The company paid US$300,000 in cash at closing, issued 38,837,000 shares and US$2.5mln in unsecured five-year convertible notes to secure ownership of the assets of Cincinnati-based 40J’s.
The assets include a female sexual dysfunction drug, and menthol and l-arginine patented technology.
M Pharma is also liable for deferred cash payments and possible milestone payments of around $3.45mln and will pay a mid-single digit percentage royalty on sales of the female sexual dysfunction drug once commercialized.
“This is a significant step in the development of M Pharma as a company. This provides us not only with a suite of products that are currently being marketed to the tune of approximately US$800,000 in annual revenue to us now, but we have the basis to develop other applications, including a female dysfunction drug, which will be topical, local and non-systemic, with daily and on demand use, while being non-hormonal and not a central nervous system drug,” said gary Thompson, president and chief executive officer of M Pharma.
Story by ProactiveInvestors