Genix Acquires Exclusive Rights to SUCANON(R) and RENOCHLOR(R)
TSX Venture Exchange provides conditional acceptance for the acquisition of 30 World Health Organization approved generic ophthalmic drugs
Vancouver, British Columbia--(Newsfile Corp. - January 14, 2020) - Genix Pharmaceuticals Corp. (TSXV: GENX) ("GENIX" or the "Company"), announces that it has entered into an Acquisition Agreement dated for reference January 10, 2020 (the "Agreement") with Canagen Pharmaceuticals Inc. ("Canagen") pursuant to which, subject to acceptance of the TSX Venture Exchange ("TSX-V"), the Company has agreed to purchase sole and exclusive distribution, sales and marketing rights and interest (the "Rights") for Canada, (excluding intellectual property rights) for an initial term of ten years to two nutraceutical products under the brand names SUCANON® and RENOCHLOR®(the "Transaction"). SUCANON® is a nutraceutical for managing and treating diabetes, and RENOCHLOR® a patented nutraceutical for the prevention and treatment of chronic kidney disease and end stage renal disease.
Genix has agreed to pay Canagen $100,000 for the SUCANON® Rights and $250,000 for the RENOCHLOR® Rights, for a total of $350,000 (the "Purchase Price") to be paid in tranches as follows:
Eighty-seven thousand five hundred dollars ($87,500) (the "First Payment") on the date Genix and Canagen close the Transaction (the "Closing Date"), such closing date to be no later than February 29, 2020 unless extended in writing by the parties;
One hundred and twenty-two thousand five hundred dollars ($122,500) (the "Second Payment") on the first anniversary of the Closing Date; and;
One hundred and forty thousand dollars ($140,000) (the "Third Payment") on the second anniversary of the Closing Date.
If Genix fails to make the First Payment, it has agreed to pay Canagen interest in the amount equal to twelve percent (12%) of the outstanding amount from the Closing Date, plus penalty in the amount of one and a half percent (1.5%);
If Genix fails to make the Second Payment, it has agreed to pay Canagen interest in the amount equal to twelve percent (12%) of the outstanding amount from the second anniversary of the Closing Date, plus penalty in the amount of one and a half percent (1.5%); and
If Genix fails to make the First or subsequent payments of the Purchase Price for a period of longer than three (3) months from the due dates, all Rights, including all Natural Product Numbers ("NPNs") issued to Genix by Health Canada, granted to Genix by Canagen under the Agreement shall be immediately transferred and assigned to Canagen. SUCANON® already has a Health Canada issued NPN and can be marketed and sold by the Company immediately, while RENOCHLOR will require Genix to apply for an NPN.
The Agreement is subject to the following condition precedents ("Condition Precedents") being met by February 29, 2020: i) completion by Genix of a financing in the amount of five hundred thousand ($500,000); and ii) resumption of trading of Genix on the TSXV.
We are pleased to advise that Genix has received the conditional acceptance of the TSX-V to the acquisition of thirty (30) World Health Organization approved generic prescription ophthalmic drugs (the "Ophthalmic Drugs") and their CTD Dossiers (the "Product Dossiers") together with concomitant global sales and marketing rights (excluding India) to such products in consideration of the issuance of 15,000,000 common shares (the "Vend-In Shares") in the capital of the Company valued at $0.0525 per Vend-In Share for a total value of $787,500 and we anticipate closing this acquisition imminently.
We further anticipate that the shares of the Company will be reinstated for trading shortly.
The following is a description of the nutraceutical products:
SUCANON is one of only several nutraceutical/OTC products approved in the world, belonging to a class of diabetic medications called insulin sensitizers. Insulin sensitizers lower blood sugar by increasing the muscle, fat and liver's sensitivity to insulin. Insulin sensitizers are blood sugar normalizing or euglycemic drugs that help return the blood sugar to the normal range without the risk of low blood sugars. SUCANON® is a medication that helps the body make better use of its own insulin, the hormone that controls blood sugar levels. Type II Diabetics produce insulin, but their cells gradually lose the ability to absorb and use insulin, to get sugar out of the blood stream. SUCANON® transports sugar out of the blood stream and into cells where it can be burned. SUCANON® particularly helps muscle cells use insulin and thus draw sugar out of the blood stream.
