CytRx’s Board of Directors Sends Important Letter to Stockholders to Expose Dissident Investor and his Misguided Campaign

CytRx Corporation (OTCQB: CYTR), a specialized biopharmaceutical company focused on research and development for the oncology and neurodegenerative disease categories, today announced that it has mailed a letter to stockholders in connection with the Company’s Annual Meeting of Stockholders that is scheduled for September 3, 2020.

Below please find the full text of the letter sent to CytRx stockholders.

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August 13, 2020

Dear Stockholders,

We want to alert you to the fact that CytRx Corporation (“CytRx” or the “Company”), its Board of Directors (the “Board”) and you – our valued stockholders – are being attacked by an incredibly malicious individual who is waging a baseless, misleading smear campaign. This irrational individual, who owns LESS THAN 1% of the Company’s outstanding stock, has a long and troubling history that includes bringing frivolous litigation against public and private companies, engaging in disputes with former employers and amassing a troubling record. This individual also lacks any understanding of the biopharmaceutical sector and has no public company experience.

We believe this individual has made clear throughout his campaign that he lacks the type of basic understanding of regulatory requirements and rules that a director of a public company needs to possess, including a complete understanding of how to legally solicit stockholders.

The dissident, Jerald A. Hammann of Minneapolis, Minnesota, is running a distracting and disruptive campaign that is consuming stockholders’ capital and could end up devaluing CytRx’s stock if he is elected to the Board. He wants to install himself as a director of the Company despite having no interest in supporting its progress or targeted goals. Moreover, he has put forth no viable plans or alternative strategy to deserve consideration from stockholders.

We contend that the dissident has demonstrated that he is completely oblivious when it comes to the key details pertaining to CytRx’s business, licensing agreements and strategy. Despite our repeated attempts to initiate a private dialogue and equip him with relevant information, Mr. Hammann appears committed to continuing his low-road campaign regardless of the collateral damage and costs.

It is important to note that CytRx has learned that Mr. Hammann’s recent string of irrational aggression and poor decision-making is part of a broader pattern of behavior that he has established over the past decades. It is critical for stockholders to consider his well-documented public track record of litigious activity and extremely questionable judgement prior to voting at the Company’s upcoming Annual Meeting of Stockholders (the “Annual Meeting”).