CytoDyn Inc. (“CytoDyn”) (OTCQB:CYDY), a biotechnology company focused on the development of new therapies for combating infection with immune deficiency viruses, announced the completion of its equity capital raise for a total of $14.5 million through a private offering. Additional details about the offering are included in CytoDyn's Current Report on Form 8-K filed today with the Securities and Exchange Commission and available under "Investors--Financial Information" at www.cytodyn.com.
The proceeds from the offering will be used to fund current operating expenses in order to continue the development of the Company’s primary drug candidate, PRO 140, which is believed to be one of the leading monoclonal antibodies for the treatment of HIV.
Dr. Nader Pourhassan, CytoDyn’s President and CEO, stated, “We are very pleased with the results of our fund raising efforts. CytoDyn is now well positioned to advance PRO 140 as a leading HIV-therapy candidate and to achieve our milestones as we progress into our upcoming clinical trials.”
Paulson Investment Company, Inc. served as the Company’s placement agent in the private offering. Dr. Pourhassan commented, “We are most appreciative of the effort put forth by Paulson in this capital raise. The thoroughness of their due diligence on our science enhanced our credibility and visibility in the investment community. The results speak for themselves.”PRO 140 belongs to a class of entry inhibitors that block HIV from entering and infecting certain cells. PRO 140 has been the subject of one Phase I and two Phase IIa clinical trials, each of which demonstrated PRO 140’s ability to significantly reduce HIV viral load in human test subjects, and has also been designated a “fast track” product candidate by the United States Food and Drug Administration. The PRO 140 antibody appears to be a powerful antiviral agent, while not being a drug, leading to potentially fewer side effects and less frequent dosing requirements, as compared to daily drug therapies currently in use. The Company previously announced its plans to commence clinical trials in the fourth quarter of 2013, which collectively are expected to constitute a Phase IIb trial and will be funded by two grants from the National Institutes of Health to Drexel University College of Medicine.