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Willow Biosciences Inc., TSX:WLLW, OTCQB:CANSF, announced that they have reached an agreement for the sale of their wholly owned operating subsidiary Epimeron USA, Inc., to an unknown private UK-based firm, in exchange for US$3,38,000,000 cash.
The Alberta-based biotechnology firm said in a statement that the transaction includes the company’s biotechnology business, intellectual property and R&D team. In a press release it was stated that the transaction represents “the culmination of Company’s earlier announced strategic review.”
According to reports from earlier, the company first revealed its review in January of this year, after it failed to obtain financing that was favorable to investors. Green Market Report. The company stated that it would consider selling its assets and business, a sale of the entire company or any other major transactions.
The move follows Willow’s cancellation of a planned C$2 million private placement in January, which the company had intended to use for working capital requirements and to accelerate development of high-priority pipeline programs, GMRÂ noted.
Willow’s board unanimously approves the transaction. They recommend that shareholders vote to support the deal. This requires approval by at least 66.67% voting shares. Directors, officers and major shareholders who hold approximately 22.17 percent of the outstanding shares have committed to support this transaction.
In its announcement, Willow stated that the company intended to use a portion to reduce its debt and retain the rest pending an assessment of future cash needs and possible opportunities with the aim of maximising shareholder value.
GMR reports that the company faced financial problems, with a $1.7 million net loss in its second-quarter despite revenue nearly 600% higher at $1 million than the same time last year.
Willow left the cannabinoid industry in 2023, after losing the patent case against Aurora. However, the company has stated that in its recent filings with the regulatory authorities it is “continuing to implement and file patents on cannabinoids” as well as for new programs.
This deal should close by April 30th 2025.