DGAP-Adhoc

Cytos Biotechnology Ltd updates on a key transaction and plans going forward

EQS Group-Ad-hoc: Cytos Biotechnology AG / Key word(s): Financing
Cytos Biotechnology Ltd updates on a key transaction and plans going
forward

06.01.2015 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.
The issuer is solely responsible for the content of this announcement.

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Cytos Biotechnology Ltd updates on a key transaction and plans going
forward - successful bondholders' meeting key to avoid liquidation and
ensure going concern

- Repayment of subordinated convertible bonds at maturity impossible -
total loss for bondholders highly likely unless bonds are converted
into equity

- Going concern of Cytos subject to successful bondholders' meeting
agreeing to convert all subordinated convertible bonds into equity at
market prices

- Proposed conversion of subordinated convertible bonds into equity
allows the bondholders to participate in any equity upside

- Licensing transaction - subject to going concern - provides upside
potential to shareholders

Schlieren (Zurich), Switzerland, January 6, 2015 - Cytos Biotechnology Ltd.
(SIX:CYTN) ("Cytos" or the "Company") announced today that it proposes a
mandatory conversion of the outstanding subordinated convertible bonds and
convenes a bondholders' meeting on January 26, 2015 in
Schlieren/Switzerland. Furthermore, Cytos announced the signing of a
transaction in conjunction with its efforts to monetize on its asset base.

Key considerations of the subordinated convertible bond restructuring:

- According to the present financial forecast, holders of subordinated
convertible bonds cannot expect any payment at maturity as cash in
February 2015 is estimated to be max. CHF 16 million whereas the
repayment obligation to loan note holders - which are senior to those
of the bondholders - amounts to CHF 22.2 million. Hence, even loan note
holders will not receive full repayment of their loans and therefore,
holders of subordinated convertible bonds cannot expect any payment.

- Access to new financial means for a small biotech company without
sustainable revenues remains very challenging in the current financial
market environment.

- With the planned conversion of its subordinated convertible bonds into
equity, Cytos remains a going concern and liquidation can be avoided.
In addition, the licensing transaction as mentioned below will take
effect.

Key elements of the proposed subordinated convertible bond restructuring:

- More than 30-fold reduction of the conversion price from CHF 7.71 to
CHF 0.25 per share which is about the current market share price.