PAOLI, Pa., Nov. 02, 2016 (GLOBE NEWSWIRE) -- TetraLogic Pharmaceuticals Corporation (NASDAQ:TLOG) ("TetraLogic" or "Company"), a clinical-stage biopharmaceutical company focused on discovering and developing novel small molecule therapeutics in oncology and infectious diseases, today announced that it has entered into an asset purchase agreement with Medivir AB (Nasdaq Stockholm:MVIR) ("Medivir") to sell its SMAC mimetic program, including its clinical stage asset birinapant, and its topical HDAC inhibitor, SHAPE, to Medivir (the "Sale"). In consideration Medivir is expected to pay $12 million in cash upon closing of the transaction as well as future milestones of up to $153 million based on the development and commercialization of TetraLogic's product candidates and earn-out payments which become payable upon achievement of specified annual sales. The transaction, which was approved by the Board of Directors, is expected to close by the end of the fourth quarter of 2016. Closing is subject to certain conditions, including the approval of TetraLogic's shareholders and of the holders of TetraLogic's convertible debt ("Senior Notes"). In connection with the Sale, the holders of the Senior Notes agreed to exchange $2.2 million in principal amount of the Senior Notes for 12,222,222 shares of newly issued convertible participating series A preferred stock, with certain preferential dividends and liquidation preferences. Following this exchange, approximately $41.5 million in aggregate principal amount of Senior Notes will remain outstanding, plus accrued but unpaid interest on all Senior Notes. Each share of preferred stock will accrue dividends at the rate of 8%, payable in priority to any dividend or other distribution on the Common Stock. The preferred stock will have voting rights equivalent to one share of the Company's common stock, par value $0.0001 per share (the "Common Stock"), and will vote on an as-converted basis as a single class with the holders of Common Stock.