Under the terms of the agreement, the company will receive an upfront payment of $1 million with the remaining $3.1 million due when the company vacates the premises by October 31, 2008.
The company plans to relocate to a more cost effective facility in the Seattle area. After relocation related expenses, the company expects that the net proceeds from this transaction together with its existing cash and cash equivalents will be sufficient to fund its operations through 2009.
Daniel Wilds, Scolr Pharma’s president and CEO, said: “We are very pleased to have reached an agreement on the buyout of our lease. We are currently finalizing a lease for a very suitable, more cost effective facility in the Seattle metropolitan area.”