Coast Mesa, California-based biopharmaceutical firm, Nemus Bioscience Inc (OTCMKTS:NMUS), has announced the receipt of $0.4 million from Emerald Health Sciences. This was part of a bridge loan issued by the latter. Additionally Emerald will also invest an extra $1.5 million in Nemus by purchasing 15 million common stock shares. A further 20.4 million common shares will also be purchased at a price of 10 cents a share.
Emerald Health Sciences has also made a commitment to invest another $1 million in Nemus before the end of February this year in order to acquire an additional 10 million common shares at a price of 10 cents a share as well as warrants of buying another 13.6 million common shares at a price of 10 cents a share as well. The current directors of Nemus have handed in their resignations except Brian Murphy. Some of the new company directors include Jim Heppel and Punit Dhillon, who are also Emerald’s directors.
Leadership and expertise
“Nemus is delighted to welcome Emerald as our majority shareholder and to bring its leadership and expertise to help us advance our drug development programs. I look forward to continuing my relationship with Nemus in a consultative capacity,” said Cosmas N. Lykos, the co-founder of Nemus.
According to Avtar Dhillon, the chairman and chief executive officer and Emerald Health Sciences, the investment would allow Emerald to tap into the discovery capacity and intellectual capital of University of Mississippi, an educational institution which has inked an exclusive agreement with Nemus with regards to novel cannabinoid technologies. Dhillon added that Emerald would offer its full support to the development of medical indications whose needs are yet to be met.
Uplisting of shares
In a statement the chief medical officer and chief executive officer of Nemus welcomed the investment saying it would assist the company in undertaking human studies with regards to its products which are in the pipeline. Additionally Nemus will use the funds raise to meet outstanding financial obligations. Nemus also plans to explore strategic opportunities and this could involve recapitalizing itself as well as uplisting its shares.
The announcement regarding the investment comes less than two months since Nemus revealed that results of an ocular-related research that had been conducted in conjunction with UM – University of Mississippi was to be tabled at a major scientific conference.