NeOnc Technologies signs $50 million strategic deal with Quazar

CALABASAS, Calif. - NeOnc Technologies Holdings, Inc. (NASDAQ:NTHI), currently trading at $5.15 with a market capitalization of $103 million, has signed a definitive agreement for a $50 million strategic partnership with Quazar Investment, the clinical-stage biotechnology company announced Tuesday. According to InvestingPro data, the stock has gained nearly 12% over the past week.

Under the agreement, Quazar will acquire 1.4 million shares of NeOnc at $25 per share, representing a $35 million investment to be held in custody at Morgan Stanley - a significant premium to the current trading price. The remaining $15 million will be allocated for Phase 2B clinical trials and infrastructure development across the UAE and broader Middle East and North Africa (MENA) region. InvestingPro analysis indicates the company faces some financial challenges, with a current ratio of 0.41 suggesting tight liquidity conditions.

The partnership involves the formation of two entities, NuroMENA and NuroCure, which are pending approval by the UAE government. To complete the transaction, NeOnc must satisfy several conditions within 120 days, including the legal formation of these entities in Abu Dhabi.

"This definitive agreement sets the stage for accelerated global expansion and scientific innovation," said Amir Heshmatpour, Executive Chairman and President of NeOnc Technologies Holdings, Inc. The expansion comes as the company reports earnings per share of -$2.65 for the last twelve months. For deeper insights into NTHI’s financial health and growth prospects, investors can access additional analysis on InvestingPro, which features over 8 key investment tips for this stock.

Waleed Khalid Al Ali, Chairman and CEO of Quazar Investment, stated, "Through our existing strategic partnerships within the UAE healthcare and regulatory ecosystem, Quazar is well-positioned to accelerate NeOnc’s regional clinical programs."

NeOnc Technologies focuses on developing central nervous system therapeutics designed to overcome blood-brain barrier challenges. The company’s NEO100 and NEO212 therapeutics are currently in Phase II human clinical trials and have received FDA Fast-Track designation.

The announcement follows NeOnc’s Board unanimously approving the company’s participation in the equity investment and regional expansion plan. The information is based on a company press release statement.

In other recent news, NeOnc Technologies Holdings, Inc. has taken significant steps toward a strategic expansion in the Middle East and North Africa region. The company’s board has approved a strategic transaction with Quazar Investment, marking progress toward a planned $50 million equity investment. This investment will be directed towards acquiring NeOnc common stock and funding clinical trials and infrastructure development in the UAE and MENA region. NeOnc has signed a non-binding term sheet with Quazar to form NuroMENA Holdings Ltd, a wholly owned subsidiary that will oversee clinical trials through its Abu Dhabi-based NuroCure. These trials will focus on NeOnc’s drug candidates targeting aggressive brain cancers. Additionally, NeOnc has appointed Dr. Josh Neman as its new Chief Clinical Officer. Dr. Neman will lead the company’s clinical development strategy, including the advanced Phase 2a trial of the lead compound NEO100. These developments reflect NeOnc’s strategic focus on expanding its footprint and advancing its clinical trials in the MENA region.

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