---
schema_version: "secwatch.filing_event.v1"
accession: "0001213900-23-069028"
form_type: "8-K"
ticker: "ADIL"
cik: "0001513525"
company_name: "ADIAL PHARMACEUTICALS, INC."
filed_at: "2023-08-18T23:59:59+00:00"
generated_at: "2026-06-11T06:54:16.774879+00:00"
event_type: "m_and_a"
sentiment: "neutral"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# Adial sells Purnovate assets to related-party Adovate for $450K cash, 19.9% equity, up to $61M milestones

## Summary
- 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.

## SEC filing metadata
- accession: 0001213900-23-069028
- form_type: 8-K
- ticker: ADIL
- cik: 0001513525
- company_name: ADIAL PHARMACEUTICALS, INC.
- filed_at: 2023-08-18T23:59:59+00:00
- event_type: m_and_a
- sentiment: neutral
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 2.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1513525/000121390023069028/0001213900-23-069028-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1513525/000121390023069028/ea183898-8k_adialpharm.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001213900-23-069028
- JSON: https://secwatch.observer/filing/0001213900-23-069028.json
- Plain text: https://secwatch.observer/filing/0001213900-23-069028.txt

## Key facts
- M&A Transactions
  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
  source text: 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
  evidence_url: https://www.sec.gov/Archives/edgar/data/1513525/000121390023069028/0001213900-23-069028-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.