KALY announced taking a next step with the investor to explore a possible sale.
DALLAS, Nov. 01, 2019 (GLOBE NEWSWIRE) — via OTC PR WIRE — Kali-Extracts, Inc. (Kali, Inc. dba/Kali-Extracts, Inc.) (USOTC: KALY) (“KALY”) today confirmed an investor interested in acquiring KALY’s U.S. Patented Cannabis Extraction Process and related biopharmaceutical technology has valued the technology at $50 million.
Yesterday KALY announced taking a next step with the investor to explore a possible sale. KALY management has asked the investor to provide a “working” term-sheet for discussion purposes.
The proposed transaction has KALY maintaining rights to its Patented Cannabis Extraction Process for business pursuits other than pharmaceutical developments such as the cannabis infused beverage and candy business it currently conducts.
KALY would also continue its CBD extraction business provided to hemp cultivation operations. KALY management considers the valuation consistent with Goldman Small Cap Research’s recent valuation, but management maintains a position that the valuation still does not reflect the full potential of its intellectual property.
KALY management wants to stay involved in the ongoing biopharmaceutical developments even after a possible sale.
KALY’s intellectual property portfolio contains a deep pipeline of cannabinoid product candidates including four distinct compounds listed here:
- Chronic Obstructive Pulmonary Disease (COPD) – The market for COPD treatment is anticipated to reach $14 billion by 2025;
- Type 2 Diabetes – The market for Type 2 Diabetes is expected to be a $64 billion market by 2026;
- Cancer Pain Management – The overall pain management treatment market is anticipated to reach $83 billion by 2024, and
- Epilepsy – The market for epilepsy treatment is anticipated to reach $9 billion by 2022.In conjunction with the research already conducted and the next phase of research now moving forward, KALY recently filed for a new patent application specifically on its formulation for symptoms associated with COPD and other similar respiratory conditions.
KALY also filed for a trademark on the name RespRx as the brand name for its CBD formulation to treat the symptoms associated with COPD and other similar respiratory conditions.
The market for COPD treatment is anticipated to reach $14 billion by 2025. In addition to KALY’s ongoing efforts to develop prescription therapies, KALY has initiated a program to certify its proprietary CBD extracts derived from KALY’s U.S. Patented Extraction Process as an Over-The-Counter (OTC) drug under the requirements prescribed by the U.S. Food and Drug Administration.
Since the last biopharmaceuticals strategy update, KALY has made substantial strides. KALY has since engaged with a major university to initiate a next round of evaluations and testing of its COPD treatment.
The university program is anticipated to kickoff soon and the company plans to issue periodic updates as the program proceeds. KALY has also made recent progress in advancing the development of its other treatments. The advances have been made possible by new partnerships.
Announcements about the new partnerships are coming soon.
To stay abreast of the latest developments and learn more about the company visit https://www.kali-extracts.com/.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company’s actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.