A week after emerging from bankruptcy, KaloBios Pharmaceuticals reached an agreement with former CEO Martin Shkreli to limit his shareholder rights.
In the agreement with KaloBios, for 180 days following the company’s effective emergence from its chapter 11 proceedings, Mr. Shkreli may not sell his shares to any third party for less than $2.50 a share or a 10% discount to the prior two-week volume-weighted average price. Shkreli lost his right to nominate directors, and he and his affiliates are prohibited for two years from purchasing shares, seeking to control management or participating in any transactions pursued by the company. Additionally, KaloBios has right to buy any or all of Mr. Shkreli’s shares at the market discount price for 180 days after Aug. 30.
“This agreement is another step in the company’s pursuit of revitalizing its reputation,” said Chief Executive Cameron Durrant.
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