Jaguar Health, Inc. (JAGX) Earnings Call Transcript & Summary

Good day, and welcome to the Jaguar Health Investor Call. Today's conference is being recorded. Before I turn the discussion over to the presenters, I'd like to remind you that Jaguar Health Management may make forward-looking statements relating to such matters as continued growth prospects for the company, the company's cash needs, financing plans and the company's business strategy, the likelihood, timing and scope of possible regulatory approval and commercial launch of the company's product candidates. The timing and cost of clinical trials and other expenses, uncertainties regarding market acceptance of products, the impact of competitive products and pricing, industry trends, product and technology initiatives, including product and the development stage, which may not achieve scientific objectives or meet stringent regulatory requirements and ultimate impact of current coronavirus pandemic or any other health epidemic on the company's business, its clinical trials, its research programs, or the global economy as a whole. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplating in such forward-looking statements. Please refer to the forward-looking statement slide of the presentation for more details. Additionally, please note that Andreea Porcelli is speaking today solely on -- in her capacity as sponsor of the Post Pandemic Recovery SPAC. As such, the views expressed in her presentation represent the views of her organization and do not represent the views of Jaguar Health or Napo Pharmaceuticals. At this time, it's my pleasure to introduce Andreea. Andreea, the floor is yours.

Thank you. Good morning, good afternoon, everyone. I'm pleased to introduce you to the Post Pandemic Recovery SPAC with its specified target, Napo EU, which is a subsidiary being established by Jaguar Health in Italy. Jaguar participated in a test-the-waters roadshow with me in December, which contemplated this proposed SPAC. The roadshow included approximately 150 European institutional investors in 4 countries and 6 cities. We were very encouraged by the positive indications of interest expressed with this opportunity, and we have recently launched our website for the PPR SPAC which is postpandemicspac.com. You can go there for regular updates on our progress. The recent news about more virulent strains of the coronavirus are obviously emerging right around the world. And this makes 1 factor very clear: By the summer of '22, the point when we hope that the U.S. and EU will have developed herd immunity, as much as 50% of the adult population may have been infected at least once. So what we're doing with the PPR SPAC is targeting the long-hauler patient population which, as we said, could be as much as 50% total, but around 80% of everyone who has been affected with the virus has reported at least 1 long-term symptom more than 3 months out. This need has been well recognized in Europe where they've already opened well over 200 clinics, both private and public, that are for specific treatment of post-COVID symptoms. The market has also recognized the need for both acute and long-hauler treatment drugs. One such example is Relief Therapeutics, which trades on the SIX Swiss exchange and which addresses acute COVID symptoms. It is currently in trials in Europe. Obviously, this is such a new emerging need that there are no specific drugs yet in the marketplace, which is why we see a great opportunity for Napo EU. By choosing AIM Italy as the exchange to list on, not only are we focusing on the second-largest market for SPAC listings. More importantly, we are permitted to state the SPAC acquisition target from the start. By doing so, the SPAC is excluding the uncertainty surrounding the potential to acquire a company post listing. I believe that the Post Pandemic Recovery SPAC will also benefit from first to public markets advantage. Of course, we are the first SPAC to target treatments for the long-hauler population. We have a multinational group of institutional investors who have already indicated interest on up to 70% of the proposed offering. Our sponsor group for the SPAC is in the process of being assembled and has fully funded expenses relative to the listing in Italy. Starting next week, we may be able to start accepting funds for the listed SPAC, and we are in discussions, advanced discussions with several global coordinators for the AIM Italy listing. Thank you very much for your attention.

