CytoDyn Inc. (OTCMKTS:CYDY) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

Private Placements

Between November30, 2017 and December5, 2017, CytoDyn Inc., a Delaware corporation (the “Company”), issued in private placements to accredited investors (the “Private Placements”) an aggregate of 1,924,000 shares of its common stock, par value $0.001 per share, together with warrants to purchase an aggregate of 1,924,000 shares of common stock at an exercise price of $0.75 per share. The securities were issued at a combined purchase price of $0.50 per fixed combination of one share of common stock and one warrant to purchase one share of common stock, for aggregate gross proceeds to the Company of approximately $962,000. The warrants have a five-year term and are immediately exercisable. Copies of the forms of warrant and subscription agreement are incorporated herein by reference to Exhibits 4.1 and 10.1, respectively, to the Form 8-K filed on November8, 2017.

As a fee to the placement agent, the Company has agreed to pay a cash fee equal to 12% of the gross proceeds received from qualified investors in the offering, or $96,720 for the Private Placement closings to which this Form8-K relates, as well as a one-time non-accountable expense fee of $25,000 in the aggregate for all closings in this offering, which was paid on November30, 2017. The Company also agreed to grant the placement agent or its designees warrants to purchase up to 10% of the number of shares of common stock sold to qualified investors in the offering, or 161,200 shares for the Private Placement closings to which this Form8-K relates, on terms similar to the investor warrants described above.

The Company relied on the exemption provided by Rule 506 of Regulation D and Section4(a)(2) of the Securities Act of 1933, as amended, in connection with the foregoing transactions.

Make-Whole Agreements

On November30, 2017, the Company completed the offer and sale (the “Make-Whole Offering”) of an aggregate of 503,015 shares of Common Stock (the “Make-Whole Shares”) and warrants to purchase up to 251,504 shares of common stock (the “Make-Whole Warrants” and, collectively with the Make-Whole Shares, the “Make-Whole Securities”) to the investors in the Company’s September8, 2017 registered direct offering, the terms of which were previously reported in the Form 8-K filed on September8, 2017.

The Make-Whole Securities were offered to a form of Waiver and Subscription Agreement (the “Waiver and Subscription Agreement”), which is filed as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference. The Make-Whole Securities represent the difference in the numbers of shares of Common Stock and warrants that would have been sold to investors in the September8, 2017 offering had the reduced purchase price of $0.65 per share of Common Stock and related Warrants in the October11, 2017 registered direct offering (as compared to $0.75 in the September8, 2017 offering) and the reduced warrant exercise price of $0.75 in the October11, 2017 offering (as compared to $1.00 in the September8, 2017 offering) applied to the September8, 2017 offering as well. The Make-Whole Securities were offered as consideration for the release of certain claims by participating investors. In connection with these arrangements, the exercise prices of any warrants previously sold in the September8, 2017 offering to participating investors has also been reduced to $0.75 from $1.00. In addition, warrants previously issued to the placement agent (or its designees) in respect of participating investors have also been proportionately adjusted to reflect a reduced exercise price of $0.715 (as compared to $0.825 in the September 8, 2017 offering) and 26,702 additional shares.

The Company relied on the exemption provided by Rule 506 of Regulation D and Section4(a)(2) of the Securities Act of 1933, as amended, in connection with the issuance of the Make-Whole Securities. The foregoing summary of the terms of the Make-Whole Offering and the Make-Whole Securities is subject to, and qualified in its entirety by, the form of Waiver and Subscription Agreement.

Consultant Warrant

On November30, 2017, the Company issued a warrant (the “ConsultantWarrant”) for 100,000 shares of Common Stock to a third-party consultant, as consideration for services provided. The Consultant Warrant is fully vested and exercisable at a price of $0.75 per share and will expire five years from the date of issuance. The Company relied on the exemption from registration afforded by Section4(a)(2) of the Securities Act in connection with the issuance of the Consultant Warrant. A copy of the form of the Consultant Warrant is incorporated herein by reference to Exhibit 4.4 to the Form 8-K filed on June22, 2017.

After giving effect to the Private Placements, the Make-Whole Offering and the issuance of the Consultant Warrant, as of December5, 2017, there were an aggregate of 165,617,154 shares of common stock outstanding, and aggregate warrants to purchase 78,143,520 shares of common stock with a weighted average exercise price of $0.82 per share.

Item 1.01 Unregistered Sales of Equity Securities.

The disclosure in Item 1.01 of this Form 8-K is incorporated by reference into this Item 1.01.

Item 1.01 Financial Statements and Exhibits.

(d) Exhibits.

CytoDyn Inc. Exhibit
EX-10.2 2 d503829dex102.htm EX-10.2 EX-10.2 Exhibit 10.2 WAIVER AND SUBSCRIPTION AGREEMENT This waiver and agreement to subscribe for additional securities (this “Agreement”) is made as of the date set forth below,…
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About CytoDyn Inc. (OTCMKTS:CYDY)

CytoDyn Inc. is a clinical-stage biotechnology company. The Company is focused on the clinical development and commercialization of humanized monoclonal antibodies to treat Human Immunodeficiency Virus (HIV) infection. The Company’s lead product candidate, PRO 140, belongs to a class of HIV therapies known as entry inhibitors that block HIV from entering into and infecting certain cells. The Company’s product pipeline also includes Cytolin and CytoFeline. Cytolin is a mouse monoclonal antibody developed to identify a specific type of immune cell called a cytotoxic T cell, or cytotoxic T lymphocyte (CTL). CytoFeline is an anti-lymphocyte function-associated antigen-1 (LFA-1) antibody for the treatment of Feline Immunodeficiency Virus (FIV) infection. PRO 140 blocks HIV from entering a cell by binding to a molecule called C-C chemokine receptor type 5 (CCR5). The Company has finished Phase II clinical trials for PRO 140 with demonstrated antiviral activity in man.