Canadian company, Aphria, has announced a $11.5 million strategic investment into biopharmaceutical company, Scientus Pharma, which focuses on the development of drugs that target the endocannabinoid receptors to treat diseases.
Investment
Under the terms of the investment agreement, over two years an interest of 8% will be paid semi-annually, which is convertible into common shares of Scientus Pharma at a rate of $2.75 per share and will be secured by a first charge on all current and future assets of Scientus Pharma.
“We are excited to enhance our relationship with industry leader Scientus Pharma,” said Vic Neufeld, chief executive officer of Aphria. “Their proposed pipeline of new and innovative products represent a major step forward for cannabinoid based medical products in Canada. Gaining access to their dealer’s licence provides Aphria immediate access in the short-term to enhanced global opportunities.”
“We are excited to welcome Aphria as a strategic investor,” said Trevor Folk, chief executive officer of Scientus Pharma. “Coming on the heels of the two companies completing a major wholesale supply agreement in June, this sizable investment serves to validate the Scientus Pharma business model to be the leader in extractions, formulations and provider of best of breed derivative medical cannabinoid based products. It also significantly expands our existing partnership, allowing Scientus Pharma to complete implementation of its patent pending commercial scale microwave extraction platform, an important step toward creating an active pharmaceutical ingredient that can be subsequently formulated into a range of effective dosing forms, and to execute the commercial launch of its first differentiated product.”