Great. And this is Lisa Conte. I'm going to jump in. I don't think anybody is going to announce me, so I will announce myself. I'm the founder and the CEO of Jaguar Health. Thank you very much, Andreea, for your comments and your work. Let me point out the road show that Andreea mentioned, she did do in person in Europe, which was remarkable -- the last possible moment in 2020 before further lockups occurred. And I think that face-to-face does make a difference in engaging enthusiasm. I want to welcome everybody on this call. And given the size of the audience, there must be new faces on the other end of this webcast, so I do want to be comprehensive in my comments. And therefore, to those of you who have been diligent, interested parties following our update, you may be hearing some repeat news. It's quite an exciting time, though, and I'm happy to repeat important information. I have 1 topic for today, the business of Napo EU and 3 messages. First, what is the business premise of Napo EU? Next, what are the financial aspects associated with running this business; third, setting expectations for activities and timing, both Napo EU and potential SPAC merger. And finally, I'll make a few general company comments. It's -- Peter is running the slides. Next slide, Peter. It's cliché, though it's a reality; and to coin a phrase, a successful pharmaceutical business needs to address an unmet medical need. Andreea has artfully explained the forces leading to large, growing and persistent number of people in Europe and frankly, around the world, who are and will have been infected with COVID. We now know that a meaningful portion of this population is going to experience something referred to as long-hauler post-COVID infection syndrome or chronic COVID. This is the constellation of symptoms that lasts beyond 28 days after COVID infection and so -- and also in recovered patients. And the symptoms can include gastrointestinal effects, and I think Peter, we need to go the next slide, of what's the most common is diarrhea. And, of course, brain fog, cardiovascular effects, breathing issues, fatigue and more. These symptoms are thought to arise from a whole-body overactive immune and inflammatory response to the infection. And interestingly, it is typically affecting patients with initially mild symptoms or perhaps even asymptomatic and typically a younger population, the 20-, 30-, 40-, 50-year-olds. The foundation of Napo EU is to provide relief, both symptomatically and prophylactically with the development of our plant-based proprietary first-in-class antidiarrheal agent, crofelemer, for potential use in this patient population. And Peter, now, I think if you can catch up, to the picture of the bottle, please? Crofelemer, under the trade name Mytesi, which you see there in the slide, is a drug approved by the FDA for use in people living with HIV/AIDS in the United States, commercialized by Napo Pharmaceuticals in the United States. It's organic, it's fair-trade, it's sustainably supplied, and it is the only oral drug approved by the FDA under botanical guidance -- which confers an exclusivity advantage. There is a population within the labeled HIV community, labeled meaning what the product is allowed to be promoted for, called long-term survivors -- typically, those over the age of 50, who have been infected with the virus for more than 10 years -- to experience an inflammatory situation in their bodies that results in chronic diarrhea, as well as other organ complications and acceleration of age-related diseases, such as cancer, such as arthritis. This long-term survivor situation in people living with HIV/AIDS, and long-hauler inflammatory diarrhea in the COVID recovered population, we believe are similar issues. What we find in people living with HIV/AIDS and enteropathy, this long-term survivors' inflammation, it's typically lifelong inflammation, chronic leaky gut. Mitigation of chronic symptoms and potentially chronic disease is key in the COVID recovery long-hauler patient population. Crofelemer, by the way, is the only approved agent for chronic use, and therefore has chronic safety testing for diarrhea. And currently, the approval is in people living with HIV/AIDS. And Peter, if you can go to the next slide, please, how big is the target population for crofelemer? The first systematic study of these long-hauler patients as opposed to reports that we see everyday in the news, which is somewhat alarming -- the first systematic study, because this is so new, was completed with over 3,700 respondents in 56 countries, conducted in 8 languages and it was reported by mid archive -- which is owned by Yale, Cold Spring Harbor Institute (sic) [ Cold Spring Harbor Laboratory ] -- MPS, and it was preprinted and reported in December of 2020, just a couple of weeks ago. And found that 55% of the respondents were experiencing long-hauler symptoms beyond 28 days and 60% were reporting diarrhea. After 180 days, 20% were still reporting diarrhea. So Peter, if you go to the next slide, please. I've said this before, and this is a little cartoon of how people have the issues, speaking of diarrhea. I've been in the business of developing treatments for diarrhea for over 25 years. People do not like to talk about it. They don't like to say the word. They sort of go hush, when they mentioned the word. For this cartoon, I have been banned at times from saying the word diarrhea on television when I've been interviewed. In my experience, in my opinion -- and let me make this clear, this is my opinion -- when people do report diarrhea, when they speak to diarrhea, they often have already tried and failed changing their diet, trying an OTC or a home remedy, and they haven't been able to get relief. So these numbers of reports of diarrhea, 60% after 28 days, 20% after 6 months are meaningful in terms of patient comfort, dignity, health; and because the patients skewed to a younger population, long-term productivity in the workplace. This study only went out to 7 months of symptoms because COVID hasn't been around long enough. More research, I'm sure, will continue to elucidate the chronic or chronic episodic nature of long-hauler symptomatology. I'm sure the research will continue; what we will find will determine what's going on in the chronic nature. So Peter, if you can go to the next slide. In the words of a