The deal will be effected by way of a three-cornered amalgamation between SecureDose, Pharmadrug and its wholly owned subsidiary.
As per the terms of this transaction, all the issued and outstanding shares of SecureDose will be exchanged for one common share in the capital of PharmaDrug.
This means that at the time of closing of this proposed transaction, SecureDose is expected to have 31,500,000 SecureDose Shares, including both issued and outstanding, along with 7,500,000 common share purchase warrants and 525,100 finder warrants.
SecureDose common share purchase warrants will allow the holders to acquire one SecureDose Share for C$0.10 ($0.072) on/before 22 September 2025. Finder Warrants will also grant the same right to holders.
The completion of this transaction is now subject to receipt of all the necessary applicable shareholder and regulatory approvals as well as other customary closing conditions and approval from the Canadian Securities Exchange.
Pharmadrug will have 51,383,487 of its shares outstanding before the deal completion, while 82,883,487 of its shares outstanding after the deal closure.
The acquisition is expected to complete by early November this year.
Upon completion of this arm’s length transaction, SecureDose will become one of the PharmaDrug’s wholly owned subsidiaries.
PharmaDrug CEO and chairman Robert Steen said: “We are extremely excited to sign agreement to acquire SecureDose. With cepharanthine programme now back in full swing, the company believed it made sense to acquire a company whose core competency is development of synthetic formulations.
“This could give PharmaDrug capability to develop formulations of existing drugs that do not necessarily require separate efficacy studies and potentially provide commercialisation and revenue opportunities in a much shorter time frame.”
SecureDose primarily focuses on developing synthetic formulations of currently existing drugs for potential commercialisation and distribution.
This acquisition is expected to complement PharmaDrug’s focus to add required capability to develop their own formulations that have potential to reach commercialisation in a shorter period.