SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
ATRINSIC,
INC.
(Name of Issuer)
Common Stock, par value $0.000001 per share
(Title of Class of Securities)
04964C208
(CUSIP Number)
Garo H. Armen
3 Forbes Road
Lexington,
MA 02421
212-994-8200
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
with copies to:
Kenneth
S. Goodwin, Esq.
Meister Seelig & Fein LLP
125 Park Avenue, 7th Floor
New York, NY 10017
(212)
655-3563
February 12, 2016
(Date of Event which Requires Filing of this Statement)
If the filing
person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following
box. ¨
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §
240.13d-7 for other parties to whom copies are to be sent.
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The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information
which would alter disclosures provided in a prior cover page. |
The information required on the remainder of this cover page
shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).
13D
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CUSIP No. 04964C208 |
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Page 2 of 7 Pages |
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1 |
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NAMES OF
REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Garo H. Armen |
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CHECK THE APPROPRIATE BOX IF A MEMBER
OF A GROUP (See Instructions)
(a) ¨ (b) ¨ |
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SEC USE ONLY
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SOURCE OF FUNDS (See Instructions)
PF |
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CHECK IF DISCLOSURE OF LEGAL
PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) ¨ |
6 |
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CITIZENSHIP OR PLACE OF
ORGANIZATION United States |
NUMBER OF
SHARES BENEFICIALLY
OWNED BY EACH
REPORTING PERSON
WITH |
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7 |
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SOLE VOTING POWER
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8 |
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SHARED VOTING POWER
57,821,440,628 (1) (2) |
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SOLE DISPOSITIVE POWER
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SHARED DISPOSITIVE POWER
57,821,440,628 (1) (2) |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
57,821,440,628 (1) (2) |
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CHECK BOX IF THE AGGREGATE AMOUNT IN
ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) ¨ |
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PERCENT OF CLASS REPRESENTED BY AMOUNT
IN ROW (11) 34.1% (1) (based on 149,770,843,633 shares of common
stock outstanding as of February 12, 2016) |
14 |
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TYPE OF REPORTING PERSON (See
Instructions) IN |
(1) |
Includes vested warrants to purchase 19,381,714,215 shares common stock, assuming conversion of the Series B Preferred Stock. |
(2) |
Based on a total of 149,770,843,633 shares of common stock outstanding, assuming conversion of the Series B Preferred Stock. |
13D
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CUSIP No. 04964C208 |
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Page 3 of 7 Pages |
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1 |
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NAMES OF
REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Garo H. Armen IRA |
2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER
OF A GROUP (See Instructions)
(a) ¨ (b) ¨ |
3 |
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SEC USE ONLY
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4 |
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SOURCE OF FUNDS (See Instructions)
PF |
5 |
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CHECK IF DISCLOSURE OF LEGAL
PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) ¨ |
6 |
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CITIZENSHIP OR PLACE OF
ORGANIZATION United States |
NUMBER OF
SHARES BENEFICIALLY
OWNED BY EACH
REPORTING PERSON
WITH |
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7 |
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SOLE VOTING POWER
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8 |
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SHARED VOTING POWER
57,821,440,628 (1) (2) |
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SOLE DISPOSITIVE POWER
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10 |
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SHARED DISPOSITIVE POWER
57,821,440,628 (1) (2) |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
57,821,440,628 (1) (2) |
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CHECK BOX IF THE AGGREGATE AMOUNT IN
ROW (11) EXCLUDES CERTAIN SHARES (See Instructions) ¨ |
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PERCENT OF CLASS REPRESENTED BY AMOUNT
IN ROW (11) 34.1% (1) (based on 149,770,843,633 shares of common
stock outstanding as of February 12, 2016) |
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TYPE OF REPORTING PERSON (See
Instructions) IN |
(1) |
Includes vested warrants to purchase 19,381,714,215 shares common stock, assuming conversion of the Series B Preferred Stock. |
(2) |
Based on a total of 149,770,843,633 shares of common stock outstanding, assuming conversion of the Series B Preferred Stock. |
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13D |
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CUSIP No.: 04964C208 |
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Item 1. |
Security and Issuer |
This Schedule 13D relates to the Common Stock, par value $.000001
per share (the Common Stock), of Atrinsic, Inc., a Delaware corporation (the Company). The address of the Companys principal executive offices is 149 Fifth Avenue, Suite 500, New York, NY 10010.
