NeOnc Technologies Signs Definitive Agreement for $50 Million Strategic Partnership with Quazar Investment

Rhea-AI Summary

NeOnc Technologies (NASDAQ: NTHI), a clinical-stage biotech company focused on brain and CNS cancer treatments, has secured a $50 million strategic partnership with Quazar Investment. The agreement includes a $35 million equity investment at $25 per share for 1.4 million shares, with the remaining $15 million allocated for Phase 2B clinical trials and infrastructure development in the UAE and MENA region.

The partnership involves the formation of NuroMENA and NuroCure entities in Abu Dhabi, pending UAE government approval. The transaction must be completed within 120 days and includes specific conditions for the legal establishment of these entities.

Positive

• Strategic $50 million investment secured at $25 per share, a significant capital injection
• Expansion into MENA region through UAE infrastructure development
• $15 million dedicated to advancing Phase 2B clinical trials
• Partnership provides access to UAE healthcare and regulatory ecosystem

Negative

• Transaction completion contingent on multiple conditions within 120-day deadline
• Requires pending UAE government approval for entity formation
• Significant share issuance of 1.4 million shares may lead to dilution

Insights

Biotechnology Investment Analyst

NeOnc's $50M partnership with Quazar strengthens finances, accelerates clinical trials, and expands global reach - all positive catalysts.

This definitive agreement represents a significant financial and strategic milestone for NeOnc Technologies. The $50 million partnership includes $35 million through share acquisition at $25 per share - a structure that provides immediate capital while establishing a committed strategic partner with regional expertise. The $25 share price point is particularly noteworthy as it signals strong confidence in NeOnc's valuation from a sophisticated investor.

The allocation of $15 million specifically for Phase 2B clinical trials addresses a critical need for clinical-stage biotechs - consistent funding for trial advancement. For a multi-phase 2 company like NeOnc, this dedicated capital significantly reduces near-term financing risk and potentially accelerates their development timeline for CNS cancer treatments.

Beyond the financial implications, the MENA region expansion represents a strategic diversification that could yield several benefits: accelerated patient recruitment for trials, access to new regulatory pathways, and eventual commercialization opportunities in underserved markets. The establishment of NuroMENA and NuroCure entities in Abu Dhabi creates the infrastructure necessary to execute this regional strategy effectively.

The 120-day timeline and remaining conditions introduce moderate execution risk, but Quazar's existing relationships within UAE healthcare systems should facilitate the regulatory approval process. Overall, this partnership substantially strengthens NeOnc's financial position while creating multiple pathways to accelerate their clinical programs and eventual commercialization strategy.

CALABASAS, Calif., July 29, 2025 (GLOBE NEWSWIRE) -- NeOnc Technologies Holdings, Inc. (NASDAQ: NTHI), a multi-phase 2 clinical-stage biotechnology company advancing transformative treatments for brain and central nervous system cancers, today announced it has it has signed a definitive agreement for a $50 million strategic partnership with Quazar Investment.

The definitive agreement follows NeOnc’s Board unanimously approving the company’s participation in the contemplated $50 million equity investment and MENA region expansion, reflecting continued momentum.

“We’re thrilled to take this transformative step in formalizing our strategic partnership with Quazar,” said Amir Heshmatpour, Executive Chairman & President of NeOnc Technologies Holdings, Inc. “This definitive agreement sets the stage for accelerated global expansion and scientific innovation. As part of the $50 million investment, Quazar under the leadership of its Chairman and CEO, Waleed K. Al Ali—will acquire 1.4 million shares of NeOnc at $25 per share, representing a $35 million anchor position to be held in custody at Morgan Stanley. The remaining $15 million will be earmarked for Phase 2B clinical trials and the buildout of critical infrastructure across the UAE and broader MENA region. With the final formation of NuroMENA and NuroCure pending approval by the UAE government, this agreement marks a major inflection point in advancing NeOnc’s global therapeutic footprint and delivering long-term value to patients and shareholders alike.”

