viewPreveCeutical Medical Inc.

PreveCeutical grants Asterion Cannabis option to purchase 51% interest in Sol-Gel intellectual property

The firm's sustained-release Sol-Gel (soluble gel) program allows for the nasal delivery of medical compounds, including cannabinoids like CBD

PreveCeutical develops innovative options for preventive and curative therapies utilizing organic products
PreveCeutical develops innovative options for preventive and curative therapies utilizing organic products

PreveCeutical Medical Inc (CSE:PREV) (OTCMKTS:PRVCF) and Asterion Cannabis Inc announced Tuesday they have inked an option agreement, which sees PreveCeutical granting Asterion the option to purchase up to a 51% stake in the intellectual property for its soluble gel (Sol-Gel) system.

The sustained-release Sol-Gel program allows for the delivery of medical compounds, including cannabinoids like CBD, to provide relief from pain, inflammation, seizures and neurological disorders.

"This option agreement presents a unique and timely opportunity for PreveCeutical. We are excited to further our existing strategic partnership with Asterion and are confident that Asterion will assist PreveCeutical in the rapid commercialization of the Sol-Gel IP," said PreveCeutical's president and chief science officer, Dr. Mak Jawadekar in a statement.

READ: Asterion Cannabis' Queensland project gets big boost after government ruling

To exercise the option, Asterion will be required to make a series of cash payments to PreveCeutical totalling C$2.65 million, by December 22, 2019. 

After this time, PreveCeutical and Asterion will be deemed to have entered into a joint venture for the continued development and commercialization of the Sol-Gel intellectual property, with Asterion holding 51% and PreveCeutical holding 49%.

Until that point, PreveCeutical is responsible for funding development and commercialization of the Sol-Gel IP. 

The firm noted that the option is subject to a right by PreveCeutical to buy back all - but not less than all - of the earned interest by paying Asterion an amount equal to 150% of the aggregate amount of all cash payments to the date of exercise. 

PreveCeutical is also engaged in the development of a dual gene therapy for curative and prevention therapies for diabetes and obesity and is also advancing non-addictive analgesic peptides as a replacement to highly addictive drugs such as morphine, fentanyl and oxycodone, and a therapeutic product for treating athletes who suffer from concussions. 

PreveCeutical shares in Toronto were halted at C$0.04 earlier on Tuesday pending the announcement. 

Contact Katie Lewis at [email protected]

Quick facts: PreveCeutical Medical Inc.

Price: 0.065 CAD

Market: CSE
Market Cap: $25.77 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of PreveCeutical Medical Inc. named herein, including the promotion by the Company of PreveCeutical Medical Inc. in any Content on the Site, the...



PreveCeutical Medical announces completion on analgesic program is near

PreveCeutical Medical (CSE:PREV-OTCQB: PRVCF) CEO Stephen Van Deventer joined Steve Darling from Proactive Vancouver with news the company’s current stage of research for its disulfide linker technology will be completed soon. Van Deventer telling Proactive about the program and what the next...

3 weeks ago

2 min read