AmpliPhi Biosciences (APHB) Reaches Settlement with NRM VII Holdings I Over Pending Lawsuit

November 14, 2016 8:54 AM EST
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AmpliPhi Biosciences Corporation (NYSE: APHB) announced the settlement of its pending lawsuit with NRM VII Holdings I, LLC (“NRM”). The lawsuit relates to a complaint filed by NRM against AmpliPhi and the members of its board of directors following the automatic conversion of NRM’s Series B convertible preferred stock into common stock of AmpliPhi in April 2016. The complaint sought unspecified money damages and other relief.

Under the terms of a settlement agreement, NRM has agreed to dismiss with prejudice the lawsuit and AmpliPhi’s insurance carrier will make a cash payment of $2.0 million to NRM. A portion of the settlement payment (approximately $914,000) is attributable to accrued dividends that became payable to NRM upon the automatic conversion of its Series B convertible preferred stock into common stock, which amount is recorded in AmpliPhi’s balance sheet at September 30, 2016. AmpliPhi has agreed to pay its insurance carrier for the accrued dividends amount on an installment basis. AmpliPhi and NRM have agreed to release all claims against each other and all related parties. NRM and its affiliates continue to be significant shareholders in AmpliPhi.

“AmpliPhi is pleased that this matter has been resolved,” said M. Scott Salka, CEO of AmpliPhi Biosciences. “We believe that this settlement is in the best interests of our company and our shareholders. We will continue to focus on advancing our portfolio of innovative phage-based therapies and creating value from our proprietary technologies.”

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