The April 30/20 audited financial statements are now on SEDAR. The statement in red below caught my eye. Although not new as we were told of it in the June 16 NR copied below, it got me thinking as to why. It would be nice to think that it was clearing something out of the way of negotiations as crossed my mind right away. Further thought made me realize that it could have just been a way to get money out of them faster. What we don’t know yet is whether or not they have received the final tranche of US$3 million from this deal. We will have to wait to see the July 31 interim statements at the end of this month for that. It is possible that it won’t even show then as they had up to Aug. 31 to close.

June 16/20 News Release

“subscription for the remaining 2,000,000 common shares for additional gross proceeds of US$3 million is conditional upon customary closing conditions and certain amendments to the previously announced license agreement between Zenith’s subsidiary, Zenith Epigenetics Ltd., and Newsoara Biopharma Co., Ltd., including the waiver of a potential future clinical development milestone payment and the assignment of patents in the territories to Newsoara Biopharma Co., Ltd. that are the subject of the license agreement, with Zenith retaining a right to re-acquire the patents for no additional consideration.”

April 30/20 statements just filed. Note 19

Private Placement and Amendment to License Agreement

 “Subsequent to April 30, 2020, the Company issued 3,333,334 common shares to Newsoara in tranches at a price of $1.50 per share for gross proceeds of $5.0 million. In connection with the private placement, the License Agreement between Newsoara and the Company was amended to remove the potential $6.5 million future clinical development milestone payment and to assign certain patents in the Territories to Newsoara. Pursuant to the Private Placement, in the event that the Company completes an equity financing within fifteen months of June 9, 2020 and the price per share is lower than $1.50, the price paid by Newsoara will be adjusted to the lower price per share and Newsoara will, accordingly, receive additional common shares for no additional consideration.”