Kalos Therapeutics Announces €55 Million Investment Commitment from GEM as Company Seeks to Go Public in Coming Months

2021-03-02 13:07:19 - United States, Arizona, Phoenix - (PR Distribution™)

Kalos Therapeutics prepares for public listing in Frankfurt via Reverse-Merger or traditional IPO  

Kalos Therapeutics, Inc., announces that it has signed an agreement with  GEM Global Yield LLC SCS ("GEM"), the Luxembourg based private alternative investment group, to provide  Kalos Therapeutics, Inc. with up to Euro €55 Million over a 36-month term following the public listing of  common stock. Kalos Therapeutics will use the funds to advance its three preclinical programs into clinical  development and broaden the pipeline based on its proprietary, small peptide technology. "Kalos is  positioned to move the first three drug candidates forward into clinical development, based on the  agreement with GEM," announced George Colberg, Chief Executive Officer of Kalos Therapeutics. 

Kalos Therapeutics will control the timing and a maximum number of drawdowns under this facility and has  no minimum drawdown obligation. Concurrent with a public listing of Kalos Therapeutics' shares, Kalos  Therapeutics will issue warrants to GEM to purchase up to 9.9% of the company's common stock. 

Kalos Therapeutics anticipates a proof-of-concept study to be completed in canines and to leverage that data  to advance the pancreatic cancer indication.  

This approach will allow for revenue in the next 24-36 months from out-licensing agreements to allow the  development of a canine cancer product in a virulent canine cancer with outcomes similar to human  pancreatic cancer. This project's success will also provide ongoing revenue to Kalos Therapeutics in the form  of royalties. 

Kalos Therapeutics will, in parallel, advance its pancreatic cancer candidate, KTH-222, for which it has already  secured an Orphan Drug designation, into clinical development and will explore its utility in treating  Metastatic disease. Kalos will also seek to ensure an FDA-designated Breakthrough Therapy designation for  the use of KTH-222 in other rare and orphan cancers.  

Kalos further plans to develop therapeutics for use against COVID 19. Early data show its peptides' ability to  block the virus's binding to its receptor on human cells. This activity can inhibit infectivity or reduce the  severity of symptoms in those who are infected. Also, this mechanism shows promise to be more effective 

than vaccines when treating immunocompromised patients and could be more resistant to being  circumvented by virus mutations. 

"We are very excited to advance this unique technology, which has shown much promise in basic research  studies, into clinical development," stated Dr. Michael R. Kozlowski, CSO for Kalos Therapeutics. "And we look  forward to seeing it used to help patients suffering from a number of serious diseases." About GEM 

Global Emerging Markets (“GEM”) is a $3.4 billion, alternative investment group with offices in Paris, New  York, and Los Angeles. GEM manages a diverse set of investment vehicles focused on emerging markets and  has completed over 400 transactions in 70 countries. Each investment vehicle has a different degree of  operational control, risk-adjusted return, and liquidity profile. The family of funds and investment vehicles  provide GEM and its partners with exposure to: Small-Mid Cap Management Buyouts, Private Investments in  Public Equities and select venture investments. For more information: http://www.gemny.com 

About Kalos Therapeutics 

Kalos is devoted to treating the unmet needs of people living with incurable diseases while doing so with less  toxic and debilitating side effects commonly associated with chemotherapies. Kalos has utilized its learnings  in cancer to begin work developing a new therapeutic to treat patients infected with the Covid-19 virus and  its mutations. Kalos believes that by leveraging nature and all of the body's mechanisms, they have created  new, safer approaches to cancer and diseases that affect the eye as well. Kalos has several applications for  animal health based on both its eight amino acid and a 15 amino acid drug KTV-111. Kalos aims to treat  dangerous and debilitating diseases and improve the quality of life for the patient and their families. 

Forward-Looking Statements 

Certain of the matters discussed in this announcement contain forward-looking statements that involve  material risks to and uncertainties in the Company's business that may cause actual results to differ  materially from those anticipated by the statements made herein. Such risks and uncertainties include risks  related to licensing arrangements and joint ventures, including the need to negotiate the definitive  agreements for the relationships; possible failure to realize anticipated benefits of business relationships;  and, costs of providing funding to these business relationships. Other risks and uncertainties relating to the  Company include, among other things, current negative operating cash flows and a need for additional  funding to finance our operating plan; the terms of any further financing, which may be highly dilutive and  may include onerous terms; unexpected costs and operating deficits, and lower than expected sales and revenues; uncertain willingness and ability of customers to adopt new technologies and other factors that  may affect further market acceptance; adverse economic conditions; adverse results of any legal  proceedings; the volatility of our operating results and financial condition; inability to attract or retain  qualified senior management personnel, including sales and marketing personnel; our ability to establish and  maintain the proprietary nature of our technology through the patent process, as well as our ability to  possibly license from others patents and patent applications necessary to develop products; the Company's  ability to implement its long range business plan for various applications of its technology; the Company's  ability to enter into agreements with any necessary marketing and/or distribution partners and with any  strategic or joint venture partners; the impact of competition; the obtaining and maintenance of any  necessary regulatory clearances applicable to applications of the Company's technology; management of  growth; and, other risks and uncertainties. This is not a solicitation to buy or sell securities and does not  purport to be an analysis of the Company's financial position.

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Kalos Therapeutics
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