QuestCap Announces Agreement to Acquire 40% of Spectral Analytics
Spectral has completed in vitro studies performed at two independent pre-clinical clinical research organizations on a combination of two FDA approved drugs
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESTORONTO, Aug. 04, 2020 (GLOBE NEWSWIRE) — QuestCap Inc. (“QuestCap” or the “Company”) (CSE:QSC; FRA:34C1) is excited to announce it has entered into an arms’ length agreement to acquire a 40% equity interest in Spectral Analytics, Inc. (“Spectral”). As consideration for the acquisition of the 40% equity interest in Spectral, QuestCap shall issue to certain shareholders of Spectral 10 million QuestCap common shares and also make a conditional payment of US$470,000 to Spectral to fund certain clinical trials. The payment of the US$470,000 is conditional on IRB approval including the submission by Spectral of a successful in vitro study to the US Food and Drug Administration (FDA) for human trials for a combination of two FDA approved drugs. QuestCap shall also receive a warrant to acquire an additional 5% of Spectral for an exercise price of US$150,000 (included in the payment of US$470,000) exercisable following successful future human trial results as determined by QuestCap and as measured by the FDA.QuestCap previously paid US$30,000 to Spectral to fund the cost to complete in-vitro studies. Two in-vitro studies were performed at two independent pre-clinical research organizations on behalf of Spectral, to test the efficacy of the combination of two FDA approved drugs to treat COVID 19. These in-vitro studies provide Spectral full confidence that they will be able maintain safety and efficacy in administration of these drugs in COVID 19 human clinical studies. Spectral has already received Institutional Review Board (IRB) approval for the clinical study and the Principal Investigator for the first Phase 1 clinical study has been initiated. Once Spectral receives approval to treat under the PIND application they will begin enrollment for the human clinical study immediately.Leading the Clinical Research on behalf of Spectral is Global Pharmaceutical and Biotechnology, Device industry veteran, Christina DiArcangelo. Ms. DiArcangelo has a vast amount of global clinical research and drug development experience throughout her career including working on Johnson & Johnson’s Remicade®. “I am extremely pleased with the results demonstrated in the in-vitro studies performed to support the Spectral Analytics, Inc. PIND that was submitted to the FDA for the treatment of COVID19. We need a solution as we are not able to continue to live in this manner worldwide without a viable treatment” stated Christina DiArcangelo, CEO, Affinity Bio Partners, LLC.The closing of the transaction to acquire a 40% interest in Spectral is conditional on Spectral securing IRB approval for human trials and submission of a successful in-vitro study to the FDA satisfactory to QuestCap and other customary closing conditions. About QuestCap Inc.
QuestCap Inc. (CSE:QSC; FRA:34C1) is a social-impact investment company. Through QuestCap’s three divisions, MedQuest, TechQuest and ClimateQuest, it seeks, secures and funds recognized sciences, technologies, and solutions that impact our global community today.The QuestCap executive team is complemented by a panel of global advisors that provide expertise across industries and geographies. This panel includes prominent immunologist Dr. Lawrence Steinman and Dr. Glenn Copeland, who has 45 years of experience in orthopedic treatment, foot and ankle care, and sports medicine.Recent MedQuest investments in addition to Glenco include: $1M into Sunnybrook Hospital’s Research Group for Emerging and Respiratory Viruses (such amount payable in equal $250,000 installments) and $0.5M into Sinai Health Foundation’s research in COVID-19 diagnostic testing (such amount payable in equal $125,000 installments).QuestCap provides financing for a diverse range of entities in exchange for pre-determined royalties or distributions, or acquires all or part of one or more businesses, portfolios or other assets.For additional information, please contact:Doug Sommerville, CEO
416-301-5418For Canadian media enquires please contact:Evan Veryard
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+1-508-643-8000Cautionary Note Regarding Forward-looking InformationThis press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the use of the transaction with Spectral; the suitability or efficacy of any treatment for COVID 19; the results or success of any clinical trials; the pursuit by QuestCap of investment opportunities; and the merits or potential returns of any such investments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.