Item 3.02 Unregistered Sales of Equity Securities.
CytoDyn Inc., a Delaware corporation (the “Company”), is providing
this disclosure under Item 3.02 because, as of December 29,
2021, its unregistered sales of equity securities, in the
aggregate, exceeded 1% of the shares of its common stock, par value
$0.001 per share (the “Common Stock”), outstanding as of
November 23, 2021, the date of its last report under Item
3.02.
Exchange of Convertible Promissory Note
for Shares of Common Stock
On December 7, 2021, the Company and the holder of its secured
convertible promissory note issued April 2, 2021 (the “April 2
Note”), in partial satisfaction of the December required debt
reduction amount, entered into an exchange agreement pursuant to
which the April 2 Note was partitioned into a new note (the
“December 7 Partitioned Note”) with a principal amount of
$2.0 million. The outstanding balance of the April 2 Note
was reduced by the December 7 Partitioned Note. The Company
and the investor exchanged the December 7 Partitioned Note for
approximately 2.4 million shares of common stock.
On December 29, 2021, the Company and the holder of the
April 2 Note, in partial satisfaction of the December required
debt reduction amount, entered into an exchange agreement pursuant
to which the April 2 Note was partitioned into a new note (the
“December 29 Partitioned Note”) with a principal amount of
$2.0 million. The outstanding balance of the April 2 Note
was reduced by the December 29 Partitioned Note. The Company
and the investor exchanged the December 29 Partitioned Note
for approximately 2.4 million shares of common stock.
The Company relied on the exemption from registration afforded by
Section 3(a)(9) of the Securities Act of 1933, as amended (the
“Securities Act”) for the exchange transactions described
above.
Private Placement of Common Stock and
Warrants through Placement Agent
On November 24, 2021, the Company issued in a private
placement to accredited investors an aggregate of approximately
3.0 million shares of common stock, together with warrants to
purchase an aggregate of approximately 0.9 million shares of
common stock at an exercise price of $1.00 per share. On
November 30, 2021, the Company issued additional securities in
the private placement to accredited investors totaling
approximately 0.3 million shares of common stock, together
with warrants to purchase approximately 0.1 million shares of
common stock, also at an exercise price of $1.00 per share. The
securities were issued at a combined purchase price of $1.00 per
fixed combination of one share of common stock and three-tenths of
one warrant to purchase one share of common stock, for aggregate
gross proceeds to the Company of approximately $3.2 million.
The warrants have a five-year term and are immediately exercisable.
Copies of the forms of warrant and subscription agreement used in
the private placement were filed as Exhibits 4.1 and 10.1,
respectively, to the Company’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on November 23, 2021.
The representations, warranties and covenants contained in the
subscription agreements were made solely for the benefit of the
parties to the subscription agreements. In addition, such
representations, warranties and covenants (i) are intended as
a way of allocating the risk between the parties to the
subscription agreements and not as statements of fact and
(ii) may apply standards of materiality in a way that is
different from what may be viewed as material by stockholders of,
or other investors in, the