”, “Kane Biotech”) announces today that it has entered into a binding term sheet (the “Term Sheet”) setting out the key terms and conditions relating to the acquisition of all of the issued and outstanding shares (the “Purchased Shares”) of FB Dermatology S.R.L. (“FB Dermatology”), incorporated under the laws of Italy. FB Dermatology currently has operations in Italy and Australia with product sales throughout Europe, Australia and New Zealand.

“This transaction is a powerful catalyst for Kane Biotech’s growth,” stated Marc Edwards, President and CEO of Kane Biotech. “FB Dermatology’s Fluorescent Light Energy Technology or FLETECH offers a proven, patented, and fully commercialized portfolio with impactful applications in wound care and dermatology. With this acquisition, we are positioning Kane Biotech as one of the frontrunners in delivering one of the best and most innovative solutions in these fields, backed by an advanced lineup of products. I’m enthusiastic about the future potential of our combined organization, especially as this transaction significantly enhances our commercial capabilities, setting the stage for accelerated growth and impact in the market.”

“We’re thrilled to move this transaction forward with minimal dilution and an initial minimal cash component. This approach aligns with our commitment to maximizing shareholder value and preserving our financial strength, and we believe it’s a win for our investors,” concluded Edwards.

FB Dermatology’s products include:

  • LumiHeal®, which has a European Union MDR CE Mark for the treatment of chronic wounds, as well as a Class II de novo device (US Food and Drug Administration (FDA)) for surgical scar reduction, utilizes the principles of Fluorescence Biomodulation to manage impaired and damaged skin by delivering fluorescence, at a cellular level, to impact the three critical phases of healing: Inflammation, Proliferation and Remodeling.
  • Kleresca®, which also has a European Union CE Mark, stimulates the skin’s own repair systems in a harmless, non-destructive, and painless manner and is used for skin rejuvenation and the treatment of acne and rosacea.
  • Lumixa®, which acts through photobiomodulation light stimuli activating biological processes and regeneration mechanisms of the skin.

In addition to financial synergies, there are a number of commercial synergies that are expected to result from this acquisition including:

  • Accelerated commercialization of Kane Biotech’s revyve™ Antimicrobial Wound Gel in a number of international markets including but not limited to Australia and New Zealand leveraging FB Dermatology’s local sales team. Kane Biotech’s ISO 13485:2016 certification under the Medical Device Single Audit Program (MDSAP) covers Australian regulatory requirements. This certification as well as the Company’s US FDA 510(k) clearance of its revyve™ Antimicrobial Wound Gel will simplify regulatory approval in Australia and New Zealand.
  • Leveraging FB Dermatology’s sales and distribution networks in Europe, Australia and New Zealand to launch the DermaKB® product line in those jurisdictions.
  • The commercial launch of Lumixa® in the United States and Canada for wound care and dermatological applications is expected to be done in synergy with Kane Biotech’s coactiv+™ based technology including its revyve™ product line.
  • The US commercial launch of FB Dermatology’s LumiHeal® technology, which has a Class II de novo device (US FDA) for surgical scar reduction, along with Kane Biotech’s coactiv+™ Antimicrobial Surgical Gel.

“Kane Biotech’s vision and expertise align closely with our goals, and we are fully committed to supporting their growth and innovation as long-term shareholders. We believe Kane Biotech is well-positioned to unlock significant value, and we look forward to partnering with them on this exciting journey to make a lasting impact in the industry,” stated Dr Francesco Bellini, majority shareholder of FB Dermatology.

Subject to adjustments set out in the Term Sheet, the aggregate purchase price expected to be paid by the Company for the Purchased Shares shall consist of the following: (i) approximately $200,000 in cash on the closing date of the Acquisition, defined below (the “Closing Date”); (ii) 6,000,000 common shares of Kane Biotech (each a “Kane Share”), which shall be held in escrow and released pursuant to an escrow agreement on the date that is 36 months from the Closing Date; (iii) 6,000,000 warrants to purchase Kane Shares at a price of $0.25 per Kane Share for a period of 36 months; (iv) on the date that is 18 months from the Closing Date, approximately $920,000 in cash which, at the option of Kane Biotech, may be satisfied by issuing the equivalent number of Kane Shares; and (v) on the date that is 36 months from the Closing Date, approximately $1,380,000 in cash which, at the option of Kane Biotech, may be satisfied by issuing the equivalent number of Kane Shares. The potential payments in shares referenced in subparagraph (iv) and (v) above, if satisfied by the issuance of Kane Shares, are subject to the approval of the TSX Venture Exchange based on the 5 Day volume weighted average price on the day that is 18 and 36 months from the Closing Date, respectively.

