Following completion of the Transaction SecureDose became a wholly-owned subsidiary of PharmaDrug
SecureDose is a private pharmaceutical research and development company focused on the development of synthetic formulations of currently existing drugs. (Credit: Julia Koblitz on Unsplash)
PharmaDrug, is pleased to announce that it has closed the previously announced acquisition of Securedose Synthetics.
PharmaDrug acquired all of the issued and outstanding shares of SecureDose by way of a three-cornered amalgamation between Pharmadrug, SecureDose and a wholly-owned subsidiary of PharmaDrug. Following completion of the Transaction SecureDose became a wholly-owned subsidiary of PharmaDrug. The Transaction was an arm’s length transaction for the purposes of applicable securities laws.
SecureDose is a private pharmaceutical research and development company focused on the development of synthetic formulations of currently existing drugs for potential commercialization and distribution.
On closing SecureDose had $750,000 CAD in cash and no debt outstanding. The Company decided to acquire SecureDose in order to complement its current focus by adding the capability to develop its own formulations that could potentially reach commercialization in a shorter time frame than traditional full cycle biotech programs.
Robert Steen, CEO and Chairman of PharmaDrug, commented, “We are extremely excited to close on the SecureDose acquisition. Our priority will be to continue SecureDose’s strategy to develop synthetic formulations for the potential third wave of drug policy reform. With some formulations already in hand, the Company will now focus on developing an economic and scalable process of these synthetic formulations which could lead to both intellectual property and commercialization opportunities as markets possibly open up domestically or internationally.”
Terms of the Transaction
Pursuant to the terms of the Transaction, each issued and outstanding share of SecureDose (a “SecureDose Share”) was exchanged for one common share in the capital of the Company (a “PharmaDrug Share”) resulting in the issuance of 31,500,000 PharmaDrug Shares.
In addition, SecureDose had 7,500,000 common share purchase warrants and 525,100 finder warrants outstanding that were replaced with PharmaDrug warrants (“PharmaDrug Warrants”) and PharmaDrug finder warrants (“PharmaDrug Finder Warrants”).
The PharmaDrug Warrants entitle the holders thereof to acquire one PharmaDrug Share at a price of $0.10 at any time on or before the September 22, 2025 and the PharmadDrug Finder Warrants entitle the holder thereof to acquire one PharmaDrug Share at a price of $0.10 at any time on or before September 22, 2025.
Prior to the completion of the Transaction Pharmadrug had 51,383,487 PharmaDrug Shares outstanding and after the completion of the Transaction it has 82,883,487 PharmaDrug Shares outstanding. Following completion of the Transaction the security holders of SecureDose immediately preceding the Transaction hold approximately 38% of the outstanding PharmaDrug Shares (43% on a partially diluted basis, giving effect to the conversion of the PharmaDrug Warrants and PharmaDrug Finder Warrants). The Transaction did not result in a change of control of Pharmadrug.
Source: Company Press Release