Updated from 2:39 p.m. EDT

The saga of Vaso Active Pharmaceuticals, the tiny company with a much-hyped athlete's foot treatment, appears headed toward conclusion.

In a proposed pact with securities regulators, Vaso Active President and Chief Executive John Masiz will step down from the Massachusetts company and be barred from serving as an officer or director of a public company for the next five years. Masiz will be allowed to remain an employee of the company.

Vaso Active also has agreed not to market or sell its Termin8 athlete's foot treatment until it has been notified by the Securities and Exchange Commission that all outstanding matters have been addressed to the satisfaction of the SEC, and until the company "is reasonably sure" the labels for Termin8 and other products are consistent with Food and Drug Administration policies.

The company announced the proposed settlement, which must still be approved by the SEC, in a corporate filing. Vaso Active said it's hopeful it will be able to resume selling Termin8 by year's end, but cautions "there is no guarantee of this."

Marc Kreitman, the SEC attorney leading the Vaso Active investigation, declined to comment on the company's filing.

For a time, Vaso Active, which is facing numerous shareholder suits, was one of the hottest micro-cap stocks on Wall Street. At its peak, shares of Vaso Active fetched nearly 8 times their December initial public offering price of $5, after accounting for a 3-for-1 stock split in March.

But the SEC put the kibosh on Vaso Active on April 1, when it halted trading in its roughly 10 million shares. The SEC took action after determining Vaso Active made misleading statements about some of its products, including Termin8.

After the trading halt expired, the company agreed to delist its stock from the Nasdaq Stock Market. The stock last traded at 65 cents a share on the Pink Sheets under the ticker VAPH.PK.

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