On the Company entered into a license and collaboration agreement (the “License Agreement”) with Ahon Pharmaceutical Co Ltd. (“Ahon Pharma”), which granted Ahon Pharma exclusive rights to develop and commercialize for acute ischemic stroke in mainland China, Taiwan, Hong Kong S.A.R. and Macau S.A.R. Under the terms of the agreement, the Company received a non-refundable upfront payment of upon signing the License Agreement and was entitled to receive an additional non-refundable payment of million upon the earlier of regulatory clearance to initiate a clinical trial in China or The Company also had the potential to receive up to an additional million in development and sales related milestones and up to approximately royalties on net sales of in the licensed territories. All development, regulatory, sales, marketing, and commercial activities and associated costs in the licensed territories were the sole responsibility of Ahon Pharma. By its terms the License Agreement could be terminated at any time by Ahon Pharma by providing days written notice.

 

On after extensive good faith discussions between Ahon Pharma and the Company, the parties were unable to agree upon mutually acceptable revised terms to the agreement and we terminated the License Agreement for non-payment of the million milestone due upon the earlier of regulatory clearance to initiate a clinical trial in China or thereby regaining worldwide rights for for acute ischemic stroke.

 

Ahon Pharma is a subsidiary of Shanghai Fosun Pharmaceutical (Group) co. Ltd. (“Fosun Pharma”) which, through its partnership with SK Group, a South Korea based company, is an investor in DiaMedica, holding approximately of our common shares as of This investment was made in