Canton Strategic Holdings出售生物科技子公司Gravitas，獲350萬美元本票及里程碑付款

EX-99.1
5
ex99-1.htm
EX-99.1

 

 

Exhibit
99.1

 

CANTON
STRATEGIC HOLDINGS, INC.

UNAUDITED
PRO FORMA CONSOLIDATED CONDENSED FINANCIAL INFORMATION

 

Introduction

 

On
July 17, 2026, Canton Strategic Holdings, Inc. (the “Company”) entered into a Securities Purchase Agreement
(the “Purchase Agreement”) with Gravitas Collective Corp., a Delaware corporation (“Buyer”), pursuant
to which the Company agreed to sell, and Buyer agreed to purchase, all of the issued and outstanding membership interests (the “Purchased
Securities”) of Gravitas Life Sciences, LLC (“Gravitas”), a wholly owned subsidiary of the Company (the
“Transaction”). In connection with the Transaction, Gravitas was converted from a Delaware corporation into a Delaware
limited liability company on July 16, 2026. Gravitas operates clinical-stage biotech research and development that develops therapeutic
candidates for immunology and inflammation conditions.

 

As
consideration for the Purchased Securities, Buyer and Gravitas issued to the Company an unsecured promissory note in the original principal
amount of $3,500,000 (the “Gravitas Note”) and agreed to pay to the Company certain development milestone payments
in the event such payments become due and payable. The Gravitas Note bears interest at a rate of 15% per annum, payable in kind and compounding
semi-annually, with accrued interest added to the outstanding principal balance. The Gravitas Note contains mandatory prepayment and
optional prepayment mechanisms, and a maturity date of July 17, 2029. Concurrently with the execution of the Purchase Agreement, the
Company also entered into release agreements with certain individuals in connection with the Transaction. Certain assets of Gravitas
relating to bispecific antibodies development were retained by the Company through its subsidiary Tharimmune SPV1, pursuant to a Bill
of Sale, Assignment and Assumption Agreement entered into in connection with the Transaction (the “Bill of Sale”).

 

The
following unaudited pro forma financial information
(the “Unaudited Pro Forma Condensed Financial Information”) is based on and should be read in conjunction with:

 

 
  
 ●
 The
 historical audited consolidated financial statements of the Company and the related notes and “Management’s Discussion
 and Analysis of Financial Condition and Results of Operations” included in its Annual Report on Form 10-K for the fiscal year
 ended December 31, 2025, as filed with the Securities and Exchange Commission (“SEC”) on March 31, 2026;

 
  
 ●
 The
 historical unaudited condensed consolidated interim financial statements of the Company and the related notes and “Management’s
 Discussion and Analysis of Financial Condition and Results of Operations” included in its quarterly report on Form 10-Q for
 the three months ended March 31, 2026, as filed with the SEC on May 13, 2026.

 
 

The
Unaudited Pro Forma Condensed Financial Information has been prepared to reflect adjustments to the Company’s historical consolidated
financial information that are (i) directly attributable to the Transaction
and (ii) factually supportable.

 

The
Unaudited Pro Forma Condensed Financial Information is presented for informational purposes only and is not necessarily indicative
of the operating results or financial position that actually would have been achieved if the Transaction had
occurred on the dates indicated or that may be achieved in future periods. It also does not reflect any cost savings, operating
synergies or revenue enhancements that the Company may achieve with respect to eliminating the companies or the impact of any
non-recurring activity and any one-time transaction related costs. Synergies and integration costs have been excluded from
consideration because they do not meet the criteria for unaudited pro forma adjustments.

 

  

  

 

 

CANTON
STRATEGIC HOLDINGS, INC.

UNAUDITED
PRO FORMA CONSOLIDATED CONDENSED BALANCE SHEETS

 

 
   
 March 31, 2026 As Reported  
 GLS Divestiture  
 March 31, 2026 Pro Forma 

 
   
    
    
   

 
 ASSETS

 
   
    
    
   

 
 Current assets 
     
     
    

 
 Cash and cash equivalents 
 $41,532,140  
 $(1,530,857) 
 $40,001,283 

 
 Prepaid expenses and other current assets 
  1,553,110  
  (100,665) 
  1,452,445 

 
   
     
     
    

 
 Total current assets 
  43,085,250  
  (1,631,522) 
  41,453,728 

 
   
     
     
    

 
 Non current assets 
     
     
    

 
 Digital assets 
  541,569,363  
  -0-  
  541,569,363 

 
 Note receivable 
  -0-  
  3,500,000  
  3,500,000 

 
   
     
     
    

 
 Total non current assets 
  541,569,363  
  3,500,000  
  545,069,363 

 
   
     
     
    

 
 Total assets 
 $584,654,613  
 $1,868,478  
 $586,523,091 

 
   
     
     
    

 
 LIABILITIES AND STOCKHOLDERS’ EQUITY

 
   
     
     
    

 
 Current liabilities 
     
     
    

 
 Accounts payable 
 $402,311  
 $(86,577) 
 $315,734 

 
 Accrued expenses 
  739,033  
  (269,243) 
  469,790 

 
   
     
     
    

 
 Total current liabilities 
  1,141,344  
  (355,820) 
  785,524 

 
   
     
     
    

 
 Other liabilities 
     
     
    

 
 Deferred tax liability 
  113,713,951  
  -0-
  
  113,713,951 

 
   
     
     
    

 
 Total liabilities 
  114,855,295  
  (355,820) 
  114,499,475 

 
   
     
     
    

 
 Total stockholders’ equity 
  469,799,318  
  2,224,298  
  472,023,616 

 
   
     
     
    

 
 Total liabilities and stockholders’ equity 
 $584,654,613  
 $1,868,478  
 $586,523,091 

 

 

  

  

 

 

CANTON
STRATEGIC HOLDINGS, INC.

