GLOBENEWSWIRE

Zenith and Newsoara Biopharma Announce Expanded Licensing and Investment

11/15/2021 9:55:00 AM

CALGARY, Alberta, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Zenith Capital Corp. (“Zenith” or the “Company”) announced today that Zenith Epigenetics Ltd. (“Zenith Epigenetics”), a wholly-owned subsidiary of Zenith Capital, has entered into a licensing agreement with Newsoara Biopharma Co., Ltd. (“Newsoara”) for Zenith Epigenetics’ lead compound, ZEN-3694, in Asia excluding Middle East and North Africa (“MENA”), India, and ten Eurasian countries (the “Territories”). Under the terms of the agreement, Newsoara will have the rights to develop, market, and distribute ZEN-3694 for all indications in the Territories. Zenith will receive an upfront payment of US$3.5 million, sales-based milestones and single digit royalties.

Concurrent with the execution of the license agreement, Newsoara has entered into a subscription agreement to subscribe for 1.5 million units at a price of US$1.00 per unit, and Newsoara also agreed to subscribe for an additional 10 million units of Zenith by way of completing ZEN-3694 development programs with a budget of $10 million over the next 15 months. Each unit (“Unit”) shall be comprised of one common share and one-half of a common share purchase warrant. Each whole warrant shall be exercisable into one common share at US$1.00 for a period of two years from the date of the subscription agreement.
    
“We are very pleased to further expand our partnership with Newsoara to introduce the therapeutic potential of ZEN-3694 to additional Asian markets,” stated Donald McCaffrey, President and CEO of Zenith. “ZEN-3694 is a leading and differentiated BET inhibitor now having shown clinical proof of concept in two solid tumor indications with significant unmet need, metastatic castration-resistant prostate cancer and metastatic triple negative breast cancer. This additional financing will support advancing these programs towards registration enabling studies for these indications in collaboration with our partner Newsoara.”