SUCANON increases sensitivity to insulin which leads to decreased blood sugar levels and a reduction of a wide range of Type II Diabetes symptoms, including: weight gain, fatigue, excess thirst and excess urination. The reduction in blood sugar levels also reduces the possibility of peripheral nerve damage; the damage caused to peripheral nerves by chronic high blood sugar can ultimately lead to impotence in men and amputation of limbs in both men and women.
Successful clinical studies conducted in Brazil, China and Mexico have shown that SUCANON® is an effective treatment for Type-2 diabetes without the serious cardiovascular risks (heart attacks) that have been associated with other insulin sensitizers, including the leading drugs in this category - Avandia®, Actos®, and Rezulin®
According to Diabetes Canada, the number of Canadians living with diabetes has doubled since 2007 and 1 in 3 Canadians, or 11 million Canadians, live with diabetes or prediabetes in 2019 and the costs of treating the disease have soared from $14 billion in 2008 to just under $390 billion in 2019.
RENOCHLOR is a novel, patented, clinically proven dietary supplement for improvement of renal functions in patients suffering from Chronic Renal Failure ("CRF"). Renal failure is characterized by loss of the ability of the kidneys to excrete bodily wastes, concentrate urine, conserve electrolytes and maintain fluid balance in the body. Untreated chronic kidney disease (CKD) in absence of change in food habits and medical treatment leads to progressive loss of kidney function considerably fast reaching to the life threatening stage very fast.
The current treatment is dialysis as per requirement ranging from once in a day to once in several weeks. This does not treat the basic cause but helps in eliminating the wastes accumulated in the blood. Dialysis alone does not provide any remedy to declining hemoglobin, which ultimately becomes a major cause for further deterioration and decrease in immunity.
RENOCHLOR has been demonstrated, in several clinical trials, to normalize kidney functions in CRF patients and even prevent the need for expensive and cumbersome dialysis treatments, with a relative decrease in serum creatinine and increased glomerular filtration rate (GFR) for the entire duration of two months of its administration. The effect of which has also shown to get carried over up to 90 days in case of relative decrease in serum creatinine and increased GFR.
The results obtained are statistically significant also for improvement in practically all aspects of quality of life; which is the most important objective of a CKD treatment that is rarely achieved in currently known CKD treatments prior to the introduction of RENOCHLOR®.
According to the Canadian Kidney Foundation, 1 in 10 Canadians suffer from CKD. According to a 2017 study in the Canadian Journal of Kidney Health and Disease, "of the 4 million Canadian adults living with CKD, 43,00 have end-stage renal disease (ESRD)…which means the Canadian health care system spends nearly $2.5 billion annually caring for the 0,06% of Canadians who are on dialysis. Health care costs for those living with CKD more broadly in Canada exceed $40 billion per year in Canada."
About the Company
Genix Pharmaceuticals Corporation is an innovative Canadian life sciences company focused on the research, development, manufacture and sales of novel & innovative healthcare products - proprietary over the counter ("OTC") nutraceuticals and generic pharmaceuticals that have been shown to deliver consistent and verifiable results in various therapeutic areas. The Company deploys a pharmaceutical model for product development and selection including rigorous active ingredient discovery and clinical testing for all its nutraceutical and pharmaceutical products. Since our inception in 1996, we have been involved in the manufacturing and marketing of both nutraceutical and pharmaceutical products. The Company intends to continue developing novel and innovative products for sales through traditional retail outlets and well as direct to consumers and e-commerce platforms, in keeping with the evolving nature of the health care industry towards Integrative Medicine and Health ("IMH") and Complementary and Alternative Medicine ("CAM"). Genix intends to market its products in Canada, the USA, China, S.E. Asia, the United Kingdom and other selected countries.
On behalf of the Board,
Sina Pirooz, CEO, Director
Genix Pharmaceuticals Corporation
For more information regarding Genix, please contact:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially and there are no assurances that the transaction described in this news release will close on the terms described or at all. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company. Readers are cautioned not to place undue reliance on forward looking statements.
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