Naturally Splendid Enterprises Ltd (CVE:NSP) (OTCMKTS:NSPDF) has struck a definitive joint venture deal with Biologic Pharmamedical Research to pursue Phase 2 studies of Cavaltinib to treat coronavirus (COVID-19) and announced a private placement to raise C$850,000.
The venture has been granted certain rights from Biologic patents relating to applications for treating the virus. Under the terms, Naturally Splendid will invest C$500,000 and own 16% and be granted a 10% royalty on gross sales of all products and applications arising from the clinical study.
READ: Naturally Splendid posts unaudited financial results for first six months of 2020 as manufacturing facility passes audit
"We continue to make progress on several fronts including significant steps towards beginning a phase 2 clinical trial for a potential COVID-19 treatment. Most unfortunately, the pandemic has continued to have widespread negative effects on the health and economies in many countries," said Craig Goodwin, CEO of Naturally Splendid in a statement.
On July 29 this year, the plant-based food and ingredients group, said it had received a 'No Objection' Letter, which acknowledged drug candidacy and the authority to proceed.
But then on August 10, Naturally Splendid said Health Canada has requested specific protocol details regarding the trial of the drug.
"The company awaits further direction from Health Canada," it said on Wednesday.
Through the non-brokered private placement the group issued over 14.1 million units at C$0.06 each for gross proceeds of up to C$850,000.
Each unit consisted of one common share of Naturally Splendid and one half of a share purchase warrant. Each warrant entitled the holder to buy one further share for two years from issue at an exercise price of C$0.10 per share.
Shares in Naturally Splendid added over 7% on Wednesday in Toronto to stand at C$0.075.
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