VANCOUVER, BC – March 8, 2024 - PharmAla Biotech Holdings Inc. (“PharmAla” or the “Company”) (CSE: MDMA) (OTC:MDXXF), a biotechnology company focused on the research, development, and manufacturing of LaNeo™ MDMA and novel derivatives of MDMA (MDXX class molecules), is pleased to provide the following corporate updates.
Annual General and Special Meeting
The Company is pleased to announce the voting results from its annual general and special meeting of the shareholders of the Company (“Shareholders”) held on Tuesday, February 27, 2024 (the “Meeting”). Shareholders voted in favour of each resolution put forth at the Meeting.
At the Meeting, there were 3 Shareholders represented in person or by proxy holding 19,399,197 common shares in the capital of the Company (the “Common Shares”), representing 22.32% of the issued and outstanding Common Shares as at the record date for the Meeting. Each nominee listed in the Company’s management information circular dated January 19, 2024 (the “Circular”), was elected as a director of the Company.
“PharmAla continues to make the important choices necessary for the future of both our business, and the Psychedelic Pharmaceuticals sector more broadly,” said Jodi Butts, Board Chair, PharmAla Biotech. “We are grateful that PharmAla’s shareholders have agreed with management’s recommendations on a variety of timely corporate governance matters. The Board will continue to diligently perform our fiduciary duties on behalf of our Shareholders and we appreciate their support in this dynamic environment. We look forward to another exceptional year, which should bring a number of developments for the company as we get closer to the U.S. FDA’s priority review date for MDMA on August 11 th , 2024.”
In addition, at the Meeting, (i) Shareholders reappointed Clearhouse LLP, Chartered Professional Accountants, as the Company’s auditor for the ensuing year and authorized the audit committee of the board of directors of the Company (the “Board”) to fix their renumeration, (ii) Shareholders authorized a continuance of the Company from the Province of British Columbia to the Province of Ontario (the “Continuance”), (iii) Shareholders authorized the repeal and replacement of the existing articles of the Company and the adoption of a new general by-law upon completion of the Continuance, (iv) disinterested Shareholders ratified the adoption of the Company’s restricted share unit (“RSU”) plan dated May 11, 2023 (the “RSU Plan”) and the prior grant of 2,300,000 RSUs made on November 8, 2023 (the “Prior Grant”), and (v) disinterested Shareholders ratified the repeal and replacement of the Company’s stock option plan and RSU plans with the adoption of an equity inceptive plan for the Company (the “Equity Incentive Plan”), each as more particularly set forth in the Circular.
Corporate Update
RSU Grants
The Company is also pleased to announce the granting of an aggregate of 2,050,000 RSUs to certain directors, officers, employees and consultants of the Company pursuant to the Equity Incentive Plan. A total of 950,000 RSUs granted vest quarterly over a one-year period with the remaining 1,100,000 RSUs vesting quarterly over a two year period. All of the RSUs (and any Common Shares issuable upon their settlement) are subject to a four month and one day hold period pursuant to the policies of the CSE and applicable securities laws.
This is the first issuance of compensation securities to the Board and management since the Company’s public listing in January 2022.
Provision of Research Services
PharmAla has been contracted to provide research services to Red Light Holland (RLH). The Company expects that these services, which will be delivered on an all-cash basis, will generate meaningful short-term revenue for the company. PharmAla has also initiated discussions with Red Light Holland regarding potential sales representation of RLH’s products in foreign markets; PharmAla will represent solely products that meet strict GMP guidelines for use as medicines.
Sales Update
PharmAla has received a material purchase order for MDMA from a Canadian psychedelics company. At this time, PharmAla will not be disclosing the name of the company for business reasons.
PharmAla Biotech Holdings Inc. (CSE: MDMA) is a biotechnology company focused on the research, development, and manufacturing of MDXX class molecules, including MDMA. PharmAla was founded with a dual focus: alleviating the global backlog of generic, clinical-grade MDMA to enable clinical trials, and to develop novel drugs in the same class. PharmAla is a “regulatory first” organization, formed under the principle that true success in the psychedelics industry will only be achieved through excellent relationships with regulators. Our team of dedicated professionals includes regulatory experts, scientists, and biomanufacturing professionals. PharmAla has built what it believes to be North America’s first cGMP MDMA value chain, encompassing GMP manufacturing of Active Pharmaceutical Ingredient (API), and drug product formulation. PharmAla’s research and development unit has also begun preclinical research into two patented Novel Chemical Entities (NCEs) based on MDXX class molecules, with proof-of-concept research currently ongoing at the University of Arkansas Medical School.
Nicholas Kadysh, CEO
press@pharmala.ca