Quarterly report pursuant to Section 13 or 15(d)

8. RELATED PARTY TRANSACTIONS

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8. RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
8. RELATED PARTY TRANSACTIONS

The Company leases an office building and equipment from Areth, LLC (“Areth”) pursuant to an agreement for services effective as of January 1, 2016, as amended from time to time. Effective October 1, 2017, monthly rent on this facility was set at $10,000. On November 7, 2019, an additional amendment was entered into between Areth and the Company to extend the term of this agreement through September 30, 2020, and to provide for automatic one-year renewals unless ADMA gives written notice of termination to Areth 60 days prior to the end of the term. Rent expense for the three months ended March 31, 2020 and 2019 amounted to $30,000. Areth is a company controlled by Dr. Jerrold B. Grossman, the Vice Chairman of the Company’s Board of Directors, and Adam S. Grossman, the Company’s President and Chief Executive Officer. The Company also reimburses Areth for office and building related (common area) expenses, equipment and certain other operational expenses, which were not material to the consolidated financial statements for the three months ended March 31, 2020 and 2019.

 

See Note 6 for a discussion of the Company’s credit facility and related transactions with Perceptive, a holder of more than 10% of the Company’s common stock.

 

In connection with the February 2020 public offering of the Company’s common stock (see Note 7), on February 11, 2020: (i) Lawrence P. Guiheen, a director of the Company, purchased 20,000 shares of the Company’s common stock, (ii) James Mond, the Company’s Chief Scientific Officer and Chief Medical Officer, purchased 4,285 shares of the Company’s common stock, (iii) Jerrold B. Grossman, the Company’s Vice Chairman of the Board, purchased 22,857 shares of the Company’s common stock directly and 22,857 shares of the Company’s common stock indirectly through an entity he controls, (iv) Brian Lenz, the Company’s Executive Vice President and Chief Financial Officer, purchased 7,142 shares of the Company’s common stock, (v) Adam S. Grossman, the Company’s President and Chief Executive Officer, purchased 28,571 shares of the Company’s common stock directly and 57,143 shares of the Company’s common stock indirectly through an entity he controls, and (vi) Perceptive Advisors, a principal stockholder of ADMA, purchased 4,563,700 shares of the Company’s common stock through one of its affiliates, all at the public offering price of $3.50 per share.