Awakn Life Sciences Corp. (CSE: AWKN) (OTCQB: AWKNF) announced it would be bought by Graft Polymer (UK) PLC with Graft acquiring all of the company’s shares in a deal valued at C$8.8 million.

Graft is a UK-based biotechnology company listed on the London Stock Exchange under the symbol “GPL” and is currently focused on developing intellectual property and co-developing therapeutics for mental health and substance use disorders. In July 2024, Awakn announced that it had entered into a commercial collaboration agreement with Graft Polymer setting up the eventual acquisition.

“This proposed acquisition by Graft Polymer marks a significant milestone for Awakn Life Sciences and our mission to provide breakthrough therapeutics for substance use and other mental health disorders. We have had a significant portion of our operations in the UK for the entire life of our business and following the completion of the Proposed Transaction, Awakn will have access to the UK’s deep pool of liquidity as well as the international investor base positioned in London. We believe this transaction will create long-term value for our shareholders and provide new opportunities for growth and collaboration.” stated George Scorsis, Chairman of the Board of Directors and Special Committee.

According to the statement, each Awakn shareholder will receive 46.67 ordinary shares in Graft for each share held.  All issued and outstanding Common Share purchase warrants shall be converted into or exchanged for new ordinary share purchase warrants. The deal is expected to close by June 2025.

Dennis Purcell, Chairman of Graft Polymer, said, “This proposed acquisition marks an important milestone for Graft Polymer as we broaden our focus to address the pressing global challenges of addiction and mental health disorders. Awakn’s advanced research and clinical programs offer the potential to develop more effective and accessible treatments for these critical areas of need. We believe this strategic move will not only drive value for our shareholders but also contribute meaningfully to improving the lives of millions impacted by these conditions.”

Anthony Tennyson, the Chief Executive Officer and a director of Awakn was also appointed as Graft’s part-time Chief Executive Officer and to its board of directors in May 2024. Due to these positions, the statement said that Tennyson recused himself from the vote.

Troubled history

As of October 31, 2024, Awakn had not yet achieved profitable operations and had accumulated losses of C$32,247,049 and total liabilities of C$2.1 million. The company’s net loss in the most recent quarter was C$376,126 and had little revenue to report. The company sold its Norway businesses in 2023.