PhaseBio Pharmaceuticals Inc (PHASQ)

[Mr. Zen]

My Summary

the Settlement Agreement and, on the Closing Date, transferring to SFJ the Debtor’s bentracimab assets
At the Closing, SFJ shall pay to the Debtor in immediately available funds,
$32.9 million (the “SFJ Consideration”), which the Debtor shall use to
immediately pay, in full, the DIP Obligations

SFJ shall pay allbentracimab-related post-petition essential vendor payments (excluding payments to BioVectra) incurred on or after January 1, 2023

SFJ shall pay a royalty to the Debtor (or the Debtor’s assignee) in an amount equal to2.5% of worldwide net sales of the Licensed Product by SFJ, its affiliates, or by third party licensees and/or sublicensees of SFJ or its affiliates, which exceed $300 million in any calendar year.

Interim Funding. SFJ shall pay the Debtor a one-time cash payment of $2.5
million in immediately available funds

the settlement provides the Debtor and its estate with a substantial $32.9
million cash payment. That cash payment will enable the Debtor to satisfy its DIP Financing obligations in full and also pay all bentracimab-related post-petition essential vendor payments (excluding payments to BioVectra) incurred by the Debtor on or before December 31, 2022.
Importantly, $2.5 million of the $32.9 million cash payment will be made available to the Debtor upon execution of the Program Transfer Agreement and can be used to fund the Debtor’s estate until the closing of the Settlement/Sale Transaction.

those projections could be used to calculate how much the 2.5% royalty
on worldwide annual net sales of bentracimab exceeding $300 million could generate.