Pharmacyte Biotech Inc (OTCMKTS:PMCB)
Pharmacyte Biotech Inc (OTCMKTS:PMCB) has reached an agreement with Austrianova for the restructuring of certain agreements, pursuant to a previously agreed binding Term Sheet. Investors reacted to the news by sending the stock up.
Shares of Pharmacyte Biotech Inc (OTCMKTS:PMCB) are currently trading in a downtrend in a $0.05 – $0.06 trading range. The stock faces immediate support at the $0.05 mark below which it could register a new 2017 low. Its 52-week low is $0.02, registered last year.
Pharmacyte Biotech Inc (OTCMKTS:PMCB) is a clinical stage biotechnology company, focused on the development of treatments for cancer and diabetes. The company also boasts of a Cell-in-a-Box technology acquired as part of a Binding Term Sheet with Austrianova.
Binding Term Sheet Terms
The restructuring of the binding Term Sheet, according to CEO Kenneth L Waggoner, should make it easier for the company to achieve its long term goals. Under the new terms, PharmaCyte will not make any milestone payments under the Asset Purchase agreement, Diabetes Licensing agreement, or the Cannabis Licensing Agreement.
The new terms also reduce the amount of royalty fees and sub-licensing royalty fees that the company will have to make. The new binding Term Sheet also provides PharmaCyte with a year of right-of-first-refusal should Austrianova choose to sell, assign, or transfer Cell-in-a-Box, Intellectual Property, or trade secrets.
“Not only has Austrianova made significant financial concessions, Austrianova has agreed to provide us with a vehicle by which we can acquire Cell-in-a-Box® and its Associated Technologies, including the manufacturing facility that will encapsulate the live cells required for our pancreatic cancer therapy and the other therapies we are developing,” said Mr. Waggoner.
Austrianova has also agreed not to solicit, negotiate, or entertain any inquiry regarding the sale of the Cell-in-a-Box and associated technologies. The Clinical stage biopharmaceutical company has also agreed to share with Austrianova 50% of any financial and non-financial consideration it receives under the asset purchase agreement. Pharmacyte Biotech Inc (OTCMKTS:PMCB) is also to pay Austrianova $150,000 over the next 6 months.
The chief executive officer expects the new binding Term Sheet to strengthen the partnership that has existed between Pharmacyte Biotech Inc (OTCMKTS:PMCB) and Austrianova since it bought the Cell-in-Box technology.
Pharmacyte Biotech Management Appointment
Separately, Pharmacyte Biotech Inc (OTCMKTS:PMCB) has confirmed the appointment of Linda S Sher as the company’s Chief Medical Officer. She joins the company as a professor of Clinical Surgery and Director of Clinical Research at the University Of Sothern California Keck School Of Medicine.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.