Cytocom (CBLI) Receives Commitments for $90 Million in Equity and Debt Financing

(Updated - July 29, 2021 7:52 AM EDT)

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."

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