The plan is for BetterLife to issue about 4.5 common shares of its stock for every one Altum share, which represents roughly $36.1 million.
Altum’s drug pipeline includes lead product AP-003, an inhalation formulation that could represent a potential treatment against coronavirus (COVID-19) as it shows effectiveness in slowing viral replication. Under the agreement, BetterLife will acquire worldwide rights to commercialize and sell AP-003.
Ahmad Doroudian, Altum’s sole director, told BetterLife that his company will call for a special meeting of its shareholders to vote on the merger. Last week, BetterLife secured hard lock-up agreements from about two-thirds of Altum’s shareholders, clearing a path to finalizing the deal.
"I am very pleased that we can finally move ahead with Altum to complete the merger and begin work of advancing Altum's pipeline of 3 products, especially AP-003 and its potential as a COVID-19 treatment," BetterLife Director Robert Metcalfe said in a statement,
BetterLife also announced that it has extended the closing date of its deal with Altum to acquire worldwide rights (excluding China, Japan and Association of Southeast Asain Nations countries) to commercialize and sell AP-003 to July 15.
The proposed acquisition is subject to the receipt of all required approvals and due diligence. If successful, Altum will become a wholly-owned subsidiary of BetterLife, which would commercialize AP-003 without restriction and without further payments or licensing obligations to Altum.
BetterLife is a biopharmaceutical company engaged in the development and commercialization of patented, differentiated and premium quality nutraceuticals and pharmaceuticals.
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