YOFOTO (China) Health and RepliCel Life Sciences
finalize investment and commence collaboration activity in
Greater China
VANCOUVER and NINGBO, China, Oct, 11, 2018 /CNW/
- RepliCel Life Sciences Inc. (OTCQB: REPCF) (TSXV: RP) (FRA:
P6P2) ("RepliCel" or the "Company"), a company developing
next-generation technologies in aesthetics and orthopedics,
announced today it has completed the anticipated strategic
investment (the "Transaction") with YOFOTO (China) Health Industry Co. Ltd.
("YOFOTO").
YOFOTO has invested CDN $5,090,000
in RepliCel by the purchase of 5,357,000 common shares (each, a
"Share"), at CDN $0.95 per Share, and
1,071,580 share purchase warrants (each, a "Warrant") with each
Warrant exercisable at CDN $0.95 per
Share for a period of two years. The Transaction also includes the
grant of an exclusive license to YOFOTO of the Company's tendon
regeneration cell therapy technology (RCT-01), skin rejuvenation
cell therapy technology (RCS-01), and its injection technology for
dermal applications (RCI-02) (excluding hair-related treatments) in
Greater China (Mainland China,
Hong Kong, Macau, and Taiwan) (the "Territory") in consideration of
milestone payments, sales royalties, and a commitment by YOFOTO to
finance, over the next five years, the included RepliCel programs
and an associated cell processing manufacturing facility in
Greater China.
RepliCel and YOFOTO are now ready to launch the first phase of
their strategic collaboration in the Territory and RepliCel's next
stage of activity outside of Asia.
The joint effort with YOFOTO will focus on the further development
and commercialization of RepliCel's tendon regeneration cell
therapy technology (RCT-01), skin rejuvenation cell therapy
technology (RCS-01), and injection technology for dermal
applications (RCI-02) (excluding hair-related treatments) in the
Territory.
All of the Shares and Warrants issued to YOFOTO will be subject
to a statutory hold period expiring four months and one day after
issuance of the Shares and Warrants.
About YOFOTO
YOFOTO (China) Health Industry Co., Ltd was
established in 2004 as a company engaged in the health and consumer
products industry. For example, YOFOTO has registered 31 different
nutraceuticals with the State Food and Drug Administration
(China). With a wide range of
successful commercial products in the food, personal health care,
and household categories, YOFOTO is now diversifying into
higher-value health-related products and services such as genetic
and blood testing, regenerative medicine, and destination
health-treatment clinics. As part of its strategy, YOFOTO has made
several investments outside of China. Its current expansion includes a global
R&D production base, organic food base, natural cosmetic
R&D center, a conference center, yacht club and health spa
resort.
At present, YOFOTO has registered over 700 trademarks and
attained over 60 patents. YOFOTO has 32 provincial branches in
China and, in 2009, began
international expansion into Russia, Vietnam, Thailand and Cameroon. At the same time,
YOFOTO began active participation in the Asia-Pacific Economic
Cooperation (APEC) forum. YOFOTO Chairman of YOFOTO, Mr.
Huang Jin Bao, was elected to be the
member of the first APEC Chinese Industry and Commerce
Council.
About RepliCel Life Sciences
RepliCel is a
regenerative medicine company focused on developing cell therapies
for aesthetic and orthopedic conditions affecting what the Company
believes is approximately one in three people in industrialized
nations, including aging/sun-damaged skin, pattern baldness, and
chronic tendon degeneration. These conditions, often
associated with aging, are caused by a deficit of healthy cells
required for normal tissue healing and function. The Company's
product pipeline is comprised of RCT-01 for tendon repair, RCS-01
for skin rejuvenation, and RCH-01 for hair restoration. RCH-01 is
currently being co-developed with, and under exclusive license by,
Shiseido for certain Asian countries. All product candidates are
based on RepliCel's innovative technology, utilizing cell
populations isolated from a patient's healthy hair follicles.
RepliCel has also developed a proprietary injection device, RCI-02,
optimized for the administration of its products and licensable for
use with other dermatology applications. Please
visit www.replicel.com for additional information.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking statements and
information that involve various risks and uncertainties regarding
future events, including, but not limited to, statements
regarding the milestone payments, sales royalty payments and
the program funding commitments to be made by YOFOTO in connection
with the Transaction.
These statements are only predictions and involve known and
unknown risks which may cause actual results and the Company's
plans and objectives to differ materially from those expressed in
the forward-looking statements, including: risks that the parties
will not execute on their respective commitments in connection with
the Transaction, risks that the Company's
products may not perform as, or have the benefits,
expected; risks that the Company's
products may not be accepted and
adopted by the public; the risk that the Company will not
obtain CE mark clearance for its injector device; the
risk that there will be delays enrolling clinical trial
participants; the risk that the Company will receive negative
results from the Company's clinical trials; the effects of
government regulation on the Company's business; risks associated
with the Company obtaining all necessary regulatory approvals for
its various programs; risks associated with the Company's ability
to obtain and protect rights to its intellectual property; risks
and uncertainties associated with the Company's ability to raise
additional capital; and other factors beyond the Company's control.
Although the Company believes that the expectations reflected in
the forward-looking statements are reasonable, it cannot guarantee
future results, levels of activity or performance. Further, any
forward-looking statement speaks only as of the date on which such
statement is made and, except as required by applicable law, the
Company undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time, and it
is not possible for management to predict all of such factors and
to assess in advance the impact of such factors on the Company's
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statement. Readers should consult
all of the information set forth herein and should also refer to
the risk factor disclosure outlined in the Company's annual report
on Form 20-F for the fiscal year ended December 31, 2016 and other periodic reports
filed from time-to-time with the Securities and Exchange Commission
on Edgar at www.sec.gov and with the British Columbia Securities
Commission on SEDAR at www.sedar.com.
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SOURCE RepliCel Life Sciences Inc.