ARTICLE | Company News

Shanxi Taxus, Taxus Cardium deal

March 24, 2014 7:00 AM UTC

Cardium Therapeutics Inc. changed its name to Taxus Cardium and partnered with Shanxi Taxus to promote each other's products. Under the deal, Shanxi Taxus agreed to apply "commercially reasonable efforts" to assist Taxus Cardium to develop and refine a plan to commercialize Taxus Cardium's products, including wound care product Excellagen and cardiovascular gene therapy product Generex alfeminogene tadenovec, in China. Taxus Cardium will, upon request, apply the same efforts to assist Shanxi Taxus in commercializing its cancer-related products in the U.S.

Shanxi Taxus will purchase up to $5 million of Taxus Cardium's common stock in multiple tranches, each at a 10% premium to the then-current volume-weighted average price of Taxus Cardium common stock over the 30-day period prior to each closing. Taxus Cardium received an initial tranche of $500,000 through the sale of 714,286 shares at $0.70. Taxus Cardium will receive a second tranche of $1.5 million around March 31; a third tranche of $1 million around April 30; a fourth tranche of $1 million around May 30; and a fifth tranche of $1 million around June 30. Additionally, Taxus Cardium agreed to increase the size of its board by two members following the close of $2 million in the stock purchase agreement and appoint Jiayue Zhang, chairman of Shanxi Taxus, and an undisclosed individual with U.S. corporate and financial experience as directors. Following the final close of the entire purchase agreement, Taxus Cardium will increase the size of its board by another member and appoint a third individual designated by Shanxi Taxus to the board. Taxus Cardium's board currently has seven members. ...