1.Date of occurrence of the event: Dec 04, 2020
2.Company name: OBI Pharma Inc.
3.Relationship to the Company (please enter “head office” or “subsidiaries”): Head office
4.Reciprocal shareholding ratios: No Applicable
5.Cause of occurrence:
(1) The development of immunotherapeutic anticancer drug is the current focus of OBI. A partner with complementary resources is needed to co-develop OBI-858, Novel Botulinum Toxin, to spread the risk and avoid resources crowding causing impact on research timeline.
(2) OBI will license the Intellectual Property Right of Global Aesthetic Medicine to a newly established company. The new company will proceed the further clinical research and development of indications for aesthetic medicine. OBI is also planning to sell the parenteral production facility of OBI-858 to the new company. The licensing fee for Intellectual Property Right of Global aesthetic medicine and the payment of parenteral production facility will be paid with the stock of newly established company.
(3) The newly established company is increasing capitol by cash meanwhile. All raise funds will be used for clinical phase II OBI-858 productions and phase I/ II clinical and operational costs. Currently the potential investors include cosmetics group and institutional investors who are familiar with product distribution channels, and investment company with rich experience on pharmaceutical investment, etc.
(4) Botulinum Toxin has a great potential in aesthetic medicine industry. With the cooperation of OBI-858, OBI would like to combine the resources provided by previous described investors to push the research progress forward and wish to share the potential business benefit after product launching.
(5) The licensing conditions resolved by the chairman of board of director or designated person are proceeding to negotiation and signing process. The details of the contract will have further announcement.
7.Any other matters that need to be specified: New drug development is a long process associated with high costs. It is not a guaranteed success, which may increase the risk of investment. Investors shall make prudent judgments and investments.