Timber Pharmaceuticals, Inc., filed a motion in the US Bankruptcy Court for the sale of substantially all its assets on November 17, 2023. The debtor seeks the Court?s approval for the sale of substantially all its assets to LEO Spiny Merger Sub, Inc. and LEO Pharma A/S, the stalking horse bidder, for a purchase price of $14.35 million in cash plus the assumption of the assumed liabilities pursuant to the asset purchase agreement, dated November 17, 2023. To qualify as a qualified bidder, interested parties should submit their bids by January 4, 2023, along with good-faith deposit in the amount of 10% of the bid price.

The initial minimum overbid should be at least $0.20 million more than the initial purchase price. The debtor has scheduled an auction on January 8, 2023. At the auction, the subsequent bids would be in increments of $0.20 million.

The stalking horse bidder would be entitled to a break-up fee of 2.5% and expense reimbursement of 3.5% in case of termination of the asset purchase agreement. The sale hearing is scheduled for January 12, 2024. The proceeds from the sale would be used to pay off the amount owed to the debtor?s pre-petition lender.