Tauriga Sciences Inc. (OTCPK:TAUG) is a Connecticut-based life sciences company. It primarily focuses on developing biology platform technology. The company also delves into alternative cleantech energy through its former subsidiary company Pilus Energy LLC.
Through its diversified portfolio, the company is in a position to benefit from the increased emphasis on technology in various sectors including biosciences and clean energy. Both these sectors are currently in an upswing due to favorable government regulations and increased demand for their products.
Tauriga Sciences is now looking to focus its attention on its life sciences business, as the company reported selling its majority stake in Pilus Energy LLC, its wholly-owned subsidiary, to Open Therapeutics LLC.
The deal involved transferring 80% stake to the buyer company in exchange for the termination and cancellation of 80% of the unexercised portion of the warrant to purchase 77,303,529 shares of the Company's common stock issued on January 28, 2014.
Tauriga Sciences is likely to benefit from Open Therapeutics’ plan to continue with the development of Pilus Energy's proprietary technology and its ultimate commercialization as the company retains 20% stake in Pilus Energy. Under the terms of the agreement, Open Therapeutics also agreed that Pilus Energy would pay to Tauriga 20% of the net profit generated from Pilus Energy, if any, for each calendar year starting January 1, 2017.
The company executives have hailed the collaboration as a unique proposition for letting the stockholders have an opportunity in sharing the benefits when Open Therapeutics’ technology becomes marketable.
Tauriga Sciences also took the opportunity to discuss its ongoing litigation with Cowan Gunteski, which it said hampered the company’s efforts to create shareholder value through Pilus Energy. The company is now seeking monetary damages in excess of $4,000,000 U.S.. It is likely that a new trial date will be announced on January 19, 2017.
The company stock has shown strong performance this year so far. It is up 167% on a year-to-date basis. The stock did correct during the middle of the year, however, it started showing signs of recovery during the last quarter. Currently, the stock is at about its 52-week midway range at last check.
The prospects for this stock are boosted by the company’s upcoming plans. Tauriga Sciences recently announced its plan to setup a new wholly owned subsidiary focused on the development, marketing and distribution of products that target muscle tension.
The new company will be called ColluMauxil Therapeutics LLC and is likely to help Tauriga Sciences in further augmenting its revenue stream in the coming quarters.
