NEOTHETICS, INC. (NASDAQ:NEOT) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;

Named Executive Officer Compensation

On March 2, 2017, the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Neothetics, Inc. (the “Company”) approved an increase in the base salary for Susan A. Knudson, the Company’s Chief Financial Officer and one of the Company’s named executive officers (as defined in Item 402(a)(3) of Regulation S-K promulgated by the Securities and Exchange Commission), to $317,000 per annum, effective January 1, 2017. In addition, also on March 2, 2017, the Committee approved cash retention bonuses to certain of the Company’s employees, including Ms. Knudson, designed to incentivize the Company’s employees to remain with the Company through the receipt and analysis of the data from the Company’s ongoing Phase 2 proof of concept trial.  Upon receipt and completed analysis of the data, as determined by the Committee, Ms. Knudson will receive a cash bonus equal to 30% of her then effective base salary.

Option Awards

In addition, on March 2, 2017, the Committee approved options grants to certain executive officers under the Company’s 2014 Equity Incentive Plan, including an option grant to purchase up to 100,000 shares of the Company’s common stock (the “Option”) to Ms. Knudson.  Fifty percent of the Option will vest upon the receipt and completed analysis of the data from the Company’s ongoing Phase 2 proof of concept trial and fifty percent of the Option will vest on December 31, 2017.  The Option also provides that any unvested portion will automatically accelerate in the event that Ms. Knudson is terminated under certain circumstances in connection with a change in control of the Company.

About NEOTHETICS, INC. (NASDAQ:NEOT)

Neothetics, Inc. is a clinical-stage specialty pharmaceutical company, which develops therapeutics. The Company focuses on localized fat reduction and body contouring. It focuses on the development of LIPO-202 for the reduction of central abdominal bulging due to subcutaneous fat in non-obese patients. It has completed Phase II development of LIPO-202. LIPO-202 is administered in a subcutaneous injection procedure that activates a natural metabolic process to shrink fat cells, without killing them, resulting in localized fat reduction, measurable results within four weeks and minimal risk with no downtime. The Company is developing a product candidate, LIPO-102, an injectable form of a combination of salmeterol xinafoate and fluticasone propionate. LIPO-102 is indicated for the treatment of the orphan indication of symptomatic exophthalmos, or protrusion of the eye from the orbit, associated with thyroid-related eye disease caused by the expansion of fat and muscle behind the eye.

NEOTHETICS, INC. (NASDAQ:NEOT) Recent Trading Information

NEOTHETICS, INC. (NASDAQ:NEOT) closed its last trading session up +0.06 at 1.59 with 88,290 shares trading hands.