Arno Therapeutics, Inc. has completed the sale of all its remaining assets and will dissolve by the end of 2017.
The company's last remaining assets were the rights to Onapristone and were sold to Context Biopharma. It will use proceeds from the sale to clear its remaining liabilities and expects no remaining assets after this transaction.
Arno said the sale of Onapristone was part of a liquidation and dissolution plan approved the board and a majority of shareholders.
The company intends to maintain a small cash reserve for wind-down expenses. In addition, Context Biopharma holds $200,000 of the purchase price of Aro's assets for a period of six months in order to secure certain indemnification and other obligations of Arno under the purchase agreement.
Arno has also agreed that any amount it receives from the amount held back in the Onapristone asset sale will be paid to its former CEO to satisfy severance obligations, which the former CEO agreed to reduce by about 20% from the company's original obligation.
The company expects that the proceeds from the Onapristone transaction will provide it with sufficient funds to satisfy all of its creditors and to conduct an orderly wind-down of its business. However, Arno does not expect that there will be any assets remaining for distribution to its stockholders.