Nanexa AB (publ) today announces that the company is in late stage negotiations about entering into a joint development agreement with the world leading materials engineering solutions company Applied Materials Inc. in order to scale up Nanexa's production of ALD-coated injectable drugs.
In parallell, Nanexa is also in late stage negotiations with Applied Ventures, the venture capital arm of Applied Materials, about entering into an investment agreement. Through a directed share issue Applied Ventures intends to invest USD 1 million during the fourth quarter 2020 with an option to invest up to an additional USD 2 million in 2021, to support continued development and expansion.
Nanexa has not yet entered into legally binding agreements with Applied Materials and Applied Ventures. Nanexa expects to finalize the agreements within the coming weeks and will provide more information when the respective agreements are finalized.
By entering into a joint development agreement with Applied Materials, a global leader in materials engineering solutions, Nanexa aims to secure drug manufacturing capabilities for larger clinical trials to validate, adapt and scale up Nanexa’s production of ALD-coated injectable drugs. According to the proposed agreement Applied Materials will provide and cover the costs for the equipment that will be installed at Nanexa's GMP-classified premises in Uppsala. The suggested collaboration agreement also includes future commercial arrangements, including mutual cost, revenue sharing principles and licences.
According to the intended agreement, Applied Ventures will invest up to USD 3 million in Nanexa during 2020-2021. USD 1 million is to be invested during the fourth quarter 2020 with an option to invest an additional USD 2 million in two tranches during 2021. According to the suggested agreement Nanexa will undertake to issue new shares and share warrants in a directed issue to Applied Ventures, with support of the authorization of the Annual General Meeting held on June 2, 2020.
The reason for the announcement of these negotions before finalization is a data breach at Nanexa which has been reported to the relevant authorities. The e-mail account of a member of Nanexa’s senior management team was hacked and the information above can no longer be regarded confidential.