CytoDyn Inc (OTCMKTS:CYDY) shares were down 16.23% to $0.800 on Monday and stayed flat in after-hours trading. Share prices have been trading in a 52-week range of $0.64 to $1.57. The company has a market cap of $93.31 million at 124.58 million shares outstanding.
CytoDyn Inc is a clinical-stage biotechnology company that is focused on the clinical development and commercialization of humanized monoclonal antibodies to treat Human Immunodeficiency Virus infection or HIV. Its 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. It blocks HIV from entering a cell by binding to a molecule called C-C chemokine receptor type 5 and has finished Phase II clinical trials with demonstrated antiviral activity in man.
The company also has other products on its pipeline such as 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. CytoFeline is an anti-lymphocyte function-associated antigen-1 (LFA-1) antibody for the treatment of Feline Immunodeficiency Virus infection.
In a press release yesterday, CytoDyn Inc announced that it has entered into definitive agreements with healthcare dedicated institutional investors for an offering of 13,333,334 shares of common stock at a price per share of $0.75. This also includes warrants to purchase 6,666,667 shares of common stock with gross proceeds of approximately $10.0 million in a registered direct offering. These warrants have an exercise price of $1.00 per share and will expire five years from the issuance date.
Proceeds from this offering are expected to reach $9 million, which is intended to be used by CytoDyn Inc to fund clinical trials for its product candidates and for general corporate purposes. The pickup in volume from the announcement has dragged share prices down at the start of the week.
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