Apollon Formularies enters binding agreement which could lead to sale of all assets
Apollon Formularies PLC (AQSE:APOL) said it has entered a binding Letter of Intent (LOI) with Global Hemp Group Inc (CSE:GHG).
According to the UK-based pharmaceutical company, Global Hemp will pay Apollon a total of US$250,000 (C$341,000) in two tranches and issue Apollon 10mln common shares, for a total consideration of C$491,100.
In return, Global Hemp, a Canadian hemp harvester, will receive an exclusive licence to four Apollon patents in North America with supporting third-party test data, with a licensing agreement to be executed in the coming days.
The first tranche of US$100,000 was paid on 10 January 2023, with the balance of US$150,000 due within 20 trading days thereafter, with the initial 10mln share component to be issued within five business days of the LOI execution date, a statement said.
Apollon said the LOI has a due diligence period of 60 days, and if both parties are satisfied with the results, Global Hemp will have the option to acquire all the assets of Apollon, for a total consideration of C$11.6mln.
As part of the purchases, Global Hemp will purchase the Apollon’s intellectual property, among other things.