GENEREX BIOTECHNOLOGY CORPORATION (OTCMKTS:GNBT) Files An 8-K Termination of a Material Definitive AgreementItem 1.02. Termination of a Material Definitive Agreement
The August 24, 2017 letter of intent (“LOI”) between Generex Biotechnology Corporation (the “Company” or “Generex”) and Core-Tech Solutions, Inc. (“Core-Tech”) contemplating the Company’s acquisition of a controlling interest in the outstanding capital stock of Core-Tech has been terminated.
As part of its due diligence investigations in respect of Core-Tech, Generex conducted in-depth evaluations of Core-Tech’s business, including commercialization contracts with two pharmaceutical companies. Generex concluded that Core-Tech offers significant upside potential: the Core-Tech facilities are GMP compliant; its management has deep technical and operational expertise; the patented technology is robust for combination drug patch delivery systems and anti-diversion systems for opioids. However, the aforementioned pharmaceutical companies revealed that, due to re-evaluated priorities arising from their internal situations and not Core-Tech’s technologies, they will not be proceeding with three contract development programs in the Core-Tech pipeline. The resultant modifications to cash-flow projections and requisite cash support from Generex for product development necessitate a re-examination of the Core-Tech valuation. The parties discussed a restructuring of the LOI, but decided to discontinue discussions for now with a view to revisiting the transactions contemplated by the LOI at a later date. On December 8, 2017, Core-Tech confirmed formal termination of the LOI.
About GENEREX BIOTECHNOLOGY CORPORATION (OTCMKTS:GNBT)
Generex Biotechnology Corporation is a development-stage company. The Company is engaged primarily in the research and development of drug delivery systems and technologies. The Company is focused on its technology for the administration of formulations of large molecule drugs to the oral (buccal) cavity using a hand-held aerosol applicator. Its buccal delivery technology is a platform technology that has application to various large molecule drugs and provides a non-invasive way to administer such drugs. The Company focuses its development efforts on Generex Oral-lyn, an insulin formulation administered as a fine spray into the oral cavity using its hand-held aerosol spray applicator known as RapidMist. Its subsidiary, Antigen Express, Inc., focuses on developing vaccine formulations that work by stimulating the immune system to either attack offending agents, such as cancer cells, bacteria and viruses, or to stop attacking benign elements, such as self proteins and allergens.