Item 2. |
Identity and Background |
This Schedule 13D is being filed jointly by Garo H. Armen and
Garo H. Armen IRA (the IRA). Mr. Armen has sole voting and investment power with respect to all investments held by the IRA. Mr. Armen and the IRA are each referred to herein individually as a Reporting Person and
collectively as the Reporting Persons.
Mr. Armens principal occupation is as Chairman and Chief Executive Officer
Agenus, Inc., a publicly held biotechnology company focused on the development of technologies and products to treat cancers and infectious diseases. The Reporting Persons principal business address is 3 Forbes Road, Lexington, MA
02420. Mr. Armen is also the Chairman and a director of the Company.
The Reporting Persons have not been convicted in any criminal
proceeding (excluding traffic violations and similar misdemeanors), and have not been a party to any civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding were subject to a judgment,
decree or final order enjoining future violations of, or prohibiting activity subject to, federal or state securities laws or finding any violation with respect to such laws during the last five years.
Mr. Armen is a citizen of the United States.
Item 3. |
Source and Amount of Funds or Other Consideration |
On February 12, 2015, the
Companys wholly-owned subsidiary, Protagenic Acquisition Corp., a Delaware corporation, was merged (the Merger) into Protagenic Thereapeutics, Inc. (Protagenic), and Protagenic became a wholly-owned subsidiary of the
Company. Pursuant to the Merger, the holders of the outstanding common stock of Protagenic received an aggregate of 6,612,838 shares of the Companys Series B Preferred Stock, par value $0.000001 per share (the Series B Preferred
Stock). Each share of Series B Preferred Stock votes as a single class with the Companys Common Stock on the basis of 15,463.7183 votes per share of Series B Preferred Stock. At such time as the Company files an amendment to its
certificate of incorporation with the Secretary of State of the State of Delaware effecting a 1-for-15,463.7183 reverse stock split (the Reverse Split) of its outstanding Common Stock, with special treatment for certain of its
stockholders to preserve round lot stockholders and the rounding up for fractional shares, then all the outstanding shares of Series B Preferred Stock will immediately and automatically convert into shares of Common Stock (the Mandatory
Conversion), except for Series B Preferred Stock held by certain holders who have adopted a blocker provision (the Blocker) preventing the automatic conversion of such shares of Series B Preferred Stock that would cause
each such holder of Series B Preferred Stock to beneficially own more than 9.9% of the Companys Common Stock. At the consummation of the Mandatory Conversion, the holders of Super Voting Preferred Stock will be entitled to receive Common Stock
at the conversion rate of 1 share of fully paid and non-assessable Common Stock for 1 share of Series B Preferred Stock.
The beneficial
ownership of Common Stock reported in this Schedule 13D by the Reporting Persons is based on the Reporting Persons ownership of the Companys Series B Preferred Stock, on an as-converted-to-Common-Stock basis, without giving effect to the
Reverse Split and the Blocker, and assumes a total of 149,770,843,633 shares of Common Stock outstanding as of February 12, 2016.
On
February 12, 2016, the Reporting Persons and each of Strategic Bio Partners, LLC, Gregory H. Ezikian, Alexander Arrow, Mark Berg, David A. Lovejoy and Larry N. Feinberg entered into a Voting Agreement (Voting Agreement) pursuant to
which such parties became obligated, for so long as the Voting Agreement remains in effect according to its terms, to vote Garo H. Armens four nominees, and Strategic Bio Partners, LLCs one nominee, to the Companys Board of
Directors. The authorized number of directors is five. The current members of
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CUSIP No.: 04964C208 |
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the Board of Directors are Mr. Armen, Robert B. Stein, Khalil Barrage, Gregory H. Ezikian and Joshua Silverman. Messrs. Armen, Stein Barrage and Ekizian are the nominees of Mr. Armen,
while Mr. Silverman is the nominee of Strategic Bio Partners, LLC.
