Bioasis Announces AGM Results and Provides Update on Financial Position
NEW HAVEN, Conn., Feb. 03, 2023 (GLOBE NEWSWIRE) — BIOASIS TECHNOLOGIES INC. (OTCQB:BIOAF; TSX.V:BTI) (the “Company” or “Bioasis”), a multi-asset rare and orphan disease biopharmaceutical company developing clinical stage programs based on epidermal growth factor and a differentiated, proprietary xB3 ™ platform for delivering therapeutics across the blood-brain barrier (“BBB”) and the treatment of central nervous system (“CNS”) disorders in areas of high unmet medical need, is pleased to announce that all resolutions were passed by the requisite majority at its annual general meeting (the “Meeting”) held earlier today.
All five of the incumbent directors nominated for election at the Meeting were re-elected: Deborah Ann Rathjen, John E. Curran, John Hemeon, David M. Wurzer and Mario Saltarelli. Shareholders also approved the re-appointment of Manning Elliott LLP as auditors of the Company for the ensuing year.
Bioasis also wishes to update shareholders on its current financial condition. As disclosed on January 23, 2023, following Bioasis’ termination of the arrangement agreement between Bioasis and Midatech Pharma plc (“Midatech”), Bioasis was entitled to receive a US$225,000 expense reimbursement payment from Midatech as well as the final US$250,000 bridge loan instalment payable to Bioasis by Midatech on February 6, 2023. Midatech has subsequently advised Bioasis that it is currently unable to make the expense reimbursement payment as a result of its own liquidity constraints. Midatech has also publicly disclosed that it urgently requires additional funding and that if it is unable to obtain additional funding it is likely that Midatech could be forced to enter into administration (creditor protection) proceedings under UK law.
As a result, Bioasis does not currently expect to receive the expense reimbursement payment or the final instalment of the Midatech bridge loan unless and until Midatech is able to secure additional funding. This has a significant negative impact on Bioasis’ short term cash flow projections. Bioasis has reduced its expenses to the maximum extent possible and is urgently exploring and evaluating all financing and strategic alternatives that may be available to address its liquidity requirements and enhance shareholder value. Bioasis currently expects that its remaining cash reserves will allow it to continue operations only until approximately March 2023. Bioasis requires additional financing to continue as a going concern and to satisfy its ongoing monthly payment obligations under the convertible security funding agreement between Bioasis and Lind Global Macro Fund, LP (“Lind”) and to repay the bridge loan from Midatech (current outstanding principal amount of US$500,000) and the C$350,000 bridge loan from Lind, both of which mature on June 30, 2023 and are secured by a pledge of all of Bioasis’ assets.
On behalf of the Board of Directors of Bioasis Technologies Inc.
Deborah Rathjen, Ph.D., Executive Chair of the Board
Bioasis is a multi-asset rare and orphan disease biopharmaceutical company developing clinical stage programs based on epidermal growth factor and the xB3 ™ platform, a proprietary technology for the delivery of therapeutics across the blood brain barrier and the treatment of CNS disorders in areas of high unmet medical need. The delivery of therapeutics across the blood-brain barrier represents the final frontier in treating neurological disorders. The in-house development programs at Bioasis are designed to develop symptomatic and disease-modifying treatments for brain-related diseases and disorders. For more information about the Company, please visit www.bioasis.us.
Cautionary Statement on Forward-Looking Information
This press release may contain certain forward-looking statements, including statements regarding Bioasis’ anticipated financial condition. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.
Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Bioasis to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the state of domestic and international capital markets; Bioasis’ ability to obtain financing; changes in general market conditions; and other risks and uncertainties relating to Bioasis and its business described more fully in Bioasis’ filings on SEDAR at www.sedar.com.
Bioasis undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents Bioasis’ best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
Neither the 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.
Deborah Rathjen, Ph.D., Executive Chair of the Board and CEO
Colwell Capital Corp.