Group of CytoDyn Stockholders Comments on Delaware Court Decision

Rhea-AI Summary

The Investor Group of CytoDyn Inc. (CYDY) expressed disappointment after the Delaware Court of Chancery denied their request to allow stockholders to vote on their five nominated director candidates. They criticized the company’s management for failing to secure FDA approval for Leronlimab and being under investigation by the SEC and DOJ, while also issuing a going concern disclosure. The Investor Group believes new leadership is essential for positive change.

Positive

• None.

Negative

• Management's failure to secure FDA approval for Leronlimab.
• Company under investigation by SEC and DOJ.
• Recent going concern disclosure raises financial stability concerns.
• Investor Group claims current management is poorly managed and needs replacement.

NEW YORK--(BUSINESS WIRE)-- A group of long-time stockholders (the “Investor Group”) of CytoDyn Inc. (“CYDY” or the “Company”) that has nominated five highly experienced director candidates to serve on the Company’s Board of Directors today commented on the decision made by the Delaware Court of Chancery to deny the Investor Group’s request to force the Company to allow stockholders the opportunity to vote for the Investor Group’s nominees.

The Investor Group stated: “We believe strongly that the Court’s ruling is fundamentally flawed and, as such, we are evaluating all possible alternatives. CYDY is very poorly managed — in addition to its complete failure to secure FDA approval for Leronlimab, it is currently being investigated by both the SEC and DOJ, and recently issued a going concern disclosure, all while the management team awards itself outsized pay packages. This company is in desperate need of new leadership and oversight to enact sorely needed change.”

Important Information

Paul Rosenbaum, Jeffrey Beaty, Arthur Wilmes, Thomas Errico, M.D., Bruce Patterson, M.D., Peter Staats, M.D., Melissa Yeager and CCTV Proxy Group, LLC (collectively the “Participants”) have filed a definitive proxy statement and accompanying WHITE proxy card with the Securities and Exchange Commission (the “SEC”) to be used in connection with the solicitation of proxies from the stockholders of CytoDyn Inc. (the “Company”). All stockholders are advised to read the definitive proxy statement and other documents related to the solicitation of proxies. The definitive proxy statement and an accompanying proxy card is available at no charge on the SEC’s website at http://www.sec.gov/. In addition, the Participants will provide copies of the proxy statement, without charge, upon request. Requests for copies should be directed to the Participants’ Proxy Solicitor, Okapi Partners LLC, by calling (844) 202-7428.

Disclaimer

This material does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any jurisdiction to any person. In addition, the discussions and opinions in this press release and the material contained herein are for general information only and are not intended to provide investment advice. All statements contained in this press release that are not clearly historical in nature or that depend on future events are “forward-looking statements,” which are not guarantees of future performance or results, and the words “anticipate,” “believe,” “expect,” “may,” “could,” and similar expressions are generally intended to identify forward-looking statements. Forward looking statements contained in this release are based on current expectations, speak only as of the date of this press release and involve risks that may cause the actual results to be materially different. Certain information included in this material is based on data obtained from sources considered to be reliable. No representation is made with respect to the accuracy or completeness of such data. The Participants disclaim any obligation to update the information herein and reserve the right to change any of their opinions expressed herein at any time as it deems appropriate.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211014005824/en/

Media

Mark Semer/Sam Cohen

Gasthalter & Co.

(212) 257-4170

cydy@gasthalter.com

Investors

Bruce Goldfarb/Chuck Garske

Okapi Partners

(212) 297-0720

info@okapipartners.com

Source: Gasthalter & Co. on behalf of CytoDyn Inc. shareholders

FAQ

What was the Delaware Court's decision regarding CytoDyn Inc. and the Investor Group?

The Delaware Court of Chancery denied the Investor Group's request to allow stockholders to vote for their nominated director candidates.

What concerns did the Investor Group raise about CytoDyn Inc.?

The Investor Group criticized the management for not securing FDA approval for Leronlimab and being investigated by both the SEC and DOJ.

What is the significance of the going concern disclosure for CytoDyn Inc.?

The going concern disclosure signals potential financial instability for CytoDyn Inc., raising concerns about its operational viability.

What actions is the Investor Group considering after the court's ruling?

The Investor Group is evaluating all possible alternatives following the court's denial of their request.