According to Michael Rakia, President and CEO of Collagenna, the business niches of the companies were not as close as originally assumed, and thus it was deemed mutually beneficial to all parties that the merger be rescinded.
It was said in a statement that ITI Biotech, had failed to achieve certain business milestones and obtain additional working capital; integral terms of the purchase agreement.
Focus on Collagenna Skin Care
Speaking of GLGT’s future corporate strategy, Raki said: “GLGT now moves on to new initiatives with a focus on Collagenna Skin Care. Collagenna has recently released a new and exciting product line and aggressively expanded its distribution network.”
Earlier this month, Collagenna, a product range based upon 100% soluble marine collagen, announced the introduction of two new peptide-based skin care products.
DermaResolve is designed to prevent the formation of lines and wrinkles by relaxing facial muscles. According to the company, independent testing with a dermatologist is being finalized to support product claims.
The second product contains a novel peptide that claims to speed up melanin production in order to boost the tanning process as well as prolonging and maintaining the sun tan.
Expanded Distribution Network
Expanding the reach of its skincare line, Collagenna recently delivered an initial order to its Scandinavia distributors, Norway-based Propolife.
Its Scandinavia agent, Ragnar Zaal, said: “Propolife will re-order products on a monthly basis and we expect volumes to surpass their contractual obligations."
Collagenna said that the product distribution agreement is expected to generate around $200,000 (€133,000) of sales annually for the Norwegian Market, a figure which will increase with future plans by Propolife to expand distribution into the rest of Scandinavia.