MONTREAL, CANADA--(Marketwired - Jun 25, 2014) - Knight Therapeutics Inc. (GUD.TO) ("Knight"), a leading Canadian specialty pharmaceutical company, announced today that it has entered into a secured debt agreement with privately-held Origin Biomed Inc. ("Origin"), a company dedicated to the worldwide commercialization of the Neuragen® and Bionica brands.
The $850,000 Canadian secured loan issued by Knight to Origin will bear interest at a rate of 15% per annum and matures on June 25, 2017. The loan is secured by a charge over the assets of Origin. In addition, Knight has been issued warrants to acquire 698,483 Origin preferred shares at $0.0794 per share. Origin will use the funds to promote the growth of Neuragen in both Canada and the U.S. Neuragen is the first all-natural, non-prescription topical treatment for rapid relief of pain associated with diabetic and peripheral neuropathy, approved for sale in Canada and the U.S.
"This $850,000 loan from Knight helps fund the continued promotion of Neuragen across all 40,000 retailers in North America," said Carlo Shimoon, Origin's Executive Chairman.
"We are pleased to support Origin in the growth of Neuragen and look forward to a long, pain-free partnership with Origin," said Jonathan Ross Goodman, President and CEO of Knight.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. Knight Therapeutics' shares began trading on the TSX-V on March 3, 2014 and graduated to the TSX on April 29, 2014 under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at www.gud-knight.com or at www.sedar.com.
About Origin BioMed Inc.
Origin BioMed Inc. is a privately-held Canadian consumer health products company with business operations throughout the U.S., Canada and Australia. Headquartered in Halifax, Nova Scotia, Origin BioMed Inc. manufactures health products with the highest quality active ingredients, at therapeutic levels, with evidence of scientific or clinical efficacy since 2001. Its leading drug product, Neuragen®, helps relieve pain caused by diabetic nerve damage. For more information, please visit: www.originbiomed.com or www.neuragen.ca.
Knight Therapeutics Forward Looking Statement
This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the company's final application for listing on the TSX Venture Exchange and in two short form prospectuses which can be found on SEDAR at www.sedar.com, which investors should consult for additional information. The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law.