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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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): December 8, 2022

 

Sharps Technology, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

Nevada

(State or Other Jurisdiction of Incorporation)

 

001-41355   82-3751728
(Commission File Number)   (IRS Employer Identification No.)

 

 

 

105 Maxess Road, Melville, New York 11747

(Address of Principal Executive Offices)

 

 

 

(631) 574 -4436

(Registrant’s Telephone Number, Including Area Code)

 

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

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 (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, $0.0001 par value   STSS   NASDAQ Capital Market
Common Stock Purchase Warrants   STSSW   NASDAQ Capital Market

 

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 1.01 Entry into a Material Definitive Agreement.

 

On December 8, 2022, Sharps Technology, Inc. (the “Company”) entered into a distribution agreement (the “Distribution Agreement”) with Nephron Pharmaceuticals Corporation and Nephron SC, Inc. (collectively, “Nephron”), pursuant to which the Company appointed Nephron as its exclusive distributor for the sale and distribution of the products subject to the Distribution Agreement in and throughout the United States. Pursuant to the Distribution Agreement, the price of shipping products will be based on the cost of delivery to Nephron’s warehouse and the Company will pay for the cost of delivery to Nephron. The Distribution Agreement has a term of two years and will continue in effect unless either party notifies the other party of its desire to terminate. At any time and for any reason, either party can terminate the Distribution Agreement after thirty (30) days’ notice and in the event of a breach of any of the Distribution Agreement’s terms and provisions, either party can terminate the Distribution Agreement by providing 90 days written notice. The Company has the right to terminate the Distribution Agreement with 60 days written notice in the event that certain conditions are met as set forth in the Distribution Agreement.

 

The foregoing is a summary description of certain terms of the Distribution Agreement. For a full description of all terms, please refer to the copy of the Distribution Agreement that is incorporated by reference and filed herewith as Exhibit 10.1.

 

Item 7.01 Regulation FD Disclosure.

 

On December 13, 2022, the Company issued a press release announcing the Distribution Agreement. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

Item 9.01 Exhibits

 

Exhibit No.   Description
10.1   Distribution Agreement, dated December 8, 2022, by and among Sharps Technology, Inc., Nephron Pharmaceuticals Corporation and Nephron SC, Inc.
99.1   Press Release dated December 13, 2022.
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

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.

 

Date: December 13, 2022

 

    SHARPS TECHNOLOGY, INC.
     
    /s/ Robert M. Hayes
    Robert M. Hayes
    Chief Executive Officer

 

 

 

 

Exhibit 10.1

 

Certain identified information has been excluded from the exhibit because it is both (i) not material and

(ii) would likely cause competitive harm to the registrant if publicly disclosed.

 

DISTRIBUTION AGREEMENT

 

This Distribution Agreement (the “Agreement”) is made on the 8th day of December, 2022 (the “Effective Date”) by and between Sharps Technology, Inc., a Nevada corporation, with a principal business address at 105 Maxess Road, Suite 124, Melville, NY 11747 (the “Supplier”) and Nephron Pharmaceuticals Corporation, a Florida corporation, and Nephron SC, Inc., a South Carolina corporation, with a principal business address at 4500 12th Street Extension, West Columbia, SC 29172 (collectively, the “Distributor”).

 

PREAMBLE

 

The Supplier manufactures and sells the Products listed in Paragraph 1 (the “Products”). The Distributor wants to obtain the Products, on consignment, from the Supplier for resale in the geographic areas defined in Paragraph 2 (the “Territory”). The Supplier wants to appoint the Distributor as its exclusive distributor of the Products in the Territory. The Distributor also desires this appointment, subject to the terms and conditions set forth in this Agreement, including any exhibits or schedules attached.

 

In consideration of the foregoing, and of the mutual benefit contained herein, the Parties, intending to be legally bound, agree as follows:

 

Products

 

1. The Products made and provided by the Supplier, on consignment, to the Distributor for distribution hereunder are as follows:

 

See Schedule I attached hereto and incorporated herein by reference.

 

Territory

 

2. The rights granted to the Distributor hereunder are granted for the following geographical areas:

 

The United States and its Territories.

 

Distribution of Products

 

3. The Supplier hereby appoints the Distributor as its exclusive distributor for the term of this Agreement for the sale and distribution of the Products in and throughout the Territory. The Distributor will maintain, or cause to be maintained, sales staff for the distribution of the Products handled by the Distributor.

   

4. The Distributor will use its best efforts to promote the sale and distribution of the Products.

 

1

 

 

5. The Supplier will not ship the Products, or any other products with the same of similar trademark, signature, or identification anywhere on the package, to the Territory except under the order or direction of the Distributor. The Supplier will refer any orders or inquiries about the Products it may receive for shipment to the Territory, or orders intended for eventual shipment to the Territory, to the Distributor.

