Lions Bay Mining (CSE: LBM), the Vancouver-based mineral exploration company that holds the rights to the Fish Lake project in Nevada, is switching gears in the face of the covid-19 pandemic.
In a press release, the miner announced that it has entered into a non-binding letter of intent to acquire BioVaxys LLC, a clinical-stage biopharma company developing immunotherapeutic vaccines for life-threatening viral infections and various cancers.
Based in Delaware, BioVaxys is proposing to work on developing a hapten-based vaccine for SARS-CoV-2, the virus that causes covid-19. At present, the firm has a patent application related to its SAR-CoV-2 vaccine technology.
“Given the current covid-19 pandemic, governments globally are prioritizing medical research and drug development with the race to develop a universal vaccine for this virus that has infected over 2.2 million,” Jeremy Poirier, CEO of Lions Bay, said in the media brief.
“We are excited to work with Biovaxys on the development of their protein technology platform and explore its potential to develop a haptenized SARS-Cov-2 protein.”
Under the terms of LOI, the proposed transaction will be structured as an amalgamation or share exchange agreement, subject to mutual agreement from both parties on the final structure, with BioVaxys becoming a wholly-owned subsidiary of Lions Bay.
The miner will provide a secured bridge loan facility of up to $200,000 bearing interest at a rate of 9% per annum if a definitive agreement is executed. An initial $20,000 will be advanced within five days following the execution of the LOI with a second tranche of up to $180,000 to be made available for drawdown following the execution of the definitive agreement.