Under the terms of the agreement, Medicago will grant the partner two million common share purchase warrants. Each warrant entitles the partner the right to acquire one common share of Medicago for a period of three years following the execution of the agreement, at an exercise price of 15% over the market price at the time of execution of this agreement, during the first year, and increased by 10% for each of the following two years. Medicago will receive an upfront payment of $1.5 million and a payment of $500,000 upon attainment of an important milestone.
The company’s pipeline of influenza vaccines is excluded from this license but the agreement provides for additional partnership opportunities including co-development and additional funding opportunities for Medicago’s current and future projects.
Andy Sheldon, CEO of Medicago, said: “Our proprietary transient expression system has the ability to produce recombinant proteins in the cells of non-transgenic plants, speeding up time to market and commercialization.”