recognized authority here, Dr. Anthony Fauci, and I'll paraphrase a bit, "This is a real phenomenon. People who have a post-acute COVID-19 syndrome are virologically okay; the virus is no longer identified in them. But they have persistence of symptoms that can be debilitating. It can be really quite disturbing." And he just said this a couple of days ago. Yet, the U.S. has not yet defined long-hauler as a syndrome. The U.S. medical community is studying it. Europe in contrast is on the forefront, which as Andreea mentioned, multiple clinics specifically addressing long-hauler syndrome -- likely because with a single-payer healthcare system as you have in most countries in Europe, mitigating chronic disease is critical to healthcare cost containment and productivity of a growing and younger population. Again, Fauci's words, "Persistence of symptoms that can be debilitating, disturbing." That's his quote. That's why Napo EU is being formed in Europe. That's why Napo EU will focus initially on long-hauler COVID-related diarrhea for symptomatic relief. And Peter, if you put the next slide up, please. I'm going to speak next to the financial aspects of Napo EU. To provide crofelemer to long-hauler patients in key countries in Europe, we need to gain regulatory approval from the regulatory body. And for the EU, for the European Union, it's called the EMA. That's equivalent to the U.S. FDA for EU. Our goal is to achieve conditional approval from the EMA, and conditional approval provides a pathway for rapid regulatory approval, conditionally, based on a smaller clinically studied patient population, a rolling review of documents and these are substantial documents supporting efficacy, safety, manufacturing, quality of the product. And more efficient outreach, meaning the EMA meeting early with drug developers, engaging with the drug developers in providing ultimate clarity on a required pathway and timelines. And they're doing this with urgency during an emergency such as the pandemic that we're in, and this is all documented on their website. Peter, if you go to the next slide; to drive familiarity, we all know products that got approved with conditional approval. Remdesivir, for example, the EMA initiated a rolling review of its data in April of 2020 and granted the conditional approval in June of 2020. Remdesivir now is being used to treat patients in Europe. It's being promoted, distributed, reimbursed and the manufacturer still needs to provide study results in 2021. Another example that we're all familiar with: the Pfizer vaccine, conditional approval. It's getting into patients' arms with conditional approval after just a 3-week review of data in December of last year 2020. And they have to provide longer-term data over the next 2 years. To set some benchmarks of how fast this is, the average drug development process, if you Google this, the research on the average drug development process is 10 years and over $2 billion. Crofelemer itself was over a decade of developmental activities to get approved for commercialization under the trade name Mytesi in U.S. for the HIV indication, and we did it with approximately $300 million of investment. What we are preparing to -- we are now preparing to potentially be in clinical trials in long-hauler COVID patients in Europe this year, 2021. We are taking every action we can right now. We've engaged a regulatory agent in Europe who works with pandemic-related treatment. We prepared a briefing package for discussion with regulatory authorities. This is a substantial activity designing a study in a program, and we are launching larger-scale manufacturing capacity. The pandemic has educated all of us about the planning necessary for pharmaceutical manufacturing. It's our own little internal Napo warp speed, crofelemer planning. However, we don't want to use that term. Crofelemer does come a plant called Dragon's Blood. So we are calling it the Dragon Run, which we feel was a much better name. Again, our goal is conditional approval from the EMA and then liaisoning with what's called MHRA in the U.K. and Swiss Medica in Switzerland, since they are not part of the EU. So those are the regulatory authorities in those countries. Napo, Jaguar U.S., the U.S. parent company is funding these activities currently. Crofelemer is the subject of an exclusive license to Napo EU for the European territory as Napo EU is becoming established, as it's being incorporated in Italy. The parent company is creating more value for this asset, the subject of the license, and Napo EU will have obligations both financially and operationally to bring crofelemer efficiently to patients in need as part of its exclusive license in Europe. It's important that Napo EU, in fact, be in Europe for speed and implementation of development and regulatory activities. How will Napo EU operate and conduct development activities until patients are being treated and revenues are coming in? That's where the SPAC merger comes in. To give some perspective, I've taken 3 companies successfully through an IPO process, 1 in Europe, and the economist once wrote, Peter, if you want to put up the quote, "An IPO is like having children, months of waiting and agonizing delivery and afterwards, your world is never the same again." Well, my view is true, false and maybe. Yes, months of waiting and planning; agonizing delivery, no. And afterwards, your world is never the same again, yes. Afterwards your world is better. So it is true, months of waiting. One, if you go to the next slide Peter, one universal truth about a SPAC is it accelerates the listing process of the target. It cost -- the SPAC is blank check. The SPAC is an empty listing from an operational perspective. It's the SPAC promoters and sponsors who do the due diligence, the negotiation of terms with the target, set up the merger and effectuate the efficient listing and funding, which brings me to my third point: Napo EU will agree to be the target of the first mover post-pandemic recovery SPAC to be listed on the AIM Italia. This is comparatively a rapid endeavor. And let me give the checklist of some of the steps, which indicate movement towards the goal of the successful merger and listing. Some of these are SPAC activities, some are Napo and Napo EU and some are common activities to the SPAC and Napo EU. And as I do this, again, a reminder, the