XPhyto Therapeutics Corp. (CSE:XPHY, OTCQB:XPHYF)has announced the appointment of Professor Dr Thomas Beckert as the managing director of its 100% owned subsidiary XP Diagnostics GmbH and has also launched a fund-raising.
With the next phase of growth and development, the company said Professor Dr Beckert will run XPhyto's operations in Germany and oversee the integration of 3a-diagnostics GmbH.
Professor Dr Beckert is a world-renowned expert in thin-film drug delivery systems and the managing director of Vektor Pharma TF GmbH, a 100% XPhyto owned German drug manufacturer, developer, and research organization located in the district of Biberach, Baden-Württemberg, Germany.
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His expertise includes formulation and machine development for transdermal and oral dissolvable therapeutic systems. For over a decade, Professor Dr Beckert and his team have been leaders in the design, testing and manufacture of thin-film drug formulations, particularly transdermal patches and sub-lingual (oral) strips for the delivery of active pharmaceutical ingredients for the treatment of pain and neurological indications.
Wolfgang Probst, previously COO of XPhyto, will continue as a director of XPhyto Therapeutics Corp. This strategic change allows for the company's transition and integration of 3a-diagnostics GmbH.
In a statement, Hugh Rogers, XPhyto CEO commented: "We are extremely pleased with this appointment of Prof. Dr. Thomas Beckert as Managing Director. He, along with his team, will ensure the seamless integration of 3a-diagnostics and the development of the Company's novel biosensor. 3a's innovative biosensor system in particular, is a promising and reliable platform technology for accurate, early screening and diagnosis of diseases. This strategically combines Vektor Pharma's thin-film technology and 3a-diagnostics Biosensors to create a novel and exciting product pipeline."
Launches fund-raising
XPhyto also said it will launch a non-brokered private placement of up to 5,000,000 common shares of the company at a price of $1.00 per share for total gross proceeds of up to $5 million and has arranged the issue of up to $2.5 million of unsecured convertible debentures and 2,000,000 common share purchase warrants.
The debentures will bear interest from the date of issuance at a rate of 8.0% per annum, payable semi-annually, and will mature on the date that is two years from the date of issuance. The principal amount of the debentures is convertible at the option of the holder into common shares at any time prior to the maturity date at a conversion price of $1.25 per common share.
Conversion of the debentures may be forced at the option of the company if the 15-day volume-weighted average price of the common shares on the Canadian Securities Exchange (CSE) exceeds 250% per share of the exercise price. Each warrant is exercisable by the holder into one common share of the company at a price of $1.50 per share for a period of two years from the date of issuance.
XPhyto said intends to use the net proceeds of the offering shares and debentures for research and development, inventory purchases, general working capital purposes, and to complete the acquisition of 3a, as first announced July 20, 2021. Further to the acquisition agreement between XPhyto and 3a, the parties have agreed to extend the closing terms which is expected to complete on or around December 1, 2021.
Completion of the offering and debentures is subject to the satisfaction of certain conditions, including notice to the CSE. The securities issued under the offering will be subject to a statutory four-month hold period and finder's fees will be paid in connection with the offering under applicable CSE policies and Canadian securities regulations.
XPhyto Therapeutics is a bioscience accelerator focused on next-generation drug delivery, diagnostic, and new active pharmaceutical ingredient investment opportunities, including precision transdermal and oral dissolvable drug formulations; rapid, low-cost infectious disease and oral health screening tests; and standardization of emerging active pharmaceutical ingredients for neurological applications, including psychedelic compounds and cannabinoids.
The company has research and development operations in North America and Europe, with an operational focus in Germany, and is currently focused on regulatory approval and commercialization of medical products for European markets.
Contact the author at jon.hopkins@proactiveinvestors.com