- Financing to support company at least into 2020 and for the initiation of multiple Phase 2 clinical trials
LOS ANGELES, Oct. 23, 2018 (GLOBE NEWSWIRE) -- Vitality Biopharma, Inc. (OTCQB: VBIO) (“Vitality Biopharma”, “Vitality”, or the “Company”) a corporation dedicated to the development of cannabinoid prodrug pharmaceuticals, and to unlocking the power of cannabinoids for the treatment of serious neurological and inflammatory disorders, today announced that it has received $8.5 million in financing for cannabinoid drug development and to support new development of treatment regimens and treatment centers that harness cannabinoids as an alternative to opiate painkillers.
The Company entered into a definitive securities purchase agreement with investors on October 19, 2018, receiving gross proceeds totaling $8,500,000, whereby investors purchased common stock at a price of $1.50 per share and also received a 5-year warrant to enable the purchase of an equal amount of additional Vitality shares of common stock at a price of $3.00 per share. The financing was received and closed on October 22, 2018, and the full details of the transaction are available in Vitality’s public filings on a Form 8-K.
Vitality has developed a proprietary class of cannabinoid prodrugs including VBX-100, which avoids psychoactivity through targeted delivery of THC to the GI tract. Independent clinical trial results suggest cannabinoids can help induce remission in severe, drug-resistant inflammatory bowel disease (“IBD,” including Crohn’s disease and ulcerative colitis), and the vast majority of IBD patients report improvement in visceral pain and abdominal cramping with cannabinoid treatment. The Company is now fully-funded to initiate and complete a first-in-man clinical trial of VBX-100 and to initiate multiple Phase 2 proof-of-concept clinical studies designed to demonstrate its effectiveness for treatment of drug-resistant ulcerative colitis and irritable bowel syndrome. The Company also plans to evaluate additional indications for VBX-100, including colorectal cancer, C.difficile superbug infections, and narcotic bowel syndrome, a severe form of opiate-induced abdominal pain.
Proceeds from the Company’s financing will support drug development operations as well as the commencement of operations for a wholly-owned subsidiary, Vitality Healthtech, Inc. The Company’s new subsidiary will operate specialty healthcare centers focused on the emerging use of cannabinoid therapies as an alternative to opioid painkillers. Despite increasing recognition of the opioid epidemic and the magnitude of the problem, there has not been a coordinated and effective response to it. There are more than 2 million Americans that remain opiate-dependent and there are no well-established and reliable methods that have been established to help these individuals safely reduce and eliminate their use. Vitality Healthtech, Inc. will operate in a federally-compliant manner to study cannabinoid treatments and to enable reliable access to them through a clinical network across the United States.
“As we move into clinical trials and a lucrative new phase of our company’s development, this financing ensures for our shareholders that we’re fully-funded at least into 2020 and to bring VBX-100 into multiple Phase 2 clinical trials,” said Robert Brooke, CEO and Co-founder of Vitality Biopharma. “Beyond that, we have a broad mandate and mission to combat opiate dependence, and with our growing team, we’re now uniquely positioned to achieve this through use of cannabinoid therapies.”
About Vitality Biopharma (OTCQB: VBIO)
Vitality Biopharma is dedicated to unlocking the power of cannabinoids for the treatment of serious neurological and inflammatory disorders. For more information, visit: www.vitality.bio. Follow us on Facebook, Twitter and LinkedIn.
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Contact
Vitality Biopharma
Investor Relations
info@vitality.bio
1-530-231-7800
www.vitality.bio