pursuit of conditional approval in the EMA for crofelemer is already moving forward under the leadership of the parent organization. The dragon is running. So some of the activities that can be identified. First, there's test the waters roadshows to see if there is, in fact, investor interest: done. As Andreea mentioned, 150 targeted institutional investors in 6 European cities. There will being more investor roadshow activity for sure. And then other activities and not necessarily in this order: incorporation of each entity in Italy, there are some -- definitely some pandemic-related issues on governmental office availability, closures and reduced hours that is driving this timeline; expanding the sponsorship of the SPAC; executing a license agreement between Napo, Jaguar, the parent company and Napo EU for the exclusive license to crofelemer in Europe; a memorandum of understanding and agreement of terms between Napo EU and SPAC, subject to due diligence; engagement of a NOMAD, and what does that mean, a nominating adviser. A nominating adviser in NOMAD is required for AIM listing and is responsible for corporate governance activities. It accompanies the SPAC and eventual merged company throughout the listing process and the stay on the Italian AIM exchange. Next, engagement of a global coordinator responsible for placing the securities of the SPAC. Next, mutual due diligence. Next, discussions with Borsa Italiana, the stock -- the Italian Stock Exchange. Next, and again, not necessarily in this order, generation of a full prospectus. Next, investor engagement and investment. Next, the listing of the SPAC. And then finally, the merger presentation and shareholder approval, which may -- of -- between Napo EU and the SPAC and that, in fact, may be able to be done during investor engagement on the Italian name. So a Lewis Carrol quote we've all heard. "If you don't know where you are going, any road will get you there." In contrast, we know where we're going, and we know our pathway to get there, and we're executing. I will tell you one very key activity that is agreed upon. The memorandum of understanding being drafted between the anticipated Napo EU and SPAC merger. In this, Jaguar U.S., the parent company, Napo/Jaguar U.S. is providing the exclusive license to Napo EU of all crofelemer indications. The cornerstone is, of course, the proposed COVID-related indication. However, the license will include all these pipeline indications with certain obligations to be met by Napo EU to maintain that license indication-by-indication. And as I describe the pipeline, which is up on the slides now, let me make a comment about risk mitigation. When you have a pipeline within a product, within an approved product -- again, crofelemer/Mytesi is approved in the U.S. for HIV indication -- the most common reason why drugs that file for a new drug application or even conditional approval fail, is due to safety or manufacturing issues. Since crofelemer is already approved by the FDA for the HIV indication, as Mytesi, safety to support chronic use and manufacturing are already completed and there is a fully functioning supply chain for this product. The license to Napo EU includes of course, the COVID-related inflammatory diarrhea indications under development; HIV related diarrhea, which provides a bit of downside protection as this indication is already approved for Mytesi in the U.S. by the FDA. And under development the following indications: cancer therapy-related diarrhea, which is in a pivotal Phase III trial in the United States after much dialogue and agreement on a pathway with the FDA -- diarrhea, by the way, is the most common side effect in cancer therapy patients; irritable bowel syndrome, for which we have 2 Phase II trials that are published, inflammatory bowel disease, another inflammatory situation; supportive care for Crohn's and colitis patients; an orphan indication for short bowel syndrome; and a rare disease indication in pediatrics, termed congenital diarrheal disease; idiopathic and functional diarrhea which are the subject of investigator-initiated trials; and other infectious diarrheas, such as published work we've completed in travelers in severe watery diarrhea. All these indications are opportunities for crofelemer because it's a first-in-class antisecretory agent. It has a mechanism of action that normalizes gut function and gives us the opportunity to benefit so many different patient populations. We'll be providing news as each of these items on the checklist and each of these items of the pipeline occur -- and we're speaking in a timeframe in months, not quarters, not years like you see we're doing an IPO of Napo EU -- but a timeframe of months. And finally, I'll give 2 reminders of important updates from the parent corporation Jaguar. We've had a hanging compliance issue with our bid price last year dropping below $1; and I'm pleased to announce that the company received formal notice from NASDAQ on January 21 that we have -- Jaguar has regained compliance with the bid price requirement, and as required, as was required by a decision NASDAQ panel made on October 28. In lay terms, we're staying listed on NASDAQ. Second, as a reminder, we did close on $15 million equity financing on January 15 this year, 2021 at an above-market price of $3.38 a share. We are quite pleased with the additional resources for Jaguar. And it's part of why we can keep the urgency on the COVID-related diarrhea indication from Jaguar at this time, increasing the value of the license to Napo EU. So this concludes my comments, and we will continue to provide updates on this pathway to potential conditional approval and as the checklist items progress, on the pathway to SPAC financing and mergers. We'll take written questions. I think we have some already that have not been answered by our comments. I know some have already been answered by our comments. And for those who want to hang out a little bit longer, we have a video of an interview Andreea and I gave earlier this week, which reinforces many of these messages. So for those who may want to stay on, we'll then hit the Q&A after the video. Thank you very much for participating, and thank you very much for your interest in Jaguar, Napo, Napo EU and the Post Pandemic Recovery SPAC opportunity. Peter, can you please get the video started? Here we go.

