Vancouver's Ondine Biopharma Corp. (TSX:OBP) has closed the sale of its dental health-care business to Toronto-based Periowave Dental Technologies Inc. (PDT).
The sale shifts Ondine's focus to photo disinfection-based products.
As part of the purchase price for the dental health-care business, Ondine received an initial payment of $725,000. It's also entitled to receive royalties and a potential stream of milestone payments of up to $51.4 million if cumulative revenue targets are met over the next 10 years. If the dental health-care business is sold, Ondine is entitled to receive a percentage of the sale price in lieu of future royalties and milestone payments.
Under the terms of the deal, Ondine and PDT will collaborate on developing the Periowave photo-disinfection technology. Ondine is entitled to manufacturing margins for supplying PDT with Periowave products for at least two years and, subject to certain conditions, will receive management-consulting fees of US$50,000 per month for up to two years under a management services agreement.
Ondine's share price range during the past week: between $0.13 and $0.15; 52-week high: $0.95; 52-week low: $0.025.