Apimeds Pharmaceuticals US, Inc. (APUS) yesterday said it has reached a comprehensive settlement with Inscobee, removing all outstanding disputes tied to its December 2025 merger with MindWave Innovations and allowing the long-delayed transaction and $100 million PIPE financing to move forward.
The settlement resolves governance challenges that had stalled progress for months, including disagreements over voting rights and board control. With the agreement now in place, Apimeds expects its common stock to resume trading on the NYSE American on Tuesday, May 5, pending exchange approval.
Under the terms of the settlement, the Inscobee parties confirmed that prior attempts to remove Apimeds' directors were invalid and that existing voting agreements remain binding. Co-CEOs Dr. Vin Menon and Sungjoon Chae will continue to lead the company and oversee the transition of assets into the newly formed subsidiary, referred to as "Newco".
As part of the agreement, Lokahi Therapeutics will acquire full rights to the Apitox program, including intellectual property, regulatory materials, and manufacturing assets. Lokahi will pay Apimeds $4 million within five business days and will receive the company's $2.2 million Prevail CRO credit facility to support ongoing development. Apimeds will distribute 51% of Lokahi its common stock as directed by former CEO Erik Emerson while retaining the remaining 49%.
The company will also form a new wholly owned subsidiary within seven business days. Ten percent of net proceeds from the financing will be allocated to Newco, with the remaining 90% directed to MindWave. Newco is expected to be spun off within 12 months.
The company recently implemented a 1-for-10 reverse stock split on March 23, 2026.
APUS is currently trading at $2.11, down 29.53%.
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