NightHawk Biosciences has recently received a non-binding offer from its CEO, Jeffrey Wolf, regarding the acquisition of its subsidiary, Elusys Therapeutics. Elusys Therapeutics is the creator of Anthim, an anthrax antitoxin.
The offer, submitted by Wolf's company Starlight Acquisition, seeks equity interests in Elusys, all intellectual property associated with Anthim, specific research and development rights, as well as certain assets such as employees and the rights to the NightHawk Biosciences name.
In exchange for the acquisition, Starlight will assume the liabilities and contractual obligations of Elusys, which are estimated to be around $40 million. They will also take on the operating costs and agree to pay 10% of profits generated from Anthim sales for a duration of five years.
NightHawk Biosciences has been exploring strategic options to tackle a deficit of almost $236 million and a net loss of $26.7 million for the first half of this year, according to a filing with securities regulators.
A special committee comprised of independent directors is currently reviewing the proposal and making preparations for negotiations. In response to this news, shares of NightHawk have increased by 4.4% to 57 cents during early trading.