Timber Pharmaceuticals, Inc. filed a notice for the selection of Winnig Bidder and filed an asset purchase agreement in the US Bankruptcy Court for the sale of substantially all its assets on January 5, 2024. The auction for asset sale was cancelled and stalking horse bidder has been selected as winning bidder. As per the agreement dated November 17, 2023, seeks the Court?s approval for the sale of substantially all its assets to LEO Pharma A/S and LEO Spiny Merger Sub, Inc., for a purchase price of $14.35 million in cash and cures cost plus assumed liabilities.

The buyer would be entitled to a break-up fee of 2.5% of cash portion of purchase price and expense reimbursement in case of termination of the asset purchase agreement. The transaction is expected to close not before January 16, 2024. The buyer is represented by Uri Doron of Covington & Burling LLP as its legal advisor and the debtor is represented by Steven Skolnick and Annie Nazarian Davydov of Lowenstein Sandler LLP.