Benzinga | Nov 16, 2021 07:23AM EST

First Wave BioPharma Announces Restructuring of Merger Consideration Payment Terms With Former Shareholders of First Wave Bio

First Wave BioPharma, Inc. (NASDAQ:FWBI), ("First Wave BioPharma," or the "Company"), a clinical-stage biopharmaceutical company specializing in the development of targeted, non-systemic therapies for gastrointestinal (GI) diseases, today announced that it has agreed with the former shareholders of First Wave Bio, Inc. ("FWB") to amend the payment structure of the initial merger consideration and extend payments into 2023 in order to provide the Company with additional financial resources for its ongoing Phase 2 clinical trial programs.



On September 13, 2021, the Company announced the acquisition of FWB and paid FWB an upfront cash payment of $3 million and issued $4 million of common stock. The original remaining upfront consideration of $15 million ($8 million due on October 28, 2021 and $7 million due March 31, 2022) has been restructured. Under the Revised Merger Agreement, this $15 million amount will be paid in smaller monthly installments commencing in January 2022 through mid-year 2023, until satisfied.

The milestone payment of $2 million, triggered upon first patient dosed in the FW-UP Phase 2 clinical trial for ulcerative proctitis, which was announced on October 14, 2021, is being paid immediately and concurrent with the signing of the Revised Merger Agreement.

James Sapirstein, President, and Chief Executive Officer of First Wave BioPharma, stated, "We are very pleased that we were able to restructure the remaining $15 million in consideration with the former shareholders of FWB. This revised agreement provides us with additional capital resources to advance our clinical programs through multiple value enhancing milestones in 2022."