Nemus Bioscience Inc. said it is considering legal options against Schneider Brothers Ltd. and its affiliates for failing to provide funding to the company under a private placement agreement.
Schneider Finance LLC had agreed to invest $20 million in Nemus in May via the purchase of 1 million series E preferred stock. The placement was guaranteed by SB Securities Ltd., another affiliate of Schneider Brothers.
Schneider Finance failed to close the transaction on July 10, as required by the agreement, while SB Securities failed to pay the $20 million within 90 days of notice of Schneider Finance's default, Nemus said in a statement.
Nemus has engaged Haynes and Boone LLP to advise it on legal rights against the Schneider Brothers and its affiliates.
Nemus had about $108,859 in cash as of June 30.