Mateon Therapeutics Inc. entered into a merger agreement with privately held artificial intelligence company PointR Data Inc.
The combined company will use technologies based on artificial intelligence to develop immuno-oncology therapies for late-stage cancers such as brain cancer, pancreatic cancer and skin cancer.
Before the merger is finalized, holders of PointR stock would be entitled to $15 million payable in shares of Mateon common stock, at the price of 18 cents per share.
"Blockchain technology-powered clinical development platforms for the anti-cancer drug candidates in our pipeline, including our lead compound OT101 could expedite multi-stakeholder collaboration via optimized peer-to-peer data sharing for success of R&D efforts aimed at a cure for difficult-to-treat forms of cancer," Mateon Chief Medical Officer Fatih Uckun said in a statement.
The agreement consists of two tranches of additional payments based on PointR's achievement of proof of concept and a licensing deal for an artificial intelligence-based asset for a minimum of $100 million in lifetime license fees, of which at least $10 million has been received.
Each tranche is for $7.5 million in value of additional Mateon common stock, based on the market price at the time of payment and is subject to a minimum value of 18 cents per share.
The merger cannot be completed until PointR provides audited financial statements required for Mateon to comply with the SEC's filing requirements. PointR can close the merger if Mateon raises a minimum of $10 million in an equity financing transaction or $5 million in a commercial agreement.
Additionally, PointR's obligation depends on Mateon granting a license to allow the former shareholders of PointR to use elements of the technology in fields outside of pharmaceutical development.
