Item 1.01 Entry Into a Material Definitive Agreement.
On March 26, 2021, AcelRx Pharmaceuticals, Inc. (the "Company") entered into a
sublease (the "New Sublease") with Weichert Workforce Mobility, Inc., as
successor in interest to The MI Group, Inc. (the "Sublessor"), for 13,322 square
feet of space located at 25821 Industrial Boulevard, Suites 350 & 400, Hayward,
California (the "New Premises").
The term of the New Sublease is for a period of 27 months, with a scheduled
commencement date of April 1, 2021. The total monthly base rent under the New
Sublease for the New Premises will be $17,318.60. The Sublessor agreed to abate
the Company's base rent obligation for the first month of the New Sublease term.
In addition to its monthly base rent obligation, the Company is obligated to pay
the Sublessor as additional rent its proportionate share of triple net operating
expenses of the New Premises, including real property taxes. In connection with
the New Sublease, the Company delivered to the Sublessor an irrevocable letter
of credit for $70,000 as security for the Company's performance of its
obligations under the New Sublease.
The foregoing summary of the New Sublease does not purport to be complete and is
qualified in its entirety by reference to the New Sublease, a copy of which will
be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the
quarter ending March 31, 2021.
Item 1.02 Termination of a Material Definitive Agreement.
In connection with the New Sublease, on March 26, 2021, the Company entered into
a Lease Termination Agreement (the "Lease Termination") with Metropolitan Life
Insurance Company to terminate its existing lease for the premises located at
301 - 351 Galveston Drive, Redwood City, California (the "Existing Premises") on
April 30, 2021. The Lease Termination will not become effective unless and until
the master landlord of the New Premises executes and delivers its consent to the
New Sublease. Following the Lease Termination becoming effective, the existing
letter of credit for $150,000 securing the Company's performance of its
obligations under the existing lease will be released.
On March 26, 2021, the Company also entered into a Sublease Termination
Agreement, dated March 24, 2021 (the "Sublease Termination"), with Genomic
Health, Inc. ("Genomic") to terminate Genomic's existing sublease from the
Company for certain premises located at 301-351 Galveston Drive, Redwood City,
California on April 30, 2021. The Sublease Termination will not become effective
unless and until the master landlord of the New Premises executes and delivers
its consent to the New Sublease.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under
an Off-Balance Sheet Arrangement of a Registrant.
The information set forth above and referenced under Item 1.01 is hereby
incorporated by reference into this Item 2.03.
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