Napo Pharmaceuticals has a drug, crofelemer, that can help with the long-term effects of COVID-19. So, with me to explain more about this particular treatment is the CEO of Napo Pharmaceuticals, Lisa Conti, and also Andreea Porcelli from Post Pandemic Recovery SPAC in Las Vegas. So Andreea, let's just start with you; we've had -- a lot has happened, I mean, with this. We talked in December, that this has been a very fast-moving situation. So how do you see the news regarding the new strains of COVID playing into this? Just kind of explain what we've seen over the past month or so.

Well, definitely we've seen, of course, the U.K's. strain, the South African strain. The U.K. just announced on Friday that they thought the U.K. strain was definitely more lethal and of course, we already knew, much more transmissible. So in fact, their lockdown has helped somewhat, but they're still grappling with this new strain because up to 80% of new cases are the new strain, which hasn't really taken hold in the U.S. yet, thankfully, but probably will. So overall, I think the news is we're going to have many more people by the time this is done. Sometime in December of 2022 we'll have herd immunity, hopefully. But in the meantime, we will have up to 50% of the adult population that has had COVID at least once.

Okay. Well, one of these viruses is bad enough and now there are all these strains we have to deal with, too. So Lisa, kind of tell me, there's been a lot of attention given to the long-hauler syndrome of COVID. And the people that are experiencing symptoms for months after they've had a positive test. So explain to me what your treatments are doing to help those people.