The Voting Agreement also obligates the Reporting Persons and the
other parties to the Voting Agreement to vote to approve the amendment of the Companys certificate of incorporation, as amended, to authorize the Reverse Split. In the event that any of the parties to the Voting Agreement fail to vote their
respective shares to approve the matters covered by the Voting Agreement, each of the parties has granted to the Company, or any designee of the Company, with full power of substitution, a proxy to vote their respective shares to approve such
matters.
The Voting Agreement is attached hereto as Exhibit 1, and incorporated herein by reference.
The Reporting Persons acquired 2,205,801 shares of Series B Preferred Stock from the Company in exchange for 2,205,801 shares of common stock,
$.001 par value, of Protagenic in connection with the Merger. On February 11, 2016 Mr. Armen purchased 280,000 shares of Series B Preferred Stock for a purchase price of $1.25 per share, or an aggregate purchase price of $350,000. The
purchase price was paid by the cancellation of $350,000, inclusive of principal and interest, of debt owed by Protagenic to Mr. Armen.
The shares of Common Stock that are deemed to be beneficially owned by the Reporting Persons as of the date of this Schedule 13D include
warrants to purchase 1,253,367 shares of Series B Preferred Stock. These warrants were exchanged in the Merger for warrants originally issued by Protagenic to purchase 1,253,367 shares of Protagenic common stock. Prior to the Reverse Split, the
warrants are exercisable for Series B Preferred Stock for an exercise price of $1.00 per share; after the Reverse Split, the warrants will entitle Mr. Armen to buy Common Stock for an exercise price of $1.00 per share. Warrants to purchase
300,000 shares expire in May 2021, while warrants to purchase 953.367 shares expire in February 2023. Payment of the exercise price for the warrants may be by (i) cash, (ii) through a net or cashless exercise, or (iii) by any
combination of (i) and (ii) above. The Reporting Person must pay the warrant exercise price at the time of exercise.
Item 4. |
Purpose of Transaction |
Reference is made to the disclosure set forth under Item 3
of this Schedule 13D, which disclosure is incorporated herein by reference.
The Reporting Persons acquired the securities of the Company
for investment purposes. The Reporting Persons disclaim any membership in a group relating to the Company except with respect to the matters relating to the Voting Agreement described above, as to which matters the Reporting Persons have agreed to
vote.
The Reporting Persons have no present plans or proposals which relate or would result in any of the matters set forth in paragraphs
(a) through (j) of Item 4 of Schedule 13D.
Item 5. |
Interest in Securities of the Issuer |
The information contained in Items 3 and 4 is
hereby incorporated herein by reference.
The Reporting Persons are the beneficial owners of 3,739,168 shares of Series B Preferred Stock,
which includes vested warrants to purchase 1,253,367 shares of Series B Preferred Stock. These shares and warrants are convertible into 57,821,440,628 shares (the Shares) of Common Stock, which represents approximately 34.1% of the
Companys outstanding shares of Common Stock. This percentage assumes (i) conversion of all of the outstanding Series B Preferred Stock, (ii) the 400,000,000 shares of Common Stock listed as outstanding in the Companys most
recent Quarterly Report on Form 10-Q filed November 13, 2015 and (iii) the 2,205,801 shares of Series B Preferred Stock reported in this Schedule 13D and the 1,253,367 shares of Series B Preferred Stock that would be issued to the
Reporting Persons upon the exercise of all warrants held by the Reporting Persons.
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13D |
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CUSIP No.: 04964C208 |
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Mr. Armen has the sole power vote or direct the vote of, and to dispose of or direct the
disposition of, the Shares.
Transactions by the Reporting Persons in Common Stock effected in the past 60 days are described in
Item 3 above.
Item 6. |
Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer |
The information set forth and/or incorporated by reference in Items 3 through 5 is hereby incorporated by reference into this Item 6.
