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Pharma Tech Outlook | Tuesday, July 06, 2021
InMed Pharmaceuticals Signs a Non-binding Partnership agreement to Acquire BayMedica, a Manufacturer of Exotic Cannabinoids.
FREMONT, CA: InMedC(InMed or the Company) (Nasdaq: INM), a clinical-stage company focused on the development of cannabinoid-based pharmaceutical drug candidates and manufacturing technologies for pharmaceutical-grade rare cannabinoids, enters into a non-binding letter of intent (the "LOI") to acquire BayMedica Inc. (BayMedica), a privately held company based in Nevada and California.
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BayMedica is a revenue-generating biotechnology company that has created proprietary, efficient, scalable, and effective manufacturing processes to produce high-quality, consistent cannabinoids for the medical sector. BCC (cannabichromene) is currently being commercialized as a B2B supplier for distributors and manufacturers of health and wellness products. BayMedica is presently developing more rare cannabinoid medicines.
BayMedica is researching the creation of cannabinoid analogs as pharmaceuticals. Our proprietary compounds are based on naturally occurring cannabinoids. They are intended to either improve the therapeutic potential, safety, or both.
Eric A. Adams, President and Chief Executive Officer of InMed, states, “We are very excited about the prospect of continuing to work with BayMedica and the potential to build a leading rare cannabinoid company together. Since commencing our collaboration in November last year, it has become apparent that our complementary business models and capabilities have the potential to provide a platform to expedite the growth of both companies and provide the flexibility of multiple processes for the manufacturing of rare cannabinoids. We believe that IntegraSyn, our pharmaceutical-grade manufacturing process, together with BayMedicas revenue-generatingInMed’s, consumer-focused processes, would create a powerful combination.” Adams continues, “The executive team and employees at BayMedica would contribute decades of highly relevant experience to InMeds existing pharmaceutical-focused team. Upon a successful closing of the proposed transaction, we expect that the integration of the two teams, the numerous manufacturing technologies, existing and planned revenues from bulk cannabinoid sales and fundamental pharmaceutical R&D capabilities will position InMed at the forefront of the burgeoning rare cannabinoid sector.”
InMed and BayMedica plan to negotiate a definitive agreement in which InMed will acquire 100 percent of BayMedica in exchange for 1.6 million InMed common shares, with any issued InMed common shares subject to a six-month contractual hold period. InMed and BayMedica plan to enter into a binding definitive agreement and other ancillary agreements after conducting satisfactory legal and financial due diligence and negotiating comprehensive mutually agreeable terms. In addition to the completion of due diligence and negotiation of definitive transaction agreements, the proposed transaction would be subject to the approval of InMed and BayMedica's respective boards of directors, the acceptance of BayMedica's security holders, the receipt of all necessary third-party and regulatory approvals, and certain other closing conditions.
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