Adial Pharmaceuticals receives final reimbursement payment from Adovate

Adial Pharmaceuticals announced that on December 16, 2023, it received the final development cost reimbursement payment of $350,000 from Adovate under the terms of the final asset purchase agreement executed with Adovate for purchase of the assets and business of the Company’s wholly owned subsidiary, Purnovate, Inc. Under the agreement, the Company is also eligible to receive up to approximately $11 million in development and approval milestones for each compound, as well as a total of $50 million in additional commercial milestones, for a total consideration of up to $83 million with potential milestone payments on additional compounds. Additionally, the Company will receive a low, single-digit royalty and acquired a 15% equity stake in Adovate. The FAA also provides for anti-dilution protection from future Adovate equity raises in order to maintain at least 15% ownership in Adovate. The anti-dilution protection expires upon Adovate receiving $4,000,000 in cumulative funding.