MONTREAL, CANADA–(Marketwired – Jun 26, 2015) – Knight Therapeutics Inc. (TSX:GUD) (“Knight” or the “Company”), a leading Canadian specialty pharmaceutical company, announced today that it has entered into a sale agreement with Synergy Strips Corp (OTCQB:SNYR) (“Synergy”) related to the U.S. rights to Neuragen®, an innovative OTC product that helps relieve pain caused by diabetic nerve damage. Knight retains Canadian rights and ex-U.S. global rights to Neuragen®.
Under the terms of the agreement, Knight will receive minimum aggregate consideration of US$1,200,000 payable as follows: (i) US$250,000 upon closing, (ii) US$250,000 by June 30, 2016, (iii) US$700,000 payable in quarterly installments equal to the greater of US$12,500 or 5% of U.S. net sales, plus (iv) 2% of U.S. net sales of Neuragen® for 60 months thereafter. In connection with Knight’s previously announced acquisition of the worldwide rights to Neuragen®, Knight will issue 185,000 warrants, subject to TSX approval, to several Origin BioMed Inc. (“Origin”) stakeholders which will be exercisable for a period of ten years at an exercise price of $10 per share.
“This sale of the U.S. rights to Neuragen® allows us to not only recover the principal of our CDN$850,000 secured loan to Origin, but also provides Knight with a healthy return. In addition, we are strengthening our relationship with Synergy, our U.S. OTC commercialization partner, and focusing on the upcoming Canadian re-launch of Neuragen®, our first commercial product north of the border,” said Jonathan Ross Goodman, President and CEO of Knight.
“We are pleased to add a second unique offering to our U.S. portfolio. We are deliberately seeking to generate shareholder value through the addition of products that help improve the lives of customers while leveraging our existing distribution relationships,” said Jack Ross, President and CEO of Synergy.
Neuragen® is a topical product that works directly at the site of the pain as opposed to oral products. Neuragen® reduces the spontaneous firing of damaged peripheral nerves. By calming these firings at the source, Neuragen® is clinically shown to reduce shooting and burning pains quickly and without the side effects of orally taken medications. This is in part due to the small lipophilic molecules found in Neuragen® which rapidly carry the active ingredients through the rough outer layer of the skin to the site of the pain. Neuragen® is available over the counter in most local pharmacies either in the diabetic section or the analgesic (pain) section. For more information, please visit www.neuragen.com.
About Synergy Strips Corp.
Synergy Strips Corp. (OTCQB:SNYR) is a Consumer Health Care company, that is in the process of building a portfolio of best-in-class consumer product brands. Synergy’s strategy is to grow its portfolio both organically and by further acquisition.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight’s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the Company’s web site at www.gud-knight.com or www.sedar.com.
This document contains forward-looking statements for the Company and its subsidiaries. These forward looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions regarding future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in the Company’s Annual Report and in the Company’s Annual Information Form for the year ended December 31, 2014. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.