Tomahawk, WI 11/07/2013 (BasicsMedia) – Oxygen Biotherapeutics, Inc. (NASDAQ:OXBT) which is a leader in the development of Oxygen carrying therapeutics has acquired certain assets in Phyxius Pharma which is a privately owned biopharmaceutical company. Under the terms of the agreement, Oxygen Biotherapeutics will acquire all the exclusive rights of developing and commercializing Levosimendan which prevents and treats cardiac and surgery patients at a greater risk of developing low cardiac output syndrome LO(S). The deal will also see Oxygen Biotherapeutics integrating three key executives of Phyxius Pharma into the management team. The deal was valued to be worth $4.8 million in stock based on Oxygen Biotherapeutics issuing 3.4 million shares of its common stock and securities.

 Ones the deal is finalized Phyxius Pharma Co-Founder and CEO John Kelley will occupy his position as the CEO of Oxygen Biotherapeutics. Oxygen Biotherapeutic’s Interim CEO and CFO was quick to point out that upon the closure of the transaction the company will have a wider path to commercialize phase 3 asset worth $600 million in the market. The deal will offer Oxygen Biotherapeutics a tremendous opportunity of enhancing shareholder value in the coming years. Phyxius Pharma management team was quick to point out that they could not wait for the deal to come into a successive completion so that they embark on their massive product development path

 Levosimendan licensed in Finland has been approved in 53 countries as a quality t drug for the treatment of acute decompensated heart failure which is a critical heart disease condition. The deal will not only offer Oxygen Biotherapeutics rights for the development and commercialization of Levosimendan in the North America markets but will also give it FDA’s approval of fast track status for phase three trials. FDA has indicated that a single successful trial will be sufficient to support full approval of Levosimendan. This will be a major boost for Oxygen Biotherapeutics as currently there is no drug that has been approved for the treatment of LCOS thereby creating a major avenue for it to boost its revenue channels. There has been substantial evidence that Levosimendan can be used in cardiovascular surgery.

Once the deal is formally finalized, Oxygen Biotherapeutics will issue Phyxius stockholders a total of 3.4 million unregistered shares of common stock and securities convertible into common stock. The securities will be issued on an amount totaling 15% of Oxygen Biotherapeutics outstanding common stock prior to the closing. As soon as the deal becomes official Oxygen Biotherapeutics shareholders will automatically convert into common stock in an amount equal to the transaction consideration. 11% of the common stock will vest upon stockholder approval while the remaining will depend on achievement of specified performance milestones.

The full completion of the deal looks set to be forthcoming in the coming weeks as it only awaits subjection to customary closing conditions. This is as a result of the deal not being subject to stockholder approval but Oxygen Biotherapeutics will need to seek stockholder approval for the issuance of securities in the transaction

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