Tetra Bio-Pharma Inc. (OTCQB:TBPMF) (TSX:TBP) (FRA:JAM1) has entered into a research and development agreement with Cannvalate Pty Ltd for the initiation of the REBORN, PLENITUDE and CAUMZ clinical trials in Australia, and a subscription agreement contemplating a private placement of common shares in the capital of the company with Cannvalate for aggregate proceeds to the company of up to CA$7.5 million ($5.86 million).
The company has also appointed Dr. Sud Agarwal as a special advisor to the CEO and the board of directors with a mandate to advise on strategic aspects of the company's activities and to aid in the advancement of our key programs: QIXLEEF and CAUMZ.
Partnership with Cannvalate
Tetra has entered into a research agreement with Cannvalate for the performance of clinical trials of Tetra's drug candidates in Australia. Cannvalate is a medical cannabis company bringing in safe and effective cannabinoid-based products to the Australian market. Cannvalate's wholly owned entity, iNGENū, is CRO specializing in cannabinoid clinical trials. By conducting Tetra's clinical trial activities in Australia with iNGENū, it will allow the company to benefit from a 43.5% tax credit on all money spent on clinical trials in Australia, and an increased access to patients seeking participation in trials where the pharmaceutical cannabis drug is provided at no cost. Through the Cannvalate partnership, Tetra aims to efficiently assess the clinical viability of its drug products, as well as any new products developed.
Dr. Guy Chamberland, CEO and CRO of Tetra stated, "We have been developing inhaled cannabinoid drugs since 2016 and have a wealth of data to support the potential development of a new generation of drugs to help patients suffering from chronic diseases. It takes years of research and development to have a drug in two Phase 2 trials designed to support drug approval in the USA and Europe. Finding ways to accelerate timelines while reducing the monthly burn is a continuous battle for all biotechnology companies. This partnership is intended to allow Tetra to achieve both goals."
Private Placement
Cannvalate also agreed to acquire common shares of Tetra on a private placement basis, through seven distinct tranches, for aggregate proceeds of CA$7.5 million.
Photo: Courtesy of Jeff W on Unsplash
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