Quarterly report pursuant to Section 13 or 15(d)

LICENSE AGREEMENT WITH OYAGEN

v3.21.2
LICENSE AGREEMENT WITH OYAGEN
9 Months Ended
Sep. 30, 2021
License Agreement With Oyagen  
LICENSE AGREEMENT WITH OYAGEN

NOTE 9 – LICENSE AGREEMENT WITH OYAGEN

 

On April 14, 2021, the Company and OyaGen, Inc. (“OyaGen”) entered into an exclusive License Agreement (the “OyaGen License Agreement”) pursuant to which OyaGen granted to Tonix an exclusive license to certain patents and technical information related to an antiviral inhibitor of SARS-CoV-2, sangivamycin, and to develop and commercialize products thereunder, and to acquire rights to any technology based thereon for the prevention or treatment of Covid-19 developed by OyaGen during the term of the License Agreement.

 

As consideration for entering into the License Agreement, Tonix agreed to pay a low-seven digit license fee to OyaGen, and agreed to issue to OyaGen and an affiliated entity an aggregate of 2,752,294 shares of the Company’s common stock, which are unregistered and subject to a six-month lock-up and a voting agreement, pursuant to which OyaGen and the affiliated entity have agreed to vote the common stock on any matter put to a vote of the shareholders of the Company in accordance with management’s recommendations. The shares were valued at $3.0 million, which was recorded as research and development expense. The OyaGen License also provides for single-digit royalties and contingent milestone payments. 

 

As of September 30, 2021, no milestone payments have been accrued or paid in relation to this agreement