UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): February 11, 2019

 

Fortress Biotech, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware   001-35366   20-5157386
(State or Other Jurisdiction
of Incorporation)  		  (Commission File Number)    (IRS Employer
Identification No.) 

 

2 Gansevoort Street, 9th Floor

New York, New York 10014

(Address of Principal Executive Offices)

 

(781) 652-4500

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act.
   
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act.
   
¨ Pre-commencement communications pursuant to Rule 14d-2b under the Exchange Act.
   
¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company   ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ¨  

 

 

 

 

 

 

Item 2.01 Completion of Acquisition or Disposition of Assets.

 

On February 11, 2019, FBIO Acquisition, Inc. (“FBIO Acquisition”), a wholly-owned subsidiary of Fortress Biotech, Inc. (the “Company”), completed the previously-announced sale of its remaining holdings of National Holdings Corporation (“NHLD”) shares of common stock to NHC Holdings, LLC (“Purchaser”), a wholly-owned subsidiary of B. Riley FBR, Inc., for $3.25 per share, pursuant to the terms of the stock purchase agreement dated November 14, 2018 (the “Purchase Agreement”). Pursuant to the terms of the Purchase Agreement, Purchaser, along with two other minority purchaser designees, collectively purchased the remaining NHLD shares held by FBIO Acquisition for an aggregate price of $13,089,141.00.

 

The Purchase Agreement contains normal and customary representations and warranties. As of this filing, FBIO Acquisition and its parent, the Company, own no shares of NHLD common stock.

 

The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Purchase Agreement, a copy of which was filed as Exhibit 10.1 to the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on November 14, 2018, and is incorporated herein by reference.

 

Item 8.01 Other Events.

 

On February 12, 2019, the Company issued a press release to announce the second closing of the sale of the NHLD shares under the Purchase Agreement. A copy of such press release is filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits.

 

(b) Pro Forma Financial Information.

 

The financial statements of the Company required by this item are filed as Exhibit 99.2 to this Current Report on Form 8-K, and are incorporated by reference herein.

 

(d) Exhibits.

 

The following exhibits are filed herewith:

 

Exhibit
Number 		  Description
99.1   Press release issued by Fortress Biotech, Inc., dated February 12, 2019.
     
99.2   Unaudited pro forma financial statements of Fortress Biotech, Inc.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  Fortress Biotech, Inc.
  (Registrant)
Date: February 15, 2019  
  By:    /s/ Lindsay A. Rosenwald, M.D.
    Lindsay A. Rosenwald, M.D.
    Chairman, President and Chief Executive Officer

 

 

 

 

 

 

Exhibit 99.1

 

 

Fortress Biotech Completes Final Stage Closing of the Sale of its Remaining Shares of National Holdings Corporation

 

New York, NY – February 12, 2019 – Fortress Biotech, Inc. (NASDAQ: FBIO) (“Fortress”), an innovative biopharmaceutical company focused on identifying, in-licensing and developing high-potential clinical-stage assets, today announced that on February 11, 2019, it completed the second and final stage of the previously-announced sale of its remaining holdings of National Holdings Corporation (“NHLD”) shares of common stock to B. Riley FBR, Inc. (“B. Riley”), for $3.25 per share, pursuant to the terms of the stock purchase agreement dated November 14, 2018 (the “Purchase Agreement”). B. Riley, along with two other minority purchaser designees, collectively purchased the remaining NHLD shares held by Fortress for an aggregate price of approximately $13.1 million ($22.9 million across the entire transaction).

