Vivione Biosciences Inc. Announces Agreement with Litmus, LLC for Molecular Design Rights
LITTLE ROCK, Ark.--(BUSINESS WIRE)--Vivione Biosciences Inc. (“Vivione”) (TSXV:VBI), through its wholly owned subsidiary, Vivione Biosciences, LLC, announced today that through a new agreement (the “Amending Agreement”) with Litmus, LLC (“Litmus”), Vivione has acquired Litmus’ 50 percent royalty interest in net proceeds derived from the Molecular Design technology.
“This technology has the potential to make a huge impact on the way that drugs are developed by significantly reducing cost and time for successfully identifying new drug candidates, as well as new chemicals that may be environmentally friendly in multiple industries”
The Molecular Design technology was originally developed by the US Federal Drug Administration (FDA) and is based upon the same physics that are used in clinical MRI imaging, including powerful software algorithms that enable the computer modeling of characteristics for both new drugs and chemicals. Thus far, the technology has been successfully used for a demonstration development of a set of novel compounds for neurological disorders. The Molecular Design technology was originally licensed to Litmus by the FDA, which license was subsequently assigned by Litmus to Vivione in exchange for granting Litmus a 50 percent royalty interest. Pursuant to the terms of the Amending Agreement, the 50 percent royalty interest held by Litmus has now been cancelled in consideration of Vivione issuing Litmus warrants (the “Warrants”) to purchase 850,000 Class B Non-Voting Common Shares (“Class B Shares”) of Vivione at an exercise price of CDN $0.30 per Class B Share for a five year term. One-fifth of the Warrants will immediately vest and become exercisable upon the issuance of the Warrants, and upon each one year anniversary from the date of issuance an additional one-fifth of the Warrants will vest and become exercisable. The Warrants will be subject to accelerated expiry and accelerated vesting in certain circumstances.
“This technology has the potential to make a huge impact on the way that drugs are developed by significantly reducing cost and time for successfully identifying new drug candidates, as well as new chemicals that may be environmentally friendly in multiple industries,” said Vivione’s Chief Executive Officer, Kevin Kuykendall. “We believe this technology, coupled with our RAPID-B® system, will enhance our position in the life sciences community of delivering rapid, cost-effective solutions to the clinical diagnostic market.”
Vivione is a TSX Venture Exchange listed biosciences company focused on the commercialization of its proprietary RAPID-B system; an integrated system of hardware, software and chemical reagents that quickly and accurately identify, quantify and qualify bacteria and other pathogens in food safety, bio-therapeutics, clinical, industrial and oil & gas environments. For more information, visit www.VivioneBiosciences.com.
This news release contains "forward-looking statements" within the meaning of applicable securities laws. Although Vivione believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based on factors and assumptions concerning future events that may prove to be inaccurate. These factors and assumptions are based upon currently available information to Vivione. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. This news release contains forward-looking information relating to the commercialization and the development of the RAPID-B system, Vivione’s business and growth strategy and the commercialization and the development of the Molecular Design technology. Readers are cautioned to not place undue reliance on forward-looking statements. The statements in this news release are made as of the date of this news release and, except as required by applicable law, Vivione does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. Vivione undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of Vivione, or its financial or operating results or (as applicable), their securities.
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