   

6. The Supplier will promptly and to the best of its ability fill all orders for the Products from the Distributor; provided, however, Supplier will use its best effort to maintain a thirty (30) day supply of the Products on hand at the Distributor’s location listed in the first paragraph hereof.

   

7. The Distributor will discuss any proposed changes to the distributor network with the Supplier at least thirty (30) days prior to any such change.

 

Pricing

 

8. The price of shipping Products to the Distributor will be based on the cost of delivery to the Distributor’s warehouse. Supplier will cover the cost of delivery of Products to Distributor.

   

9. [**]

   

10. Any price increases for the Products will be negotiated between the Supplier and Distributor at least thirty (30) days prior to the increase’s implementation.

   

11. In the event of a price increase, the Distributor can order one month’s supply of the Products at the existing price prior to the increase.

   

12. The Distributor and Supplier shall agree initially and on a quarterly basis, or more frequently if required, the price customers will pay for the Products. The initial price for the Products shall be set forth on Schedule I.

 

Terminating the Agreement

 

13. This Agreement has a term of two years commencing on the Effective Date and concluding on the date which is two (2) years later. It shall thereafter continue in effect unless either party notifies the other of its desire to terminate the Agreement.

   

14. At any time and for any reason, either party can terminate this Agreement after thirty (30) days’ notice.

   

15. In the event of a breach of any of the Agreement’s terms and provisions, either party can terminate the Agreement by providing 90 days written notice. This notice must explain the breach that led to the termination. If the offending party fixes the claimed breach within 90 days, the notice of termination will be void and the Agreement will continue in full force and effect.

 

2

 

 

16. The Supplier has the right to terminate this Agreement with 60 days written notice in the event that the Distributor:

 

  a) Is declared bankrupt or enters a voluntary petition for bankruptcy or in any way enters into a compromise or agreement for the benefit of creditors
     
  b) Fails to meet at least [Percentage] percent of the mutually agreed upon sales performance goals set force in the document attached hereto and made a part hereof
     
  c) Fails to maintain a good standing in all Federal and state licenses and permits necessary for conducting its business
     
  d) Changes or is affected by a change in the majority ownership of its business

 

17. Upon the Agreement’s termination, the Supplier can repurchase or cause its successor to purchase the Distributor’s existing inventory of Supplier’s Products at the Distributor’s laid-in cost, providing the Distributor has stored and maintained the Products in a saleable condition

 

General Clauses

 

18. The Supplier shall promptly supply the Distributor will any and all authorizations required by any governmental authority in connection with the sale and distribution of the Products in the Territory, as requested by the Distributor, so long as the Supplier is responsible for obtaining or maintaining these authorizations.

   

19. The Distributor shall promptly supply the Supplier with available sales and depletion reports and details of all promotional and sampling initiatives concerning the Products.

   

20. The Supplier warrants and agrees all shipments of the Products sold or shipped under the Agreement will be of first quality and adherent to all regulations in effect in the Territory.

   

21. The Supplier will, upon demand, prepare documents and perform acts as required to prevent any products labeled in imitation or simulation of the Products from being distributed in the Territory.

   

22. This Agreement is the entire agreement between the parties. Neither party has made representations or promises to the other party that are not outlined in this Agreement.

   

23. This Agreement cannot be altered orally. All modifications must be set forth in writing.

   

24. No waiver of a breach of the terms of this Agreement will be effective unless it’s made in writing. No such waiver shall be deemed a waiver of any other existing or subsequent breach.

   

25. All notices must be sent prepaid by registered mail or facsimile addressed to the respective parties at the address stated above, unless alternative arrangements have been made in writing.

 

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26. All this Agreement’s provisions are made subject to applicable laws, rules, regulations, and requirements of the Government of the United States of America or agencies of said Government, and in the performance of this Agreement, each party hereto agrees to comply therewith.

   

27. This Agreement is a South Carolina contract and is thus governed by and construed in accordance with the laws of the state of South Carolina.

   

28. Any controversy or claim arising from or related to this Agreement or a breach thereof will be settled by arbitration in South Carolina in accordance with the rules of the American Arbitration Association then in effect. Judgment upon the award rendered by the arbitrator(s) will be final and binding upon the parties hereto.

   

29. If arbitration is required to enforce or interpret a provision of this Agreement, or otherwise arises with respect to this Agreement’s subject matter, the prevailing party is entitled, in addition to, other rights and remedies it may have to reimbursement for expenses incurred due to that action, such as court costs, reasonable attorney fees, etc.

