NEOTHETICS, INC. (NASDAQ:NEOT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
Neothetics, Inc. (the Company) entered into an Eleventh Amendment
to the Lease (the Lease Amendment) with LJ Gateway Office LLC
(the Landlord), dated January 31, 2017. The Company also entered
into a Sublease, dated January 27, 2017 (the Sublease), with
Abacus Data Systems, Inc. (Abacus). The effectiveness of the
Lease Amendment and Sublease were expressly conditioned upon the
parties obtaining the consent of the Landlord, which the Company
obtained on February 10, 2017.
The Lease Amendment amends the Lease dated July 3, 2008, as
amended(collectively, the Lease) for the office space located at
Suite No. 270, 9171 Towne Centre Drive, San Diego, California
containing approximately 11,107 rentable square feet (the
Original Premises) by providing additional space consisting of
approximately 3,580 rentable square feet located at Suite No.
250,9171 Towne Centre Drive, San Diego, California (the New
Premises). The Company intends to occupy the New Premises as its
headquarters while subleasing the entire Original Premises to
Abacus to the terms of the Sublease.
The Lease Amendment provides for a term for the New Premises from
the earlier of the New Premises being ready for occupancy or the
date the Company commences its business activities at the New
Premises through December 31, 2017 (the New Premises Term). The
Company intends to vacate the Old Premises and relocate to the
New Premises on or around February 12, 2017.Under the terms of
the Lease Amendment, the base monthly rent for the New Premises
will be $2.85 per square foot or $10,203 per month commencing on
the New Premises Term.
The Sublease provides for a full sublease of the entire Original
Premises by the Company to Abacus. to the terms of the Sublease,
the Sublease shall commence on the parties receiving consent of
the Landlord and the occurrence of the possession of the Original
Premises by Abacus, which is estimated to occur on approximately
February 13, 2017 (the Sublease Commencement Date).Starting on
the thirty-first (31st) date after the Commencement
Date (the Sublease Rent Commencement Date), Abacus shall pay to
the Company a base rent of$2.50 per square foot or $27,768 and an
additional $30,317 as a security deposit to be treated in the
same manner as the Lease; provided, that, in addition to the
first months base rent, Abacus shall not be required to provide
base rent for months three (3) and four (4) after the Sublease
Commencement Date; provided, further, that, Abacus shall receive
a discount of fifty percent (50%) off the base rent for months
five (5) through (9) after the Sublease Commencement Date. The
base rent payable by Abacus to the Company shall increase by
three percent (3%) on each annual anniversary of the Sublease
Commencement Date.In addition to the base rent, Abacus shall pay
the Company proportionate share of the building costs and
property taxes for the Original Premises in accordance with the
terms of the Lease, provided that the fiscal base year shall be
adjusted from July 1, 2017 to June 30, 2018 for calculating
Abacus proportionate share of building costs and property taxes
in accordance with the Lease.The Sublease term shall expire March
31, 2020, which is coterminous with the Lease, subject to any
early termination provisions in the Lease or Sublease.
The foregoing description of the terms of the Lease Amendment and
Sublease does not purport to be complete and is qualified in its
entirety by reference to the full text of the Lease, which has
been filed previously by the Company with the Securities and
Exchange Commission (the SEC) as an exhibit to its Registration
Statement on Form S-1 filed on October 17, 2014, the Tenth
Amendment to the Lease, which has been filed previously by the
Company with the SEC as an exhibit to its Form 8-K filed on
January 21, 2015, and the Lease Amendment and the Sublease, each
of which a copy is filed as an exhibit hereto.
|
Item 9.01. |
Financial Statements and Exhibits |
(d) Exhibits.
|
Exhibit No. |
Description |
|
10.1 |
Eleventh Amendment, dated as of January 31, 2017, by and |
|
10.2 |
Sublease, dated as of January 27, 2017, by and between |
-2-
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 down -0.09 at 1.56 with 140,903 shares trading hands.
