CALGARY, Alberta, June 16, 2020 (GLOBE NEWSWIRE) -- Zenith Capital Corp. (“Zenith” or the “Company”) today announces it will be hosting a corporate update via conference call and webcast on Thursday, June 18, 2020 at 9:00 am MT / 11:00 am ET. Mr. Donald McCaffrey, President and Chief Executive Officer will present an update and overview of recent activities.
For those wishing to join the June 18th conference call and webcast, the event will start promptly at 9 am MT/11 am ET. It is highly recommended to access the webcast over the Internet using the following LINK. A replay of the webcast (using the same LINK provided) will be available for one month following the conclusion of the event.
If dialing in by phone, dial 1-800-319-4610 (within Canada / USA) or +1-604-638-5340 (International Toll). Callers should dial-in at least 10 min prior to the scheduled start time. A teleconference replay will be available for one month following the conclusion of the event and can be accessed by dialing 1-800-319-6413 (within Canada / USA) or +1-604-638-9010 (International Toll) and using the replay access code: 5312#.
A presentation will accompany and be available via the webcast portal. The presentation will also be made available immediately prior to the conference call start time of 9:00 am MT on the Company’s website at HERE.
Zenith also announces that it has entered into a definitive stock purchase agreement with an affiliate of Newsoara Biopharma Co., Ltd. (the “Subscriber”) for the private placement of 3,333,334 common shares in tranches at a price of US$1.50 per share for gross proceeds of US$5 million (CAD$6.7 million) on or before August 31, 2020 (the “Private Placement”). Zenith has completed the issuance of 1,333,334 common shares to the Subscriber for gross proceeds of US$2 million and the subscription for the remaining 2,000,000 common shares for additional gross proceeds of US$3 million is conditional upon customary closing conditions and certain amendments to the previously announced license agreement between Zenith’s subsidiary, Zenith Epigenetics Ltd., and Newsoara Biopharma Co., Ltd., including the waiver of a potential future clinical development milestone payment and the assignment of patents in the territories to Newsoara Biopharma Co., Ltd. that are the subject of the license agreement, with Zenith retaining a right to re-acquire the patents for no additional consideration.
Pursuant to the Private Placement, in the event that Zenith completes an equity financing within fifteen months of June 9, 2020 and the price per share is lower than US$1.50, the price paid by the Subscriber will be adjusted to the lower price per share and the Subscriber will, accordingly, receive additional common shares for no additional consideration.
The net proceeds of the Private Placement will be to fund research and development activities, including clinical trial activities, general and administrative expenses, working capital needs and other general corporate purposes.
Zenith Capital Corp. is a biotechnology investment company originally spun out of Resverlogix Corp. (TSX: RVX) in 2013. Zenith Epigenetics Ltd., a wholly-owned subsidiary of Zenith Capital Corp., is a clinical stage biotechnology company focused on the discovery and development of novel therapeutics for the treatment of cancer and other disorders with significant unmet medical need. Zenith Epigenetics is developing various novel combinations of BET inhibitors with other targeted agents. The lead compound, ZEN-3694, is in clinical development for metastatic Castration Resistant Prostate Cancer (“mCRPC”) and Triple Negative Breast Cancer.
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This news release may contain certain forward-looking information as defined under applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. In particular, this news release includes forward looking information relating to further closings pursuant to the Private Placement, the use of proceeds of the Private Placement and anticipated amendments to the license agreement with Newsoara Biopharma Co. Ltd. Our actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. We can give no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in our most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. Zenith disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.