GreenBank Capital (CSE:GBC) Inc said it has mutually agreed to terminate a commercial agreement with Pharmakure Limited, that would have seen it acquiring a shareholding in the biotech company and provide it with merchant banking services, and the two are currently discussing new terms.
The companies have agreed that there are no further accrued rights, entitlements, obligations, or funding requirements under the November 2020 agreement by either party and that all costs incurred to date by either company are for their own account, it added.
Additionally, a C$50,000 sum paid by Pharmakure to GreenBank in May 2021 is a non-reimbursable payment for work performed, the company said.
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“GreenBank remains excited about and interested in Pharmakure' s ambitious aims and goals in respect to treating the symptoms of Alzheimer's Disease and remain impressed with Pharmakure's progress to date as well as the professionalism and competence of their management team,” GreenBank said in a statement.
“The two companies are currently discussing new ways in which GreenBank can assist Pharmakure's intensive plans and have concluded that such arrangements would necessitate a new agreement,” it added.
In the meantime, GreenBank said that the confidentiality provisions of the previous agreement will remain in force and effect for two years.
Pharmakure was founded in 2012 as a spinout from the University of Manchester's world-leading Manchester Institute of Biotechnology. The biotech company is a specialist in drug repurposing with a focus on diseases of the Central Nervous System (‘CNS') diseases, with a three-pronged business model.
GreenBank is a next-generation merchant banking business with offices in Toronto, Dallas, New York, and London.
Contact the author at stephen.gunnion@proactiveinvestors.com