The U.S. Bankruptcy Court denied Protea Biosciences Group’s emergency settlement motion with AzurRx Biopharma.
The denial order states, “Upon consideration of the argument of counsel and for reasons fully stated on the record, the court does hereby ORDER that the Motion to Approve Settlement is DENIED.”
The Company previously argued, “The proposed settlement arises in connection with a Stock Purchase and Sale Agreement (the ‘Sale Agreement’) dated May 21, 2014 between the Debtors, AzurRx and a former affiliate of the Debtor, Protea BioEurope SAS….AzurRx has offered to resolve all issues between the parties and terminate the Sale Agreement by paying the Debtors one hundred thousand dollars $100,000 in cash upon the earlier to occur of (i) such time as AzurRx has net cash on its balance sheet at any time on or after the date of the Settlement Agreement of at least $5.0 million; or (ii) March 31, 2018, and immediately issuing the Debtors 300,000 shares of common stock in AzurRx (the ‘Shares’).”
In addition, “The Shares are publicly traded and have an approximate current value of $600,000. The Settlement Agreement requires the Debtors to enter into a Lockup Agreement pursuant to which the Debtors shall agree not to sell any Shares for seven months following the effective date of the Settlement Agreement, after which time the Debtors shall not sell more than 30,000 Shares per calendar month. As part of the relief sought in this Motion, the Debtors seek authority to sell the Shares at the existing market price without further order of the Court, provided the Debtors comply with the Lockup Agreement.”
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