KORU Medical Systems Inc (KRMD)

[blue_skies]

Specifics of KRMD's settlement with EMED

On May 20, 2020, Repro Med Systems, Inc. d/b/a/ KORU Medical Products (the “Company”) entered into a Settlement Agreement with EMED Technologies Corporation (“EMED”) to settle all claims in connection with all pending litigation matters between them (the “Claims”). Pursuant to the Settlement Agreement, the Company issued to EMED (i) 95,238 restricted stock units, vesting on May 21, 2020 and 95,238 restricted stock units vesting on January 1, 2021, and (ii) an option to purchase up to 400,000 shares of the Company’s common stock at an exercise price of $11.21 per share prior to February 1, 2021, which can be settled in cash in lieu of common stock at the Company’s sole discretion, provided that the number of shares of common stock and/or amount of cash paid by the Company upon exercise will be capped at a value of $16.21 per share. The Settlement Agreement includes mutual releases and covenants not to sue for any claim arising before May 20, 2020 and the Company covenants not to challenge any EMED patents that were the subject of the Claims unless EMED asserts them in the future against Company products.

Is this the settlement I expected or wanted? NO! But in the end the KRMD management and the board arrived at the conclusion that the smart business decision is to settle and move on. The settlement, which appears large, is a fraction of the legal fees KRMD might have paid for a lengthy litigation with an uncertain outcome.

https://ir.stockpr.com/korumedical/sec-filings-email/content/0001161697-20-000226/form_8-k.htm