MONTREAL, QUEBEC--(Marketwired - Dec. 28, 2016) - Knight Therapeutics Inc. (TSX:GUD) announced today that, through one of its wholly-owned subsidiaries ("Knight"), it has committed to invest up to US$2 million as a lead order toward the purchase of common shares of Synergy CHC Corp ("Synergy") (OTCQB:SNYR) conditional on Synergy meeting certain fundraising targets in 2017.
In addition, Knight entered into an agreement with Synergy to swap its share purchase warrants and stock options of Synergy, which entitled Knight to purchase up to 9.1 million shares of Synergy at exercise prices ranging from US$0.25 to US$0.49 per share, in exchange for 7.5 million common shares of Synergy valued at US$2.9 million based on Synergy's December 23, 2016 closing price of US$0.39 per share. Knight originally received the share purchase warrants and stock options in connection with its secured loans to Synergy issued in 2015. Following the exchange, Knight owns 17.6 million or 19.9% of Synergy's common shares outstanding.
Separately, with respect to FOCUSfactor® and Hand MD™, Knight appointed Synergy as its exclusive third party direct channel distributor in Canada, Israel, Romania, Russia and sub-Saharan Africa; and as its exclusive third party retail channel distributor in Canada. Additionally, Knight amended its direct channel distribution agreement with Synergy for Flat Tummy Tea in Canada. The initial term of these agreements ends on February 15, 2021.
"While we missed the Christmukkah rush, we are confident that our continued partnership with Synergy will bring joy to both our company's respective shareholders during this festive season," said Jonathan Ross Goodman, CEO of Knight.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight Therapeutics Inc.'s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at www.gud-knight.com or www.sedar.com.
About Synergy CHC Corp.
Synergy CHC Corp. is a Consumer Health Care company that is in the process of building a portfolio of best-in-class consumer product brands. Synergy's strategy is to grow its portfolio both organically and by further acquisition. Synergy's diversified portfolio includes FOCUSFactor™, Neuragen™, Hand MD™, Flat Tummy Tea and UrgentRx™. For more information, please visit www.synergychc.com.
This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.'s Annual Report and in Knight Therapeutics Inc.'s Annual Information Form for the year ended December 31, 2015. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.