Oxygen Biotherapeutics announced Wednesday that it has reached a tentative settlement with investors who had alleged that the Morrisville company failed to give them the right of first offer to participate in a 2011 fundraising effort.

The lawsuit, filed in August 2011 by Tenor Opportunity Master Fund, Aria Opportunity Fund and Parsoon Opportunity Fund, related to the $4.6 million Oxygen Bio’s raised in June of that year in a private placement of stock.

The settlement agreement calls for Oxygen Bio to pay $600,000 in cash over six quarterly installments to the investors. The settlement will commence after the two sides sign a written agreement.

Oxygen Bio admitted to no wrongdoing as a part of the settlement.

“Settlement of this suit is a positive step forward for the company, allowing us to focus on our core objectives of developing our perfluorocarbon-based products without the distraction and additional legal fees further litigation of this matter would have generated,” said Michael B. Jebsen, the company’s chief financial officer and interim chief executive officer, in a statement.

The company announced last fall that it is partnering with Wilmington-based PPD to complete the second phase of clinical trails of Oxycyte, Oxygen Bio’s treatment for traumatic brain injury. The company is also conducting preclinical trials of a substance for healing wounds.

Oxygen Bio also sells an over-the-counter cosmetic line, Dermacyte, which is used to treat fine lines and wrinkles. It’s sold by dermatologists, plastic surgeons and spas.
Oxygen Bio shares closed at 50 cents Thursday, down 3 cents. The stock is down 22 percent this year.

Drug-development company Oxygen Biotherapeutics posted a narrower loss in its latest quarter.

The Morrisville company posted a net loss of $1.56 million, or 5 cents per share, in its fiscal second quarter that ended Oct. 31. A year ago it lost $2.93 million, or 12 cents per share.

Net revenue for the quarter totaled $514,872, up from $95,159 a year ago. The increase was primarily due to government grants from the U.S. Army, which is funding preclinical trials of Oxyclyte, Oxygen Bio's treatment for traumatic brain injury.

Research-and-development expenses totaled $604,574 for the quarter, compared to $488,577 a year ago. Oxygen Bio ended the quarter with $1.51 million in cash.

The company announced last month that it is partnering with Wilmington-based PPD to complete the second phase of clinical trails of Oxycyte. In addition to Oxycyte, the company is conducting preclinical trials of a substance for healing wounds.

Oxygen Bio also sells an over-the-counter cosmetic line, Dermacyte, which is used to treat fine lines and wrinkles. It's sold by dermatologists, plastic surgeons and spas.

Oxygen Bio's shares are down 71 percent this year. The stock was down 6 cents in early trading Monday after opening at 62 cents.

Oxygen Biotherapeutics announced Tuesday that it is partnering with Wilmington-based PPD to develop its treatment for traumatic brain injury.

PPD will complete the second phase of clinical trails of Oxycyte.

“The development of Oxycyte as a potential breakthrough therapy for severe traumatic brain injury remains the top priority of this company, and for the past 12 months we have remained committed to resuming enrollment in our clinical trials," said Michael Jebsen, Oxygen's president and chief financial officer, said in a statement.

"Engaging a qualified CRO is a critical step in getting trial sites back up and running and open for enrollment by year-end.”

Oxygen Biotherapeutics announced Tuesday that it is relocating its research and development arm from California to North Carolina.

The Morrisville drug-development company said it is searching for lab space in the Triangle and will begin the move next month. The publicly traded company has subleased its R&D space in Costa Mesa, Calif.

Three positions were eliminated in Costa Mesa as a result of the consolidation, but Oxygen Bio expects to fill the same positions once the new facility is established in the Triangle.

“North Carolina has the business climate, facilities and creative talent we need to help push our programs forward," said Michael Jebsen, the company's president and chief financial officer, in a statement.

He said the company had been considering the move for a while but was only recently able to sublease its space in California.

Oxygen Bio is developing several experimental drugs, including a treatment for traumatic brain injury that is in the second phase of clinical trials.

The company is conducting preclinical trials to determine whether it has a potential treatment for pruritis, a skin disorder characterized by acute itching, and it also sells a line of cosmetic products, called Dermacyte, for fine lines and wrinkles around the eyes.

