Canguard Health Technologies Inc. on Monday announced asecond agreement with Athena Neurosciences Inc.

The South San Francisco, Calif., neuroscience company(NASDAQ:ATHN) made a private payment and an additionalpayment to secure a right of first refusal on certain futureproducts for the U.S.

Athena signed an agreement in January to develop andcommercialize two unidentified Canguard products in the U.S.

Canguard (VSE:CGD) of Vancouver, British Columbia, alsoannounced its first venture capital financing. Ventures West IIICanada Ltd. Partnership will purchase 3.33 million units for$600,000 and a new control position in a deal approved Fridayby shareholders.

With this placement, Canguard's common shares will expandfrom 8.4 million to 11.7 million, the company's president, JohnArmstrong, said. The company has 17.6 million shares on afully diluted basis.

The placement entails units of one share and one warrant. Eachunit is 18 cents. Shares will not trade for one year, at whichtime warrants may be exercised for another share at the sameprice, Armstrong said.

Founded in 1984, Canguard shifted focus from devices topharmaceutical products 18 months ago, with a strategy ofimproving formulations of off-patent drugs, Armstrong said. Itsfirst drugs target epilepsy, Parkinson's disease and pain relief.Three more products are expected to enter development by theend of this year, Armstrong said. -- Nancy Garcia

(c) 1997 American Health Consultants. All rights reserved.

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