WPD Pharmaceuticals Announces Plan to Restructure
VANCOUVER, British Columbia, Feb. 09 2022 (GLOBE NEWSWIRE) — WPD Pharmaceuticals Inc. (the “Company” or “WPD”) (CSE: WBIO) (FSE: 8SV1) announces that the board of directors of the Company (the “advice”) approved a restructuring plan (the “Restructuring”) the exceptional capitalization of the Polish subsidiary wholly owned by the Company, WPD Pharmaceuticals sp. zoo (“WPD Poland”). Due to the occurrence of negative equity in WPD Poland, under Polish corporate law, WPD Poland is obliged to call an extraordinary general meeting of its shareholders to vote on the implementation of a reorganization plan or file a bankruptcy proceedings. As the Company is the sole shareholder of WPD, the Board of Directors has approved a recovery plan for WPD Poland, namely the Restructuring. As part of the Restructuring, the first step is to reduce the outstanding share capital of WPD Poland through the voluntary repurchase of 53,384 WPD Poland shares by the Company without cash consideration, which will increase the additional and reserve capital by WPD Poland. As part of the second stage, the share capital of WPD Poland will be increased due to the conversion of loan receivables due to the Company into new shares of WPD Poland. The Company believes that the Restructuring will enable WPD Poland to operate and pursue its research and development objectives. The Company will provide further updates as the restructuring plan is implemented.
About WPD Pharmaceuticals
WPD is a biotechnology research and development company focused on oncology and virology, the research and development of drugs involving biological compounds and small molecules. WPD has authorized 10 new drug candidates in certain countries, 4 of which are in the clinical development phase. These drug candidates have been researched at institutions, and WPD currently has ongoing collaborations with Wake Forest University and leading hospitals and academic centers in Poland.
WPD has entered into licensing agreements with Wake Forest University Health Sciences and sublicensing agreements with Moleculin Biotech, Inc. and CNS Pharmaceuticals, Inc., respectively, each granting WPD an exclusive sublicense with royalties for certain technologies of the licensor. Such agreements grant WPD certain research, development, manufacturing, and sales rights, among other things. The sublicensing territory of CNS Pharmaceuticals and Moleculin Biotech comprises for most compounds 30 countries in Europe and Asia, including Russia.
On behalf of the board
CEO, WPD Pharmaceuticals
Email: [email protected]
Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements. Forward-looking statements in this press release include statements regarding the restructuring, including perceived benefits, timing of implementation and other related matters. Factors that could prevent forward-looking statements from being made include the fact that competitors or others may successfully challenge an issued patent and that the patent could be invalidated; we may not be able to raise sufficient funds for our research; we may not be able to devote sufficient funds to research to maintain our sublicense rights; our applications for grants may not be successful or, if successful, we may not qualify to receive grants awarded; that our drugs do not offer a positive treatment, or if they do, the side effects are harmful; competitors can develop better or cheaper drugs; and we may not be able to obtain regulatory approval for the drugs we develop; the filing of the the next annual general meeting information circular containing information on executive compensation. Readers should refer to the risk disclosure included from time to time in the Company’s filings on SEDAR, available at www.sedar.com. Although the Company believes that the assumptions inherent in these forward-looking statements are reasonable, they are not guarantees of future performance and, accordingly, should not be relied upon and there can be no assurance that any of them will turn out to be correct. Finally, these forward-looking statements are made as of the date of this press release and the Company undertakes no obligation to update them, except as required by applicable law.