First Wave Restructures Merger Consideration Payment Terms

First Wave BioPharma Inc FWBI has agreed with the former shareholders of First Wave Bio Inc to amend the payment structure of the initial merger consideration and extend payments into 2023.
Related Link: AzurRx BioPharma To Acquire First Wave Bio For $229M.
The amendment comes to provide the Company with additional financial resources for its ongoing Phase 2 trial programs.
In September, the Company announced to acquire FWB for an upfront cash payment of $3 million and issued $4 million of common stock.
The original remaining upfront consideration of $15 million has been restructured.
Under the Revised Merger Agreement, the $15 million will be paid in smaller monthly installments from January 2022 through mid-year 2023 until satisfied.
James Sapirstein, President and CEO of First Wave BioPharma, stated, "this revised agreement provides us with additional capital resources to advance our clinical programs through multiple value-enhancing milestones in 2022."
Price Action: FWBI shares are down 6.04% at $2.17 during the market session on the last check Tuesday.