Kalytera Therapeutics, Inc. (OTCMKTS:KALTF) has announced that it has elected to issue common shares of the company to the Salzman Group in payment of the invoices issued under a payments agreements with Salzman Group that was announced on Mid-June last year. The deal involves Kalytera paying invoices for services provided by The Salzman Group in common shares.

Terms of Agreement Amended

The June 2018 agreement was that, The Salzman Group together with its affiliates provides general as well as administrative support services, strong set-up work for the planned studies connected with the use of CBD in the treatment of GVHD, development and research work all in connection with Kalytera’s exclusive license of the Cannabidiol-naproxen conjugates meant for pain treatment.

However, the June agreement was amended to change the scope of the services which are provided thereunder. The additional services which will be provided, relate to Phase 1 clinical study proposal in evaluating the effect of food on Pharmacokinetics of CBD. Another is a proposal of phase 1 clinical study in investigating any drug-to-drug interactions with the CBD and studies respect to CBD use in preventing GVHD as well as a proposed pre-clinical study in evaluating the efficacy of CBD to protect against intestinal mucosal injury.

The amendment of the June agreement, as well as share issuance in payment of invoices for the additional services, is subject to any TSXV approval which is required in connection with the amendment.

Extension of Payment

In connection to the issuance of the common shares, the parties also have agreed to extend the term of the June Agreement to March 1 this year whereby there won’t have to be any increase in maximum dollar amount of the services eligible for payment.

The invoiced amounts that are to be paid in common shares to The Salzman Group amount up to US$714,197. The common shares number that is to be issued is based on the deemed issue price of C$0.072% common share which is 90% of the closing price of common shares on TSXV on January 30, 2019, which is a trading day before the election of the company to pay the invoiced amounts in common shares.