UNAUDITED
PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

 

 
   
 For the Three Months Ended

 March 31,
  
 For the Twelve Months Ended

 December 31, 2025
 

 
   
 As Reported  
 GLS Divestiture  
 Pro Forma  
 As Reported  
 GLS Divestiture  
 Pro Forma 

 
   
    
    
    
    
    
   

 
 Operating expenses 
     
     
     
     
     
    

 
 Research and development 
 $267,823  
 $(267,823) 
 $-0-  
 $3,073,964  
 $(2,722,154) 
 $351,810 

 
 General and administrative 
  36,600,488  
  (1,379,307) 
  35,221,181  
  17,032,102  
  (6,832,443) 
  10,199,659 

 
   
     
     
     
     
     
    

 
 Total operating expenses 
  36,868,311  
  (1,647,130) 
  35,221,181  
  20,106,066  
  (9,554,597) 
  10,551,469 

 
   
     
     
     
     
     
    

 
 Operating loss 
  (36,868,311) 
  1,647,130  
  (35,221,181) 
  (20,106,066) 
  9,554,597  
  (10,551,469)

 
   
     
     
     
     
     
    

 
 Other income (expense) 
     
     
     
     
     
    

 
 Interest expense 
  -0-  
  -0-  
  -0-  
  (28,345) 
  -0-  
  (28,345)

 
 Interest income 
  318,178  
  151,676  
  469,854  
  41,410  
  544,688  
  586,098 

 
 Unrealized loss from digital assets holdings 
  (15,013,304) 
  -0-  
  (15,013,304) 
  (22,010,362) 
  -0-  
  (22,010,362)

 
   
     
     
     
     
     
    

 
 Total other income (expense), net 
  (14,695,126) 
  151,676  
  (14,543,450) 
  (21,997,297) 
  544,688  
  (21,452,609)

 
   
     
     
     
     
     
    

 
 Total loss before income taxes 
  (51,563,437) 
  1,798,806  
  (49,764,631) 
  (42,103,363) 
  10,099,285  
  (32,004,078)

 
   
     
     
     
     
     
    

 
 Provision for income taxes 
  (4,220,240) 
  -0-  
  (4,220,240) 
  (6,187,113) 
  -0-  
  (6,187,113)

 
 Income (loss) before income taxes 
     
     
     
     
     
    

 
   
     
     
     
     
     
    

 
 Net loss 
 $(47,343,197) 
 $1,798,806  
 $(45,544,391) 
 $(35,916,250) 
 $10,099,285  
 $(25,816,965)

 
   
     
     
     
     
     
    

 
 Net loss per share: 
     
     
     
     
     
    

 
 Basic and diluted 
 $(0.23) 
 $0.01  
 $(0.22) 
 $(1.12) 
 $0.32  
 $(0.81)

 
   
     
     
     
     
     
    

 
 Weighted average number of common shares outstanding: 
     
     
     
     
     
    

 
 Basic and diluted 
  207,705,905  
  207,705,905  
  207,705,905  
  32,049,310  
  32,049,310  
  32,049,310 

 

 

  

  

 

 

CANTON
STRATEGIC HOLDINGS, INC.

NOTES
TO UNAUDITED PRO FORMA CONSOLIDATED CONDENSED FINANCIAL INFORMATION

 

Note
1.- Basis of Presentation

 

The
pro forma consolidated condensed balance sheet and statements of operations have been derived from the historical consolidated condensed
balance sheet and statements of operations of Canton Strategic Holdings, Inc. (the “Company”) as adjusted to give
effect to the sale of Gravitas Life Sciences LLC (“Gravitas”). The pro forma consolidated condensed balance sheet
gives effect to the sale as if it occurred on March 31, 2026, the most recently published fiscal quarter end. The pro forma consolidated
condensed statements of operations for the three months ended March 31, 2026 and the year ended December 31, 2025 give effect to the
sale as if it occurred on January 1, 2025.

 

Note
2.- Description of Transaction

 

On
July 17, 2026 the Company entered into a securities purchase agreement with Gravitas Collective Corp. (the “Buyer”)
for the sale of 100% of the membership interests in Gravitas, a wholly owned subsidiary of the Company (the “Transaction”).
The Transaction closed on July 17, 2026. In consideration for the Transaction, Buyer and Gravitas issued to the Company an unsecured
promissory note in the original principal amount of $3,500,000 and agreed to pay to the Company certain development milestone payments
in the event such payments become due and payable. The contingent consideration has not been recognized in the pro forma balance sheet.