- Vaxil (VXL), a biotech company, has signed a non-binding letter of intent to acquire a 100 per cent stake in ShortWave Pharma
- Consideration for the transaction will be $2.5 million payable in units
- Each unit will consist of one common share in the capital of Vaxil and one purchase warrant exercisable for an additional common share, upon paying a base exercise price $0.20, any time for three years after closing the transaction
- When the transaction is completed Vaxil will allow Shortwave to nominate one person to its board of directors
- Vaxil Bio Ltd. Is up 10 per cent and is trading at $0.11 at 1:03 p.m. ET
Vaxil (VXL), a biotech company, has signed a non-binding letter of intent to acquire a 100 per cent stake in ShortWave Pharma.
ShortWave Pharma’s initial pre-clinical program is focused on treatment-resistant eating disorders, an underserved area with high mortality and morbidity. Early clinical data suggests psychedelics may play a beneficial role in therapy.
Vaxil will pay $2.5 million in units for the acquisition.
Each unit will consist of one common share in the capital of Vaxil and one purchase warrant exercisable for an additional common share, upon paying a base exercise price $0.20, any time for three years after closing the transaction.
The units will be subject to an agreed-upon contract lock-up based on the following schedule:
- 50 per cent will be released from any trading restrictions on the 6-month anniversary of the closing
- 25 per cent will be released from any trading restrictions on the 9-month anniversary of the closing
- 25 per cent will be released from any trading restrictions on the 12-month anniversary of the closing
When the transaction is completed Vaxil will allow Shortwave to nominate one person to its board of directors.
The acquisition is subject to the approval of the TSXV and the completion of a private placement financing.
Vaxil Bio Ltd. Is up 10 per cent and is trading at $0.11 at 1:03 p.m. ET.