Under a convertible loan arrangement, Panacela owed money to Rusnano, which was satisfied by the issue to Rusnano of 256,215 shares of Cleveland BioLabs, plus a combination of debt-to-equity conversions and cash injections.
As a result. Rusnano's stake in Panacela Labs remained unchanged and Cleveland's interest rose from 60.47% to 66.77%.
Panacela is developing Mobilan, a treatment for cancerous tumors.
A Phase 1 study evaluating single injections of ascending doses of Mobilan administered directly into the prostate of patients with prostate cancer is ongoing under an Investigational New Drug application in the Russian Federation. This study is being performed under a development contract with the Ministry of Industry and Trade of the Russian Federation, (MPT).
"With Panacela's debt settled, its team can focus their efforts on continued clinical development of Mobilan,” said Yakov Kogan, chief executive officer of Cleveland BioLabs.