 

About Fortress Biotech

Fortress Biotech is an innovative biopharmaceutical company focused on identifying, in-licensing and developing high-potential clinical-stage assets. The company has over 25 programs in clinical development at Fortress, at its majority-owned and majority-controlled subsidiaries and at entities it founded and in which it holds significant minority ownership positions. Such product candidates span six large-market therapeutic areas, including oncology, rare diseases and gene therapy, which allow it to create value while mitigating risk for shareholders. Fortress advances its diversified pipeline through a streamlined operating structure that fosters efficient drug development. The Fortress model is driven by a world-class business development team that is focused on leveraging its significant biopharmaceutical industry expertise to further expand the company’s portfolio of product opportunities. Fortress has established partnerships with some of the world’s leading academic research institutions and biopharmaceutical companies to maximize each opportunity to its full potential, including Alexion Pharmaceuticals, Inc., City of Hope, Fred Hutchinson Cancer Research Center, InvaGen Pharmaceuticals, Inc. (a subsidiary of Cipla Limited), St. Jude Children’s Research Hospital and UCL Business PLC. For more information, visit www.fortressbiotech.com .

 

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include: risks relating to our growth strategy; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; risks relating to the results of research and development activities; uncertainties relating to preclinical and clinical testing; risks relating to the timing of starting and completing clinical trials; our dependence on third-party suppliers; our ability to attract, integrate and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law.

 

 

 

 

Company Contact:

Jaclyn Jaffe and William Begien

Fortress Biotech, Inc.

(781) 652-4500

ir@fortressbiotech.com

 

Investor Relations Contact:

Jeremy Feffer

Managing Director, LifeSci Advisors, LLC

(212) 915-2568

jeremy@lifesciadvisors.com

 

Media Relations Contact:

Tony Plohoros

6 Degrees

(908) 940-0135

tplohoros@6degreespr.com

 

 

 

 

Exhibit 99.2

 

UNAUDITED PRO FORMA CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS

  

Background

 

On February 11, 2019, FBIO Acquisition, Inc. (“FBIO Acquisition”), a wholly-owned subsidiary of Fortress Biotech, Inc. (the “Company”), completed the previously-announced sale of its remaining holdings of National Holdings Corporation (“NHLD”) shares of common stock to NHC Holdings, LLC (“Purchaser”), a wholly-owned subsidiary of B. Riley FBR, Inc., for $3.25 per share (the “Transaction”), pursuant to the terms of the stock purchase agreement dated November 14, 2018 (the “Purchase Agreement”). Pursuant to the terms of the Purchase Agreement, Purchaser, along with two other minority purchaser designees, collectively purchased the remaining 32.1 percent of NHLD shares held by FBIO Acquisition for an aggregate price of $13,089,141.00.

 

Pro Forma Information

 

The accompany unaudited pro forma condensed consolidated statements of the Company for the year ended December 31, 2016, is presented as if the Transaction occurred from the acquisition date of NHLD, on September 9, 2016, through December 31, 2016. The accompanying unaudited pro forma condensed consolidated statement of operations of the Company for the year ended December 31, 2017 is presented as if the Transaction had occurred on January 1, 2017. The accompanying unaudited pro forma condensed consolidated statement of operations of the Company for the nine months ended September 30, 2018 and the condensed consolidated balance sheet of the Company as of September 30, 2018 are presented as if the Transaction had occurred on January 1, 2018 and September 30, 2018, respectively. The pro forma adjustments related to the Transaction do not reflect the final purchase price or final asset and liability balances of NHLD. Accordingly, the pro forma adjustments are preliminary and have been made solely for the purpose of providing unaudited pro forma condensed consolidated financial information. The unaudited pro forma financial information is not necessarily indicative of the results of operations or financial position that might have been achieved for the dates or periods indicated, nor is it necessarily indicative of the results of operations or financial position that may occur in the future. Since the Company’s aquisition of NHLD occurred during 2016, no pro forma statements are presented for the year ended December 31, 2015.

 

The historical consolidated financial information has been adjusted in the unaudited pro forma financial information to give effect to pro forma events that are (1) directly attributable to the disposal, (2) factually supportable, and (3) with respect to the statements of operations, expected to have a continuing impact on the combined results. The pro forma information does not reflect several changes the Company expects to realize after the Transaction because the changes are not certain.