Other than as set forth above or incorporated herein by reference, the Reporting Persons do not have any contracts, arrangements,
understandings or relationships (legal or otherwise) with any person with respect to any securities of the Company, including but not limited to the transfer or voting of any of the securities, finders fees, joint ventures, loan or option
arrangements, puts or calls, guarantees of profits, division of profits or losses, or the giving or withholding of proxies.
Item 7. |
Material to Be Filed as Exhibits |
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Exhibit No. |
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Description |
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1 |
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Voting Agreement, dated February 12, 2016. |
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13D |
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CUSIP No.: 04964C208 |
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SIGNATURE
After reasonable inquiry and to the best of the undersigneds knowledge and belief, the undersigned certifies that the information set
forth in this statement is true, complete and correct.
Dated: February 16, 2016
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/s/ Garo H. Armen |
Garo H. Armen |
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Garo H. Armen IRA |
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By: |
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/s/ Garo H. Armen |
Garo H. Armen |
Exhibit 1
VOTING AGREEMENT
This
VOTING AGREEMENT (this Agreement) is entered into as of February 12, 2016 (the Effective Date) by and among Atrinsic, Inc., a Delaware corporation (the Company), the parties listed as
stockholders of Protagenic Therapeutics, Inc. (the Protagenic Therapeutics Stockholders) on the signature pages hereto, and Strategic Bio Partners, LLC (Strategic), each such person a Stockholder and
collectively, the Stockholders.
W I T N E S S E T H:
WHEREAS, as of the date hereof, each Stockholder holds and is entitled to vote (or to direct the voting of) shares of (i) common
stock, par value $0.000001 per share of the Company (the Common Stock), and/or (ii) shares of Series B preferred stock, par value $0.000001 per share, of the Company (the Series B Shares, and together with
the Common Stock, the Voting Shares), of the Company (such Voting Shares, together with any other Voting Shares the voting power of which is acquired by such Stockholders during the period from the date hereof through the date on
which this Agreement is terminated in accordance with its terms (such period, the Voting Period), are collectively referred to herein as the Subject Shares);
WHEREAS, the Company has entered into an Agreement and Plan of Merger with Protagenic Therapeutics, Inc., a Delaware corporation
(Protagenic), pursuant to which a newly organized, wholly-owned subsidiary of the Company has merged with and into Protagenic, with Protagenic remaining as the surviving entity and a wholly-owned subsidiary of the Company (the
Merger);
WHEREAS, simultaneously with the Merger and to provide the capital required by the Company for working
capital and other purposes, the Company has offered Series B Shares to investors in a private placement transaction (the PPO) in compliance with Rule 506 of Regulation D of the Securities Act of 1933, as amended;
WHEREAS, the initial closing of the PPO and the closing of the Merger have taken place as of the Effective Date; and
WHEREAS, as an inducement to the parties willingness to consummate the transactions contemplated by the Merger Agreement, the
Company and the Stockholders are entering into this Agreement.
NOW, THEREFORE, in consideration of the mutual promises,
representations, warranties, covenants, and conditions set forth herein, the parties mutually agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Capitalized Terms. For purposes of this Agreement, capitalized terms used and not defined herein shall have the
respective meanings ascribed to them in the Merger Agreement.
ARTICLE II
VOTING AGREEMENT AND IRREVOCABLE PROXY
Section 2.1 Agreement to Vote the Subject Shares. Each Stockholder hereby agrees that, during the Voting Period, at any duly
called meeting of the stockholders of the Company (or any adjournment or postponement thereof) or action taken by written consent in lieu of a meeting, each Stockholder shall, if a meeting is held, appear at the meeting, in person or by proxy, or
otherwise cause his Subject Shares owned at any time to be counted as present thereat for purposes of establishing a quorum, and he shall vote (or cause to be voted), in person or by proxy, all of his Subject Shares:
(a) to ensure that the size of the Board shall be set and remain at five (5) directors unless increased by the Board;
(b) to ensure that at each annual or special meeting of stockholders at which an election of directors is held or pursuant
to any written consent of the Stockholders, one person designated by Strategic shall be elected to the Board, which individual shall initially be Josh Silverman;
(c) to ensure that at each annual or special meeting of stockholders at which an election of directors is held or pursuant to
any written consent of the Stockholders, four persons designated by Garo H. Armen (as long as he is an officer or director of the Company) shall be elected to the Board, which individuals shall initially be Garo H. Armen, Robert B. Stein, Khalil
Barrage and Gregory H. Ekizian; and
(d) to ensure that the Company files an amendment to its certificate of incorporation
to effect a one-for-15,463.7183 reverse stock split.
