Aditxt Secures $5 Million Financing to Scale AditxtScore Operational Capacity

Balance Sheet Further Strengthened by Receipt of Additional $3.3 Million from Exercise of Existing Warrants

Mountain View, CA, Jan. 26, 2021 (GLOBE NEWSWIRE) --  via NewMediaWire -- Aditx Therapeutics, Inc. (Aditxt) (the “Company”) (Nasdaq: ADTX), a life sciences company developing biotechnologies specifically focused on improving the health of the immune system through immune monitoring and reprogramming, today announced that it has entered into a securities purchase agreement in connection with a financing with an institutional investor (the “Investor”). Upon the closing of the financing, after taking into account an original issue discount and other transaction fees, the Company expects to receive approximately $4.5 million of net cash proceeds, which will be used to launch and scale the Company’s AditxtScore immune monitoring service and fund general corporate and working capital purposes.

Under the securities purchase agreement, the Investor has agreed to purchase a $6.0 million senior secured convertible promissory note (the “Note”). The Note has a twenty-four month term and is convertible at the option of the Investor at any time prior to maturity at an initial conversion price of $4.00 per share, subject to adjustment under certain circumstances. Repayment of the Note’s principal amount will occur in nineteen monthly cash or common stock payments beginning in July 2021. The Note may be prepaid by the Company at any time without penalty at 105% of the then outstanding principal amount due under the Note.

The Investor will also be issued a three-year warrant (the “Warrant”) to purchase up to 800,000 shares of the Company’s common stock at an exercise price of $4.00 per share.

Amro Albanna, Co-Founder and CEO of Aditxt, commented, “This financing will allow us to scale AditxtScorebeyond our current planned capacity in order to meet potential demands of current and prospective channel partners. We believe the continuing increase in COVID-19 cases and availability of COVID-19 vaccines will drive a growing need for routine monitoring of an individual’s immunity status which will be crucial to moving toward a return to public normalcy.”