Cleveland BioLabs (CBLI) Enters Joint Stock Agreement with RUSNANO for Panacela Labs Funding
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Cleveland BioLabs, Inc. (Nasdaq: CBLI) today announced that it has entered into an agreement with Open Joint Stock Company RUSNANO, to provide funding for CBLI's new subsidiary, Panacela Labs, Inc., which will develop a portfolio of new preclinical drug candidates.
According to the terms of the agreement, RUSNANO will invest up to $26 million over a four-year period, with an initial investment of $9 million financed upon closing of the agreement and three subsequent investments to be made upon achievement of development milestones and attraction of new investments to the project. Cleveland BioLabs and three other intellectual property owners, Roswell Park Cancer Institute, Cleveland Clinic Foundation and Children's Cancer Institute Australia, will transfer intellectual property rights related to a specific portfolio of compounds to Panacela Labs. Cleveland BioLabs will also contribute $3 million as an initial investment. Cleveland BioLabs and RUSNANO will also be granted warrants providing options to increase their investment at two and four years following initial investment. The transaction is scheduled to close on or around September 30, 2011. Immediately after the closing, Cleveland BioLabs will have an initial ownership stake of approximately 55% in Panacela.
According to the terms of the agreement, RUSNANO will invest up to $26 million over a four-year period, with an initial investment of $9 million financed upon closing of the agreement and three subsequent investments to be made upon achievement of development milestones and attraction of new investments to the project. Cleveland BioLabs and three other intellectual property owners, Roswell Park Cancer Institute, Cleveland Clinic Foundation and Children's Cancer Institute Australia, will transfer intellectual property rights related to a specific portfolio of compounds to Panacela Labs. Cleveland BioLabs will also contribute $3 million as an initial investment. Cleveland BioLabs and RUSNANO will also be granted warrants providing options to increase their investment at two and four years following initial investment. The transaction is scheduled to close on or around September 30, 2011. Immediately after the closing, Cleveland BioLabs will have an initial ownership stake of approximately 55% in Panacela.
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