Rexahn, a clinical stage biopharmaceutical company dedicated to the discovery, development, and commercialization of innovative treatments for cancer and disorders of the central nervous system, announced that it has executed definitive agreements with Future Systems, Inc.(FSI), a Korean stock exchange KOSDAQ-listed information technology company based in Seoul, Korea, which will be expanding its business to the biopharmaceutical industry.
Under the terms of the agreements, Rexahn would transfer to Future Systems exclusive rights and a non-exclusive license to develop, manufacture, and sell three of Rexahn's drug candidates in certain territories for approximately US $35.8 million. Simultaneously, Future Systems will issue and sell 4,326,854 shares of its common stock to Rexahn, representing approximately 28 per cent of Future Systems' outstanding shares, after giving effect to the subscription. The investment, of approximately US $35 million, would make Rexahn the largest single stockholder of FSI.
According to Ted Jeong, chief financial officer of Rexahn, "The investment in Future Systems strengthens our company and provides Rexahn an opportunity to expand our access to the Asian market and reduce our risks through diversification." He continued, "Our plans for the future may include the acquisition of a pharmaceutical company in Korea, licensing in late stage drugs and/or marketed products and business development in Korea and the rest of Asia, including manufacturing, sales and marketing of current and future drug candidates."
Rexahn also entered into a management agreement with FSI and FSI's current largest shareholder with respect to Rexahn's participation in the management of FSI for the purpose of refocusing FSI as a biopharmaceutical enterprise, including Rexahn's right to appoint four board members, chairman of the board, CEO and the CFO.
The principal agreements between Rexahn and Future Systems include a share subscription agreement, an intellectual property assignment, and license agreement and a management agreement.
Completion of the transactions is subject to customary closing conditions, including approval by Future Systems stockholders, and the transactions are expected to close during the second quarter of 2006.