KaloBios Strikes Agreement With Martin Shkreli Restricting His Actions As Shareholder

By Markets MarketWatch Pulse

KaloBios Pharmaceuticals Inc. [otc:kbioq] said Thursday it has signed a definitive agreement with biotech investor Martin Shkreli regarding his ownership of the company's common stock. The company said the agreement includes an option for the company to repurchase his shares, and restricts his action as a shareholder. Shkreli was arrested last December and charged with securities fraud relating to another company. Under the terms of the agreement, for 180 days following June 30, the day the company emerged from bankruptcy protection, Shkreli is not allowed to sell his shares to any third party at a price per share that is less than the greater of (x) $2.50 and (y) a 10% discount to the prior two-week volume-weighted average price, defined as the market discount price, the company said in a statement. KaloBios has the right to purchase any of all of Shkreli's shares at a purchase price equal to the market discount price for 180 days following the 61st day after June 30. The company also settled class action litigation related to Shkreli's tenure with the company.

Continue Reading Below

Copyright © 2016 MarketWatch, Inc.