Zosano Pharma Corporation filed a motion in the US Bankruptcy Court for approval of auction procedures to select a liquidation agent on June 9, 2022. The debtor seeks the Court's approval on an agency agreement to conduct liquidation sales with Onyx Asset Advisors, LLC and Rabin Worldwide, Inc act as agent. Pursuant to the agency agreement, the entity selected as the highest and best bidder at the auction and approved by the Court would purchase the Inventory for a guaranteed percentage of its net retail value and use its best efforts to sell the furniture, fixtures, and equipment for a commission.

To qualify as a qualified bidder, interested parties should submit their bids by July 18, 2022. The initial minimum overbid should be at least $0.03 million more than the initial purchase price. The debtor has scheduled an auction on July 20, 2022.

At the auction, the subsequent bids would be in increments of $0.03 million. The stalking horse bidder would be entitled to a break-up fee does not exceed 3% of cash portion and expense reimbursement not to exceed $37,500 in case of termination of the agency agreement. The sale hearing is scheduled for July 26, 2022.