Oxygen Biotherapeutics Reports Tentative Settlement of Litigation
Oxygen Biotherapeutics, Inc. (NASDAQ: OXBT) today announced that it has reached a tentative oral settlement of all litigation pending between the Company and Tenor Opportunity Master Fund, Ltd., Aria Opportunity Fund, Ltd. and Parsoon Opportunity Fund, Ltd. (collectively "Tenor"). The litigation, filed by Tenor on August 30, 2011 in the United States District Court for the Southern District of New York, alleged that a right of first offer held by Tenor was breached in connection with the Company's June 2011 financing. The tentative agreement provides that the Company will settle the matter for $600,000 in cash, payable in six quarterly installments commencing on the date the parties execute a written settlement agreement. The settlement is subject to completion of a written settlement agreement encapsulating this oral understanding, including other key items such as the process by which payments are made, Tenor's recourse mechanisms should the payments not be made and other important details. The written settlement agreement is also subject to review and approval, in their absolute and sole discretion, by Tenor's Investment Committee and the Company's Board. The Company admits no wrongdoing as part of the settlement.
“We are very pleased to have reached this oral settlement agreement. 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, Chief Financial Officer, President and Interim Chief Executive Officer of Oxygen.
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