CytoDyn raises another $25M for Vyrologix development in second covertable debt offering this month

CytoDyn Inc (OTCQB:CYDY) announced that it has completed an additional potentially non-dilutive convertible debt offering with an institutional investor, which provides $25 million of immediately available capital.  The note has a two-year maturity, bears interest at the rate of 10% annually, and is secured by all assets of the company, excluding its intellectual property. The note may be converted at the option of the investor into shares of the common stock at a price of $10 per share, the company said.  Earlier this month, the company completed a similar convertible debt offering, also worth $25 million.  READ: CytoDyn submits manufacturing section of interim order application for leronlimab as coronavirus treatment to Health Canada “Our strategic focus will be on three key indications: COVID, HIV and oncology where we see a potential for CCR5 mechanism and key advantage for Vyrologix,” Chief Operating Officer Chris Recknor said in a statement. “Key to our success is the combination of basic research in parallel with observed clinical data. We have reached our half-way mark for CD15 long-hauler trial and are on schedule for results in Q3. Multiple countries across the world are seeing surges in COVID. Our hospitalized COVID clinical trial protocol is under review and we are leveraging our knowledge from our severe-to-critical CD12 data to optimize results.” On April 9, CytoDyn announced that the long-hauler trial was fully enrolled with 56 patients, faster than initially expected. The patients involved have been suffering from coronavirus symptoms for more than 12 weeks. The company is also making progress on Vyrologix as a treatment for HIV, Recknor noted. “The HIV [biologics license application] request for rolling review in Q3 2021 with remaining portions later in the year is on schedule,” Recknor said. “We are leveraging our long-term HIV extension patients to provide insight into the benefit of Vyrologix. The top 10 cancers associated with CCR5 include: urothelial cancer, breast cancer, lung squamous cell carcinoma, colorectal cancer, lung adenocarcinoma, pancreatic cancer, head and neck cancer, TNBC, and sarcoma. We have modified our basket trial for oncology and have a new strategy looking at cancers from a basic research level to clinical with preliminary results by Q4 of this year.” The company has raised more than $50 million in the past three weeks and roughly $500 million in the company’s history. “Leronlimab is a molecule that could impact the well-being of millions of patients,” CEO Nader Pourhassan said. “To accomplish this powerful task, we are sharply focused on key areas for [Investigational New Drug]. These activities require a tremendous amount of funding. We have successfully raised close to half of a billion dollars for CytoDyn with our market cap now at about $2 billion and minimum dilution in the last 12 months. To make sure we pursue [Vyrologix] leronlimab’s many potentials, we have raised enough capital to support continued development.” In COVID-19 patients, Vyrologix works by mitigating what is known as the cytokine storm, a hyperactive immune response that can cause inflammation, fatigue, and in severe cases, organ failure. Aside from COVID-19, the US Food & Drug Administration (FDA) has granted Fast Track designation to CytoDyn for two potential indications of leronlimab for critical illnesses. The first is a combination therapy with HAART for HIV-infected patients and the second is for metastatic triple-negative breast cancer. Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com   Follow him on Twitter @andrew_kessel