Item 1.01 Entry into a Material Definitive Agreement
On April 27, 2023, Aytu BioPharma, Inc., through its wholly-owned subsidiary,
Neos Therapeutics, LP, ("Aytu" or the "Company") and AMT Manufacturing
Solutions, LLC ("AMTMS") entered into an agreement for Aytu to sublease 22,909
square feet of its manufacturing facility in Grand Prairie, Texas ("Sublease
Agreement"). The Sublease Agreement is subject and subordinate to that certain
Commercial Lease Agreement by and between Aytu, as successor-in-interest to
PharmaFab, Inc., as tenant, and Riverside Business Green, LP, a Delaware limited
partnership, as Landlord, as successor-in-interest to Walstib, L.P., as
landlord, dated June 29, 1999, as amended, and expiring on December 31, 2024.
The sublease will commence on May 15, 2023. Commencing as early as April 1, 2024
but no later than December 31, 2024, which date shall be designated by Aytu by
written notice to AMTMS not less than thirty (30) days prior to the date of
expansion ("Expansion Date"), the subleased property shall be expanded to
include the remaining 54,203 square feet of Aytu's manufacturing facility. The
Sublease Agreement will terminate on December 31, 2024.
Under the terms of the Sublease Agreement, AMTMS will pay Aytu base rent of
$20,045 per month through December 31, 2023 and $21,000 per month from January
1, 2024 through the Expansion Date. Beginning on the Expansion Date, base rent
will be $70,686 per month through the expiration of the Sublease Agreement. In
addition to the base rent, AMTMS will pay Aytu certain operating expenses
incurred by Aytu.
AMTMS will pay a security deposit of $90,731 to Aytu, which will be applied to
rent payments if certain conditions are met.
The foregoing description of the Sublease Agreement is not complete and is
qualified in its entirety by reference to the Sublease Agreement, which Aytu
intends to file with its upcoming Quarterly Report on Form 10-Q.
Item 7.01. Regulation FD Disclosure
On May 1, 2023, Aytu issued a press release titled "Aytu BioPharma Subleases a
Portion of its Manufacturing Facility."
A copy of the press release is attached as Exhibit 99.1 to this Current Report
on Form 8-K. The information in this Item 7.01 and the exhibit attached hereto
shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to
the liabilities of that Section, or incorporated by reference into any of the
Company's filings under the Securities Act of 1933, as amended, or the Exchange
Act, except as shall be expressly set forth by specific reference in any such
filing.
Forward-Looking Statements; Risks and Uncertainties
Cautionary Note Regarding Forward Looking Statements: This Current Report on
Form 8-K contains "forward-looking statements," as that term is defined in U.S.
Federal and certain foreign securities regulations, including statements
regarding future payments to Aytu. Although Aytu's management believes that its
expectations are based on reasonable assumptions, these assumptions are subject
to various risks and uncertainties and thus Aytu can give no assurance that its
expectations will be attained or that actual developments and results will not
materially differ from those express or implied by the forward-looking
statements. These risks and uncertainties include, but are not limited to: (1)
the effects of any potential inquiry by the United States Securities and
Exchange Commission ("SEC") with respect to the proposed restatements or Aytu's
accounting practices; (2) the timing of Aytu's restatement of its previously
issued financial statements and the filing of Aytu's Second Quarter Form 10-Q;
and (3) the additional risks and uncertainties detailed from time to time in
Aytu's Annual Report on Form 10-K and quarterly reports on Form 10-Q, which
include a list of factors that could cause actual operational and financial
results to differ from those expected, and in Aytu's press releases and other
filings under the Securities Exchange Act of 1934. This communication should be
read in conjunction with all the other information included in our most current
Annual Report on Form 10-K, in Quarterly Reports filed on Form 10-Q, and in the
other reports and documents it files with the SEC. All documents required to be
filed with the SEC are available via on the SEC's website at www.sec.gov.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Description
99.1 Press release dated May 1, 2023
104 Cover Page Interactive Data File (the cover page XBRL tags are
embedded within the inline XBRL document)
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