IntelGenx Signs Letter of Intent with Tilray® to Enter Into a World-Wide Agreement To Produce Cannabis-Infused VersaFilm™ ...
September 19 2018 - 11:01PM
IntelGenx Corp. (TSX-V:IGX) (OTCQX:IGXT) (“IntelGenx”) today
announced that it has executed a non-binding letter of intent (the
“LOI”) with Tilray, Inc. (NASDAQ:TLRY) (“Tilray®”), a global leader
in cannabis research, cultivation, production and distribution, to
co-develop and commercialize oral film products infused with
recreational and medical cannabis (“cannabis-infused VersaFilm™”),
in anticipation of amended cannabis regulations which would allow
adult-use consumers to purchase edible products.
Pursuant to the LOI, subject to entering into a
definitive agreement and the satisfaction of customary closing
conditions, IntelGenx and Tilray will fund 20% and 80% of the costs
associated with the development of the cannabis-infused VersaFilm™
products, respectively. IntelGenx will have rights to
manufacture and supply the co-developed products to Tilray, and
will also receive a fixed single-digit royalty on net product
sales. Tilray will have the exclusive, worldwide marketing
and distribution rights for the co-developed products.
The LOI also contemplates that, at the time of
entering into the definitive agreement, Tilray® will make a
strategic investment in IntelGenx by way of a non-brokered private
placement (“Private Placement”). Tilray® will purchase
1,250,000 common shares of IntelGenx at a price of USD$0.80 per
share, which is equal to the five-day volume weighted average
closing price of IntelGenx’ common stock on the OTCQX for the
period ended September 18, 2018. IntelGenx intends to use the
proceeds from the Private Placement for cannabis-infused VersaFilm™
product development in connection with the LOI. The Private
Placement will be subject to the approval of the TSX Venture
Exchange.
“Our proprietary VersaFilm™ drug delivery
platform offers a number of proven advantages - including increased
bioavailability, precision dosing, accelerated onset of action,
reduced side effects, child-resistant packaging and easier, more
discrete administration - all of which we believe have the
potential to improve the way people may use and experience cannabis
in the future,” said Dr. Horst G. Zerbe, President and CEO of
IntelGenx. “This LOI marks the first step in forming an
exciting partnership with Tilray®, a global leader in the medical
and recreational cannabis industry.”
About IntelGenx
Established in 2003, IntelGenx is a leading oral
drug delivery company primarily focused on the development and
manufacturing of innovative pharmaceutical oral films based on its
proprietary VersaFilm™ technology platform.
IntelGenx' highly skilled team provides
comprehensive pharmaceuticals services to pharmaceutical partners,
including R&D, analytical method development, clinical
monitoring, IP and regulatory services. IntelGenx' state-of-the-art
manufacturing facility, established for the VersaFilm™ technology
platform, supports lab-scale to pilot and commercial-scale
production, offering full service capabilities to its clients.
More information about the company can be found at
www.intelgenx.com.
Forward Looking Statements:
This document may contain forward-looking
information about IntelGenx' operating results and business
prospects that involve substantial risks and uncertainties.
Statements that are not purely historical are forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. These statements include, but are not
limited to, statements about entering into a definitive agreement
with Tilray and the Private Placement, and IntelGenx's plans,
objectives, expectations, strategies, intentions or other
characterizations of future events or circumstances and are
generally identified by the words “will”, "may," "expects,"
"anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "could," "would," and similar expressions. All
forward looking statements are expressly qualified in their
entirety by this cautionary statement. Because these
forward-looking statements are subject to a number of risks and
uncertainties, IntelGenx' actual results could differ materially
from those expressed or implied by these forward-looking
statements. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed under
the heading "Risk Factors" in IntelGenx' annual report on Form
10-K, filed with the United States Securities and Exchange
Commission and available at www.sec.gov, and also filed with
Canadian securities regulatory authorities at www.sedar.com.
IntelGenx assumes no obligation to update any such forward-looking
statements.
The LOI is non-binding and subject to the
parties reaching a definitive agreement. Any such definitive
agreement would be subject to customary closing conditions.
Each of the TSX Venture Exchange and OTCQX has
neither approved nor disapproved the contents of this press
release. Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Source: IntelGenx Technologies Corp.
For IntelGenx:
Stephen KilmerInvestor Relations (514) 331-7440 ext
232stephen@intelgenx.com
Or
Andre Godin, CPA, CAExecutive Vice-President and CFOIntelGenx
Corp.(514) 331-7440 ext 203andre@intelgenx.com
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