Section 2.2 Grant of Irrevocable Proxy. If requested by the Company,
each Stockholder shall appoint the Company and any designee of the Company, and each of them individually, as each Stockholders proxy, with full power of substitution and resubstitution, to vote during the Voting Period with respect to any and
all of the Subject Shares on the matters and in the manner specified in Section 2.1. Each Stockholder shall take such further action or execute such other instruments as may be reasonably necessary to effectuate the intent of any such
proxy. Each Stockholder affirms that any irrevocable proxy given by such Stockholder with respect to this Agreement and the transactions contemplated hereby shall be given to the Company by such Stockholder to secure the performance of the
obligations of the Stockholder under this Agreement. It is agreed that the Company (and its officers on behalf of the Company) will use the irrevocable proxy that may be granted by each Stockholder only in accordance with applicable law and only if
such Stockholder fails to comply with Section 2.1 and that, to the
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extent the Company (and its officers on behalf of the Company) uses any such irrevocable proxy, he will only vote the Subject Shares subject to such irrevocable proxy with respect to the matters
specified in, and in accordance with the provisions of, Section 2.1.
Section 2.3 Nature of Irrevocable Proxy. Any
proxy granted pursuant to Section 2.2 to the Company by the Stockholders shall be irrevocable during the term of this Agreement, shall be deemed to be coupled with an interest sufficient in law to support an irrevocable proxy and shall
revoke any and all prior proxies granted by the Stockholders. Any proxy that may be granted hereunder shall terminate upon the termination of this Agreement.
ARTICLE III
COVENANTS
Section 3.1 Subject Shares.
(a) Each Stockholder agrees that during the Voting Period such Stockholder shall not, without the Companys prior written
consent, grant any proxies or powers of attorney with respect to any or all of the Subject Shares or agree to vote the Subject Shares on any matter inconsistent with the terms described herein; provided, however, that in
the event a Stockholder transfers all or any portion of his Subject Shares such Stockholder shall be permitted to grant stock powers with respect to such transferred Subject Shares.
(b) In the event of (i) a stock dividend or distribution, (ii) any change in the Subject Shares by reason of any
stock dividend or distribution, split-up, recapitalization, combination, conversion, exchange of shares or the like or (iii) the conversion of Series B Shares into Common Shares, the term Subject Shares shall be deemed to refer to
and include the Subject Shares as well as all such stock dividends and distributions and any securities into which or for which any or all of the Subject Shares may be changed, exchanged or converted or which are received in such transaction.
Section 3.2 Voting Trusts. Each Stockholder agrees that it will not, nor will it permit any entity under its control to, deposit
any of such Stockholders Subject Shares in a voting trust or subject any of its Subject Shares to any arrangement with respect to the voting of such Subject Shares other than as provided herein. Notwithstanding the foregoing, each Stockholder
shall be permitted to transfer all or any portion of its Subject Shares to third parties.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF EACH STOCKHOLDER
Each Stockholder hereby represents and warrants to the Company, severally, but not jointly, as follows:
Section 4.1 Authority, etc. The Stockholder (i) if a natural person, represents that the Stockholder has reached the age of
21 and has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or
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partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Series B
Shares, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law
or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof, the execution and
delivery of this Agreement has been duly authorized by all necessary action, this Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or (iii) if executing this
Agreement in a representative or fiduciary capacity, represents that it has full power and authority to execute and deliver this Agreement in such capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation,
or limited liability company or partnership, or other entity for whom the Stockholder is executing this Agreement, and such individual, partnership, ward, trust, estate, corporation, or limited liability company or partnership, or other entity has
full right and power to perform pursuant to this Agreement and represents that this Agreement constitutes a legal, valid and binding obligation of such entity. This Agreement has been duly executed and delivered by each Stockholder and (assuming the
due authorization, execution and delivery by the Company) constitutes a valid and binding obligation of such Stockholder, enforceable against such Stockholder in accordance with its terms, except to the extent enforcement is limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors rights and by general equitable principles.
