Apimeds Pharma shares soar on Inscobee settlement

Investing.com -- Shares of Apimeds Pharma jumped over 20% before entering a volatility trading halt on Tuesday after the company announced a settlement with Inscobee Inc. and Apimeds Inc., resolving disputes from its December 1, 2025 merger with MindWave Innovations Inc.

The settlement enables completion of the merger transactions and the company's previously disclosed $100 million PIPE financing. APUS common stock is expected to resume trading on the NYSE American on Tuesday, subject to NYSE approval.

Under the settlement terms, the Inscobee parties confirmed that the Stockholder Support and Lock-Up Agreement and related voting agreements remain valid and binding. Prior written stockholder consents to remove the company's directors are void. Dr. Vin Menon continues to serve as Co-Chief Executive Officer alongside Co-Chief Executive Officer Sungjoon Chae.

The Inscobee parties granted an irrevocable proxy to vote in favor of proposals outlined in the company's February 27, 2026 Information Statement on Schedule 14C, including conversion of Series A Convertible Preferred Stock and outstanding convertible notes and a 1-for-10 reverse stock split.

The settlement establishes Lōkahi Therapeutics Inc. as an independent biopharmaceutical company focused on the Apitox program. Lōkahi will secure rights to the Apitox program, including intellectual property, regulatory materials, development data and manufacturing information. Lōkahi will deliver $4 million to APUS within five business days following the settlement effective date.

APUS will assign to Lōkahi a $2.2 million Prevail CRO credit facility to support continued development of the Apitox program. Following payment, APUS will distribute 51% of Lōkahi common stock as directed by Erik Emerson, the company's former Chief Executive Officer, with the company retaining 49%.

The settlement provides for formation of a new wholly owned subsidiary within seven business days. Ten percent of net proceeds from APUS' financing arrangement will be allocated to the new subsidiary, with the remaining 90% allocated to MindWave. The subsidiary is expected to be spun off from the company within twelve months.

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