FORT COLLINS, Colo.,
July 29, 2021 /PRNewswire/ --
Cytocom, Inc., (NASDAQ: CBLI), a leading biopharmaceutical company
developing next generation therapies that focus on immune
homeostasis, has secured agreements for $90
million in committed capital. The financing is led by a
$75 million equity commitment from
GEM Global Yield LLC SCS in the form of a Share
Subscription Facility. Cytocom intends to draw down the first
$15 million within 30 days of
the closing of the recently completed merger between Cleveland
BioLabs and Cytocom. A combination of debt and equity financing
from Avenue Capital and Adit Ventures, totaling $17 million, will also be made available on a
draw schedule. Cytocom will use the proceeds to fund operations,
advance growth initiatives, and further clinical development of the
company's internal pipeline. Bridgeway Capital Partners and its
affiliates served as the exclusive financial advisor and placement
agent on the transaction with Covington & Burling LLP providing
legal counsel.
With access to $90 million in
operating capital, subject to customary closing conditions for each
draw, Cytocom will continue development of an internal pipeline
that includes the company's platform of toll-like immune receptors.
Cytocom's current clinical programs for COVID-19, Crohn's Disease,
pancreatic cancer and a growing portfolio of immune-modulating
therapies under development using Cytocom's proprietary technology
platform are designed to rebalance the body's immune system and
restore homeostasis.
"Having now completed the merger between Cleveland BioLabs and
Cytocom, this financing is an essential component to our growth
strategy as a public company and should ensure that we have access
to capital to continue advancing a cutting-edge clinical pipeline
of immune-modulating therapies," stated Michael K. Handley, President and CEO of
Cytocom. "Our goal as a company is to become a recognized leader in
immune-modulating treatments targeting emerging viruses, including
COVID-19, cancer, inflammation and autoimmune diseases. The
successful merger, coupled with the acquisition of ImQuest Life
Sciences and the previously announced Nasdaq listing, should set
the stage for multiple catalysts that we believe will serve to
showcase the power of our drug development technologies, generate
shareholder value, and raise our visibility within the investor
community."
"Avenue Capital is pleased to make this investment as we believe
Cytocom could play an important role in developing the next
generation of immune-modulating therapies," said Chad Norman, Senior Portfolio Manager for Avenue
Venture Opportunities Fund. "There are few companies in the
immunology space with such an advanced and differentiated pipeline
as Cytocom. Furthermore, we believe the successful merger between
Cleveland BioLabs and Cytocom and the acquisition of ImQuest Life
Sciences will position the combined company for substantial growth
in the years to come."
About Cytocom
Cytocom, Inc. is a clinical-stage
biopharmaceutical company developing novel immunotherapies
targeting autoimmune, inflammatory, infectious diseases and cancers
based on a proprietary platform designed to rebalance the body's
immune system and restore homeostasis. The company also has one of
the largest platforms of toll-like immune receptors (TLR4, TLR5 and
TLR9) in the biopharmaceutical industry, addressing conditions such
as radiation sickness and cancer treatment side effects. Cytocom is
developing therapies designed to elicit directly within patients a
robust and durable response of antigen-specific killer T-cells and
antibodies, thereby activating essential immune defenses against
autoimmune, inflammatory, infectious diseases, and cancers.
Specifically, Cytocom has several clinical-stage development
programs for Crohn's disease, fibromyalgia, multiple sclerosis and
pancreatic cancer. To learn more about Cytocom, Inc., please visit
www.cytocom.com.
Forward Looking Statements:
This press
release contains forward-looking statements that involve risks and
uncertainties. All statements other than statements of current or
historical fact contained in this press release, including
statements regarding the future financial position, business
strategy, new products, budgets, liquidity, cash flows, projected
costs, regulatory approvals, the impact of any laws or regulations
applicable to the company, and plans and objectives of management
for future operations, are forward-looking statements. The words
"anticipate," "believe," "continue," "should," "estimate,"
"expect," "intend," "may," "plan," "project," "will," and similar
expressions, as they relate to us, are intended to identify
forward-looking statements. We have based these forward-looking
statements on the current expectations about future events held by
management of both companies. While we believe these expectations
are reasonable, such forward-looking statements are inherently
subject to risks and uncertainties, many of which are beyond the
control of either company. The company's actual future results may
differ materially from those discussed here for various reasons.
The company discusses many of these risks under the heading "Risk
Factors" in the proxy statement/prospectus filed with the SEC, as
updated by the company's other filings with the SEC. Factors that
may cause such differences include, but are not limited to,
the outcome of any legal proceedings that have been or may be
instituted against the company related to the merger agreement or
the Merger; unexpected costs, charges or expenses resulting from
the Merger; our need for additional financing to meet our business
objectives; our history of operating losses; our ability to
successfully develop, obtain regulatory approval for, and
commercialize our products in a timely manner; our plans to
research, develop and commercialize our product candidates; our
ability to attract collaborators with development, regulatory and
commercialization expertise; our plans and expectations with
respect to future clinical trials and commercial scale-up
activities; our reliance on third-party manufacturers of our
product candidates; the size and growth potential of the markets
for our product candidates, and our ability to serve those markets;
the rate and degree of market acceptance of our product candidates;
regulatory requirements and developments in the United States, the European Union and
foreign countries; the performance of our third-party suppliers and
manufacturers; the success of competing therapies that are or may
become available; our ability to attract and retain key scientific
or management personnel; our reliance on government funding for a
significant portion of our operating costs and expenses; government
contracting processes and requirements; the exercise of significant
influence over our company by our largest individual
stockholder; the impact of the novel coronavirus ("COVID-19")
pandemic on our business, operations and clinical
development; the geopolitical relationship between
the United States and the
Russian Federation as well as
general business, legal, financial and other conditions within the
Russian Federation; our ability to
obtain and maintain intellectual property protection for our
product candidates; our potential vulnerability to cybersecurity
breaches; and other factors discussed in our SEC filings, including
our Annual Report on Form 10-K for the year ended December 31, 2020and the risk factors
discussed under the heading "Risk Factors" in the proxy
statement/prospectus the company filed in connection with the
merger.
Given these uncertainties, you should not place undue
reliance on these forward-looking statements. The forward-looking
statements included in this press release are made only as of the
date hereof. We do not undertake any obligation to update any such
statements or to publicly announce the results of any revisions to
any of such statements to reflect future events or
developments.
Contacts:
Cytocom, Inc.
Nichol
Ochsner
Senior V.P. Investor Relations and Corporate Communications
(732) 754-2545
nichol.ochsner@cytocom.com
Tiberend Strategic Advisors, Inc.
Maureen McEnroe, CFA (Investors)
(212) 375-2664
mmcenroe@tiberend.com
Johanna Bennett (Media)
(212) 375-2686
jbennett@tiberend.com
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SOURCE Cytocom, Inc.