CYDY - CytoDyn Announces Settlement with Amarex Clinical Research LLC | Benzinga
Terms of the settlement include $12,000,000 cash payment to CytoDyn and elimination of $14,000,000 accounts payable liability from the Company's balance sheet
VANCOUVER, Washington, July 09, 2024 (GLOBE NEWSWIRE) -- CytoDyn Inc. (OTCQB:CYDY) ("CytoDyn" or the "Company"), a biotechnology company developing leronlimab, a CCR5 antagonist with the potential for multiple therapeutic indications, announced today that it has settled its lawsuit against Amarex Clinical Research LLC ("Amarex"), the Company's former Contract Research Organization ("CRO").
The material terms of the settlement are as follows: (i) Amarex will pay $12,000,000 to CytoDyn, $10,000,000 was paid upon execution of the agreement and the remainder to be paid within the next 12 months; (ii) the surety bond, valued at $6,500,000, will be released to CytoDyn in full; (iii) all sums Amarex had claimed as due and payable, aggregating to approximately $14,000,000, will be eliminated, with no payment required from CytoDyn; and (iv) a mutual release of claims, resolving all legal claims between the parties.
"We believe this settlement is an excellent outcome for CytoDyn shareholders and substantially improves the Company's balance sheet. The terms of the settlement provide an immediate influx of non-dilutive cash and eliminates $14 million of accounts payable. Importantly, the settlement ends the potential distraction and uncertainty associated with protracted litigation and allows the Company to immediately advance its clinical trials and research and development initiatives, said Dr. Jacob Lalezari, CEO."
Sidley Austin LLP acted as CytoDyn's legal counsel in this matter.
About CytoDyn
CytoDyn is a ...