The TSX Venture Exchange has accepted for filing documentation in relation to a share purchase agreement dated April 12, 2024, between Kane Biotech Inc. and an arm's-length party, Dechra Veterinary Products Inc., pursuant to which the company will sell its entire two-thirds interest in Stem Animal Health Inc. to Dechra.

Pursuant to the terms and subject to the conditions of the agreement, Dechra shall pay up to an aggregate purchase price of $11.5-million (Canadian) to be satisfied in the following manner: (i) the payment of $8-million (U.S.) cash on closing; (ii) plus an aggregate of $950,000 (Canadian) in net cash held in Stem and working capital adjustment.

Additionally, the company shall be eligible for a $750,000 (U.S.) sales-based milestone payment in an event that certain sales targets are met by Stem. Prior to the completion of the transaction, the company received an aggregate of $1,525,000 (U.S.) from Dechra as deposits toward the final purchase price. In connection with the transaction, the company has agreed to pay a finder's fee equal of $120,000 (Canadian) to an arm's-length party.

For more information, refer to the company's news releases dated March 20, 2024, April 11, 2024, and April 15, 2024.