Sure. Yes. There's 2 key points about that. With this growing population of people that are infected, and the persistency of the problem, what percentage are dealing with GI symptoms, of which diarrhea is the most common? So there's been a lot of studies, right? This is so new that are popping up all over the world that are experiencing or explaining similar situations. But there has been 1 systematic study that was published by Med Archive in late December, so just about less than a month ago. Med Archive is owned by Cold Spring Harbor, Yale University, BMJ. It was 3,700 patients in different countries. It was a survey administered in 8 different languages. And what it found is that 60% of the respondents are reporting diarrhea and after 6 months, 20% of the respondents are reporting diarrhea. I'm going to give you a personal reflection here. I've been working in the business of dealing with diarrhea, treating diarrhea, normalizing diarrhea for over 25 years. People don't like to talk about it. So typically, by the time they're reporting a problem with diarrhea, it's because they've already changed their diet, they've already tried something over-the-counter. So in my view, not only is this lethal in terms of the numbers, but in terms of the patient comfort, their health and their lifetime productivity. Because what we are seeing is the long-hauler syndrome is typically affecting a younger patient population, the 20-, 30-, 40-, 50-year olds, not as much as a 60-, 70-, 80-year-olds who have another whole issue with [ GI ] symptoms. A second point about this is we've started -- so Jaguar Health has started on this pathway. Our goal is to get conditional approval in the EMA. The EMA has been proactive in bringing about solutions and rapid solutions, creative solutions, repurposed solutions during a pandemic emergency. And under a conditional approval pathway, there is an opportunity and certainly for a drug like crofelemer -- Mytesi is approved in the United States for an HIV indication -- certainly, in a situation like that, there is an opportunity for expedited clinical trials, for a rolling review of the application. And our goal is to have the product in patients in clinical trials this year, in 2021. So we've already engaged a regulatory agent in Europe. We've already created the briefing package. We are prepared to enter those conversations to lay out clarity in a timeline to get it to patients in need in Europe.

Okay. And Andreea, you see kind of a novel approach, right, with the London Stock Exchange, to allow Napo to have a SPAC in Europe. So kind of explain that process and how that mitigates risk?

Of course. So it's actually AIM Italy, which is a member and owned by the London Stock Exchange. The reason we chose AIM Italy is because not only are they the second-largest market for SPACs -- for listing of SPACs. But also, they allow for a SPAC to name its target. And that is what we have done. We have a specific target, and that target is Napo EU. As you know, one of the main issues with nonperformance of SPACs is that once they raise the money, they're unable to find the suitable target. And of course, that's what causes the SPAC to go down. In this case, that has been taken completely off the table as far as a risk. I mean there's been a lot of good things happening with Jaguar definitely.

Yes. No kidding. I mean, there's lots of press about it, Lisa, so congratulations. So now you 2 are here together. Can you explain the progress that you've made towards merging Napo EU into a publicly listed SPAC on Italy AIM?

