SAN FRANCISCO and TEL AVIV, Israel, Sept. 28, 2018 (GLOBE NEWSWIRE) — Kalytera Therapeutics, Inc. (TSX VENTURE: KALY and OTCQB: KALTF) (the “Company” or “Kalytera“) today announced that the Company has elected to issue 2,923,491 common shares of the Company (“Common Shares”) to The Salzman Group in payment of invoices issued under the payments agreement with The Salzman Group previously announced on December 7, 2017 (the “December 2017 Agreement”) and the additional payments agreement announced on June 15, 2018 (the “June 2018 Agreement”). Under the December 2017 Agreement, The Salzman Group provides, among other services, clinical study management services in relation to the Phase 2 study evaluating the use of cannabidiol in the prevention of graft versus host disease. Under the June 2018 Agreement, The Salzman Group and its affiliates provide general and administrative support services, study set-up work for planned studies in connection with use of CBD in treatment of GVHD, and research and development work in connection with Kalytera’s exclusive license of cannabidiol-naproxen conjugates for treatment of pain.
The invoiced amounts to be paid in Common Shares to The Salzman Group total to the amount of US$302,546 (or C$394,671.26 based on the daily average exchange rate for September 27, 2018 published by the Bank of Canada). The number of Common Shares to be issued is based on a deemed issue price of C$0.135 per Common Share, being 90% of the closing price of the Common Shares on the TSXV on September 27, 2018, the trading day prior to the Company’s election to pay the invoiced amounts in Common Shares. The Common Shares are expected to be issued to The Salzman Group on or about the date hereof.
About Kalytera Therapeutics
Kalytera Therapeutics, Inc. (“Kalytera“) is pioneering the development of a next generation of cannabinoid therapeutics. Through its proven leadership, drug development expertise, and intellectual property portfolio, Kalytera seeks to establish a leading position in the development of novel cannabinoid medicines for a range of important unmet medical needs, with an initial focus on graft versus host disease (“GVHD”) .
Kalytera also intends to develop a new class of proprietary cannabidiol (“CBD“) therapeutics. CBD is a versatile compound that has shown activity against a number of pharmacological targets. However, there are limitations associated with natural CBD, including its poor oral bioavailability. Kalytera will seek to develop innovative CBD formulations and prodrugs in an effort to overcome these limitations, and to target specific disease sites within the body. Kalytera intends to file composition of matter and method of use patents covering its novel inventions, with the goal of limiting future competition.