CEO, CIO, and Senior Advisors of Aditxt Complete Conversion of ~$1.1 Million in Accrued Compensation into Restricted IPO Units

Rhea-AI Summary

Aditxt announced the conversion of approximately $1.1 million in accrued compensation for its CEO, Chief Innovation Officer, and two senior advisors into equity units. This conversion aligns with the terms of the company's recent IPO, completed on July 2, 2020, where 1,226,668 units were sold for about $11.0 million. Each unit included one share of common stock and two types of warrants, allowing further stock purchases at specified prices. The company's immune monitoring and reprogramming technologies aim to enhance the immune system's health.

Positive

• The conversion of $1.1 million in accrued compensation to equity units supports management's alignment with shareholder interests.
• The IPO raised approximately $11.0 million, providing capital for ongoing and future projects.

Negative

• The reliance on the conversion of accrued compensation to equity units might signal potential cash flow issues.
• Acquisition of equity units by management may lead to dilution of existing shareholder value.

Loma Linda, CA, July 10, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Aditx Therapeutics, Inc. (Aditxt) (the “Company”) (Nasdaq: ADTX), a life sciences company developing technologies specifically focused on improving the health of the immune system through immune monitoring and reprogramming, today announced the conversion of accrued compensation due to the Company’s Chief Executive Officer, Chief Innovation Officer and two senior advisors to equity units with the same terms as the Company’s recent initial public offering (IPO), which was completed on July 2, 2020.

The conversion of the accrued compensation of the related parties, which totaled approximately $1.1 million through March 31, 2020, is detailed in the final prospectus filed with the Securities and Exchange Commission, dated June 29, 2020, and the Current Report on Form 8-K filed with the SEC on July 6, 2020. The conversion was effective upon the closing of the Company’s IPO on July 2, 2020.

Each unit in the IPO consisted of one share of common stock, one Series A warrant, and one Series B warrant. The Series A warrants permit the holder to purchase one share of common stock at an exercise price of $9.00 and expire after 5 years. The Series B warrants are exercisable at $11.25 per share. The Series B warrants contain an exchange feature that will permit the holder to exchange the warrant into shares of common stock on a one-for-one basis any time commencing the earlier of 10 days from the IPO or the time when $10 million of volume is traded in the common stock, if the closing stock price of the common stock on the date of exercise is below the exercise price of the Series B warrant.

Each unit in the IPO was sold at price of $9.00 and the Company sold a total of 1,226,668 units for total proceeds of approximately $11.0 million. The common stock and the accompanying warrants included in the units were purchased together in the offering but were issued separately and were immediately separable upon issuance. Dawson James Securities acted as the sole book-running manager for the offering. ViewTrade Securities acted as the co-manager for the offering.

About Aditxt

Aditxt is developing technologies specifically focused on improving the health of the immune system through immune monitoring and reprogramming. The immune monitoring technology is designed to provide a personalized comprehensive profile of the immune system. The immune reprogramming technology is currently at the pre-clinical stage and is designed to retrain the immune system to induce tolerance with an objective of addressing rejection of transplanted organs, autoimmune diseases, and allergies. For more information, please visit: www.aditxt.com

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, including the Company’s expectations regarding the proposed offering of the Company’s shares of common stock, including as to the consummation of the offering described above and the size of the offering are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, risk factors relating to its business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:

Jeff Ramson
Chief Executive Officer
PCG Advisory
IR@aditxt.com
646-762-4518

FAQ

What is the purpose of Aditxt's recent IPO?

The IPO raised approximately $11.0 million to support Aditxt's development of immune health technologies.

What is the significance of the $1.1 million conversion in Aditxt's press release?

The conversion signifies the alignment of management compensation with shareholder interests, but it may also indicate cash flow concerns.

How many units were sold during Aditxt's IPO?

Aditxt sold 1,226,668 units in its IPO.

What are the terms associated with the warrants from Aditxt's IPO?

The Series A warrants allow stock purchases at $9.00, while the Series B warrants allow purchases at $11.25.

What does Aditxt aim to achieve with its immune monitoring technology?

Aditxt's immune monitoring technology aims to provide a comprehensive profile of the immune system.