Entheon Announces Sale of Certain DMT Clinical Assets and Filing of Provisional Novel Compound Patents
Vancouver, British Columbia--(Newsfile Corp. - June 7, 2022) - Entheon Biomedical Corp. (CSE: ENBI) (OTCQB: ENTBF) (FSE: 1XU1) ("Entheon" or the "Company") today announced that it has entered into a definitive agreement (the "Agreement") dated June 7, 2022 with Cybin IRL Limited (the "Purchaser"), a subsidiary of Cybin Inc. ("Cybin"), pursuant to which the Company has agreed to sell its Phase 1 N,N-dimethyltryptamine ("DMT") study (the "DMT Study") to the Purchaser (the "Transaction") for a purchase price of CAD$1,000,000, a portion of which will be a deposit with the balance payable on closing of the Transaction. In connection with the Transaction, the Purchaser will assume all accrued liabilities and accounts payable associated with the DMT Study.
The DMT Study is being conducted in the Netherlands at the Centre for Human Drug Research, a leading independent foundation specializing in innovative early-stage clinical drug research, in 50 healthy volunteers who smoke (cigarettes/nicotine users). The Company has agreed to provide ongoing support for the DMT Study, by entering into a consulting services agreement with the Purchaser and an employee of the Company for a period of 12 months following closing of the Transaction and a fee to the Company of up to CAD$480,000. The Company will also enter into a data licence agreement with Cybin which will permit the Company to have access to de-identified clinical trial data related to genetic and electroencephalogram data, with obligations of confidentiality.
"Entheon is re-focusing its resources to its Entheon RX™, ID™ and IQ™ divisions to continue pursuing novel drug targets, genetic and EEG-based biomarkers, which we believe is a higher-value market opportunity. The Company is happy to monetize the work completed to date and continues to support R&D targeting mental health and addiction cessation and supports the completion of the clinical work," said Timothy Ko, CEO of Entheon. "The Company remains committed to R&D targeting mental health and addiction cessation and will focus its resources accordingly to enable its Entheon RX™, ID™ and IQ™ divisions to continue pursuing novel drug targets, genetic and EEG-based biomarkers."
Filing of Provisional Novel Compound Patents
Entheon also announced that it has filed three provisional patents for novel tryptamine compounds anticipated for use in psychedelic therapy. Entheon's New Chemical Entity program, part of its Entheon RX™ division, seeks to discover and develop novel compounds with pharmacologic characteristics that represent a meaningful clinical improvement over currently known psychedelic compounds.
"Entheon RX™ prioritises the design and development of novel molecules that offer significant innovation," said Timothy Ko, Chief Executive Officer of Entheon. "In our view, this is a significant step toward building a best-in-class suite of clinical tools for the treatment of addiction disorders."
Termination of Non-Brokered Financing
The Company also announced that it has elected not to proceed with a non-brokered private placement financing for up to $3,000,000 originally announced on April 5, 2022.
About Entheon Biomedical Corp.
Entheon is a biotechnology research and development company committed to developing and commercializing a portfolio of safe and effective DMT-based psychedelic therapeutic products ("DMT Products") for the purposes of treating addiction and substance use disorders. Entheon is comprised of three divisions, Entheon RX™, focused on the development of therapeutic drugs, using DMT as the pharmacological benchmark; Entheon ID™, focused on identification, analysis and predictive use of EEG biomarkers and genetics in the selection and management of drug treatment; and Entheon IQ™, focused on the development of treatment algorithms through the analysis of patient data. Subject to obtaining all requisite regulatory approvals and permits, Entheon intends to generate revenue through the sale of its DMT Products to physicians, clinics and licensed psychiatrists in the United States, certain countries in the European Union and throughout Canada.
On Behalf of the Board of Directors,
Timothy Ko, CEO, President and Director
For more information, please contact the Company at:
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, including, without limitation, statements with respect to the anticipated closing of the Transaction and the timing thereof are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as "pro forma", "plans", "expects", "will", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this news release including, without limitation, that the Transaction will close and on the anticipated timetable; that the Company's patent applications will be accepted and the benefits of such patents will be realized; that general business and economic conditions will not change in a material adverse manner; that applicable regulatory approvals will be received; and assumptions regarding political and regulatory stability and stability in financial and capital markets.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, the risk that the Transaction will not close on the anticipated timetable or at all; that the Company's patent applications will not be accepted; delays in obtaining regulatory approvals (including those of the Canadian Securities Exchange); risks related to the volatility of global capital markets and global economic conditions; and political instability.
Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does the Company nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither the Company nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
The Canadian Securities Exchange has not approved nor disapproved the contents of this news release.
NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/126740