Allon, Isar Pharma K/S deal

Allon received a $10 million investment from Isar in exchange for an interest in Allon's davunetide. Isar can elect to convert its investment to up to 19.99% of Allon's common shares at any time at a conversion price of $0.44. Until conversion, Allon has agreed to pay Isar the greater of an 8% royalty on davunetide sales or 20% of what it receives for commercializing the product. Allon will also pay 20% of all non-royalty revenue received in a partnership, including in a sub-licensing deal. Allon said the "payment obligations decrease proportionately as the investment is converted." ...