11:30 AM EDT, 04/11/2024 (MT Newswires) -- Kane Biotech ( KNBIF ) on Thursday said it reached an agreement in principle to sell its entire interest in its STEM Animal Health unit to a third party multi-national pharmaceutical company on a cash-free, debt-free basis for US$8 million.

The company said it expected that the sale of STEM Animal Health Kane over C$11.5 million (including cash deposits already received).

In connection with the transaction, but not included in the net amount of the sale, Kane will be eligible for a US$750,000 sales-based milestone payment and will also be entering into product development and transitional manufacturing agreements with STEM.

Net proceeds from the transaction will be used to repay Kane's outstanding loan of $6.7 million to Pivot Financial I LP and for general working capital purposes.

Kane Biotech ( KNBIF ) shares were last seen down C$0.01 to C$0.14 on the TSX Venture Exchange

Price: 0.14, Change: -0.01, Percent Change: -6.67