Section 4.2 Ownership of Shares. As of the date hereof, each Stockholder is the lawful owner of the Voting Shares owned by such
Stockholder and has the sole power to vote or cause to be voted such shares or shares power to vote or cause to be voted such shares solely with one or more other persons. Each Stockholder has good and valid title to the Voting Shares owned by each
Stockholder, free and clear of any and all pledges, mortgages, liens, charges, proxies, voting agreements, encumbrances, adverse claims, options, security interests and demands of any nature or kind whatsoever, other than (i) those created by
this Agreement, or (ii) those existing under applicable securities laws.
Section 4.3 No Conflicts. (a) No
authorization, consent or approval of any other person is necessary for the execution of this Agreement by each Stockholder and (b) none of the execution and delivery of this Agreement by each Stockholder, the consummation by each Stockholder
of the transactions contemplated hereby or compliance by each Stockholder with any of the provisions hereof shall (i) result in, or give rise to, a violation or breach of or a default under any of the terms of any material contract,
understanding, agreement or other instrument or obligation to which each Stockholder is a party or by which each Stockholder or any of the Subject Shares or its assets may be bound or (ii) violate any applicable order, writ, injunction, decree,
judgment, statute, rule or regulation, except for any of the foregoing as would not reasonably be expected to materially impair each Stockholders ability to perform his obligations under this Agreement.
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ARTICLE V
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The Company hereby represents and warrants to each Stockholder as follows:
Section 5.1 Due Organization, etc. The Company is a Delaware corporation duly organized and validly existing under the laws of
Delaware. The Company has all necessary corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby by the Company have been duly authorized by all necessary corporate action on the part of the Company. This Agreement has been duly executed and delivered by the Company and (assuming the due authorization, execution and delivery
by each Stockholder) constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except to the extent enforcement is limited by bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors rights and by general equitable principles.
Section 5.2 No Conflicts. (a) No authorization, consent or approval of any other person is necessary for the execution of
this Agreement by the Company and (b) none of the execution and delivery of this Agreement by the Company, the consummation by the Company of the transactions contemplated hereby or compliance by the Company with any of the provisions hereof
shall (i) conflict with or result in any breach of the organizational documents of the Company, (ii) result in, or give rise to, a violation or breach of or a default under any of the terms of any material contract, understanding,
agreement or other instrument or obligation to which the Company is a party or by which the Company or any of its assets may be bound or (iii) violate any applicable order, writ, injunction, decree, judgment, statute, rule or regulation, except
for any of the foregoing as would not reasonably be expected to materially impair the Companys ability to perform its obligations under this Agreement.
ARTICLE VI
TERMINATION
Section 6.1 Termination. This Agreement shall automatically terminate, and neither the Company nor the Stockholders shall
have any rights or obligations hereunder and this Agreement shall become null and void and have no effect upon the earliest to occur of: (a) the approval of the holders of at least 90% of the Subject Shares (which percentage shall take into
account any Subject Shares owned by a Stockholder that are not eligible to vote pursuant to any limitations on voting under the terms of the Series B Shares), (b) the closing of a firm commitment underwritten public offering of the
Companys shares of Common Stock resulting in gross proceeds of at least $20 million or (iii) three years from the Effective Date. The termination of this Agreement shall not prevent either party from seeking any remedies (at law or in
equity) against the other party or relieve any party from liability for such partys willful and material breach of any terms of this Agreement. Notwithstanding anything to the contrary herein, (i) the provisions of Article VII
shall survive the termination of this Agreement and (ii) if a Stockholder effectuates a sale, transfer or other disposition of its Subject Shares to a party that is not a Stockholder during the Voting Period, the transferee shall not acquire
Subject Shares subject to the terms of this Agreement.
