Aequus Announces Marc Lustig Joining Board of Directors and Making Direct Equity Investment into the Company
VANCOUVER, British Columbia, Feb. 12, 2021 (GLOBE NEWSWIRE) -- Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products is pleased to announce that it intends to complete a non-brokered private placement of 6,666,666 units of the Company (the "Units") at a price of $0.15 per Unit (the "Offering Price"), for aggregate gross proceeds of $1,000,000 (the “Proposed Financing”) to Marc Lustig, who has concurrently agreed to join the Aequus Board of Directors as described below. Each Unit shall consist of one common share of the Company and one-half non- transferrable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one common share at an exercise price of $0.25 for a period of twenty-four (24) months following the transaction closing date. Aequus expects the Proposed Financing to close on or about February 26, 2021, subject to a number of conditions, including the execution of definitive documentation and receipt of final approval of the TSX Venture Exchange for the listing of the common shares issuable on closing.
Aequus intends to use the net proceeds of the Proposed Financing for general corporate and working capital purposes, including commercial and marketing activities and supporting on-going business development. Securities issued under the Proposed Financing will be subject to a four month hold period in Canada following the date of closing. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
“Aequus is pleased to welcome Marc Lustig who is joining the team as a Director,” said Doug Janzen, Aequus Chairman and CEO. “I have worked with Marc on a number of successful projects over the years and we are delighted to add such an experienced and talented Director. Marc has extensive North American capital markets experience and is a respected entrepreneur who founded and built Origin House before it was acquired by Cresco Labs. Marc’s expertise is expected to be a significant benefit to Aequus as we launch the Evolve and Revive Eye Care products and finalize the submission for Health Canada regarding Zymed -PF, a preservative-free prescription drug for the treatment of Glaucoma.”
In connection with Mr. Lustig's board appointment, the Company plans to grant him 350,000 incentive stock options on February 15, 2021, the effective date of his appointment. These stock options will be exercisable at today’s closing price per share, for a term of eight years, and vest in tranches during the next three years. The terms of the stock options will be in accordance with the Company’s Stock Option Plan.
About Marc Lustig
Marc Lustig holds MSc and MBA degrees from McGill University. He began his professional career in the pharmaceutical industry at Merck & Co. In 2000, he started his capital markets career in institutional equity research in the Life Sciences sector at Orion Securities. For the next 14 years, Mr. Lustig worked at GMP Securities L.P. and as Head of Capital Markets at Dundee Capital Markets before becoming a Principal at KES7 Capital. In 2015 Mr. Lustig founded CannaRoyalty Corp. (Origin House). Origin House was sold to Cresco Labs in January 2020. Mr. Lustig is currently a Director of Cresco Labs and Pharmacielo Ltd. He is also Chairman of both Trichome Financial Corp. and IMC Cannabis.
ABOUT AEQUUS PHARMACEUTICALS INC.
Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus has grown its sales and marketing efforts to include several commercial products in ophthalmology and transplant. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.
FORWARD-LOOKING STATEMENT DISCLAIMER
This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential” and similar expressions. Forward- looking statements are necessarily based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Forward-looking statements include but are not limited to statements relating to: the implementation of our business model and strategic plans; revenue growth trends into the future; expected timing for product launch; the Company’s expected revenues; the regulatory approval of the Evolve line of products expected in 2020. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Aequus, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements. In making the forward looking statements included in this release, the Company has made various material assumptions, including, but not limited to: obtaining positive results of clinical trials; obtaining regulatory approvals; general business and economic conditions; the Company’s ability to successfully out license or sell its current products and in-license and develop new products; the assumption that the Company’s current good relationships with its manufacturer and other third parties will be maintained; the availability of financing on reasonable terms; the Company’s ability to attract and retain skilled staff; market competition; the products and technology offered by the Company’s competitors; and the Company’s ability to protect patents and proprietary rights. In evaluating forward looking statements, current and prospective shareholders should specifically consider various factors set out herein and under the heading “Risk Factors” in the Company’s Annual Information Form dated April 28, 2020, a copy of which is available on Aequus’ profile on the SEDAR website at www.sedar.com, and as otherwise disclosed from time to time on Aequus’ SEDAR profile. Should one or more of these risks or uncertainties, or a risk that is not currently known to us materialize, or should assumptions underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by applicable securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance and are inherently uncertain. Accordingly, investors are cautioned not to put undue reliance on forward looking statements.
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