IMMUNE PHARMACEUTICALS INC. (NASDAQ:IMNP) Files An 8-K Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet ArrangementItem 2.04
On May 18, 2018, Immune Pharmaceuticals Inc., a Delaware corporation (the “Company”) issued $2.8 million in aggregate principal amount of its Original Issue Discount Convertible Debentures (the “May Debentures”). to Waiver Amendment and Exchange Agreements entered into with certain holders of the May Debentures in connection with the sale of $5.5 million in principal amount of Senior Secured Redeemable Debentures (the “October Debentures”), the aggregate face amount of the May Debentures was increased to $3.9 million. By their terms, the May Debentures matured and became due and payable on November 18, 2018. The Company did not repay the May Debentures on the maturity date. As a result of this default, the conversion price of the May Debentures was reduced automatically from $0.375 per share to a price per share equal to the lowest daily volume weighted average price of the Company’s common stock for the fifteen (15) days prior to conversion. Certain holders of the May Debentures have claimed that as a result of this default the aggregate principal amount of the May Debentures will be increased by 40% to approximately $5.5 million, a claim the Company disputes.
In addition, the default constitutes a “Trigger Event” under the October Debentures. Upon the occurrence of a Trigger Event, the Company loses the right to redeem the October Debentures prior to their maturity, the interest rate on the October Debentures increases to 20% and interest becomes payable in shares of common stock valued at 80.0% of the average of the three lowest sale prices during the relevant measurement period, less $0.02 per share of Common Stock, but in no event less than the par value of the Company’s common stock.
About IMMUNE PHARMACEUTICALS INC. (NASDAQ:IMNP)
Immune Pharmaceuticals Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in the development and commercialization of targeted therapeutics in the fields of immuno-inflammation and immuno-oncology. The Company’s segment is acquiring, developing and commercializing prescription drug products. Its Immuno-inflammation product pipeline includes bertilimumab, a fully human antibody targeting eotaxin-1, a regulator of immuno-inflammation; a portfolio of immune oncology products, and NanoCyclo, a topical nanocapsule formulation of cyclosporine-A, for the treatment of atopic dermatitis and psoriasis. Its immuno-oncology pipeline includes Ceplene, a small molecule targeting the Histamine-2 Receptor to overcome immunosuppression in Acute Myeloid Leukemia and other malignancies. Azixa and crolibulin are vascular disrupting agents. NanomAbs is a technology platform that allows the targeted delivery of chemotherapeutics into cancer cells.