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.