|[February 20, 2013]
Oxygen Biotherapeutics Announces Tentative Settlement of Litigation
MORRISVILLE, N.C. --(Business Wire)--
Oxygen Biotherapeutics, Inc. (NASDAQ: OXBT) today announced that it has
reached a tentative oral settlement of all litigation pending between
the Company and Tenor Opportunity Master Fund, Ltd., Aria (News - Alert) Opportunity
Fund, Ltd. and Parsoon Opportunity Fund, Ltd. (collectively "Tenor").
The litigation, filed by Tenor on August 30, 2011 in the United States
District Court for the Southern District of New York, alleged that a
right of first offer held by Tenor was breached in connection with the
Company's June 2011 financing. The tentative agreement provides that the
Company will settle the matter for $600,000 in cash, payable in six
quarterly installments commencing on the date the parties execute a
written settlement agreement. The settlement is subject to completion of
a written settlement agreement encapsulating this oral understanding,
including other key items such as the process by which payments are
made, Tenor's recourse mechanisms should the payments not be made and
other important details. The written settlement agreement is also
subject to review and approval, in their absolute and sole discretion,
by Tenor's Investment Committee and the Company's Board. The Company
admits no wrongdoing as part of the settlement.
"We are very plesed to have reached this oral settlement agreement.
Settlement of this suit is a positive step forward for the company,
allowing us to focus on our core objectives of developing our
perfluorocarbon-based products without the distraction and additional
legal fees further litigation of this matter would have generated," said
Michael B. Jebsen, Chief Financial Officer, President and Interim Chief
Executive Officer of Oxygen.
About Oxygen Biotherapeutics, Inc.
Headquartered in Morrisville, NC, Oxygen Biotherapeutics, Inc. is
developing medical and cosmetic products that efficiently deliver oxygen
to tissues in the body. The Company has developed a proprietary
perfluorocarbon (PFC) therapeutic oxygen carrier called Oxycyte® that is
currently in clinical and preclinical studies for intravenous delivery
for indications such as traumatic brain injury, decompression sickness
and stroke. The company is also developing PFC-based creams and gels for
topical delivery to the skin for dermatologic conditions and potentially
wound care. In addition, the Company has commercialized its Dermacyte®
line of skin care cosmetics for the anti-aging market, which has been
sublicensed to a third-party. See www.oxybiomed.com
for more information.
Caution Regarding Forward-Looking Statements
This news release contains certain forward-looking statements by the
company that involve risks and uncertainties and reflect the company's
judgment as of the date of this release. The forward-looking statements
are subject to a number of risks and uncertainties including the timing,
contents and Board approval of a written settlement agreement, our
ability to develop our products, and other risks and uncertainties as
described in our filings with the Securities and Exchange Commission,
including in the current Form 10-Q filed on December 14, 2012, and our
annual report on Form 10-K filed on July 24, 2012, as well as other
filings with the SEC (News - Alert). The company disclaims any intent or obligation to
update these forward-looking statements beyond the date of this release.
This caution is made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.
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