- Biotechnology company, Kane Biotech (KNE) has entered into an agreement with UK-based veterinary products company, Animalcare Group
- Under the agreement, Kane Biotech will create a new subsidiary, STEM Animal Health, which Animalcare will invest in
- The new subsidiary company will be dedicated to treating bio-film related ailments in animals
- Animalcare will commercialise Kane Biotech’s range of oral care products for animals in European and Asian markets
- Kane Biotech (KNE) remains unchanged and is currently trading at C$0.16 per share
Biotechnology company, Kane Biotech (KNE) has entered into an agreement with UK-based veterinary products company, Animalcare Group.
Under the agreement, Kane Biotech will create a new subsidiary, called STEM Animal Health. The new company will primarily be dedicated to treating bio-film related ailments in animals.
Animalcare will bring approximately C$5 million into this agreement, $3 million of which the vet company will invest in STEM. Over a period of 48 months, Animalcare will invest the $3 million in installments, to acquire a one-third plus one share equity interest in STEM.
The other $2 million from Animalcare will be used for the rights to commercialise Kane Biotech’s products in global markets. In addition to helping develop new bio-film treatments, Animalcare will commercialise Kane Biotech’s range of oral animal care products in Europe and Asia.
Kane Biotech’s President and CEO, Marc Edwards, said the company is excited to partner with Animalcare and establish an animal health company.
“This agreement provides STEM Animal Health, Kane Biotech’s first commercialisation vehicle, with capital at a valuation that is highly attractive and non-dilutive to existing Kane shareholders.
“This will accelerate our product development and commercialisation globally, and is a major step towards defining Kane Biotech as the preeminent global leader in biofilm research and product development.
“In the months to come, we plan on establishing additional commercialisation vehicles for both our wound care and our consumer goods businesses,” he said.
Kane Biotech (KNE) remains unchanged and is trading at 16 cents per share at 12:27pm EDT.
