Therma Bright Inc (TSX-V:THRM, OTC:TBRIF) announced that it has entered into an agreement to acquire an interest in a novel technology utilizing inhaled statins to treat respiratory conditions, including asthma and chronic obstructive pulmonary disease (COPD), and acute lung inflammatory diseases, including those caused by COVID-19.
Research from the University of California Davis School of Medicine on “inhaled statins” to treat the acute and chronic respiratory inflammatory mechanisms associated with asthma, COVID-19, and other respiratory conditions has yielded promising results, according to Therma.
Therma said it has entered into an agreement with 2740162 Ontario Inc operating as August Therapeutics and Ketiko Bio Corp to acquire a 25% interest in each of InStatin Inc and InVixa Inc, and to acquire an option to acquire additional shares in both companies.
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According to Therma, InStatin is developing novel treatments using inhaled statins for the treatment and management of patients with chronic lung conditions such as asthma and chronic obstructive pulmonary disease.
InVixa is developing inhaled statins to prevent and treat acute lung disease caused by COVID-19, with a focus on the development of novel inhaled therapies for the treatment of COVID-19 pneumonia and acute respiratory distress syndrome.
Therma also highlighted that repurposing approved drugs shortens the pathway toward securing regulatory approval and bringing novel solutions to patients.
The company anticipates that formal dialogue with the US Food and Drug Administration (FDA) will be initiated in 2023 to discuss and agree on the clinical studies required to secure FDA approval.
Therma CEO Rob Fia said this agreement brought synergy to the company’s innovative COVID diagnostic testing portfolio with the addition of therapeutics to provide treatment for COVID-19 and its complications.
“The company is incredibly proud to have negotiated this interest in two promising companies and to begin the process to initiate Phase 1 clinical trials,” he said. “As well, we look forward to the promise that these statin treatments provide for chronic lung diseases including asthma and COPD."
Terms of the agreement
Under the agreement, Therma Bright has agreed to issue 55 million shares at a price of $0.136364 each for total consideration of $7.5 million to the vendors in exchange for such interests in InStatin and InVixa.
The option will additionally provide Therma with the right to earn up to 50% of InStatin and 80% of InVixa by advancing the drugs to the end of Phase 1 clinical trials for each company and eventual regulatory approval.
Therma said it will have the right to appoint one director to each of the boards of InStatin and InVixa, subject to meeting certain future funding milestones.
The company said it will pay a finder's fee of 4,400,000 shares to an arm's length finder for its assistance in sourcing the transaction.
Therma Bright, the developer of the smart-enabled AcuVid COVID-19 Rapid Antigen Saliva Test, is a progressive medical diagnostic and device technology company focused on providing consumers and medical professionals with quality, innovative solutions that address some of today’s most important medical and healthcare challenges.
Contact the author at emily.jarvie@proactiveinvestors.com
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