Merger |
3 Months Ended | |||||||||||
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Mar. 31, 2023 | ||||||||||||
Merger [Abstract] | ||||||||||||
Merger |
On November 5, 2020, the Company completed the Merger transaction with Rexahn. In connection
with the Merger, the Company, Shareholder Representatives Services LLC, as representative of the Rexahn stockholders prior to the Merger, and Olde Monmouth Stock Transfer Co., Inc., as the rights agent, entered into a Contingent Value
Rights Agreement (the “CVR Agreement”).
Pursuant to the terms of the Merger
and the CVR Agreement, Rexahn stockholders of record as of immediately prior to the effective time of the Merger received one
contingent value right (“CVR”) for each share of Rexahn common stock held.
Each CVR entitles such holders to
receive, for each calendar quarter (each, a “CVR Payment Period”) during the 15-year period after the Closing (the “CVR Term”),
an amount equal to the following:
The CVRs are not transferable, except in certain limited circumstances, will not be certificated or evidenced by
any instrument, will not accrue interest and will not be registered with the SEC or listed for trading on any exchange. The CVR Agreement will continue in effect until the later of the end of the CVR Term and the payment of all amounts
payable thereunder. As of March 31, 2023, no payments subject to the CVR had been received beyond those previously reported in
the second and third quarters of calendar year 2021. In addition, no milestones had been accrued as there were no potential milestones yet considered probable beyond those previously reported.
Former Rexahn Warrants
Following the closing of the Merger,
231,433 outstanding, unexercised Rexahn warrants to purchase common stock remained outstanding, the majority of which were
subsequently repurchased according to the terms of the original warrant agreements. As of March 31, 2023, 60,713 of the Rexahn
warrants remained outstanding with exercise prices ranging from $38.40 to $136.80 per share with an average remaining contractual life of 0.8
years.
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