CannaRoyalty to contribute Bodhi Research
position into the JV in exchange for equity
OTTAWA, Jan. 11, 2018 /CNW/ - CannaRoyalty Corp. (CSE:
CRZ) (OTCQX: CNNRF) ("CannaRoyalty") and Aequus
Pharmaceuticals Inc. (TSX-V: AQS) (OTCQB: AQSZF) ("Aequus")
(together the "Partners"), today announced a collaboration (the
"JV") to advance a suite of cannabis-based therapies targeting
neurological disorders into clinical trials in Canada, in collaboration with Canadian doctors
and key opinion leaders.
CannaRoyalty and Aequus have formed this collaboration to
clinically advance a number of cannabis-based therapies in
partnership with Canadian clinicians to create truly differentiated
products supported by clinical data focused on the medical
community. The collaboration will leverage CannaRoyalty's deep
expertise in identifying, funding and commercializing cannabis
related products in California and
Aequus' expertise in clinical development and drug delivery, and
commercializing differentiated therapeutics in Canada.
CannaRoyalty intends to contribute its 10% equity stake in Bodhi
Research & Development Inc. ("Bodhi") into the JV in exchange
for an initial ownership position in the JV, subject to conditions
and approvals. CannaRoyalty made a $250,000 investment in Bodhi in 2016 in exchange
for 10% equity in the company. Bodhi has completed a research trial
into the use of cannabis in the treatment of concussion and
post-concussive syndrome. The JV has been identifying additional
capital from third-party investors that will be invested directly
into the collaboration and used to advance those clinical trial
programs that the Partners agree to fund.
"We see a significant opportunity for validated, research-based
data regarding cannabinoid-based treatments and commend the group
at Bodhi for the progress they have made to date," said
Marc Lustig, CEO of CannaRoyalty.
"In the near-term, the JV will provide Bodhi with the drug
development and commercial expertise to progress its research
toward further validation and commercialization, while freeing-up
our in-house team to continue building our leading platform of
value-add cannabis businesses in California. I intend to commit significant
personal capital as a lead third-party investor and I expect
CannaRoyalty shareholders to benefit in several ways from the JV:
continued progress at Bodhi; exposure to an expanded range of
cannabis-based therapies targeted at neurological disorders; the
potential for CannaRoyalty to introduce proven in-house and
investee products to the JV over time; and the potential to
introduce JV-developed products through CannaRoyalty's growing
distribution network."
Doug Janzen, CEO of Aequus added,
"Aequus and CannaRoyalty have complementary business models and
geographic focuses, and we are excited about the potential for this
collaboration to offer patients in Canada and California differentiated and clinically
validated cannabis-based therapeutics targeting a number of
neurological conditions. We have been in discussions with Canadian
clinicians with extensive experience in treating patients with
cannabis-based therapies for their neurological and pain-based
conditions. We see the opportunity to collaborate with these
clinicians to identify and advance the most efficacious
formulations into clinical trials to validate safety and
efficacy."
Mr. Janzen continued, "In a 2017 survey we completed with 400
specialists and general practitioners in Canada and the US, the lack of clinical safety
and efficacy data and dosing data were the top reasons why
clinicians were reluctant to recommend cannabis to their patients.
We see a clear opportunity through this JV with CannaRoyalty to
meet the requests of the clinical community by providing improved
forms of dosing, clinical data showing safety and efficacy, and
then working closely to commercialize these validated products in
Canada through our existing sales
infrastructure and relationships with Licensed Producers and
potentially elsewhere, where Aequus and CannaRoyalty and our
various partners operate."
About Bodhi
Bodhi Research and Development, Inc. is
an Ontario-based research company
that is conducting research trials for exploring the use of
cannabis in the treatment of concussions and post-concussive
syndromes. Bodhi's research has been done in collaboration with
some of the world's foremost experts in concussions and pain
management.
About CannaRoyalty
CannaRoyalty is an active investor
and operator in the legal cannabis industry. Our focus is building
and supporting a diversified portfolio of growth-ready assets in
high-value segments of the cannabis sector, including research,
consumer brands, devices and intellectual property. Our management
team combines a hands-on understanding of the cannabis industry
with seasoned financial know-how, assembling a platform of holdings
via royalty agreements, equity interests, secured convertible debt,
licensing agreements and its own branded portfolio. CannaRoyalty's
shares trade on the Canadian Stock Exchange (CSE) under the symbol
CRZ and internationally on the OTCQX under the symbol CNNRF.
About Aequus Pharmaceuticals Inc.
Aequus
Pharmaceuticals Inc. (TSX-V:AQS, OTCQB:AQSZF) is a
growing specialty pharmaceutical company focused on developing and
commercializing high quality, differentiated products. Aequus'
development stage pipeline includes several products in neurology
and psychiatry with a goal of addressing the need for improved
medication adherence through enhanced delivery systems. With a
focus in neurology and other specialty areas, our most recent
addition to the development pipeline was a long-acting form of
medical cannabis, where there is a high need for a consistent,
predictable and pharmaceutical-grade delivery of products for
patients. Aequus intends to commercialize its internal programs in
Canada alongside its current
portfolio of marketed established medicines and will look to form
strategic partnerships that would maximize the reach of its product
candidates worldwide. Aequus plans to build on its Canadian
commercial platform through the launch of additional products that
are either created internally or brought in through an acquisition
or license; remaining focused on highly specialized therapeutic
areas. For further information, please
visit www.aequuspharma.ca.
Forward Looking Statements
Statements in
this news release that are forward-looking statements are subject
to various risks and uncertainties concerning the specific factors
disclosed here and elsewhere in CannaRoyalty's and Aequus' periodic
filings with Canadian securities regulators. When used in this news
release, words such as "will, could, plan, estimate, expect,
intend, may, potential, believe, should," and similar expressions,
are forward- looking statements.
Forward-looking statements may include, without limitation,
statements including the CannaRoyalty's and Aequus' expectations
with respect to pursuing new opportunities and future growth and
other statements of fact.
Although CannaRoyalty and Aequus have attempted to
identify important factors that could cause actual results,
performance or achievements to differ materially from those
contained in the forward-looking statements, there can be
other factors that cause results, performance or achievements not
to be as anticipated, estimated or intended, including, but not
limited to: dependence on obtaining regulatory approvals; investing
in target companies or projects which have limited or no operating
history and are engaged in activities currently considered illegal
under US Federal Laws; changes in laws; limited operating history;
reliance on management; requirements for additional financing;
competition; hindering market growth and state adoption due to
inconsistent public opinion and perception of the medical-use and
adult-use marijuana industry and; regulatory or political
change.
There can be no assurance that such information will prove to
be accurate or that management's expectations or estimates of
future developments, circumstances or results will materialize. As
a result of these risks and uncertainties, the results or events
predicted in these forward-looking statements may differ materially
from actual results or events.
Accordingly, readers should not place undue reliance on
forward-looking statements. The forward-looking statements in this
news release are made as of the date of this release. CannaRoyalty
and Aequus disclaim any intention or obligation to update or revise
such information, except as required by applicable law, and
CannaRoyalty and Aequus do not assume any liability for disclosure
relating to any other company mentioned herein.
SOURCE CannaRoyalty Corp.