 

The following is a brief description of the amounts recorded under each of the column headings in the unaudited pro forma consolidated statements of operations and balance sheet:

 

Total Consolidated

 

This column reflects the Company’s historical audited operating results for the years ended December 31, 2016 and 2017 respectively, and the historical and unaudited operating results and financial condition as of and for the nine months ended September 30, 2018 prior to any adjustment for the Transaction.

 

Disposal

 

This column reflects the elimination of the historical operating results of NHLD for the period of September 9, 2016 through December 31, 2016, the year ended December 31, 2017, and the nine months ended September 30, 2018 at the amounts that have been reflected in the Company’s condensed consolidated statements of operations for those periods. The disposal column on the unaudited pro forma condensed consolidated balance sheet as of September 30, 2018 reflects the value of assets and liabilities included in NHLD as of that date.

 

Intercompany Adjustments

 

This column reflects the elimination of intercompany transactions between FBIO and NHLD for the period presented, which includes the elimination of fees for financings, in which NHLD acted as the placement agent.

 

Pro Forma Adjustments

 

This column on the unaudited pro forma condensed consolidated balance sheet reflects the pro forma effect of the receipt and use of the cash consideration from the Transaction.

 

  

FORTRESS BIOTECH, INC. AND SUBSIDIARIES

Pro Forma Condensed Consolidated Balance Sheet

September 30, 2018

(Unaudited)

(in thousands, except share data)

 

    Total           Intercompany     Pro Forma            
    Consolidated     Disposal     Adjustments     Adjustments     Notes   Pro Forma  
ASSETS                                            
Current assets                                            
Cash and cash equivalents   $ 95,867     $ (19,961 )   $ -     $ 22,722      (a) (b)   $ 98,628  
Accounts receivable     5,431       -       -       -           5,431  
Short-term investment (certificate of deposit)     22,538       -       -       -           22,538  
Cash deposits with clearing organizations     336       (336 )     -       -      (b)     -  
Receivables from broker-dealers and clearing organizations     11,884       (11,884 )     -       -      (b)     -  
Forgivable loans receivable     1,610       (1,610 )     -       -      (b)     -  
Securities owned, at fair value     6,675       (8,593 )     1,918       -      (b)     -  
Inventory     674       -       -       -           674  
Other receivables - related party     414       -       -       -           414  
Prepaid expenses and other current assets     14,089       (5,929 )     -       -      (b)     8,160  
Total current assets     159,518       (48,313 )     1,918       22,722           135,845  
                                             
Property and equipment, net     14,642       (2,532 )     -       -      (b)     12,110  
Restricted cash     17,358       (1,352 )     -       -      (b)     16,006  
Goodwill     18,645       (18,645 )   -     -      (b)     -  
Intangible assets     13,935       (12,285 )   -     -      (b)     1,650  
Other assets     821       (419 )     -       -      (b)     402  
Total assets   $ 224,919     $ (83,546 )   $ 1,918   $ 22,722         $ 166,013  
                                             
LIABILITIES AND STOCKHOLDERS' EQUITY                                            
Current liabilities                                            
Accounts payable and accrued expenses   $ 36,577     $ (6,703 )   $ -     $ -      (b)   $ 29,874  
Accounts payable and accrued expenses - related party     153       -       -       -           153  
Accrued commissions and payroll payable     11,974       (11,974 )     -       -      (b)     -  
Contingent consideration payable     768       (768 )     -       -      (b)     -  
Deferred clearing and marketing credits     629       (629 )     -       -      (b)     -  
Securities sold, not yet purchased at fair value     24       (24 )     -       -      (b)     -  
Other current liabilities     77       (77 )     -       -      (b)     -  
Deferred revenue     155       (155 )     -       -      (b)     -  
Interest payable     613       -       -       -           613  
Interest payable - related party     94       -       -       -           94  
Notes payable, short-term     9,054       -       -       -           9,054  
Subsidiary convertible note, short-term, at fair value     10,657       -       -       -           10,657  
Derivative liabilities     -       -       196       -           196  
Total current liabilities     70,775       (20,330 )     196       -           50,641  
                                             
