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Questcap to acquire 40% interest in Amino Therapeutics

2020-04-03 11:32 ET - News Release

Mr. Stan Bharti reports

QUESTCAP SIGNS BINDING LOI TO ACQUIRE INTEREST IN AMINO THERAPEUTICS

Questcap Inc. has entered into a binding letter of intent (LOI) with Amino Therapeutics Inc. to acquire 40 per cent of the issued and outstanding shares of Amino. Questcap cautions that this is still early-stage research and development, and is not making any express or implied claims that it has the ability to treat the SARS-CoV-2 virus at this time.

Amino has obtained exclusive rights to leverage Exponential Genomics Inc.'s (Xenomics) XenoArray platform to engineer a potential treatment for COVID-19 based on peptide protease inhibitors. Being developed to engineer to genetically modify multiple microbial strains to produce thousands of peptide-based protease inhibitors in parallel, the XenoArray platform may empower Amino Therapeutics with a unique advantage to potentially design an effective treatment for COVID-19.

The terms of the LOI are as follows:

  • Amino will sell a 40-per-cent equity interest to Questcap.
  • Questcap will inject $1-million (U.S.) of cash on the closing date, $500,000 (U.S.) 60 days from the closing date and $500,000 (U.S.) 120 days from the closing date.
  • Questcap will issue 15 million common shares on the closing date.
  • Questcap will receive a warrant to purchase an additional 9-per-cent equity interest in Amino for $2-million with an expiry of 24 months from the closing date.
  • Questcap will receive a warrant to acquire up to a 9.9-per-cent equity interest in Exponential Genomics for $2-million (U.S.) for a period of 12 months from the closing date.

The closing of the transaction to acquire a 40-per-cent equity interest in Amino is subject to the parties negotiating a definitive agreement.

Stan Bharti, Questcap's co-chairman, stated: "The global COVID-19 pandemic caused by the SARS-CoV-2 virus is an emergency situation that requires immediate intervention. By leveraging the XenoArray technology at Exponential Genomics, Amino Therapeutics is well positioned to potentially develop the next-generation anti-viral therapeutic candidates."

David Preiner, Amino's president and chief executive officer, stated: "Engineering of next-generation therapeutics to potentially combat the current COVID-19 outbreak normally requires a long process of research and development that is typically associate with long development timelines and high development costs, which, in this emergency, could have catastrophic consequences. At Amino, we are working on ways to accelerate the drug development timeline for novel biologics to start regulatory processes, demonstrate patient safety and bring patients treatments."

Amino's current stage of development for the potential treatment is as follows:

  • Amino has started to perform research on the SARS-CoV-2 virus based on prior published research.
  • The cash investment will be used for further research and development related to the potential treatment. Xenomics is a bioengineering company that has received $1.2-million in revenue from a related party to date for gene-editing research, which has been applied in this research and development.
  • Xenomics currently has the necessary equipment and research/development team that will be responsible for conducting research related to the potential treatment.
  • Xenomics has successfully filed two previous patents for biosynthesis, including the creation of small molecules and enzymes.
  • Due to the recent pandemic, Amino has just begun the research based on prior published research.
  • No clinical testing has yet been performed related to the potential treatment.
  • Amino is not primarily relying on third parties to perform the research and development.

About Questcap Inc.

Questcap is an investment company that seeks to enhance shareholder value over the long term by opportunistically making various investments that may include, without limitation: the acquisition of equity, debt or other securities of publicly traded or private companies or other entities; financing in exchange for predetermined royalties or distributions; and the acquisition of all or part of one or more businesses, portfolios or other assets.

We seek Safe Harbor.

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