Revelation Biosciences, Inc., a pharmaceutical company based in San Diego, California, has been ordered to pay approximately $7.3 million following a court ruling. The judgment, issued on August 1, 2024, stems from a legal dispute with LifeSci Capital LLC regarding unpaid banking and advisory fees.
The fees in question relate to contracts established prior to the company's business combination with Petra Acquisition, Inc. Revelation Biosciences had argued that LifeSci Capital LLC was not entitled to the fees due to alleged misrepresentations about the financial resources that would be available post-merger. However, the U.S. District Court for the Southern District of New York ruled in favor of LifeSci Capital LLC.
Despite the significant financial obligation, Revelation Biosciences has confirmed that it has adequate cash reserves to fulfill the court's judgment without impacting its ongoing development and clinical trial programs. The payment of the judgment is currently underway.
This development is the latest in a legal saga that began with LifeSci Capital LLC's initial filing on February 18, 2022. The case progressed to a Magistrate Judge's recommendation for summary judgment in December 2023, which the District Court judge has now adopted, culminating in the $7.3 million judgment against Revelation Biosciences.
The company's common stock and warrants are traded on The Nasdaq Stock Market LLC under the symbols REVB and REVBW, respectively. Revelation Biosciences, identified as an emerging growth company, has not elected to use the extended transition period for complying with new or revised financial accounting standards.
In other recent news, Revere Bank continues to garner positive attention from analysts at Roth/MKM, who have maintained their Buy rating and $25 price target on the company's stock. This follows the announcement of promising Phase 1 trial results for the bank's drug, Gemini. The trial, which involved 40 healthy adults, found Gemini to be safe and tolerable across different doses, with the mid-dose identified as the maximum tolerated dose.
Key biomarkers were also significantly upregulated in a dose-dependent manner, indicating Gemini's potential efficacy. In response to these findings, Revere Bank plans to conduct a Phase 1b trial involving patients with chronic kidney disease to further assess the drug's safety and effectiveness. These recent developments underscore the progress the company is making in its clinical testing of Gemini, a fact that investors and stakeholders are likely to monitor closely.
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