MONTREAL, CANADA–(Marketwired – Jan 22, 2015) – Knight Therapeutics Inc. (TSX:GUD), through one of its wholly owned subsidiaries (“Knight”), announced today that it has entered into a senior secured debt financing agreement with Synergy Strips Corp. (OTCQB:SNYR) (“Synergy”), a US company focused on the health and wellness sector. The secured loan will fund Synergy’s acquisition of the FOCUSfactor brand, the United States’ #1 brain health supplement.
The secured loan of US$6 million will bear interest at 15% per annum plus other additional consideration. The interest rate will decrease to 13% if Synergy meets certain equity-fundraising targets. The loan matures on January 20, 2017 and may be extended for up to an additional two years should Synergy meet certain revenue and profitability milestones. As part of the transaction, Knight has been issued 4,595,187 common shares in the capital of Synergy representing approximately 6.5% of its fully diluted capital. Knight will also receive a 10 year warrant entitling Knight to purchase up to 3,584,759 shares of Synergy at $0.34 per share. In addition, Knight will obtain the exclusive sales rights to FOCUSfactor and all of Synergy’s brands for Canada, Israel, South Africa and Russia in exchange for cost of goods plus a supply profit.
“We believe we have found the perfect partner in Knight: a patient lender with a proven track record of helping to build solid companies,” said Jack Ross, CEO of Synergy.
“We are thrilled to support Synergy in their acquisition of FOCUSfactor and look forward to this smart partnership with an alert partner,” said Jonathan Ross Goodman, Director of Knight.
About Synergy Strips Corp.
Synergy Strips Corp. (OTCQB:SNYR) is a US 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 through further acquisitions.
FOCUSfactor is sold at America’s leading retailers such as Costco, Sam’s Club, Walmart, Walgreens and The Vitamin Shoppe. FOCUSfactor, America’s leading brain health supplement, is a nutritional supplement that includes a proprietary blend of brain supporting vitamins, minerals, antioxidants and other nutrients. In December 2012, the United States Patent and Trademark Office issued US Patent 8,329,227 covering FOCUSfactor’s proprietary formulation “for enhanced mental function.” The issuance of the patent marked one of the few times a patent has been issued for a nationally branded nutritional supplement. FOCUSfactor is clinically tested with results demonstrating improvements in focus, concentration and memory in healthy adults.
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 world markets. Knight’s shares trade on the 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.
Forward Looking Statements
This press release may contain forward-looking statements and predictions. 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 that these assumptions regarding the 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 Listing Application dated February 21, 2014 and its short form prospectus dated December 16, 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.