Altamira Therapeutics Ltd CYTO entered into a binding agreement to sell a 51% stake in its subsidiary Altamira Medica AG to a Swiss private equity investor as part of its strategic repositioning around its RNA delivery technology.
Medica's key asset is Bentrio, a drug-free OTC nasal spray utilized for treating allergic rhinitis, which has been cleared by the FDA and is being commercialized in many countries.
Altamira has agreed to sell the 51% stake in Medica for a cash consideration of CHF 2.04 million (about $2.3 million) and will retain 49% of the company's share capital.
Further, Altamira will be entitled to receive 25% of Medica's future licensing income.
In addition, the transaction includes the sale of Auris Medical Pty Ltd, Melbourne (Australia), and a cash contribution of CHF 1 million in total to Medica's capital by its two shareholders pro rata of their shareholdings following the closing.
Medica will continue its operations under its current name and with current staff in collaboration with Altamira.
The company anticipates recording a financial gain of approximately $5.2 million from the transaction.
"This marks an important first step in our strategic repositioning of the Company," commented Thomas Meyer, Altamira Therapeutics' founder, Chairman and CEO. "...We expect major growth from 2024 onwards from existing distribution agreements as well as from the expansion into key markets in North America, Europe, and other world regions...We anticipate completing our repositioning process in 2024 into a focused RNA delivery company, leveraging our expertise to drive innovation and advance cutting-edge solutions."
Price Action: CYTO shares are up 284% at $0.3840 on the last check Friday.
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