Citius Pharmaceuticals, Inc. (OTCMKTS:CTXR) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement

On May 10, 2017, Citius Pharmaceuticals, Inc. (the Company)
executed a convertible future advance promissory note in favor of
Leonard Mazur (Lender) in the principal amount of up to
$1,500,000 (the Bridge Note). The Company may draw on the Bridge
Note as needed up to the $1,500,000 principal amount. Mr. Mazur
extended an advance of $120,000 to the Company in April that is
now governed under the terms of this Bridge Note and is the only
amount outstanding under the Bridge Note at this time. The Bridge
Note bears interest at the Prime Rate as published in the Wall
Street Journal on the last day of the month plus 1%, and matures
on the earlier of December 31, 2017 or conversion. The Bridge
Note is convertible into shares of the Companys common stock at a
conversion price equal to 75% of the price per share paid by
investors in the Companys securities offering to an S-1
registration statement filed with the U.S. Securities and
Exchange Commission (the Securities Offering). In addition, in
the event the Company enters into a debt financing with a third
party on terms better than those of the Bridge Note while such
Bridge Note remains outstanding, the Company will notify Lender
of such terms and Lender may elect, in Lenders sole discretion,
to amend the Bridge Note to incorporate such terms.

In addition, on May 10, 2017 the Company entered into a
Conversion Agreement to which the Company and Lender consolidated
Lenders preexisting demand promissory notes (the Preexisting
Notes) in the aggregate principal amount of $2,500,000 and
converted them into a convertible promissory note (the AR Note).
The AR Note also extended the maturity date on the obligations to
December 31, 2017 (the AR Note and, together with the Bridge Note
and the Conversion Agreement, the Financing Documents). The AR
Note is convertible into shares of the Companys common stock, at
the sole discretion of Lender, at a conversion price equal to 75%
of the price of the shares of the Companys common stock sold in
the Securities Offering. The other terms of the Preexisting Notes
remain unchanged, and were reported in the Companys Current
Reports on Form 8-K filed with the U.S. Securities and Exchange
Commission on September 7, 2016 and October 20, 2016.

The Lender, Leonard Mazur, is our Executive Chairman and
Secretary and a director of the Company.

The foregoing summary of the material terms of the Financing
Documents is subject to the full and complete terms of such
Financing Documents which will be filed with the Companys
Quarterly Report on Form 10-Q for the fiscal quarter ended March
31, 2017.

Item 2.03. Creation of a Direct Financial Obligation or
an Obligation under an Off-Balance Sheet Arrangement of a
Registrant.

The disclosure required by this item is included in Item 1.01 and
is incorporated herein by reference.

About Citius Pharmaceuticals, Inc. (OTCMKTS:CTXR)

Citius Pharmaceuticals, Inc., formerly Trail One, Inc., is a pharmaceutical company engaged in developing and commercializing therapeutic products. The Company focuses on developing formulations to manage the delivery and compliance of approved drugs. The Company offers Suprenza, an orally disintegrating tablet and an obesity drug that can be administered with water or dissolved on tongue. The Company also focuses on development of its product candidate, Hydrocortisone-Lidocaine Cream, which is in Phase II study. Its Hydrocortisone-Lidocaine Cream is used to provide anti-inflammatory and anesthetic relief to persons suffering from grade I and II hemorrhoids. Citius Pharmaceuticals, LLC is its subsidiary. The Company has not generated any revenues.

Citius Pharmaceuticals, Inc. (OTCMKTS:CTXR) Recent Trading Information

Citius Pharmaceuticals, Inc. (OTCMKTS:CTXR) closed its last trading session up +0.010 at 0.430 with 11,424 shares trading hands.