Kane Biotech Awarded $3.8 Million in Non-Dilutive Government Funding

Kane Biotech (TSXV:KNE) has announced it has been awarded funding from the Western Economic Diversification of Canada totaling C$3.79 million.

As quoted in the press release:

“This is a transformational event for Kane. Over the past 11 months, investors have seen the results of our efforts in animal health and this funding will enable us to do the same in human wound care. On January 17, 2019, we announced the kick-off of our new human health strategy and we’ve since made significant progress in this regard. We are thrilled to accelerate this development with the support of WD Canada. The funding received will be dedicated to furthering our work in the wound care sector, with an initial focus on enhancing our DispersinB Hydrogel, which we believe promises to be the missing link in wound care. Wound care is one of the largest markets within the Human Health sector, and the issue of biofilms in wound care has been largely unaddressed to date. We believe we can greatly enhance the current standard of care with our suite of products and we are excited to bring these unique products to market,” stated Marc Edwards, Chief Executive Officer of Kane Biotech.

The funding is in the form of an interest-free repayable contribution and will be provided to Kane Biotech over three years on an expense-incurred basis retroactive to April 1, 2019. Repayment of this contribution will take place over five years starting in April 2023. To complement this financing, Kane is seeking a strategic partner to accelerate the development and commercialization of its Human Health portfolio.

The funding through WD will be used to assist Kane in expanding from the Animal Health sector into the Human Health sector with DispersinB, a unique technology that significantly improves the efficacy of antimicrobials and antibiotics in wounds by dissolving microbial biofilms. The company’s first product in the Human Health sector will be a DispersinB hydrogel which will be used as a predicate device for other wound care products such as saline rinses, surgical washes, and bandages as well as OTC products such as facial washes and antimicrobial ointments. The Kane team will be meeting with the FDA in the fall and will be able to provide a more accurate timeline regarding product rollouts following this meeting.

Click here to read the full press release.