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M Pharmaceutical announces sweeping changes as business focus moves to biomedical device for diabetics

Last updated: 21:02 02 Dec 2014 GMT, First published: 22:02 02 Dec 2014 GMT

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M Pharmaceutical has changed its name from First Sahara Energy (CSE:FSE) to better suit its new business focus in the pharmaceutical and biomedical device markets, and has already signed a preliminary agreement to license a new blood glucose monitoring device for diabetics.

The binding letter of intent was signed with M Diagnostics, a Calgary-based company that has the rights to a device that M Pharmaceutical will work to develop for the self-monitoring of blood sugar levels, mainly for diabetics.

The device, called the eMosquito, is being developed as a less invasive way for diabetics to take blood samples for glucose level checks, by penetrating the skin to shallower depths, in less sensitive areas of the body. 

Currently, diabetics prick their fingers to monitor their blood glucose levels, which can be painful. The eMosquito, however is designed to be worn like a patch, with small needles designed to puncture the skin just deep enough to draw blood without damaging any nerves, causing little or no pain at all. 

Under the terms of the deal, to attain a worldwide, exclusive license to the technology, M Pharmaceutical will pay US$150,000, as well as issue just over 8 million shares at a price of 5 cents apiece. It will also be subject to a 3 percent royalty on the sale of any device based on the technology, according to a statement released earlier today.

The device was invented by three shareholders of M Diagnostics --- Dr. Martin Mintchev, Dr. Orly Yadid-Pecht and Joseph Wang --- at the University of Calgary.

Tied to M Pharmaceutical's change of focus, the company said Dr. John Duckett has retired from its board of directors, while Dr. Mintchev and D. Richard Skeith have joined the board.

Dr. Mintchev is currently a professor of electrical and computer engineering at the University of Calgary, and is the author of more than 150 peer-reviewed publications in biomedical journals, books and international conferences, as well as of over 15 issued or pending patents.

Separately, the company said it is also undertaking a non-brokered private placement financing of up to $750,000, with plans to issue units at 2 cents apiece. Each unit will be made up of one common share and one warrant and proceeds will be used for working capital, including possible acquisitions.

It anticipates the financing will be open until mid-January, and it reserves the right to increase the size at its discretion, it added.

In June, M Pharmaceutical, then known as First Sahara Energy, successfully sold its rights to a reconnaissance contract on the Beni Znassen block, now known as Hassi Berkane, in Morocco to Maxim Resources.

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