So I'll take this first. There are steps involved in the logistics of any sort of listing, and particularly during a pandemic when you're dealing with another country. But certainly, the fastest route to do this would be through merging with a SPAC. And so what we've committed is an exclusive license to all the indications of crofelemer to Napo EU. With that will come obligations because we want this product as expedited as possible to get to patients in need. The cornerstone here is the long-hauler COVID related indication. However, other indications of crofelemer include, of course, what is already approved in the United States, which is the HIV indication, which is a bit of downside protection, an already approved indication. We do have the product in the United States in a Phase III pivotal trial for cancer therapy-related diarrhea. There are other indications with published trials for irritable bowel syndrome. We have a focus on inflammatory bowel disease, another inflammatory diarrhea; colitis and Crohn's. We have orphaned indications for short bowel syndrome, a rare disease for pediatric congenital diarrheal disease. We have investigator-initiated trials in functional diarrhea and idiopathic diarrhea, all based on the normalizing mechanism of action, the first-in-class mechanism of action of crofelemer. And as I said, Napo EU will have the exclusive European rights to develop and commercialize for all these indications, as long as it's meeting obligations to follow through on those.

Andreea, anything to add?

Sure. Well, we're very excited about that possibility, first and foremost, because Europe already has somewhere around 300 clinics that are dedicated to post-COVID treatment. So we think it's the perfect market to enter at this moment. In the meantime, we have done an institutional roadshow for the SPAC right before the lockdown; we managed to go to Europe. And the response to that was nothing short of very enthusiastic. So basically, we are currently talking to various global coordinators. The last thing I want to point out is we are first to market with this type of a SPAC, Post Pandemic Recovery. Why is that so important? We think that the attention of the financial markets has been shifting to repurposed drugs that can help to alleviate many of the 15 or so long-hauler symptoms that have been identified. It's obviously too new of a disease to have brand-new drugs that address it. We have brand-new injections and vaccines, which is wonderful, but we do have to deal with the long-hauler symptoms. And most people will recognize that this is going to be a huge market for the next 5 to 10 years as we work through the aftereffects of this pandemic.

Okay. Well, thank you. And best of luck. And I know, Lisa, your company is providing relief to people, so congratulations on that as well. And look forward to getting an update soon as you make progress on the SPAC.

We'll be back.

Wait and watch. Thank you.

One question is, will you ever deviate from plant-derived drugs, or always be organic? So our drug-discovery process does all come from plants used traditionally in tropical areas. And as an additional asset that we haven't spoken about our efforts, we have something called Entheogen Therapeutics Initiative, which is looking at our proprietary collection of 2,300 plants for those that may have psychoactive or psychedelic effects, specifically looking at neurodegenerative diseases and mood disorders for cures and new ways of treating these diseases. So very, very exciting. That being said, on an opportunistic basis as we commercialize in more and more indications, we would look at other companion products that we might in-license for commercial situations, that might not necessarily comes from plants, but our distinct competency is plant-based drug development. Has the $15 million direct offering deal closed? Yes, it closed about 2 weeks ago. And as I said, it was above market at that time, which was $3.33 a share, a terrific family office. So we're quite pleased to have them in [indiscernible]. Have [ they ] a focus? We've always had a focus, but really put an effort in the past year or so on long-term investors buying in terms of a long-term vision of what we're creating here at Jaguar, Napo and now anticipated Napo EU. Another question, why Italy? So the biggest risk with SPACs after they get listed, is finding a target and merging with a target. So there are many SPACs out there now around the world and certainly in the United States, looking for targets. In Italy, you can name the target. So it removes that uncertainty from the shareholders investing in the SPAC, yet provides all the other advantages, including speed to market, speed to listing that a SPAC provides. So that's why Italy. Also, we do have substantial activities in Italy; our long-term large-scale manufacturer has always been and is based in Milano, Italy. And so we have a great affection and great experience working there on a regular basis. And Peter, I don't see any other questions that were not already answered. Is that correct? Seems to me...

I agree, I think most of the questions have been addressed by the presentation.

Okay. Terrific. Okay. Thank you, everybody, for listening and participating and following us. There will be more news, and this is moving rapidly. And as we have relevant information we will, of course, be sharing it. Thank you all very much. Bye-bye. Have a nice day and a nice evening.

And with that, that does conclude today's call. Thank you for your participation. You may now disconnect.