Generex Biotechnology Corporation (OTCMKTS:GNBT)‘s update yesterday did bring it some glory as its stock retreated from downward momentum. As per the press not, the company said that it has entered into a non-binding Letter of Intent (LoI) with respect to licensing of its proprietary RapidMist drug delivery technologies to Smoofi Inc. (SMFI).
RapidMist is a technology that delivers medicinal and recreational cannabis-derived products into the bloodstream via the buccal membrane. The drug delivery technology helps into the administration of medication directly into the mouth, which is rapidly absorbed by the buccal mucosa. The company noted that currently its Oral-lyn is under development that uses RapidMist to deliver insulin for the treatment of diabetes. The press release cited the details of the said Letter of Intent that it has reached with Smoofi.
As per the terms of the agreement, Smoofi has accepted to issue 10,000,000 worth of its common stock to Generex Biotechnology Corporation (OTCMKTS:GNBT) in exchange of the global license. The issuance of the shares comes over and above a warrant that gives the right to the company to acquire up to 15,000,000 shares of Smoofi common stock. After the grant of the license, Smoofi will be fully responsible to assume the costs related to R&D of buccal cannabis products.
Apart from which, Smoothi will also take the responsibility of the regulatory affairs in connection with such products in its territory. Also, Smoofi will pay Generex Biotechnology Corporation (OTCMKTS:GNBT) royalty equivalent to 20% of the net revenues from the sale of RapidMist in its territory.
Revision in previous arrangement
At the same time, the company also announced the revision in terms of its arrangement with CannScience Innovations Inc. As per the revised agreement, the company has granted CannScience with a license to commercialize its buccal cannabis product in Canada in consideration of royalty of 15% on sales of the products in the region.
The announcement helped the stock of Generex Biotechnology Corporation (OTCMKTS:GNBT) climb by 12.86% to $0.0237 during the after-hours session as 1.44 million shares changed hands.