Benzinga | Jul 24, 2020 06:12AM EDT

UPDATE: Patent Trial, Appeal Board Says Arbutus Entitled To Receive Tiered Low Single Digit Royalties On Future Sales Of Genevant Products Covered By Licensed Patents

From the filing:

"Arbutus is entitled to receive tiered low single digit royalties on future sales of Genevant products covered by the licensed patents. If Genevant enters into a sub-license agreement, Arbutus would receive twenty percent of the revenue received by Genevant for this sublicensing of the intellectual property licensed by Arbutus to Genevant.

Arbutus owns approximately 40% of the common equity of Genevant. Genevant has issued convertible debt securities to other investors. If those securities are converted to common shares, or additional capital is invested into Genevant by other parties, Arbutus' ownership interest in Genevant will be significantly diluted. Arbutus' entitlement to receive future royalties or sublicensing revenue will not be reduced by any dilution of Arbutus' equity ownership position in Genevant."