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ARTICLE VII
MISCELLANEOUS
Section 7.1 Further Actions. Each of the parties hereto agrees to take any all actions and to do all things reasonably necessary
or appropriate to effectuate this Agreement.
Section 7.2 Amendments, Waivers, etc. This Agreement may not be amended,
changed, supplemented, waived or otherwise modified, except upon the execution and delivery of a written agreement executed by the holders of at least 75% of the Subject Shares. The failure of any party hereto to exercise any right, power or remedy
provided under this Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other party hereto with its obligations hereunder, and any custom or practice of the parties at variance with the terms
hereof shall not constitute a waiver by such party of its right to exercise any such or other right, power or remedy or to demand such compliance.
Section 7.3 Notices. All notices or other communications which are required or permitted under this Agreement shall be in writing
and sufficient if delivered by hand, by facsimile transmission, by registered or certified mail, post pre-paid, or by courier or overnight carrier, to the persons at the addresses set forth below (or at such other address as may be provided
hereunder), and shall be deemed to have been delivered as of the date so delivered:
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If to the Company
Atrinsic, Inc. 149 Fifth Avenue, Suite 500
New York, NY 10010 Attn: Robert Ziroyan, President
Facsimile: 508.734.2177 Email: rziroyan@protagenic.com |
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Copy to (which copy shall not constitute notice
hereunder): Meister Seelig & Fein LLP
125 Park Avenue, 7th Floor
New York, NY 10017 Attn: Mark J. Seelig, Esq.
Facsimile: (646) 539-3655 Email:
mjs@msf-law.com |
If to the Stockholders:
To each Stockholder at the address set forth on the signature page hereto or at such other address as any party shall have furnished to the
other parties in writing.
Section 7.4 Headings. Headings of the Articles and Sections of this Agreement are for convenience
of the parties only, and shall be given no substantive or interpretive effect whatsoever.
Section 7.5 Severability. The
provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the
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application of such provision to any person or any circumstance, is invalid or unenforceable (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so
far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected by such
invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application of such provision, in any other jurisdiction.
Section 7.6 Entire Agreement; Assignment. This Agreement constitutes the entire agreement, and supersedes all other prior
agreements and understandings, both written and oral, between the parties, or any of them, with respect to the subject matter hereof. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the
parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties. Subject to the preceding two sentences, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties
hereto and their respective successors and permitted assigns.
Section 7.7 Parties in Interest. The Company and the
Stockholders hereby agree that their respective representations, warranties and covenants set forth herein are solely for the benefit of the other party hereto, in accordance with and subject to the terms of this Agreement, and this Agreement is not
intended to, and does not, confer upon any person other than the parties hereto any rights or remedies hereunder, including, without limitation, the right to rely upon the representations and warranties set forth herein. The representations and
warranties in this Agreement are the product of negotiations among the parties hereto and are for the sole benefit of the parties hereto. Any inaccuracies in such representations and warranties are subject to waiver by the parties hereto in
accordance with Section 7.2 without notice or liability to any other person. In some instances, the representations and warranties in this Agreement may represent an allocation among the parties hereto of risks associated with particular
matters regardless of the knowledge of any of the parties hereto. Consequently, persons other than the parties hereto may not rely upon the representations and warranties in this Agreement as characterizations of actual facts or circumstances as of
the date of this Agreement or as of any other date.
Section 7.8 Interpretation. When a reference is made in this Agreement to
an Article or Section, such reference shall be to an Article or Section of this Agreement unless otherwise indicated. Whenever the words include, or including are used in this Agreement, they shall be deemed to be followed by
the words without limitation. The words hereof, herein and hereunder and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement. All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant thereto unless otherwise defined therein. The definitions contained in this Agreement
are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement, instrument or statute defined or referred to herein or in any agreement or
instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented in accordance with the terms hereof, including (in the case
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of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments
incorporated therein. References to a person are also to its permitted successors and assigns. Each of the parties has participated in the drafting and negotiation of this Agreement. If an ambiguity or question of intent or interpretation arises,
this Agreement must be construed as if drafted by all the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship of any of the provisions of this Agreement.
