REG - Oxford Cannabinoid - Strategic Budget Review & Directorate Change

Oxford Cannabinoid Technologies HoldingsAnnouncement

26/08/2022 07:00

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RNS Number : 3472X  Oxford Cannabinoid Tech.Holdings  26 August 2022

26 August 2022

 

Oxford Cannabinoid Technologies Holdings plc

("OCTP" or "the Company")

 

Strategic budget review to extend cash runway

&

Directorate Change

 

Brings OCT461201 through Phase I and significantly extends current cash runway
in line with contingency funding strategy

 

Oxford Cannabinoid Technologies Holdings plc, the pharmaceutical company
developing prescription cannabinoid medicines targeting the US$ multi-billion
pain market, announces a strategic re-allocation of its drug development
resources and changes to the composition of its Board of Directors.

Budget Review

To date, development work and expenditure has progressed across all four
current programmes in line with the Company's stated strategy at the time of
its IPO in May 2021. However, continuing market uncertainty and an
increasingly challenging macro-economic outlook have led the Board to review
the allocation of its existing budget.

Following this review, the Board considers it prudent to temporarily delay
Phase I clinical trials of OCT130401, its second programme. Phase I clinical
trials for the Company's lead programme, OCT461201 remain on track and on
budget, and are due to commence in January 2023, with interim results
anticipated in April 2023. This decision is consistent with the contingency
financial planning outlined by the Chair in her Statement in the 2022 Annual
Report to consider the re-allocation of resources.

Extension of cash runway

Taking this action means that existing funds, which would otherwise have been
fully utilised by April 2023, will now extend to Q4 2023. Pre-clinical work
for OCT130401 will continue, ensuring that Programme 2 is Phase I ready in
early 2023. Development work for Programmes 3 and 4 will also continue, with
the Company still on target to be at pre-clinical stage (for programme 3) and
lead stage (for programme 4) with these programmes by Q2 2023.

Directorate Change

The Company also announces that Karen Lowe, currently Group Finance Director,
has informed the Board of her wish to step down from her role in order to
pursue her NED career and consultancy business. The recruitment of her
successor is already underway and a further announcement will be made in due
course.

Julie Pomeroy, Non-Executive Chair of OCTP commented: "The re-allocation
measures that the Company has announced are both forward looking and
precautionary, reflecting the duty we have to our stakeholders, and the
Board's commitment to delivery of our current programmes. These steps are
prudent and ensure that OCTP is best placed for long term success.

I would also like to wholeheartedly thank Karen for her contribution to the
Company. Karen has been a valued colleague at OCTP since initially agreeing to
join us as a non-executive director in February 2021. Her swift transition
from potential NED to Group Finance Director is indicative of the regard we
have for Karen and her significant contribution to the Company during her
tenure. I would like to take this opportunity to thank Karen, on behalf of the
Board and her colleagues across OCTP, for her commitment and contribution
during her time here. She leaves us with our very best wishes for the future."

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).

 

The Directors of the Company accept responsibility for the content of this
announcement.

Enquiries:

 Oxford Cannabinoid Technologies Holdings plc  +44 (0)20 3034 2820

 Dr John Lucas (CEO)                           john@oxcantech.com

 Clarissa Sowemimo-Coker (COO)                 clarissa@oxcantech.com

 Cairn Financial Advisers LLP

 Emily Staples                                 +44 (0)20 7213 0897

 Jo Turner                                     +44 (0)20 7213 0885

 Axis Capital Markets Limited

 Kamran Hussein                                +44 (0)20 3026 0320

 Richard Hutchinson

 Walbrook PR Limited                           +44 (0)20 7933 8780

 Paul Vann/Nick Rome                           +44 (0)7768 807631

                                               oxcantech@walbrookpr.com

 Harbor Access LLC

 Richard Leighton/Jonathan Paterson            +1 (475) 455 9403

                                               Richard.Leighton@HarborAccessllc.com

 

About Oxford Cannabinoid Technologies Holdings plc:

Oxford Cannabinoid Technologies Holdings plc ("OCTP") is the holding company
of Oxford Cannabinoid Technologies Ltd ("OCT") (together the "Group"), a
pharmaceutical Group developing prescription cannabinoid medicines for
approval by key medicines regulatory agencies worldwide and targeting the U$
multi-billion pain market. Cannabinoids are compounds found in the cannabis
plant that have been shown to have a range of therapeutic effects on the body,
including pain relief. The Group has a clearly defined path to
commercialisation, revenues and growth. The Group is developing drug
candidates through clinical trials to gain regulatory approval (FDA/MHRA/EMA)
that will enable medical professionals to prescribe them with confidence.

The Group's portfolio aims to balance risk, value and time to market, whilst
ensuring market exclusivity around all its key activities. The Group's lead
compound, OCT461201, is a highly potent and selective CB2 agonist and is being
developed by OCT in a solid oral dosage form. OCTP is conducting pre-clinical
testing and development with clinical trials scheduled for Q1 2023. The
Group's product pipeline also uses a balanced drug product strategy that
employs both natural and synthetic compounds for the treatment of rare
diseases and includes chemically modified phytocannabinoids with improved
drug-like characteristics and a proprietary library of cannabinoids.

OCTP operates a partnership model with external academic and commercial
partners.

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

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