WEST CALDWELL, N.J. and TORONTO, May 2, 2018 (Newswire.com) - EastGate Biotech Corp. (OTC PINK: ETBI), a pharmaceutical company that focuses on innovative technological developments specifically in insulin drug delivery for the treatment of type 2 diabetes, announced that it had entered into a Financial Loan Agreement with a high net worth individual on April 20, 2018.
The Principal Amount of the loan is $450,000 USD which the company has received in full. The Financial Loan Agreement shall bear no interest and has a maturity date of July 20, 2018. Within the terms of the Financial Loan Agreement the company agrees to issue Warrants to the Investor/Lender. The schedule of warrants issued will be nine (9) million warrants to be issued at the end of 30 days from the receipt of the Principal Amount and every 30 days thereafter until the Maturity Date. The price per Warrant, if exercised in part or in full, is $0.0045 per share. Also, under the terms of the Financial Loan Agreement the Company will issue an additional eighteen (18) million common stock purchase warrants on the Maturity Date which will allow the Investor/Lender, if exercised, in part or in full, to purchase 18,000,000 common stock at a thirty (30) percent premium on the closing bid purchase price on the Maturity Date.
The proceeds of the Financial Loan Agreement will be used as a bridge financing for development purposes with a focus specifically on the development of the liquid insulin mouth rinse for the Philippines.
“We are pleased that our investor/lender has demonstrated a high degree of confidence in our developments and what we wish to achieve by structuring the loan with no interest payments and agreeing to a schedule of warrants; including some at premium to market price,” said Anna Gluskin, CEO of EastGate Biotech. “We appreciate this financial assistance from our investor/lender from the UK as these funds serve as a stepping stone to the funding from our investment partner in the Philippines and allows us to fulfill our business plan that focuses on emerging markets as well as some niche developed markets,” concludes Anna Gluskin.
About EastGate Biotech
EastGate Biotech focuses on innovative technological developments and produces and distributes innovative drug compounds and healthy nutraceuticals that are based on natural therapies absorbed by the body. We utilize advanced nanotechnologies and alternative delivery systems that take difficult to deliver compounds and deliver them using our nanotechnology platform which ultimately increase the bioavailability to the body. Using our methods of delivery, provides healthy alternatives to conventional pharmaceuticals that all-too-often create dangerous side-effects and unexpected consequences for those trying to attain and maintain a healthy lifestyle. EastGate’s wholly owned subsidiary Omni Surgery and Anti-Aging Centre is the first of many surgery centers to come under the Omni umbrella as we plan to roll up existing business under the Omni brand and expand our footprint globally.
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release constitute "forward-looking information" or "forward-looking statements" within the meaning of certain securities laws, including the provisions for "safe harbour" under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release.
The words "anticipates", "plans", "expects", "indicate", "intend", "scheduled", "estimates", "forecasts", "focus", "guidance", "initiative", "model", "methodology", "outlook", "potential", "projected", "pursue", "strategy", "study", "targets", or "believes", or variations of or similar such words and phrases or statements that certain actions, events or results "may", "could", "would", or "should", "might", or "way forward", "will be taken", "will occur" or "will be achieved" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. The risks, estimates, models and assumptions contained or incorporated by reference in this release, include those identified from time to time in the reports filed by EastGate with the SEC, which should be considered together with any forward-looking statement. EastGate undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: EastGate Biotech Corp.