SunRegen Healthcare to go public via reverse takeover

Both parties intend to negotiate and enter into a Definitive Share Exchange Agreement prior to September 30, 2024 and complete the Reverse Takeover transaction (RTO) with a proposed name change to SunRegen Pharmaceuticals Inc before December 31, 2024.

SunRegen shareholders will own 90% of the outstanding common shares of the resulting issuer on a pre-money basis. The acquisition shares will have a deemed value of $0.80 per share for an aggregate deemed acquisition value of $31,635,363.

Based in in Toronto, TSX Venture Exchange (TSXV) is a public venture marketplace for early-stage companies across a diverse range of sectors. As of May 2024 there were 1,632 companies listed on the TSXV with a market capitalization of CAD 82.2 billion (USD 59.9 bn). TSVX is owned by the TMX Group which also owns the Toronto Stock Exchange.

Capital raise in progress
SunRegen’s pre-RTO capital raise is currently in progress. The next step is to complete the registered concurrent financing conducted by a sponsoring investment bank.

The use of proceeds of the anticipated financing will be to advance the regulatory approval of SunRegen’s drug candidate SBC003 toward FDA Phase II by hiring a CRO to conduct CMC (Chemistry, Manufacturing, and Controls) and Safety studies for Retinitis Pigmentosa (“RP”).

RP is a hereditary family disease. Patients usually catch this disease at a young age, and it is generally manifested as apoptosis of peripheral retinal rod cells. The vast majority of RP patients cannot obtain effective treatment. Currently, there are approximately 2 million RP patients worldwide. Although RP is a rare disease, according to Data Bridge Market Research, the global RP market was worth US$11.57 billion and forecast to grow at a CAGR of 7.3% to reach US$20.33 billion by 2029.

IND enabling stage
To date, approximately $6.3 million has been invested in the development of SBC003. Utilizing independent CROs, SunRegen has completed mice and monkey studies on the efficacy and partial safety of SBC003 with highly encouraging results and is now at the Investigational New Drug (IND) enabling stage of the FDA approval process. The next stage is to conduct CMC (Chemistry, Manufacturing, and Controls) and Safety tests in preparation for a Phase I & II human clinical study. 

SBC003 has also demonstrated prominent neuro-rescuing effects for indications including dry Age-Related Macular Degeneration (DAMD), Primary Optic Atrophy (POA) and Glaucoma Optic Atrophy (GOA).

(Press release / SK).