- Jupiter Wellness ( NASDAQ: JUPW ) is set to refrain from exercising its rights and remedies in the convertible note agreements as part of a forbearance and settlement agreement with drug developer, Benuvia.
- In return, Jupiter Wellness will receive $3MM, as a structured repayment of three installments of $1MM over the next three months, and capital stock representing 8.0% of Benuvia's previously announced special purpose acquisition company merger with Pono Capital.
- Formally Next Frontier Pharmaceuticals, Benuvia is said to be in negotiations for a similar solution with a senior secure lender. The funds paid to Jupiter Wellness will be held in escrow until such an agreement is reached.
- The drug developer had recently entered into a definitive business combination agreement with Pono Capital, and expects to receive up to $115M in estimated gross transaction proceeds. The transaction is expected to close in Q4 and the company is expected to be listed on Nasdaq.
- Source: Press Release
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Jupiter Wellness agrees with drug developer to refrain from exercising convertible note rights