QUEBEC CITY, Feb. 7 /CNW/ - Medicago Inc. (TSX-V: MDG) (the "Company"),
today announced that it has entered into a second, non-exclusive licensing
agreement (the "Agreement") with an undisclosed Fortune 100 Company (the
"Partner") for the development and commercialization of the Company's
proprietary plant-based production technology (the "Technology"). Medicago
will receive an upfront payment of $1,500,000 and a payment of $500,000 upon
attainment of an important milestone.
"The value and benefits of our unique technology have allowed us to
continue to build and expand our collaborations with this leading Fortune 100
Company," said Andy Sheldon, Chief Executive Officer of Medicago. We look
forward to working closely with our Partner to accelerate development of this
technology and the therapeutic protein that was the subject of our initial
agreement. Our proprietary transient expression system has the ability to
produce recombinant proteins in the cells of non-transgenic plants, speeding
up time to market and commercialization."
"This new Agreement validates the attractiveness of our technology
platform to leading companies and highlights Medicago's ability to create
additional value for shareholders via non-exclusive collaborations as well as
research and development technology licenses," said Randal Chase, Chairman of
the Board of Medicago.
Under the terms of the Agreement, Medicago will grant the Partner
2,000,000 common share purchase warrants. Each warrant entitles the Partner
the right to acquire one common share of Medicago for a period of three years
following the execution of the Agreement, at an exercise price of 15% over the
market price at the time of execution of this Agreement, during the first
year, increased by 10% for each of the following two years.
The Company's pipeline of influenza vaccines is excluded from this
license but the Agreement provides for additional partnership opportunities
including co-development and additional funding opportunities for Medicago's
current and future projects.
About Medicago Inc.
Medicago is committed to provide highly effective and affordable vaccines
based on proprietary Virus-Like Particle (VLP) and manufacturing technologies.
Medicago is developing VLP vaccines to protect against H5N1 pandemic
influenza, using a transient expression system which produces recombinant
vaccine antigens in the cells of non-transgenic plants. This technology has
potential to offer advantages of speed and cost over competitive technologies.
It could deliver a vaccine for testing in about a month after the
identification and reception of genetic sequences from a pandemic strain. This
production time frame has the potential to allow vaccination of the population
before the first wave of a pandemic strikes and to supply large volumes of
vaccine antigens to the world market.
Additional information about Medicago is available at www.medicago.com.
Forward Looking Statements
This press release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. The Company disclaims any obligation
to update these forward-looking statements.
The TSX Venture Exchange assumes no responsibility for the content or
accuracy of this press release
For further information:
For further information: Medicago Inc., Andy Sheldon, President and CEO,
(418) 658-9393; The Equicom Group Inc., Arianna Vanin, Investor Relations,
(514) 844-4680, firstname.lastname@example.org