CytoDyn Completes $28.5 Million Convertible Note Financing with Conversion Rate at $10.00 Per Share Without Warrants
Company Achieves Total Financing in April of $57 Million
VANCOUVER, Washington, April 22, 2021 (GLOBE NEWSWIRE) -- CytoDyn Inc. (OTC.QB: CYDY), (“CytoDyn” or the “Company"), a late-stage biotechnology company developing leronlimab (Vyrologix or PRO 140), a CCR5 antagonist with the potential for multiple therapeutic indications, announced today it completed an additional potentially 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.
Chris Recknor, M.D., Chief Operating Officer and Head of Clinical Development stated, “Our strategic focus will be on three key indications: COVID, HIV, and oncology where we see a potential for CCR5 mechanism and key advantage for Vyrologix. Key to our success is the combination of basic research in parallel with observed clinical data. We have reached our half-way mark for CD15 long-hauler trial and are on schedule for results in Q3. Multiple countries across the world are seeing surges in COVID. Our hospitalized COVID clinical trial protocol is under review and we are leveraging our knowledge from our severe-to-critical CD12 data to optimize results. The HIV BLA request for rolling review in Q3 2021 with remaining portions later in the year is on schedule. We are leveraging our long-term HIV extension patients to provide insight into the benefit of Vyrologix. The top 10 cancers associated with CCR5 include: urothelial cancer, breast cancer, lung squamous cell carcinoma, colorectal cancer, lung adenocarcinoma, pancreatic cancer, head and neck cancer, TNBC, and sarcoma. We have modified our basket trial for oncology and have a new strategy looking at cancers from a basic research level to clinical with preliminary results by Q4 of this year.”
“Leronlimab is a molecule that could impact the well-being of millions of patients,” said Nader Pourhassan, Ph.D., President and Chief Executive Officer. “To accomplish this powerful task, we are sharply focused on key areas for IND. These activities require a tremendous amount of funding. We have successfully raised close to half of a billion dollars for CytoDyn with our market cap now at about $2 billion and minimum dilution in the last 12 months. To make sure we pursue leronlimab’s many potentials, we have raised enough capital to support continued development. I am so thankful to our team who have been nothing but solid throughout almost 10 years of achievement and I wholeheartedly believe that the best is very close to come and by far much larger than what we have seen so far. In the last 3 weeks, this small bio-tech company raised over $50 million, which is a testimony to our dedication to never-failing leronlimab or CytoDyn.”
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