SPRO Spero Therapeutics Inc

As previously disclosed, on September 29, 2021, Spero Therapeutics, Inc. (the “Company”) entered into a Revenue Interest Financing Agreement (the “Revenue Interest Agreement”) with certain entities managed by Healthcare Royalty Management, LLC (“HCR”), pursuant to which the Company sold to HCR the right to receive certain royalty payments from the Company for a purchase price of up to $125 million. Also as previously disclosed, on September 29, 2021, the Company entered into a Security Agreement (the “Security Agreement,” and together with the Revenue Interest Agreement, the “HCR Agreements”) with HCR Collateral Management, LLC, as collateral agent for HCR under the Revenue Interest Agreement (the “Secured Party”). Pursuant to the Security Agreement, the Company, among other things, granted HCR a first-priority blanket lien on tebipenem HBr (“Tebi”) assets, including Tebi patent rights, Tebi regulatory approvals and Tebi material contracts, as well as future cash receipts relating to product sales.

On June 7, 2022, the Company entered into a Revenue Interest Termination Agreement (the “Termination Agreement”) with HCR and the Secured Party, pursuant to which the parties mutually terminated the HCR Agreements and certain other related ancillary agreements, arrangements or understandings under or contemplated by the HCR Agreements. Pursuant to the Termination Agreement, the Company will make a one-time cash payment of $54 million in consideration for, among certain other things, the termination of the HCR Agreements, the reversion of all rights transferred thereunder and the termination and release of all liens and security interests granted thereunder.

The foregoing summaries of the HCR Agreements and the Termination Agreement, and the transactions contemplated thereby, do not purport to be complete and are subject to, and qualified in their entirety by, the full text of the HCR Agreements and the Termination Agreement. Copies of the HCR Agreements were filed as Exhibits 10.1 and 10.2, respectively, in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 30, 2021, each of which is incorporated herein by reference. A copy of the Termination Agreement is attached hereto as Exhibit 10.1 and is incorporated herein by reference.