Galmed Pharmaceuticals (GLMD) said Monday it completed its acquisition of Colospan under a restructured deal aimed at diminishing the dilutive event on its shareholders.

Instead of issuing $2 million in Galmed stock at closing, Galmed increased the cash payment by $800,000 to $3.3 million, with the balance structured as an earnout of up to $2 million tied to net sales revenue, starting in Q3 2027, according to a US Securities and Exchange Commission filing.

Galmed said the parties have further agreed to accelerate earnout payments upon the earlier of a sale or licensing of Colospan or its assets, or Galmed raising at least $17.5 million in gross proceeds through equity financings.

Galmed said Colospan is now its wholly owned subsidiary.

Galmed shares were down 6% in Monday trading.