Shares of Generex remained relatively unchanged after the company announced on Tuesday morning that it entered into a licensing agreement with Amarantus BioSciences, Inc. for the buccal drug delivery technology behind Generex's RapidMist spray.
Generex will receive a non-refundable fee of $10 million per the agreement. The fee, according to Tuesday's press release, will be paid in Amarantus common stock valued at not less than $5 Million and a three-year promissory note.
Any addition of dollars to the Generex war chest is a solid development, but it's still small news in comparison to what investors are waiting for - the final phases of development for Oral-lyn, and - secondly - the late-stage development and potential partnership deal for AE-37.
From the tone of the press release, it looks like Generex and Amarantus have initiated a partnership that could turn out to be lucrative for both companies by combining the buccal spray technology from Generex and the pipeline of Amarantus.
Keep an eye on this collaboration.
The real attention fright now, however, is going to the upcoming vote for a reverse split of the GNBT stock and spin-off of subsidiary Antigen Express.
This licensing agreement is pot-shot, the real meat of the story is the pending RS.
Disclosure: No positions.
