Quark defends its decision to cease further funding of MSI's lead compound 

VANCOUVER, British Columbia, Oct. 16, 2018 (GLOBE NEWSWIRE) -- Quark Venture Inc. ("Quark") has petitioned the British Columbia Supreme Court to overturn an unfavourable arbitration award concerning its decision to deny further investment to MSI Methylation Sciences, Inc. ("MSI").

In September 2016, Quark entered into an investment agreement with MSI, a small clinical-stage pharmaceutical company, in which Quark agreed to invest the total amount of US$30 million in MSI in four tranches, which would have resulted in Quark being the majority shareholder of MSI. The largest tranches were contingent on certain clinical milestones being met by MSI.

After further investigation, and after investing the amount of US$1 million in MSI, Quark concluded that MSI's lead compound did not warrant further development. In Quark's opinion, further development of MSI's compound to alleviate depression was not shown to be viable. Quark informed MSI that it would not be making further investments in the company. This outcome is disappointing to Quark given the high, unmet medical need for new treatments for depression. However, as scientists and venture capitalists devoted to developing biotech and health sciences companies globally, Quark seeks to make evidence-based investment decisions.

The companies subsequently went through an arbitration process in which MSI sought an order requiring Quark to perform the investment agreement or, alternatively, to pay damages. This arbitration resulted in a decision in June 2018 in favour of MSI for part of the remaining tranches under the investment agreement. Quark is now appealing that decision in the BC Supreme Court.

Quark Venture is focused on equity financing of innovative biotechnology and health sciences companies with breakthrough technology platforms and projects. The organization's approach is to establish long-term relationships with target companies, with a view to enable and strengthen management to realize the full potential and value of the technology. Quark Venture's management is supported by scientific and commercial experts. For more information on Quark Venture visit www.quarkventure.com