CytoDyn Completes Non-dilutive $28.5 Million Convertible Note Financing with Conversion Rate at $10.00 Per Share without Warrants
VANCOUVER, Washington, July 29, 2020 (GLOBE NEWSWIRE) -- CytoDyn Inc. (OTC.QB: CYDY), (“CytoDyn” or the “Company"), a late-stage biotechnology company developing leronlimab (PRO
140), a CCR5 antagonist with the potential for multiple therapeutic indications, announced today it completed a new non-dilutive convertible debt offering with an institutional investor, which
provides $25 million of immediately available capital. The note, has a two-year maturity, bears interest at the rate of 10% per annum and is secured by all assets of the Company, excluding its
intellectual property. The note may be converted at the option of the investor into shares of the Company’s common stock at a conversion price of $10.00 per share.
Nader Pourhassan, Ph.D., President and Chief Executive Officer of CytoDyn, stated, “We are very pleased with the continued support and tremendous confidence demonstrated by this institution’s fourth financing round with us. They clearly understand the opportunity before us and we now have the liquidity to accelerate our business plan without tapping into the increased share authorization recently approved by our stockholders. This injection of capital will help us deliver leronlimab to patients as soon as the regulatory pathway is clear for potentially COVID-19 (for three different populations), Cancer (23 different indications), and HIV (combination, monotherapy, HIV cure and PrEP). I am very excited to share with all of our stakeholders the excitement we have around our COVID-19 therapies during tomorrow’s conference call, as well as our expected timelines.”
About Coronavirus Disease 2019
CytoDyn has met its 75-patient enrollment target in its Phase 2 clinical trial for COVID-19, a randomized clinical trial for mild-to-moderate COVID-19 population in the U.S. and enrollment continues in its Phase 2b/3 randomized clinical trial for severe and critically ill COVID-19 population in several hospitals throughout the country.
SARS-CoV-2 was identified as the cause of an outbreak of respiratory illness first detected in Wuhan, China. The origin of SARS-CoV-2 causing the COVID-19 disease is uncertain, and the virus is highly contagious. COVID-19 typically transmits person to person through respiratory droplets, commonly resulting from coughing, sneezing, and close personal contact. Coronaviruses are a large family of viruses, some causing illness in people and others that circulate among animals. For confirmed COVID-19 infections, symptoms have included fever, cough, and shortness of breath. The symptoms of COVID-19 may appear in as few as two days or as long as 14 days after exposure. Clinical manifestations in patients have ranged from non-existent to severe and fatal. At this time, there are minimal treatment options for COVID-19.