Section 7.9 Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND
GOVERNED BY AND IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF.
Section 7.10 Specific Performance. The parties acknowledge that any breach of this Agreement would give rise to irreparable harm
for which monetary damages would not be an adequate remedy and that, in addition to other rights or remedies, the parties shall be entitled to seek enforcement of any provision of this Agreement by a decree of specific performance and to temporary,
preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of the provisions of this Agreement, without the necessity of proving the inadequacy of monetary damages as a remedy.
Section 7.11 Submission to Jurisdiction. The parties hereby irrevocably submit to the exclusive jurisdiction of the United States
District Court for the Southern District of New York located in the borough of Manhattan in the City of New York, or if such court does not have jurisdiction, the Supreme Court of the State of New York, New York County, for the purposes of any suit,
action or other proceeding arising out of this Agreement or any transaction contemplated hereby. Each of the parties hereto further agrees that service of any process, summons, notice or document by registered mail to such partys respective
address set forth in Section 7.3 (or to such other address for notices as provided by such party pursuant to Section 7.3) or in any other manner permitted by law shall be effective service of process for any action, suit or
proceeding in New York with respect to any matters to which it has submitted to jurisdiction as set forth above in the immediately preceding sentence. Each of the parties hereto irrevocably and unconditionally waives any objection to the laying of
venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in (i) the United States District Court for the Southern District of New York or (ii) the Supreme Court of the State of New York,
New York County, and hereby further irrevocably and unconditionally waives and agrees not to please or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.
Section 7.12 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS
LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
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EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.12.
Section 7.13 Counterparts. This
Agreement may be executed in two or more counterparts (including by facsimile or electronic submission via .pdf file), each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument,
and shall become effective when one or more counterparts have been signed by each of the parties and delivered (including by facsimile or electronic submission via .pdf file) to the other parties.
[Signature Pages Follow]
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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed as of
the day and year first above written.
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ATRINSIC, INC. |
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By: |
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/s/ Garo H. Armen |
Name: |
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Garo H. Armen |
Title: |
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Chairman |
IN WITNESS WHEREOF, the undersigned have caused this Voting Agreement to be duly executed
as of the day and year first above written.
PROTAGENIC THERAPEUTICS, INC. STOCKHOLDERS
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/s/ Garo H. Armen
Garo H. Armen
Address: c/o Atrinsic, Inc.
149 Fifth
Avenue, Suite 500
New York,
NY 10010 |
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/s/ Garo H. Armen
Garo H. Armen IRA
Address: c/o Atrinsic, Inc.
149 Fifth
Avenue, Suite 500
New York,
NY 10010 |
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/s/ Gregory H. Ekizian
Gregory H. Ekizian
Address: 1902 South Ardsley Street,
Tampa
Florida 33629 |
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/s/ Gregory H. Ekizian
Gregory H. Ekizian Revocable Trust
Address: 1902 South Ardsley Street,
Tampa
Florida 33629 |
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/s/ Alexander Arrow
Alexander Arrow
Address: c/o Atrinsic, Inc.
149 Fifth
Avenue, Suite 500
New York,
NY 10010 |
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/s/ Mark Berg
Mark Berg
Address: 210 Circle Rd,
Syosset,
NY 11791 |
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/s/ Mark Berg
Mark Berg IRA
Address: 210 Circle Rd,
Syosset,
NY 11791 |
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/s/ Larry N. Feinberg
Larry N. Feinberg
Address: 808 North St.
Greenwich,
CT 06831 |
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/s/ David A. Lovejoy
David A. Lovejoy
Address: 149 Baker St.
Stouffville, Ontario, L4A 1K6
Canada |
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IN WITNESS WHEREOF, the undersigned have caused this Voting Agreement to be duly executed
as of the day and year first above written.
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STRATEGIC BIO PARTNERS, LLC |
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By: |
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/s/ George Antonopoulos |
Name: |
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George Antonopoulos |
Title: |
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Authorized Signatory |