Peak Bio, Inc. (OTC Pink:PKBO), a biotechnology company specializing in biological products, announced significant changes to its executive team and compensatory arrangements. The changes were detailed in a recent 8-K filing with the Securities and Exchange Commission.
On Monday, the company disclosed that Stephen LaMond, PharmD., MBA, resigned from his roles as Interim Chief Executive Officer and Chief Operating Officer, effective Friday. Dr. LaMond will continue to serve Peak Bio as a consultant to facilitate the transition to new management.
In connection with his departure, Peak Bio entered into a Separation and General Release Agreement with Dr. LaMond, which includes a consulting fee of $524,300, payable in monthly installments starting today, and COBRA benefits for up to 18 months.
Additionally, Dr. LaMond will receive an option to purchase 875,000 shares of Peak Bio’s common stock at $0.80 per share, vesting over a period extending to December 31, 2025, contingent on continued service.
Following Dr. LaMond's resignation, the Board determined that Hoyoung Huh, M.D., Ph.D., Executive Chairman of the Board, will take over the chief executive responsibilities, starting Friday.
In other recent news, Peak Bio, Inc., a Delaware-based biotechnology firm, has seen significant changes in its board and financial standing. Firstly, the company announced the appointment of Sandip Patel to its Board of Directors, who also assumes the role of the Audit Committee chairperson. Patel's background in public and private investments, including biotechnology and healthcare services, is expected to contribute to the company's leadership.
In other developments, Peak Bio announced the immediate resignation of three board members, David Rosenberg, Michael Friedman, and Stephen LaMond. The company clarified that these resignations were not due to disagreements with the company's operations, policies, or practices.
On the financial front, Peak Bio has successfully finalized its last round of convertible note financing, securing an additional $2.175 million. This follows a previous round that raised $1.324 million.
The convertible notes carry a 10% annual interest rate and are due to mature on December 18, 2024. In the event of a merger, these notes will automatically convert into common stock at a 50% discount rate based on a 30-day volume-weighted average price prior to conversion.
These are some of the recent developments that have transpired at Peak Bio, as the company continues to evolve in the biotechnology industry.
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