Notes payable, long-term     64,546       -       (4,552 )     -           59,994  
Other long-term liabilities     4,961       -       -       -           4,961  
Total liabilities     140,282       (20,330 )     (4,356 )     -           115,596  
                                             
Commitments and contingencies                                            
                                             
Stockholders' equity                                            
Convertible Preferred stock, $.001 par value, Series A     1       -       -       -           1  
Common Stock, $.001 par value     56       (249 )     249       -      (b)     56  
Common stock issuable     495       -       -       -           495  
Additional paid-in-capital     408,615       (101,054 )     50,223       20,610      (a) (b)     378,394  
Accumulated deficit     (371,394 )     38,102       (30,753 )     2,112    (b)     (361,933 )
Total stockholders' equity attributed to the Company     37,773       (63,201 )     19,719       22,722   -     17,013  
                                             
Non-controlling interests     46,864       (15 )     (13,445 )     -      (b)     33,404  
Total stockholders' equity     84,637       (63,216 )     6,274       22,722         50,417  
Total liabilities and stockholders' equity   $ 224,919     $ (83,546 )   $ 1,918   $ 22,722       $ 166,013  

   

 

FORTRESS BIOTECH, INC. AND SUBSIDIARIES

Pro Forma Condensed Consolidated Statement of Operations

(Unaudited)

(in thousands, except share and per share data)

 

    For the Year Ended December 31, 2016  
    Total           Intercompany        
    Consolidated     Disposal     Adjustments     Pro Forma  
Revenue                        
Fortress                                
Product revenue, net   $ 3,587     $ -     $ -     $ 3,587  
Revenue - from a related party     2,570       -       -       2,570  
Net Fortress revenue     6,157       -       -       6,157  
                                 
National                                
     Commissions     5,388       (5,388 )     -       -  
     Net dealer inventory gains     253       (253 )     -       -  
     Investment banking     2,829       (4,076 )     1,247       -  
     Investment advisory     904       (904 )     -       -  
     Interest and dividends     155       (155 )     -       -  
     Transfer fees and clearing services     386       (386 )     -       -  
     Tax preparation and accounting     338       (338 )     -       -  
     Other     70       (70 )     -       -  
Total National revenue     10,323       (11,570 )     1,247       -  
Net revenue     16,480       (11,570 )     1,247       6,157  
                                 
Operating expenses                                
Fortress                                
Cost of goods sold - product revenue     790       -       -       790  
Research and development     29,602       -       -       29,602  
Research and development – licenses acquired     5,532       -       -       5,532  
General and administrative     34,003       -       -       34,003  
Total Fortress operating expenses     69,927       -       -       69,927  
                                 
National                                
Commissions, compensation and fees     10,414       (10,414 )     -       -  
Clearing fees     144       (144 )     -       -  
Communications     177       (177 )     -       -  
Occupancy     193       (193 )     -       -  
Licenses and registration     147       (147 )     -       -  
Professional fees     327       (327 )     -       -  
Interest     1       (1 )     -       -  
Depreciation and amortization     545       (78 )     (467 )     -  
Other administrative expenses     315       (1,209 )     894       -  
Total National operating expenses     12,263       (12,690 )     427       -  
Total operating expenses     82,190       (12,690 )     427       69,927  
Loss from operations     (65,710 )     1,120       820       (63,770 )
                                 
Other income (expenses)                                
Interest income     298       -       -       298  
Interest expense and financing fee     (3,690 )     -       -       (3,690 )
Change in fair value of derivative liabilities     (1,039 )     -       953       (86 )
Change in fair value of subsidiary convertible note     (78 )     -       -       (78 )
Change in fair value of investments     (1,071 )     -       -       (1,071 )
Other income (loss)     -       -       -       -  
Total other expenses     (5,580 )     -       953       (4,627 )
Income (loss) before income taxes     (71,290 )     1,120       1,773       (68,397 )
Income tax expense (benefit)     -       2,916       (2,916 )     -  
Net (loss) income     (71,290 )     4,036       (1,143 )     (68,397 )
Less: net loss attributable to non-controlling interests     (16,195 )     621       -       (15,574 )
Net loss attributable to common stockholders   $ (55,095 )   $ 3,415     $ (1,143 )   $ (52,823 )
                                 