   

30. This Agreement shall not be assigned by either party hereto.

 

[Signature Page to Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed on the day and year first above written.

 

SUPPLIER   DISTRIBUTOR:
         
Sharps Technology, Inc.   Nephron Pharmaceuticals Corporation
         
By:                 By:     
Name:     Name: Lou Wood Kennedy
Its:

 

  Its: President and CEO
         
      Nephron SC, Inc.
         
      By:  
      Name: Lou Wood Kennedy
      Its: President and CEO

 

5

 

 

Exhibit 99.1

 

Sharps Technology and Nephron Pharmaceuticals Signs Distribution

Agreement for its Innovative Syringe Products

 

Company anticipates products to be available in the first quarter of 2023 with initial revenue

from this agreement expected in the first half of the year

 

Strengthens the collaboration between Sharps and Nephron to advance the previously

announced Inject-EZ startup in South Carolina in early 2023

 

NEW YORK - Sharps Technology, Inc. (the “Company”, “Sharps”) (NASDAQ: “STSS” and “STSSW”), an innovative medical device and drug delivery Company offering patented, best-in-class syringe products, is pleased to announce the signing of a distribution agreement with partner Nephron Pharmaceuticals. This is a strategic first step in building the larger partnership between the two companies and is in support of their recently announced collaboration.

 

“This distribution agreement opens so many possibilities for Sharps Technology and Nephron Pharmaceuticals,” commented Robert Hayes, Sharps Technology CEO. “The timing is perfect in that we are expanding our ability to supply innovative drug delivery systems at a point when the market is in demand for them. Through this distribution plan, Sharps Technology will be able to deliver increased capacity, driving growth for one of the high value product segments of our business.”

 

The agreement also allows for Sharps Technology to utilize Nephron’s sales and marketing teams to further support the sale of the Company’s innovative products to targeted customers within the Nephron customer network. Nephron’s customer network includes a reach of more than 3,000 customers through a combination of direct and online sales through their web-based electronic portal system. This hybrid sales environment will allow for targeted marketing plans for the different types of customers within the network. Sharps will support the sales strategy with customer product in-servicing to facilitate specialized customer opportunities, which include the development of custom drug delivery solutions and private labeled product configuration needs.

 

The collaboration between Sharps and Nephron is expected to continue to grow as previously announced, as the companies move forward with the startup of the Inject-EZ operation in South Carolina in early 2023. We believe that this opportunity to support Nephron and co-manufacture a portfolio of specialized copolymer prefilled syringe systems will further advance the revenue plan for Sharps in late 2023 for these products. This partnership to co-produce these needed products for the pharmaceutical industry will pull forward Sharps’ plan to offer these products by more than two years.

 

Mr. Hayes concluded, “The distribution agreement will further accelerate the sales plan for our innovative syringe products that are currently being produced in the Sharps plant in Hungary. The opportunity to pull forward our sales plan for customers here in the US will create a unique opportunity for early revenue at Sharps. We expect to have our first products available for sale in the US by the end of January 2023. Sharps will be adding additional products to the distribution network by mid-year 2023 from its plant in Hungary as part of a phased manufacturing ramp-up strategy for the Company.”

 

 

 

 

About Sharps Technology, Inc.

 

Sharps Technology is a medical device and pharmaceutical packaging company specializing in the development and manufacturing of innovative drug delivery systems. The company’s product lines focus on low waste and ultra-low waste syringe technologies that incorporate both passive and active safety features. These features protect front line healthcare workers from life-threatening needle stick injuries and protect the public from needle re-use. Sharps Technology has extensive expertise in specialized prefilled syringe systems and ready to use processing. The company has a manufacturing facility in Hungary, and has partnered with Nephron Pharmaceuticals to expand its manufacturing capacity in the US. For additional information, please visit www.sharpstechnology.com.

 

Forward-looking Statements

 

This press release contains “forward-looking statements” Forward-looking statements reflect our current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity, and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy, and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, our ability to raise capital to fund continuing operations; our ability to protect our intellectual property rights; the impact of any infringement actions or other litigation brought against us; competition from other providers and products; our ability to develop and commercialize products and services; changes in government regulation; our ability to complete capital raising transactions; and other factors relating to our industry, our operations and results of operations. Actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance, or achievements. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

 

Investor Relations:

 

Dave Gentry

RedChip Companies Inc.

1-800-RED-CHIP (733-2447)

Or 407-491-4498

STSS@redchip.com

 

or

 

US Investor Relations:

 

Adam Holdsworth, Managing Director

TraDigital IR

adam@tradigitalir.com