“As part of regular business activities, the Company is exposed...

“As part of regular business activities, the Company is exposed to possible litigation risks including contractual disputes, occupational health and safety claims and employee claims.

Further, the Company may be involved in disputes with other parties in the future which may result in litigation. Any such claim or dispute, if proven, may impact adversely on the Company’s operations, financial performance and financial position.

In this regard, the Company discloses the following:

On 9 March 2017, the University of Birmingham entered into an Option Agreement with the Biodome LLC (Biodome) pursuant to which the University of Birmingham, UK, granted Biodome an exclusive option (ExclusiveOption) to initiate negotiations for an exclusive licence of the patent rights set out in Section 4.3(a) and the Orphan Drug Designations set out in Sections 4.3(f) and (g) of this Prospectus (Option IP).

Under the terms of the Variation Agreement, in consideration for the execution of the Variation Agreement by The University of Birmingham, UK, Exelogen agreed to pay a non-fundable option free (Option Fee) to The University of Birmingham, UK, within 30 days of 16 April 2018.

The Option Fee was never paid to the The University of Birmingham, UK, by Exelogen and, eventually, The University of Birmingham, UK, on 6 November 2018 (some months after the Option Fee was due) issued aa termination notice to Exelogen terminating the Option Agreement immediately.

Exelogen disputed The University of Birmingham, UK’s ability to terminate the Option Agreement by letter dated 11 November 2018 and threatened immediate legal action against The University of Birmingham, UK. However, in the intervening period, no such legal action has been commenced and The University of Birmingham, UK, has not received any further correspondence from Exelogen.

The Company has reviewed the above agreements and correspondence and has formed the view that the Option Agreement was validly terminated by The University of Birmingham. In any event, the Option Agreement only granted Exelogen a right to “negotiate” an Exclusive Licence, but not actually any other rights in relation to the Option IP. As such, the Company does not consider that Exelogen has any rights in relation to the Option IP. However, there is a risk that Exlelogen may, in the future, make a claim that is has certain rights in relation to the Option IP. The Company’s view is that any such claim would be baseless and it would defend it vigorously.”

Had to type this up cause pdf wont let me copy but this is an excerpt from the prospectus from IXC. Basically The University of Birmingham entered into an agreement in 2018 with Exelogen for the right to negotiate a deal for the patents for Exenatide, Exelogen had to pay within a month, they didn’t, 6 months later The University of Birmingham negotiated a deal with Invex instead. The main claim here is that The University of Birmingham was already in discussions with Invex during the period in which Exelogen was supposed to have exclusive rights. Im not a lawyer so I don’t know how it would work but I would assume that Exelogen would have only gotten the exclusive rights once they had paid, and even then I don’t think this claim has much validity.

Would love to hear everyone’s thoughts.