Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions (Tables)

v3.21.2
Related Party Transactions (Tables)
9 Months Ended
Sep. 30, 2021
Related Party Transactions  
Schedule of effective date and PIK dividend or equity fee payable

The Company has entered into Founders Agreements and, in some cases, Exchange Agreements with certain of its subsidiaries as described in the Company's Form 10-K for the year ended December 31, 2020, filed with the SEC on March 31, 2021. The following table summarizes, by partner company, the effective date of the Founders Agreements and PIK dividend or equity fee payable to the Company in accordance with the terms of the Founders Agreements, Exchange Agreements, and the subsidiaries' certificates of incorporation:

PIK Dividend as

a % of fully

diluted

outstanding

Class of Stock

Fortress Partner Company

    

Effective Date 1

    

capitalization

    

Issued

Helocyte

March 20, 2015

 

2.5

%  

Common Stock

Avenue

February 17, 2015

 

0.0

%2  

Common Stock

Mustang

March 13, 2015

 

2.5

%  

Common Stock

Checkpoint

March 17, 2015

 

0.0

%3  

Common Stock

Cellvation

October 31, 2016

 

2.5

%  

Common Stock

Caelum

January 1, 2017

 

0.0

%4  

Common Stock

Baergic

December 17, 2019 4

2.5

%  

Common Stock

Cyprium

March 13, 2017

 

2.5

%  

Common Stock

Aevitas

July 28, 2017

 

2.5

%  

Common Stock

Oncogenuity

April 22, 2020 4

2.5

%

Common Stock

FBIO Acquisition Corp. VIII

November 7, 2017 4

 

0.0

%  

Common Stock

Note 1:

Represents the effective date of each subsidiary’s Founders Agreement. Each PIK dividend and equity fee is payable on the annual anniversary of the effective date of the original Founders Agreement or has since been amended to January 1 of each calendar year.

Note 2:

Concurrently with the execution and delivery of the Avenue SPMA entered into between, Avenue, the Company and InvaGen (together, the “ SPMA Parties”), the SPMA Parties entered into a waiver and termination agreement (the “Waiver Agreement”), pursuant to which the Company irrevocably waived its right to receive the annual dividend of Avenue’s common shares under the terms of the Class A preferred stock and any fees, payments, reimbursements or other distributions under the management services agreement between the Company and Avenue and the Founders Agreement, for the period from the effective date of the Waiver Agreement until such time as InvaGen beneficially owns less than 75% of the shares of Avenue common stock it acquired under the first closing of the Avenue SPMA.

Note 3:

Instead of a PIK dividend, Checkpoint pays the Company an annual equity fee in shares of Checkpoint’s common stock equal to 2.5% of Checkpoint’s fully diluted outstanding capitalization.

Note 4:

Represents the Trigger Date, the date that the Fortress partner company first acquires, whether by license or otherwise, ownership rights in a product.

Schedule of effective date and annual consulting fee payable by the subsidiary to the Company

The Company has entered in Management Services Agreements (the “MSAs”) with certain of its partner companies as described in the Company’s Form 10-K for the year ended December 31, 2020, filed with the SEC on March 31, 2021. The following table summarizes the effective date of the MSA and the annual consulting fee payable by the partner company to the Company in quarterly installments:

Annual MSA Fee

Fortress partner company

    

Effective Date

    

(Income)/Expense

Helocyte

March 20, 2015

$

500

Avenue 1

February 17, 2015

 

Mustang

March 13, 2015

 

500

Checkpoint

March 17, 2015

 

500

Cellvation

October 31, 2016

 

500

Baergic

March 9, 2017

 

500

Cyprium

March 13, 2017

 

500

Aevitas

July 28, 2017

 

500

Oncogenuity

February 10, 2017

500

FBIO Acquisition Corp. VIII

November 7, 2017

500

Fortress

 

(4,500)

Consolidated (Income)/Expense

$

Note 1:

Concurrently with the execution and delivery of the Avenue SPMA entered into among, Avenue, the Company and InvaGen (together, the “SPMA Parties”), the SPMA Parties entered into a waiver and termination agreement (the “Waiver Agreement”), pursuant to which the Company irrevocably waived its right to receive the annual dividend of Avenue’s common shares under the terms of the Class A preferred stock and any fees, payments, reimbursements or other distributions under the management services agreement between the Company and Avenue and the Founders Agreement, for the period from the effective date of the Waiver Agreement until such time as InvaGen beneficially owns less than 75% of the shares of Avenue common stock it acquired under the first closing of the Avenue SPMA.