Medolife will receive newly created preferred stock from Quanta, giving its shareholders majority voting control of the combined entity upon closing. The transaction is a reverse merger where the acquired business goes public without having to file paperwork for an initial public offering.
Quanta is listed on the over-the-counter markets. Shares are currently trading at around 5 cents – down from about 48 cents a share at the beginning of 2020. The company was a developer of CBD products prior to the transaction with Medolife.
Once the deal closes, the combined company will seek shareholder approval to change its name from Quanta to Medolife Rx. Its operations will focus on improving the potency of medications and organic supplements using polarization machines, which emit electromagnetic waves at a frequency that resonates with that of the targeted compound. The result is stronger treatments with reduced production costs.
Medolife founder Arthur Mikaelian, who pioneered the polarization technique by creating an experimental cancer drug out of scorpion venom, was appointed to Quanta’s board earlier this month. After the transaction, he will soon assume the role of chief executive. Quanta Chief Executive Phil Sands will become president and director.
“Dr. Mikaelian is a true pioneer in the space, and we believe that together we will be able to take this technology to heights we could not have reached alone,” Sands said in a statement.
“The acquisition by Quanta gives us the platform and resources to push the bounds of normalcy in the pharmaceutical and nutraceutical industry and allows us to demonstrate just how game-changing our technology is,” Mikaelian added in a statement.