Emmaus Life Sciences : Material Agreement - Form 8-K
December 20, 2023 at 06:03 am EST
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Item1.01 Entry into a Material Definitive Agreement
On December 15, 2023, Emmaus Life Sciences, Inc. ("we," "us," "our," "Emmaus" and the "company") entered into an Exchange Agreement with Wei Peu (Derek) Zen and Seah Lim, M.D., directors of the company, pursuant to which we have agreed to issue to Mr. Zen and Dr. Lim shares of our common stock valued for this purpose at $0.29 a share in exchange for their surrender for cancellation of promissory notes of the company held by them in the principal amount of $1,000,000 and $1,200,000, respectively, together with accrued and unpaid interest. No additional consideration was paid in connection with the exchange.
Mr. Zen's promissory note was convertible into shares of our common stock at a conversion price of $0.50 a share, was due on demand after January 24, 2024 and bore interest at the annual rate of 10%, payable on demand. Dr. Lim's promissory note was due September 16, 2025, bore interest at the annual rate of 6% and provided for our issuance to Dr. Lim of 240,000 shares of our common stock upon maturity or earlier prepayment of the promissory note. The $0.29 value per share or our common stock issued in the exchange represents a substantial premium to the closing price of our common stock as reported on the OTCQX on December 14, 2023.
The foregoing is a summary only of the material terms of the Exchange Agreement, a copy of which is included as Exhibit 10.1 to this Current Report and incorporated herein by reference.
Emmaus Life Sciences Inc. published this content on 20 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 December 2023 11:02:09 UTC.
Emmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical company. The Company is engaged in the discovery, development, marketing, and sale of treatments and therapies, primarily for rare and orphan diseases. The Companyâs lead product, Endari (prescription-grade L-glutamine oral powder), helps to reduce the acute complications of sickle cell disease (SCD) in adult and pediatric patients aged five years and older. Its product pipeline includes ELS001/ELS007, ELS004, ELS005, ELS003, and ELS002. The Company, through Kainos Medicine, Inc. (Kainos), has a license in the territory encompassing the United States, the United Kingdom, and the European Union to patent rights, know-how, and other intellectual property relating to Kainosâs IRAK4 inhibitor, referred to as KM10544, for the treatment of cancers, including leukemia, lymphoma, and solid tumor cancers. It has also developed chondrocyte and osteoblast cell sheets using human mesenchymal stem cells.