Bioxyne Limited (ASX: BXN) has entered into a non-binding heads of agreement to sell its oral vaccine project, held by subsidiary Hunter Immunology, to Mariposa Health.
Consideration for the sale comprises cash of $175000, assumption of a $60,000 debt, equity in Maraposa of $325,000 at a deemed price of $0.165 per share, and a deferred payment to Bioxyne of $1 million upon commercialisation of the oral vaccine.
Commercialisation is to be defined by a set of financial milestones over the next 5 years.
In addition, an ongoing royalty ranging from 2% to 6.5% of gross revenue, will be payable to Bioxyne.
The agreement also stipulates a non-refundable deposit of $17,500 and a 120 day exclusivity period for completion of the proposed transaction.
BXN will continue with its sales and distribution of probiotics products and research and development of its intellectual property in golden Staph and candida infections.
Bioxyne is currently capitalised at $1.5 million.
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