VANCOUVER, B.C., CANADA (February 17, 2017) - M Pharmaceutical Inc. (CSE: MQ, OTCQB: MPHMF, FWB: T3F2), (the "Company" or “M Pharma”) announces that it has successfully closed the previously described asset acquisition from 40J’s LLC and related entities.
The Company paid $300,000 in cash at closing, issued 38,837,000 shares and unsecured 5 year notes in the principal amount of $2,500,000 which are convertible, at the option of either the Company or the Holders, into common shares of the Company at such time as the Company completes a financing in excess of $1,000,000 on the same terms of such financing. All references to dollars in this press release are to US currency.
The Company is also liable for deferred cash payments and possible milestone payments of approximately $3,450,000 and will pay a mid-single digit royalty on sales of the female sexual dysfunction drug once commercialized.
The following is a summary of the assets purchased.
Female Sexual Dysfunction drug
- The original FSD Provisional patent application was submitted to the USPTO in April, 2015.
- The Non-Provisional patent application was submitted to the USPTO in April, 2016.
- Office Action was received from the USPTO in September, 2016 with a response submitted in October, 2016.
- We anticipate hearing from the USPTO by May, 2017.
- We plan to advance this product through the FDA approval process via the 505(b) (2) pathway, similar to our C-103 project.
- The original parabens free patent application was submitted to the USPTO in March, 2015.
- The Non-Provisional patent application was submitted in May, 2016.
- The USPTO patent response is expected by May, 2017
- Even if a patent is not granted, the technology will be used to ensure all our products are parabens free.
- Once the patent is granted, we can out license to other drug manufacturers.
Menthol & L-arginine patented technology
The foundation for most of the 40J’s products is based on the patented and FDA cleared topical gel combining Menthol & L-arginine. This innovative formulation can be paired with many different ingredients to address a multitude of medical issues. Other business development opportunities (transfer pricing, private labeling & licensing) for many of these products have been identified in the US, Canada, the EU, Middle East, Asia and South America.
This patented tropical gel provides significant opportunities in various applications, including the following:
- Arousal Gels
- Phytoestrogen Gels
- Breast Enlargement Creams
- Male Enhancement Gels
- Lip Plumper Gels
- Diabetic Neuropathy Treatment Gels
- Oral THC/CBD
Gary Thompson, CEO of the Company, said “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 $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. “
Formed in early 2015, M Pharmaceutical Inc. is a clinical-stage company developing innovative technologies for obesity and weight management. In addition to its recent acquisition of C-103, a reformulation of orlistat from Chelatexx, LLC, the Company will focus on the development of its Trimeo capsules, temporary controllable pseudobezoars for non-invasive gastric volume reduction for the treatment of obesity, for which it has exclusive rights. The Company has also recently acquired an FDA cleared fertility product branded as ToConceive that represents its first offering in the women's health field.
M Pharma trades on the Canadian Securities Exchange (CSE) under the ticker symbol “MQ” as well as on the OTCQB as “MPHMF” and FWB (Frankfurt Stock Exchange) as “T3F2.”
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. This news release includes forward-looking statements with respect to the regulatory approval, commercialization of the rights to the Company’s biomedical & drug technologies, and acquisition of new products. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com and the Company’s filings to the CSE at www.cnsx.ca. Such risk factors may cause the inability of the Company to successfully commercialize any of its biomedical technologies.
Notice regarding investigational devices: C-103 and Trimeo are investigational drugs or devices and are not currently available outside of approved clinical trials. Claims regarding the safety and efficacy of these devices have not been evaluated by Health Canada, the U.S. Food and Drug Administration, or any other international regulatory body.