ADIAL PHARMACEUTICALS, INC. (ADIL): M&A transaction — Adial sells Purnovate assets to related-party Adovate for $450K cash, 19.9% equity, up to $61M milestones

ADIAL PHARMACEUTICALS, INC.

Sale of Purnovate business closed June 30; buyer is a related party (former CEO, current director).
Consideration includes $450K upfront, 19.9% equity in Adovate, low single-digit royalties on net sales.
Up to ~$11M in development milestones per compound and up to $50M in commercial milestones.
Pro forma shows a gain of ~$2.5M on balance sheet and $2.05M income from discontinued ops for FY2022.
Adovate assumed Purnovate trade payables, lease, and contingent liabilities to former Purnovate shareholders.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.95

ADIAL PHARMACEUTICALS, INC. completed a disposition involving Adovate, LLC (formerly known as Adenomed, LLC) for $450,000 (closed 2023-06-30).

Action: disposition
Counterparty: Adovate, LLC (formerly known as Adenomed, LLC)
Consideration: $450,000
Closing: 2023-06-30

Exact text from the filing

by the Company of the business of the Company’s wholly owned subsidiary, Purnovate, Inc. (the “Purnovate Sale”) for consideration including: (i) upfront cash payments totaling $450,000 upon the Option exercise; (ii) the issuance by Buyer to Company of 19.9% of the equity of Buyer; (iii) the assumption by Buyer of contingent payments due the former shareholders

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31 m&a transactions filed in the last 30 days. Browse all m&a transactions →

ADIAL PHARMACEUTICALS, INC. filing history →

Source: SEC EDGAR

accession 0001213900-23-069028

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