SAN FRANCISCO AND TEL AVIV, Israel, Oct. 17, 2019 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSX VENTURE: KLY and OTCQB: KALTF) (the "Company" or "Kalytera") has announced that, due to a decline in the market price for CBD isolate, it has decided not to proceed with its previously announced plan to acquire a majority interest in Oregon 01, LLC (“Oregon 01”), and has terminated its Letter of Intent (“LOI”) with Oregon 01. Under the LOI, Kalytera was to invest USD $3.5 million for the acquisition of a 51% interest in Oregon 01.
The principal product that Oregon 01 planned to produce was CBD isolate extracted from hemp. During the past several months, market prices for CBD isolate have steadily declined. This price erosion made the acquisition of this business less attractive to Kalytera, and for this reason the Company has terminated its plan to acquire Oregon 01.
"Due to price erosion in the market for CBD isolate, this transaction would no longer provide Kalytera a near-term path to profitability,” stated Robert Farrell, the Company’s President and CEO. "Although we will not proceed with this transaction, we will continue to explore other opportunities to expand and diversify our operations. We are also continuing to pursue our corporate partnering strategy for our program evaluating CBD in the prevention and treatment of graft versus host disease (“GVHD”), and are currently addressing due diligence requests from potential corporate partners for this program.”
About Kalytera Therapeutics
Kalytera Therapeutics, Inc. ("Kalytera") is pioneering the development of a next generation of cannabinoid therapeutics. Through its proven leadership, drug development expertise, and intellectual property portfolio, Kalytera seeks to establish a leading position in the development of novel cannabinoid medicines for a range of important unmet medical needs, with an initial focus on graft versus host disease and the treatment of acute and chronic pain.
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This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation in respect of its product candidate pipeline, planned clinical trials, regulatory approval prospects, intellectual property objectives and other statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that future clinical studies may not proceed as expected or may produce unfavourable. Kalytera undertakes no obligation to comment on analyses, expectations or statements made by third parties, its securities, or financial or operating results (as applicable). Although Kalytera believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Kalytera's control. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Kalytera disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.