Kane Biotech Announces New Credit Facility

Rhea-AI Summary

Kane Biotech Inc. (OTCQB: KNBIF) announced a new credit agreement with Pivot Financial, increasing its credit facility from $1.48 million to $2.5 million. The funds will support research and development, cover expenses related to STEM Animal Health Inc., and provide working capital. CFO Ray Dupuis emphasized that this facility enhances the company's liquidity during ongoing partnership discussions. Pivot Financial's President, Dan Flaro, noted the improved terms, which facilitate the commercialization of Kane Biotech's intellectual property, comprising 52 patents and trademarks.

Positive

• Increased credit facility to $2.5 million from $1.48 million, enhancing liquidity.
• Funds aimed at supporting R&D and working capital can fuel growth opportunities.

Negative

• Company relies on external financing, indicating potential financial instability.
• Lack of significant revenues to date raises concerns about sustainability.

WINNIPEG, Manitoba, Sept. 02, 2021 (GLOBE NEWSWIRE) -- Kane Biotech Inc. (TSX-V:KNE; OTCQB:KNBIF), (the “Company” or “Kane Biotech”), today announces that it has entered into an amended and restated credit agreement with Pivot Financial Inc. (“Pivot”) dated August 31, 2021 (the “Amended Credit Facility”).

The Amended Credit Facility amends and restates the existing credit agreement with Pivot dated November 5, 2020, increasing the credit facility to $2.5 million from $1.48 million. The Amended Credit Facility shall continue to be used by Kane Biotech for: (i) funding research and development relating to eligible government reimbursable expenditures; (ii) expenses related to STEM Animal Health Inc; and (iii) general working capital purposes.

“This new facility provides Kane Biotech with the access to additional working capital that it requires while discussions continue to advance on various partnership opportunities. I’d like to thank Pivot for their ongoing support of and confidence in the Company and its growth prospects,” commented Kane Biotech’s Chief Financial Officer, Ray Dupuis.

Dan Flaro, Pivot’s President noted “we’re pleased to renew and increase our non-dilutive financing commitment to Kane with improved terms to help it further advance the targeted commercialization of its portfolio of intellectual property.”

About Kane Biotech
Kane Biotech is a biotechnology company engaged in the research, development and commercialization of technologies and products that prevent and remove microbial biofilms. The Company has a portfolio of biotechnologies, intellectual property (52 patents and patents pending, trade secrets and trademarks) and products developed by the Company's own biofilm research expertise and acquired from leading research institutions. StrixNB™, DispersinB^®, Aledex™, bluestem™, bluestem^®, silkstem™, goldstem™, coactiv+™, coactive+^®, DermaKB™ and DermaKB Biofilm™ are trademarks of Kane Biotech Inc. The Company is listed on the TSX Venture Exchange under the symbol "KNE" and on the OTCQB Venture Market under the symbol “KNBIF”.

For more information, kanebiotech.com, or:

Marc Edwards	Ray Dupuis	Lorne Gorber
Chief Executive Officer	Chief Financial Officer	Investor Relations
Kane Biotech Inc	Kane Biotech Inc	Kane Biotech Inc.
medwards@kanebiotech.com	rdupuis@kanebiotech.com	lgorber@kanebiotech.com
+1 (514) 910-6991	+1 (204) 298-2200

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. 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. These risks and uncertainties include, but are not limited to, risks relating to the Company’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 the Company 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 the Company with applicable securities regulatory authorities, available at www.sedar.com. The Company cautions that the foregoing list of factors that may affect future results is not exhaustive.

FAQ

What is the new credit facility amount for Kane Biotech (KNBIF)?

The new credit facility for Kane Biotech is $2.5 million.

What will Kane Biotech use the credit facility for?

The credit facility will be used for research and development, expenses related to STEM Animal Health Inc., and general working capital.

Who provided the credit facility to Kane Biotech?

The credit facility was provided by Pivot Financial Inc.

When was the amended credit agreement announced for Kane Biotech?

The amended credit agreement was announced on September 2, 2021.

What is the significance of Kane Biotech's intellectual property?

Kane Biotech holds 52 patents and trademarks, which are critical for its commercialization efforts.