- The stock price of Neurobo Pharmaceuticals Inc (NASDAQ: NRBO) increased by over 35% during intraday trading. This is why it happened.
The stock price of Neurobo Pharmaceuticals Inc (NASDAQ: NRBO) increased by over 35% during intraday trading. Investors are responding positively to a Schedule 14A filing from the company.
The filing is inviting stockholders of NeuroBo Pharmaceuticals to a special meeting in order to seek approval of the issuance of our common shares in settlement of potential milestone payment obligations that may become payable by us in the future to former security holders of ANA Therapeutics.
As part of the merger agreement, former ANA security holders, in the aggregate and subject to the terms and conditions of the deal, may be entitled to receive from us up to $175.5 million in milestone payments, of which $45 million would become payable upon the first receipt of marketing approval from the U.S. Food and Drug Administration for any niclosamide product and an aggregate of up to $130.5 million would become payable upon the achievement of specified net sales milestones.
Under certain circumstances described in the merger agreement, portions of the milestone payments could be settled in the company’s common stock. And in the absence of obtaining the requisite stockholder approval, any milestone payments that become payable will be settled in cash.
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