The Term Sheet contains a number of standard terms and conditions, including, without limitation, that the closing of the acquisition of the Purchased Shares (the “Acquisition”) is conditional upon FB Dermatology and its shareholders satisfying certain required conditions, including, the parties entering into a framework agreement, regulatory and third party approvals or consents with respect to the Acquisition, the completion of a pre-closing reorganization in accordance with the laws of Italy, FB Dermatology adopting new by-laws, Kane Biotech making certain capital contributions to FB Dermatology and, if required by Italian law, a consultation with the employees of FB Dermatology.

The closing of this arm’s length transaction is expected to occur on or about January 31, 2025.

About FB Dermatology

FB Dermatology is a biotechnology company offering innovative and exclusive patented solutions for tissue regeneration, dermatology conditions and aesthetic alterations. FB Dermatology is present all over Europe as well as Israel, Australia and New Zealand. At FB Dermatology, we aspire to change the fundamentals of tissue regeneration, dermatology and aesthetic medicine. Our innovative FLE technology represents a unique mode of action that allows us to create a new gold standard within the industry for the benefit of patients worldwide. FB Dermatology is headquartered in San Benedetto del Tronto, Italy.

About Kane Biotech

Kane Biotech Inc. is a biotechnology company engaged in the research, development and commercialization of technologies and products that prevent and remove microbial biofilms. Kane Biotech has a portfolio of biotechnologies, intellectual property (66 patents and patents pending as well as trade secrets and trademarks) and products developed by Kane Biotech's own biofilm research expertise and acquired from leading research institutions. DispersinB®, coactiv+™, coactiv+®, DermaKB™, DermaKB Biofilm™, and revyve™ are trademarks of Kane Biotech Inc. Kane Biotech is listed on the TSX Venture Exchange under the symbol "KNE" and on the OTCQB Venture Market under the symbol “KNBIF”.

For more information:

Marc EdwardsRay Dupuis
Chief Executive OfficerChief Financial Officer
Kane Biotech IncKane Biotech Inc
medwards@kanebiotech.comrdupuis@kanebiotech.com


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Information

This press release contains certain statements regarding Kane Biotech Inc. that constitute forward-looking information under applicable securities law. These statements reflect management’s current beliefs and are based on information currently available to management. Forward-looking statements in this news release include, but are not limited to, statements regarding the anticipated terms of the Acquisition and the closing of the Acquisition, the expected results of the Acquisition and Kane Biotech’s future development plans for its products. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Forward-looking statements are subject to various risks and uncertainties which include, but are not limited to, risks relating to Kane Biotech’s: (a) financial condition, including lack of significant revenues to date and reliance on equity and other financing; (b) business, including its early stage of development, government regulation, market acceptance for its products, rapid technological change and dependence on key personnel; (c) intellectual property including the ability of Kane Biotech to protect its intellectual property and dependence on its strategic partners; and (d) capital structure, including its lack of dividends on its common shares, volatility of the market price of its common shares and public company costs. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Kane Biotech with applicable securities regulatory authorities, available at www.sedarplus.ca. Kane Biotech cautions that the foregoing list of factors that may affect future results is not exhaustive.


FAQ

What is the purchase price for Kane Biotech's acquisition of FB Dermatology?

The purchase price includes $200,000 in cash at closing, 6 million Kane shares, 6 million warrants at $0.25, and potential future payments of $920,000 and $1,380,000 at 18 and 36 months respectively.

When is Kane Biotech (KNBIF) expected to close the FB Dermatology acquisition?

The acquisition is expected to close on or about January 31, 2025.

What products will Kane Biotech acquire through FB Dermatology?

Kane Biotech will acquire LumiHeal® for chronic wounds, Kleresca® for skin rejuvenation and treatment of acne and rosacea, and Lumixa® for skin regeneration.

What markets will Kane Biotech gain access to through this acquisition?

The acquisition will give Kane Biotech access to markets in Europe, Australia, and New Zealand through FB Dermatology's existing operations and distribution networks.

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