The takeaway for me from the resolution of the Menon/Aruda dispute, which appears to me to have been A tort, in common law, that unfairly caused Menon to suffer a loss resulting from a legal liability created by the faulty execution of the K patent procurement process as described by others which I have not investigated as it seemed to me the settlement was a fait accompli. To wit;
1) There was no direct cost to CTIX from the Celleceutix/Aruda dispute.
2) Aruda (fairly or not) received 16mm shares of CTIX from Menon
personally, along with any potential royalty streams thereof (not
sure that I understand the royalty arrangement correctly).
3) The indirect cost to common shareholders was not dilution but rather
the inclination by Aruda to sell relatively large numbers of shares
compared to the average volume over a long period of time. We can
and have speculated as to the reasons for Aruda's divestiture, the
general consensus, it seems to me, being diversification of Aruda's
portfolio which when considering the large number of shares and
potential revenue streams seems likely to have been an over weighted
concentration in CTIX.
4) The resulting divestiture of Aruda stock combined with regular
selling by Aspire, according to the nature of it's business, seems
to have been to pressure the stock price and afford an opportunity
for conspirators (Mako, Rosen, AF, SA and perhaps many of their
followers/accomplices) to profit by shorting CTIX stock.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 28, 2014
CELLCEUTIX CORPORATION
Item 8.01 Other Events.
In a personal dispute between Dr. Krishna Menon and a party named Aruda, Aruda claimed that although he had participated in the invention relating to the compounds and therapeutic uses disclosed and claimed in US Patent No. 8,338,454 ("454" Patent") he was inadvertently omitted as an inventor from "454 Patent" and applications related thereto. On August 28, 2014, a settlement took place between Dr. Menon and Aruda which resulted in the following: Menon acquired all of the rights Aruda claimed in the Kevetrin patents in return for (i) the transfer to Aruda and designees an aggregate of 16,000,000 shares of stock in Cellceutix over a period of 16 months, currently owned by the Menon Trust and (ii) and assigned a portion of the royalty revenues that may be payable to Menon, to Aruda and designees, as further detailed in the Agreement titled "Amendment to Menon-Cellceutix Agreement Without Changing the Total Royalties Payable Under the Terms of the Prior Agreement". Menon then transferred all Kevetrin patent rights to Cellceutix. The aforementioned share transfer was strictly between the personal holdings of Mr. Krishna Menon, the Menon Trust, and Aruda. No shares or royalty payments were issued by the Company.
2
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Description
10.46
Cellceutix Aruda Agreement
10.47
Amendment To Menon-Cellceutix Agreement Without Changing The Total Royalties Payable Under The Terms Of The Prior Agreement
10.48
Assignment Of Patent Rights To Cellceutix
99.1
Press release dated September 2, 2014, titled “Cellceutix Appoints Dr. Barry Schechter to Board of Directors as Company Focuses on Meeting Requirements for Stock Exchange Uplisting”
