Genix Pharmaceuticals Corporation Agrees To Purchase 30 Ophthalmic Generic Drug Dossiers And Enters Into LOI To Acquire 2 Additional Nutraceutical Products
Vancouver, British Columbia--(Newsfile Corp. - December 23, 2019) - Genix Pharmaceuticals Corp. (TSXV: GENX) ("GENIX" or the "Company"), announces that the Company has entered into an Acquisition Agreement dated for reference September 19, 2019 (the "Agreement") and executed October 9, 2019 with Canagen Pharmaceuticals Inc. ("Canagen") pursuant to which, subject to acceptance of the TSX Venture Exchange ("TSXV"), the Company has agreed to purchase thirty (30) World Health Organization approved generic prescription ophthalmic drugs (the "Ophthalmic Drugs") and their CTD Dossiers (the "Product Dossiers") together with concomitant global sales and marketing rights (excluding India) to such products in consideration of the issuance of 15,000,000 common shares (the "Vend-In Shares") in the capital of the Company valued at $.05 per Vend-In Share for a total value of $750,000 (the "Transaction"). Under the terms of the Agreement, the Vend-In Shares will be distributed directly to the shareholders of Canagen and no single shareholder shall own more than 10% of the issued and outstanding shares of the Company post Transaction. It is not anticipated that the Transaction will constitute a Change of Business (as that term is defined in the policies of the TSXV).
All shares issued pursuant to the Transaction are subject to a hold period expiring 4 months and one day from their date of issuance.
It should be noted that prior to being able to market, sell and distribute the Ophthalmic Drugs the Company is required to review and reformat the Product Dossiers and prepare and submit Abbreviated New Drug Submissions ("ANDS") to Health Canada for their respective generic drug approvals by Health Canada. The receipt of regulatory approval from Heath Canada is evidenced by the issuance of Drug Identification Numbers ("DINs") for each particular Ophthalmic Drug. The Company understands that the approval process can take between 18-24 months such that the Company does not expect to derive revenue from the sale of the Ophthalmic Drugs until 2022.
Genix is an innovative Canadian life sciences company focused on research, development, manufacture and sales of novel and innovative healthcare products-proprietary over the counter ("OTC") nutraceutical and generic pharmaceuticals that have shown to deliver consistent and verifiable results in various therapeutic areas. The Company has always deployed a pharmaceutical model for product development and selection including rigorous active ingredient discovery and clinical testing for all its nutraceutical and pharmaceutical products.
Genix advises that it has also entered into non-binding letter of intent (the "LOI") with Canagen to acquire two additional nutraceutical products, being SUCANON®, a nutraceutical for managing and treating diabetes, and RENOCHLOR®, a patented nutraceutical for the prevention and treatment of chronic kidney disease and end stage renal disease. We are currently finalizing a definitive acquisition agreement, however caution that the acquisition of these products will be subject to Genix being reinstated for trading and completing an equity financing to pay for the purchase price and for general working capital.
Genix advises that there were inaccurate statements about our business plan contained in our recently filed July 31, 2019 unaudited interim financial statements and accompanying Management Discussion and Analysis (together the "July 31, 2019 Financial Statements"), the result of which was that the TSXV had reason to believe that the Transaction resulted in a Change of Business and requested that the Company's shares be halted from trading until proper disclosure and filings are made. In addition to this news release, the Company has filed revised and restated July 31, 2019 Financial Statements that correctly describe Genix's go forward business plan. We have requested a reinstatement of trading from IIROC.
History and Go Forward Plan.
Since our inception in 1996, we have been involved in the manufacturing and marketing of both nutraceutical and pharmaceutical products. In fact, our lead product, from 1996 until 2012 was HEPATICO, an OTC pharmaceutical product with a DIN issued by Health Canada, for the treatment of Hepatitis C. More recently, the Company has been marketing and selling nutraceuticals and some quasi-pharmaceutical products, such as bee propolis capsules, calcium liquid softgels, seal oil softgels, marine lipid softgels, Lecithin softgels, fish oil softgels, EPO softgels and spirulina powder.
The Company intends to continue developing novel and innovative products for sales through traditional retail outlets and well as direct to consumers and e-commerce platforms, in keeping with the evolving nature of the health care industry towards Integrative Medicine and Health ("IMH") and Complementary and Alternative Medicine ("CAM"). Products will be sold in Canada, USA, China, S.E. Asia, UK and other selected countries.
Overview of Integrative, Complementary, and Alternative Medicine (cited from Merck pharmaceuticals website)
As described by Denise Millstine, MD, Mayo Clinic, IMH and CAM include a variety of healing approaches and therapies that historically have not been included in conventional Western medicine. Many aspects of CAM are rooted in ancient, indigenous systems of healing, such as those of China, India, Tibet, Africa, and the Americas.
Complementary, alternative, and integrative medicine are terms often used interchangeably, but their meanings are different.
Complementary medicine refers to non-conventional practices used together with conventional (mainstream) medicine.
Alternative medicine refers to non-conventional practices used instead of conventional medicine.
Integrative medicine is health care that uses all appropriate therapeutic approaches-conventional and non-conventional-within a framework that focuses on health, the therapeutic relationship, and the whole person.
Although the distinction between conventional medicine and IMH or CAM is not always easy to determine, a basic philosophical difference exists. Conventional medicine tends to base its practices on the best scientific evidence available. In contrast, CAM tends to base its practices on evidence-informed practices-evidence that may not necessarily meet the highest, strictest criteria for efficacy and safety. (However, some CAM practices, including use of dietary supplements, have been validated by the traditional high, strict scientific criteria). Conventional medicine generally defines health as the absence of disease or dysfunction. The main causes of disease and dysfunction are usually considered to be identifiable factors, such as bacteria or viruses, biochemical imbalances, and aging, and treatments often involve drugs or surgery. In contrast, IMH and CAM practices often define health holistically, that is, as a balance of systems-physical, emotional, and spiritual-involving the whole person. Disharmony among these systems is thought to contribute to illness. Treatment involves strengthening the body's own defences and restoring these balances.
Acceptance and Use
IMH aims to combine CAM with conventional medicine when appropriate. Some CAM therapies are now offered in hospitals and are sometimes reimbursed by insurance companies. Acupuncture and some manual manipulation treatments (for example, chiropractic or osteopathic manipulation) are examples. Because interest in and use of CAM are increasing, more and more medical school curricula are including information about CAM treatments, such as acupuncture, botanical medicine, manual manipulation treatments, and homeopathy.
About the Company
Genix Pharmaceuticals Corporation is an innovative Canadian life sciences company focused on the research, development, manufacture and sales of novel & innovative healthcare products - proprietary over the counter ("OTC") nutraceuticals and generic pharmaceuticals that have been shown to deliver consistent and verifiable results in various therapeutic areas. The Company has always deployed a pharmaceutical model for product development and selection including rigorous active ingredient discovery and clinical testing for all its nutraceutical and pharmaceutical products.
On behalf of the Board,
Sina Pirooz, CEO, Director Genix Pharmaceuticals Corporation
For more information regarding Genix, please contact: Jamie Lewin CFO, Director Tel: +1.604.739.3052 jalewin@telus.net
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially and there are no assurances that the transaction described in this news release will close on the terms described or at all. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company. Readers are cautioned not to place undue reliance on forward looking statements.