Basic and diluted net loss per share   $ (1.38 )                   $ (1.32 )
Weighted average common shares outstanding - basic and diluted     39,962,657                       39,962,657  

 

 

FORTRESS BIOTECH, INC. AND SUBSIDIARIES

Pro Forma Condensed Consolidated Statement of Operations

(Unaudited)

(in thousands, except share and per share data)

 

    For the Year Ended December 31, 2017  
    Total           Intercompany        
    Consolidated     Disposal     Adjustments     Pro Forma  
Revenue                                
Fortress                                
Product revenue, net   $ 15,520     $ -     $ -     $ 15,520  
Revenue - from a related party     1,725       -       -       1,725  
Net Fortress revenue     17,245       -       -       17,245  
                                 
National                                
Commissions     96,807       (96,807 )     -       -  
Net dealer inventory gains     15,108       (15,108 )     -       -  
Investment banking     25,064       (44,595 )     19,531       -  
Investment advisory     14,528       (14,528 )     -       -  
Interest and dividends     2,764       (2,764 )     -       -  
Transfer fees and clearing services     7,393       (7,393 )     -       -  
Tax preparation and accounting     7,439       (7,439 )     -       -  
Other     1,236       (1,236 )     -       -  
Total National revenue     170,339       (189,870 )     19,531       -  
Net revenue     187,584       (189,870 )     19,531       17,245  
                                 
Operating expenses                                
Fortress                                
Cost of goods sold - product revenue     3,658       -       -       3,658  
Research and development     48,322       -       -       48,322  
Research and development – licenses acquired     4,164       -       -       4,164  
General and administrative     50,897       -       -       50,897  
Total Fortress operating expenses     107,041       -       -       107,041  
                                 
National                                
Commissions, compensation and fees     155,187       (155,187 )     -       -  
Clearing fees     2,343       (2,343 )     -       -  
Communications     2,767       (2,767 )     -       -  
Occupancy     4,286       (4,286 )     -       -  
Licenses and registration     1,726       (1,726 )     -       -  
Professional fees     4,531       (4,531 )     -       -  
Interest     14       (14 )     -       -  
Depreciation and amortization     2,089       (1,229 )     (860 )     -  
Other administrative expenses     8,808       (9,819 )     1,011       -  
Total National operating expenses     181,751       (181,902 )     151       -  
Total operating expenses     288,792       (181,902 )     151       107,041  
Loss from operations     (101,208 )     (7,968 )     19,380       (89,796 )
                                 
Other income (expenses)                                
Interest income     819       -               819  
Interest expense and financing fee     (5,860 )     -       (1,827 )     (7,687 )
Change in fair value of derivative liabilities     8,391       (8,458 )     (304 )     (371 )
Change in fair value of subsidiary convertible note     (457 )     -       -       (457 )
Change in fair value of investments     226       -       -       226  
Other income (loss)     (234 )     (16 )     3       (247 )
Total other expenses     2,885       (8,474 )     (2,128 )     (7,717 )
Income (loss) before income taxes     (98,323 )     (16,442 )     17,252       (97,513 )
Income tax expense (benefit)     (1,513 )     4,051       (2,538 )     -  
Net (loss) income     (99,836 )     (12,391 )     14,714       (97,513 )
Less: net loss attributable to non-controlling interests     (32,960 )     1,216       -       (31,744 )
Net loss attributable to common stockholders   $ (66,876 )   $ (13,607 )   $ 14,714     $ (65,769 )
                                 
Basic and diluted net loss per share   $ (1.61 )                   $ (1.58 )
Weighted average common shares outstanding - basic and diluted     41,658,733                       41,658,733  

 

 

FORTRESS BIOTECH, INC. AND SUBSIDIARIES

Pro Forma Condensed Consolidated Statement of Operations

(Unaudited)

(in thousands, except share and per share data)

