Cytos Biotechnology announces CAD 106 license agreement buy out by Novartis for 4 million Swiss francs
Wednesday, March 25, 2015
Cytos Biotechnology Ltd ("Cytos") today announced that Novartis has agreed to make a one-time payment of CHF 4 million to eliminate any further payment obligations under the Collaborative Research, Option and License Agreement for CAD106, which is under development by Novartis for the prevention of Alzheimer’s disease.
Cytos is planning to use the payment from Novartis to settle remaining payment obligations under the outstanding convertible loan notes, which remain subordinated.
The closing of the transaction with Novartis is expected to occur upon the conversion of the convertible bonds into Cytos shares in the second half of April 2015 and certain other closing
conditions.
cytos.com
