RENO, Nev., Dec. 14, 2020 /PRNewswire/ -- PDL BioPharma,
Inc. ("PDL" or the "Company") (Nasdaq: PDLI) announces it has
entered into a Capital Provision Agreement (the "Agreement") with
Epps Investments LLC ("Epps"). Under the terms of the
Agreement, Epps will pay PDL $51,391,184 no later than December 31, 2020, in exchange for 100% of the
payments or other property or value received by PDL on or after the
date of the Agreement pursuant to the settlement agreement
(the "Settlement Agreement") with related entities of Defined
Diagnostics, LLC (f/k/a Wellstat Diagnostics, LLC) ("Wellstat
Diagnostics") announced August 12,
2020, and the underlying claims resolved by the Settlement
Agreement. The Settlement Agreement resolved previously
reported litigation relating to loans made to Wellstat Diagnostics
by PDL. PDL has agreed to reimburse Epps for certain of its
expenses related to the Agreement.
Pursuant to the Agreement, PDL will also grant to Epps a
security interest in PDL's interest in certain collateral,
including the Settlement Agreement and the underlying claims
resolved by the Settlement Agreement, as security for the payment
of the Company's obligations under the Agreement.
Additionally, if the required payments under the Settlement
Agreement are not made to PDL in accordance with the terms of the
Settlement Agreement by July 26,
2021, PDL has agreed to assign its rights and obligations
under the Settlement Agreement, and the underlying claims resolved
by the Settlement Agreement, to Epps.
"We are very pleased to have reached this agreement with Epps,
as it brings this matter to a close under definitive and attractive
terms to our stockholders as we enter the dissolution process,"
commented Dominique Monnet, PDL's
President and CEO. "The proceeds from this transaction
matches the value of the Wellstat notes on PDL's balance sheet, and
will be incremental to the initial $7.5
million payment received from the Wellstat parties at the
time the Settlement Agreement was signed."
About PDL BioPharma, Inc.
Throughout its history, PDL's mission has been to improve the
lives of patients by aiding in the successful development of
innovative therapeutics and healthcare technologies. PDL BioPharma
was founded in 1986 as Protein Design Labs, Inc. when it pioneered
the humanization of monoclonal antibodies, enabling the discovery
of a new generation of targeted treatments that have had a profound
impact on patients living with different cancers as well as a
variety of other debilitating diseases. In 2006, the Company
changed its name to PDL BioPharma, Inc.
As of December 2019, PDL ceased
making additional strategic transactions and investments and is
pursuing a formal process to unlock the value of its portfolio by
monetizing its assets and ultimately distributing net proceeds to
stockholders in the form of cash or equity.
For more information please visit https://www.pdl.com/.
NOTE: PDL, PDL BioPharma, the PDL logo and associated logos and
the PDL BioPharma logo are trademarks or registered trademarks of,
and are proprietary to, PDL BioPharma, Inc., which reserves all
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including as it relates to the Company's Capital Provision
Agreement with Epps Investment LLC. Each of these forward-looking
statements involves risks and uncertainties. Actual results may
differ materially from those, express or implied, in these
forward-looking statements. Important factors that could impair the
value of the Company's assets and business, including the
implementation or success of the Company's monetization
strategy/plan of complete liquidation, are disclosed in the risk
factors contained in the Company's Annual Report on Form 10-K filed
with the SEC on March 11, 2020 and
Quarterly Reports on Form 10-Q filed with the SEC on May 11, 2020, August 10,
2020 and November 13, 2020.
All forward-looking statements are expressly qualified in their
entirety by such factors. We do not undertake any duty to update
any forward-looking statement except as required by law.
View original content to download
SOURCE PDL BioPharma, Inc.