CytoDyn Inc Secures $ 28.5 Million Convertible Funding To Fund Léronlimab Advancement
CytoDyn Inc () has secured $ 25 million in readily available capital with a $ 28.5 million non-dilutive convertible debt offering from an institutional investor, the company said Thursday.
The note has a two-year maturity, bears interest at 10% per annum and is secured by the assets of the company, excluding its intellectual property. The note can be converted into CytoDyn shares at a price of $ 10 per share.
“We are very pleased with the continued support and great confidence shown by this institution’s fourth round of funding with us,” CytoDyn CEO Nader Pourhassan said in a statement. “They clearly understand the opportunity before us and we now have the cash to accelerate our business plan without tapping into the increased share authorization recently approved by our shareholders.”
CytoDyn plans to use the funds to advance its flagship drug leronlimab, which has shown multiple potential indications, including as a treatment for coronavirus (COVID-19).
The company has met the recruitment target of 75 patients for its Phase 2 coronavirus trial, a randomized clinical trial for patients with mild to moderate coronavirus symptoms, and recruitment continues in its Phase 2b clinical trial / 3 for patients with severe and critically ill coronavirus.
“This capital injection will help us deliver léronlimab to patients as soon as the regulatory path is cleared for potentially Covid-19 (for three different populations), cancer (23 different indications) and HIV (combination, monotherapy, cure HIV and PrEP), ”Pourhassan said.
“I am very happy to share with all our stakeholders the enthusiasm we have around our Covid-19 therapies during tomorrow’s conference call, as well as our expected deadlines.”
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