NEW YORK, March 30, 2020 /PRNewswire/ -- Hoth Therapeutics, Inc. (NASDAQ: HOTH), a biopharmaceutical company, today announced it has entered into a non-binding letter of intent ("LOI") with Isoprene Pharmaceuticals, Inc. to acquire the full licensing rights of VNLG-152 novel retinamides (Retinoic acid metabolism blocking agents, or RAMBAs) for the treatment of dermatological diseases. Isoprene is a cancer therapeutic company that is a University of Maryland, Baltimore New Venture Initiative start-up founded by Vincent Njar, the lead scientific inventor, which is developing novel small molecules for the treatment of cancer.
Hoth had previously announced that pre-clinical work is underway at Weill Cornell Medicine to examine the efficacy of RAMBAs in blocking acne pathogenic gene expression and carcinogenesis in mice, which is currently ongoing.
The LOI contemplates that the Company and Isoprene would enter into a definitive agreement pursuant to which Hoth will make a $50,000 investment in Isoprene in the form of a convertible promissory note, which shall bear annual interest at a rate of 6%, and shall have a discount upon conversion of 10% from the equity purchase price of the qualified financing into which the promissory note converts. Furthermore, as part of its licensing rights, Hoth will receive royalty payments from Isoprene for any use of its VNLG-152.
Mr. Robb Knie, Chief Executive Officer of Hoth, commented, "We are excited to expand our relationship with Isoprene and support the work of Dr. Njar and his team. Hoth looks forward to finalizing this agreement."
About Hoth Therapeutics, Inc. Hoth Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing new generation therapies for dermatological disorders. HOTH's pipeline has the potential to improve the quality of life for patients suffering from indications including atopic dermatitis, chronic wounds, psoriasis, asthma and acne. Hoth recently entered into a Joint Development Agreement to further the development of vaccine prospects to prevent, intercept or treat the Coronavirus (COVID-19) based upon VaxCelerate, a self-assembling vaccine (SAV) platform exclusively licensed by Voltron from the Vaccine and Immunotherapy Center (VIC) at Massachusetts General Hospital (MGH). To learn more, please visit www.hoththerapeutics.com.
Forward Looking Statements This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements about our expectation to enter into a license agreement, the expected terms of such license agreement, and the potential development of VNLG-152, and other information that is not historical information. When used herein, words such as "anticipate", "being", "will", "plan", "may", "continue", and similar expressions are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. All forward-looking statements are based upon Hoth's current expectations and various assumptions. Hoth believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Hoth may not realize its expectations, and its beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements as a result of various important factors, including, without limitation, market conditions and the factors described under the caption "Risk Factors" in Hoth's Form 10K for the period ending December 31, 2019, and Hoth's other filings made with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as Hoth's current plans, estimates and beliefs. Investors should not place undue reliance on forward-looking statements. Hoth cannot guarantee future results, events, levels of activity, performance or achievements. Hoth does not undertake and specifically declines any obligation to update, republish, or revise any forward-looking statements to reflect new information, future events or circumstances or to reflect the occurrences of unanticipated events, except as may be required by law.