On March 22nd, 2021, Briacell Corporation (TSX:BCTX.TO, OTCMKTS:BCLMF) announced that the Ontario Superior Court has granted a final order approving the proposed arrangement involving the spin-out of Briapro Therapeutics Inc.
Under the terms of the arrangement, existing Briacell shareholders will receive one common share of Briapro for every five common shares of Briacell held as of the date of closing of the arrangement. The arrangement is expected to close on April 29th, 2021.
This spin-out of Briapro was announced by Briacell in September 2020 when the company said it would separate its development activities from its core business to focus on commercialization. Through the spin-off, Briacell shareholders will gain direct access to the value of Briapro’s R&D portfolio which consists of promising immuno-oncology and gene-editing programs.
Torben Straight Nielsen, chairman of Briacell’s board of directors, said that the company believes the spin-out of Briapro provides Briacell shareholders with immediate liquidity and significant potential upside through direct access to the value of Briapro’s R&D portfolio.
He added that the company is pleased to have received court approval and looks forward to completing the transaction in the coming days.
Briapro was founded by Briacell in 2019 and is focused on advancement of treatments for cancer and other serious conditions. The company has a number of early-stage development programs targeting solid tumors, such as brain, prostate, breast, and kidney, and hematologic diseases such as acute myeloid leukemia (AML) and multiple myeloma (MM).
Briacell was founded in 2012 and has developed multiple breakthrough products, including the first synthetic biolaxxim, that is currently in late-stage clinical development for the treatment of solid tumors.
With news of the court-approved and potentially imminent spin-out of Briapro, investors are hoping to benefit from the value of Briapro’s R&D portfolio and the potential for further development and commercialization of its products.