“We look forward to working closely with NeOnc’s leadership team to establish a robust operational presence in the UAE and expand access to these promising treatments throughout the region,” said Waleed Khalid Al Ali, Chairman & CEO of Quazar Investment. “Through our existing strategic partnerships within the UAE healthcare and regulatory ecosystem, Quazar is well-positioned to accelerate NeOnc’s regional clinical programs and help deliver groundbreaking neuro-oncology solutions to patients across the MENA region.”

Under definitive agreement, Quazar intends to lead a capital formation round of up to $50 million, priced at $25 per share. The proposed structure allocates 70% of proceeds to the acquisition of NeOnc common stock, with 30% earmarked for launching clinical trials and building infrastructure across the UAE and broader MENA region.

To complete the transaction, NeOnc must satisfy the remaining conditions within 120 days, including:

1. Legal formation of NuroMENA and NuroCure in Abu Dhabi.
   

The closing remains subject to these conditions and the successful completion of the capital formation process.

ABOUT NEONC TECHNOLOGIES HOLDINGS, INC.

NeOnc Technologies Holdings, Inc. is a clinical-stage life sciences company focused on the development and commercialization of central nervous system therapeutics that are designed to address the persistent challenges in overcoming the blood-brain barrier. The company’s NEO™ drug development platform has produced a portfolio of novel drug candidates and delivery methods with patent protections extending to 2038. These proprietary chemotherapy agents have demonstrated positive effects in laboratory tests on various types of cancers and in clinical trials treating malignant gliomas. NeOnc’s NEO100™ and NEO212™ therapeutics are in Phase II human clinical trials and are advancing under FDA Fast-Track and Investigational New Drug (IND) status. The company has exclusively licensed an extensive worldwide patent portfolio from the University of Southern California consisting of issued patents and pending applications related to NEO100, NEO212, and other products from the NeOnc patent family for multiple uses, including oncological and neurological conditions.
For more about NeOnc and its pioneering technology, visit neonc.com.

Important Cautions Regarding Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “intend,” “expect,” “plan,” “budget,” “forecast,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “evaluating,” or similar words. Statements that contain these words should be read carefully, as they discuss our future expectations, projections of future results of operations or financial condition, or other forward-looking information.

Examples of forward-looking statements include, among others, statements regarding whether a definitive agreement will be reached with Quazar. These statements reflect our current expectations based on information available at this time, but future events may differ materially from those anticipated.

The “Risk Factors” section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, along with other cautionary language in that report or in our subsequent filings, outlines important risks and uncertainties. These may cause our actual results to differ materially from the forward-looking statements herein, including but not limited to the failure to finalize the agreement with Quazar, modifications to its terms, or alternative uses of proceeds.

We assume no obligation to revise or update any forward-looking statements, whether as a result of new information, future developments, or otherwise, except as required by applicable securities laws and regulations.

“NEO100” and NEO “212” are registered trademarks of NeOnc Technologies Holdings, Inc.
Company Contact:
info@neonc.com

Investor Contact:
James Carbonara
Hayden IR
(646)-755-7412
James@haydenir.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/975bd7b1-7771-493c-adac-b182eb027eeb

FAQ

What is the value and structure of NeOnc Technologies' (NTHI) strategic partnership with Quazar Investment?

The partnership is valued at $50 million, with $35 million for equity investment (1.4 million shares at $25/share) and $15 million for clinical trials and MENA region infrastructure.

How will the $50 million investment in NTHI be allocated?

70% ($35 million) will be used for acquiring NeOnc common stock, while 30% ($15 million) is earmarked for clinical trials and infrastructure development in the UAE and MENA region.

What conditions must NTHI meet to complete the Quazar Investment deal?

NeOnc must complete the legal formation of NuroMENA and NuroCure in Abu Dhabi within 120 days, subject to UAE government approval and successful capital formation.

What is the share price and number of shares involved in the NTHI-Quazar deal?

Quazar will acquire 1.4 million shares of NeOnc at $25 per share, representing a $35 million anchor position to be held at Morgan Stanley.

How will this strategic partnership affect NTHI's clinical trials?

The partnership allocates $15 million specifically for Phase 2B clinical trials and will help accelerate NeOnc's regional clinical programs in the MENA region.