Oxygen Bio's shares opened at 94 cents today. The stock is down 36 percent this year.

Oxygen Biotherapeutics, a small Morrisville company, announced this afternoon that it has terminated CEO Chris J. Stern.

According to a filing with the Security and Exchange Commission, Stern was dismissed "in connection with an Audit Committee investigation concerning conduct by Mr. Stern and its potential impact on the company."

Stern will not be paid severance because of "the circumstances surrounding his dismissal," according to a company statement issued after the close of trading.

Ellen Corliss, vice president of corporate communications and investor relations, said in an telephone interview that she could not comment on the audit committee's findings beyond what had been filed with regulators.

Michael B. Jebsen, the current chief financial officer and treasurer, was named interim CEO. Jebsen has been CFO since 2009.

Oxygen Biotherapeutics, which employs about 14 people locally, is developing medical and cosmetic products. In June, it raised $4.6 million for research and development into various topical products to treat dermatitis, itching and acne, Corliss said. It also is continuing studies of treatments for traumatic brain injuries and decompression sickness.

"We will move swiftly, but deliberately, in our search for a new CEO,"
Rene Eckert, interim Chairman of the Board, said in a statement.

Eckert was appointed chairman today, replacing Stern who had served in that position.

The company also has postponed its annual shareholder's meeting by one week, pushing it to Sept. 30.

Oxygen Biotherapeutics moved to Durham from California in 2008 when Stern became CEO upon the death of his predecessor . The company still has an R&D office in California that employs about a half dozen people, Corliss said.
 

Oxygen Biotherapeutics plans to raise $4.6 million from an undisclosed institutional investor.

The Morrisville company expects to use the proceeds to continue work on dermatology and cosmetics products. Oxygen is developing and marketing various products that are designed to repair damaged tissue by increasing the delivery of oxygen to the site.

The company's line of Dermacyte skin products is designed to reduce fine lines and wrinkles.

Oxygen Biotherapeutics, a small Durham company developing products to treat various ailments and injuries by increasing the delivery of oxygen to damaged tissue, filed plans late Friday to raise as much as $75 million by selling more shares.

The so-called shelf registration with the Securities and Exchange Commission allows Oxygen to sell shares from time to time. Oxygen plans to use any money raised for expansion and to pay for further clinical testing of new products.

The company, which employs 21 people, has outgrown its current space and is considering whether to lease or buy bigger space in this region, said CEO Chris Stern.

On Friday, a Triangle company's stock will debut on the Nasdaq.

Oxygen Biotherapeutics shares, which now trade over-the-counter, will continue to trade under the symbol "OXBT."

The small Durham company in November conducted a reverse stock split that gave every investor one share for every 15 they owned. The process boosted the stock price to the point where it qualified for the Nasdaq listing.

Moving up to the Nasdaq will increase Oxygen's visibility on Wall Street and could help bolster its shares, if the company is successful. On Jan. 22, CEO Chris Stern is scheduled to ring the opening bell at the Nasdaq in New York.

Oxygen Biotherapeutics, a small company that moved its headquarters to Durham from California last year, won approval to list its shares on the Nasdaq stock market.

The shares, which now trade over-the-counter under the symbol "OXBT," have climbed about 35 percent in the past year.

Oxygen is developing products to treat various ailments and injuries by increasing the delivery of oxygen to damaged tissue.

Oxygen Biotherapeutics, a small company that moved its headquarters to Durham from California in the spring, announced that shareholders approved a reverse stock split.

The split will give every investor one share for every 15 they now own. The shares now are traded over the counter but the split will boost the stock's price to the point where it will qualify for listing on a major exchange.

Getting onto an exchange could help attract more interest from Wall Street.

Oxygen is developing products to treat various ailments and injuries by increasing the delivery of oxygen to damaged tissue.

CEO Chris Stern, who took over the company when its previous CEO died unexpectedly last year, lived in in this region and decided to shift Oxygen's headquarters to Durham. The company now employs 19 people.

Oxygen shares closed Monday at 47 cents.