 

    For the Nine Months Ended September 30, 2018  
    Total           Intercompany        
    Consolidated     Disposal     Adjustments     Pro Forma  
Revenue                        
Fortress                        
Product revenue, net   $ 17,366     $ -     $ -     $ 17,366  
Revenue - from a related party     525       -       -       525  
Net Fortress revenue     17,891       -       -       17,891  
                                 
National                                
Commissions     85,422       (85,422 )     -       -  
Net dealer inventory gains     5,601       (2,402 )     (3,199 )     -  
Investment banking     43,012       (48,042 )     5,030       -  
Investment advisory     15,811       (15,811 )     -       -  
Interest and dividends     2,003       (2,003 )     -       -  
Transfer fees and clearing services     5,680       (5,680 )     -       -  
Tax preparation and accounting     6,835       (6,835 )     -       -  
Other     697       (697 )     -       -  
Total National revenue     165,061       (166,892 )     1,831       -  
Net revenue     182,952       (166,892 )     1,831       17,891  
                                 
Operating expenses                                
Fortress                                
Cost of goods sold - product revenue     4,546       -       -       4,546  
Research and development     58,528       -       -       58,528  
Research and development – licenses acquired     3,804       -       -       3,804  
General and administrative     38,788       -       -       38,788  
Total Fortress operating expenses     105,666       -       -       105,666  
                                 
National                                
Commissions, compensation and fees     141,462       (141,462 )     -       -  
Clearing fees     1,772       (1,772 )     -       -  
Communications     2,429       (2,429 )     -       -  
Occupancy     2,834       (2,834 )     -       -  
Licenses and registration     2,028       (2,028 )     -       -  
Professional fees     3,047       (3,047 )     -       -  
Interest     30       (30 )     -       -  
Underwriting costs     230       (230 )     -       -  
Depreciation and amortization     2,587       (1,145 )     (1,442 )     -  
Other administrative expenses     5,839       (5,839 )     -       -  
Total National operating expenses     162,258       (160,816 )     (1,442 )     -  
Total operating expenses     267,924       (160,816 )     (1,442 )     105,666  
Loss from operations     (84,972 )     (6,076 )     3,273       (87,775 )
                                 
Other income (expenses)                                
Interest income     841       -       -       841  
Interest expense and financing fee     (6,455 )     -       (1,192 )     (7,647 )
Change in fair value of derivative liabilities     87       -       -       87  
Change in fair value of warrants     (8,018 )     11,194       (3,149 )     27  
Change in fair value of subsidiary convertible note     26       -       -       26  
Change in fair value of investments     (1,390 )     -       -       (1,390 )
Other income (loss)     (258 )     (90 )     15       (333 )
Total other expenses     (15,167 )     11,104       (4,326 )     (8,389 )
Income (Loss) before Income Taxes     (100,139 )     5,028       (1,053 )     (96,164 )
Income tax expense (benefit)     2,382       (4,452 )     2,070       -  
Net (loss) income     (102,521 )     9,480       (3,123 )     (96,164 )
Less: net loss attributable to non-controlling interests     (43,254 )     2,345       -       (40,909 )
Net loss attributable to common stockholders   $ (59,267 )   $ 7,135     $ (3,123 )   $ (55,255 )
                                 
Basic and diluted net loss per share   $ (1.36 )                   $ (1.27 )
Weighted average common shares outstanding - basic and diluted     43,578,763                       43,578,763  

 

 

FORTRESS BIOTECH, INC. AND SUBSIDIARIES

Notes to Pro Forma Condensed Consolidated Financial Information

(Unaudited)

(in thousands)

 

(a) Total consideration for the Transaction is as follows:      
  Cash payout   $ 22,872  
  Transaction fees     (150 )
      $ 22,722  
           
(b) The gain on the Transaction is as follows:        
  Total consideration   $ 22,722  
  Total assets sold     (58,756 )
  Total liabilities assumed     24,686  
  Non-controlling interests     13,460  
  Net gain on transaction   $ 2,112