Generex Biotechnology Corporation (OTCMKTS:GNBT) extended gains to another session as investors’ appeared positive about the company’s prospects. The stock of the company turned into green following the press note that it has signed a non-binding Letter of Intent (LoI) with Smoofi Inc. (SMFI). As per the terms of the Letter of Intent, the company has licensed its proprietary RapidMist drug delivery technology to Smoofi Inc.
What is the gain?
The agreement is certainly positive for Generex Biotechnology Corporation (OTCMKTS:GNBT), which is set to get $10,000,000 in exchange of the deal. It is to be noted that Smoofi has agreed to issue the said the amount to the company in the form of its common stock. At the same time, Smoofi will also issue warrant over and above the specified amount. The warrant will give the right to Generex Biotechnology Corporation (OTCMKTS:GNBT) to acquire nearly 15,000,000 of shares of Smoofi common stock in future.
As per the agreement, Generex Biotechnology Corporation(OTCMKTS:GNBT) has given the rights of its RapidMist technology to Smoofi. The technology aids in delivering medical as well as recreational cannabis-based products directly into the bloodstream through the buccal membrane.
The technology is one of its kind that helps the medication to reach directly to the mouth and get instantly absorbed by the buccal mucosa. Generex Biotechnology Corporation (OTCMKTS:GNBT) noted that it is currently in the process of delivering Oral-lyn, which aims to deliver insulin through RapidMist. Following the agreement, Smoofi will take the liability of any R&D costs incurred in relation to buccal cannabis products.
Other than this, not only Smoofi will take care of the regulatory affairs with relation to the products in its territory, but will also share 20% of the net revenues generated from sales of RapidMist with Generex. The press note helped the stock of Generex Biotechnology Corporation (OTCMKTS:GNBT) to rally by another 12% to $0.0235, while nearly 2 million shares traded on the day.