SAN FRANCISCO, CA and TORONTO, ON, Jan. 12, 2022 (GLOBE NEWSWIRE) — Claritas Pharmaceuticals, Inc. (TSX VENTURE: CLAS and OTC: KALTF) (the “Society” Where “Claritas“) is pleased to announce that it has reached an agreement (the “Agreement”) with Alumina Partners (Ontario) Ltd. (“Alumina”), an affiliate of Alumina Partners, LLC, a New York-based private equity firm, under which Alumina has agreed to provide, at the Company’s option, up to $5 million in equity financing. actions over a period of 2 years.
- the The agreement will provide Claritas with two years of working capital, with initial proceeds allocated to remaining costs the Phase 1 clinical study of R-107, which the Company expects to complete in the first quarter of 2022.
- Future profits will be allocated at the expense of the Phase 2a study of R-107 in pulmonary arterial hypertension (“PAHs”), which the Company expects to launch by Q3 2022; and the Phase 2a study of R-107 in ppersistent pulmonary hypertension of the newbornPPHN”), which the Company plans to initiate by the end of 2022.
- Under the agreement, Claritas can pull down, at his discretion and subject to certain conditions, cash tranches of up to $250,000. Each tranche will be a private placement of units, consisting of one common share and one common share purchase warrant. Units will be issued at a discount of 15% to 25% to the closing market price at the time each tranche is funded, and the exercise price of the Warrants will be at a premium of 25% to at the market price at the time of issue. .
- No finder’s fee was associated with this transaction. Each tranche of units issued will be subject to acceptance by the TSX Venture Exchange and the securities issued will be subject to the customary hold period of 4 months and one day.
Claritas is currently developing R-107, its proprietary nitric oxide-releasing compound, for the treatment of COVID-related lung diseases, including COVID-related ARDS and COVID-related sepsis, as well as for the treatment of PAH and PHPN.
Claritas intends to seek non-dilutive government grants to develop R-107 for the treatment of COVID-related ARDS and COVID-related sepsis. The Company will apply for funding from the Biomedical Advanced Research Development Authority (“BARDA”), an agency of the US Department of Health and Human Services. More than US$15 million of R-107’s early development costs have already been funded under a BARDA contract, and the company will seek a new BARDA contract to fund the Phase 2 and Phase 3 clinical studies of R-107. R-107 in COVID-ARDS-related and COVID-related sepsis.
The resources available to the Company under the agreement with Alumina will be used to advance the development of R-107 for the treatment of PAH and PHPN, advancing R-107 into clinical studies of phase 2a next year in both indications.
“We are thrilled that Alumina recognizes the potential of R-107, our proprietary nitric oxide releasing compound in development for lung disease in adults and neonates, as well as COVID-related lung disease. . Alumina is prepared to provide up to $5 million in working capital to ensure the company can realize this potential. This strong financial support will provide us with the flexibility and resources we need to achieve the expected value creation milestones over the next 2 years,” said Robert Farrell, President and Chief Executive Officer.
Mr Farrell went on to say, “The benefit of this transaction structure is that the company will not be withdrawing the full $5 million at this time when our stock price is low and the company is under -evaluated. Rather, to minimize shareholder dilution, we will only judiciously access this funding facility over time as funds are needed. If, as expected, we achieve the value-creating milestones mentioned, and if the price and valuation of our shares reflect this value, we will issue fewer shares and warrants per dollar of financing raised under this ease. We view Alumina as a partner that helps us create value, and we view this financing facility as a win-win transaction for the Company and its shareholders.
“We are delighted to support Claritas in its efforts to bring R-107 to market,” said Adi Nahmani, Managing Member of Alumina. “We are certainly not the first to recognize the need for a nitric oxide releasing therapeutic agent for a number of applications, both chronic and acute. Indeed, much of the initial development was funded by BARDA, the life sciences DARPA. In the face of the evolving challenges posed by COVID, however, the need for R-107 is all the more urgent and the applications all the more promising. We are delighted to be investors in this technology and look forward to seeing management progress with the clinical trials necessary to add this compound to modern medical pharmacopoeia.
About Claritas Pharmaceuticals
Claritas Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing and commercializing therapies for patients with significant unmet medical needs. Claritas leverages its expertise to find solutions that will improve health outcomes and dramatically improve people’s lives.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities laws, which are not based on historical fact, including, without limitation, relates to its pipeline of product candidates, planned clinical trials, regulatory approval prospects, intellectual property objectives, and other statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continues”, “estimates” , “plans” and other similar expressions. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by such statements depending on, among other things, the risksk that future clinical studies may not go as planned or produce unfavorable results results. Claritas assumes no obligation to comment on the analyses, expectations or statements made by third parties, its securities or its financial or operating results (as the case may be). Although Claritas believes that the expectations reflected in the forward-looking information contained in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions regarding future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, some of which go beyond Claritas’ control. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Claritas disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
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