Sona Nanotech Inc. has announced the completion of its acquisition of Siva Therapeutics Inc. As part of the deal, Sona has issued over 15 million common shares in the company to Siva’s shareholders, at a total value of $2 million. Additional consideration of up to $6.65 million in Sona common shares may also be issued in up to four installments if Siva meets certain milestones. Sona’s primary goal is now to develop Targeted Hyperthermia Therapy to increase the treatability of colorectal cancer. Sona will use Siva’s THT photo thermal therapy for cancer, which uses Sona’s biocompatible gold nanorods. The company plans to progress the development of THT for use in colorectal cancer, which is expected to have a service obtainable market of $2.1 billion for rectal cancer alone. Leonard Pagliaro, Ph.D., CEO of Siva, will now serve as Chief Scientific Officer of Sona, while Sona’s Darren Rowles will assume the new role of Head of Diagnostics.
Sona Nanotech Inc. (CSE: SONA), (OTCQB: SNANF) (the “Company” or “Sona”) announces that it has closed its previously announced acquisition of Siva Therapeutics, Inc. (“Siva”). Pursuant to the share exchange agreement announced on January 26, 2023, Sona has issued 15,107,457 common shares in the Company to the shareholders of Siva, which were issued at the ten-day volume weighted average price for C$0.1824 per share, or US$2.0 million in total. As additional consideration, Sona may issue additional Performance Shares to the shareholders of Siva in up to four instalments for up to an additional US $6.65 million in Sona common shares, upon Siva achieving the four milestones, described in Sona’s press release of January 26, 2023.
David Regan, CEO of Sona, commented, “By merging with Siva, Sona’s primary goal now becomes developing Targeted Hyperthermia Therapy (“THT”) to help increase the treatability of colorectal cancer and reduce the estimated 60,000 deaths that are projected to occur each year in North America. In so doing, there is a service obtainable market for THT for rectal cancer alone estimated to be US $2.1 billion. While this won’t be quick or easy to achieve, doing so could save lives and improve the quality of life for thousands for people living with cancer.”
“In Sona, we found the most stable, biocompatible and scalable gold nanorods available, and the recent analysis by the National Cancer Institute’s Nanotechnology Characterization Laboratory (“NCL”) gave us further confidence. We look forward to using those materials in THT first for rectal cancer in a minimally invasive outpatient procedure that addresses an underserved patient segment. With success, we’d look to then address head and neck cancer, esophageal cancer, prostate cancer, and bladder cancer, each of which has characteristics possibly making them suitable for THT.” – Len Pagliaro, Ph.D., President and Chief Executive Officer of Siva.
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Sona will now work to progress the development of Siva’s THT photo thermal therapy for cancer using Sona’s uniquely biocompatible gold nanorods. The Company’s preparation to develop THT for use in colorectal cancer will include engaging appropriate regulatory counsel, pursuing laboratory accreditation for the production of Sona’s biocompatible gold nanorods, the engineering of the next generation of Siva’s SivaLum light source and securing the further pre-clinical studies that are expected to be required to obtain regulatory clearance for human trials.
Leonard Pagliaro, Ph.D., CEO of Siva will now serve as Chief Scientific Officer of Sona and president of Sona’s wholly owned US subsidiary, Siva Therapeutics, Inc. Sona’s Darren Rowles will assume the new role of Head of Diagnostics for Sona and continue to drive the development of Sona’s rapid concussion and bovine tuberculosis tests, both of which also rely upon Sona’s biocompatible gold nanorod platform technology.
As announced on February 24, 2023, the Company completed an oversubscribed equity financing which raised $1.1 million in gross proceeds.
March is colorectal awareness month. Cancer doesn’t wait, why should you? Get screened.
Source: BioSpace
