Cytos Biotechnology Ltd: Rights Offering Oversubscribed - CHF 24.3 Million Raised

PR Newswire

SCHLIEREN (ZURICH), Switzerland, November 18, 2013 /PRNewswire/ --

Cytos Biotechnology Ltd (CYTN.SW) ("Cytos" or the "Company") today announced the completion of a financing transaction that raised a total of CHF 24.3 million by selling 8.1 million shares at a price of CHF 3.00 per share. The rights offering was oversubscribed and share allocations included the use of authorized capital. International institutional investors as well as other shareholders have invested CHF 10.2 million. The group of institutional and strategic shareholders, Abingworth, Amgen, venBio and Aisling, initially committed to invest CHF 9 million. Amgen further increased its participation by CHF 5.1 million, leading to a total investment by this group of CHF 14.1 million.

Dr. Christian Itin, Chairman and CEO of Cytos, said: "We appreciate the continued support of our shareholders and welcome our new investors. Our ongoing and fully enrolled phase 2b clinical trial with CYT003 is on track for core data release in April 2014. The additional capital from this offering supports the development activities for our lead program."

Further details of the transaction

This financing transaction consisted of a rights offering of 6'303'215 shares to existing shareholders whereby those rights not taken up were allocated by the Board of Directors to other shareholders or new investors. In addition, further 1'810'630 shares were placed out of the authorized share capital. The financing of CHF 24.3 million is in the form of registered shares issued by Cytos at CHF 3.00 per share and results in an increase of the issued share capital by a total of 8'113'845 new shares of Cytos.

About CytosBiotechnology Ltd

Cytos is a public biopharmaceutical company focused on the development of targeted immuno-therapies. The Company's lead product candidate CYT003 is a novel, first-in-class, immune modulator in Phase 2 clinical development as a potential new treatment for asthma.

CYT003 has a novel mechanism of action that inhibits the immune response that causes asthma, and may therefore be beneficial for the control of asthma. In a successfully completed Phase 2a study, CYT003 was shown to maintain asthma control and lung function in patients with persistent allergic asthma, despite withdrawal of standard therapy with inhaled corticosteroids. CYT003 has been shown to have a good safety and tolerability profile in more than 450 individuals receiving the active agent so far.

Cytos was founded in 1995 as a spinoff from the Swiss Federal Institute of Technology (ETH) in Zurich. It is located in Schlieren (Zurich), Switzerland. The Company is listed according to the Main Standard on the SIX Swiss Exchange Ltd under the symbol CYTN.

http://www.cytos.com

Disclaimer

This document does not constitute a prospectus pursuant to article 652a or 1156 of the Swiss Code of Obligations of article 27 et seq. of the listing rules of the SIX Swiss Exchange Ltd. A decision to invest in securities of Cytos Biotechnology Ltd should be based exclusively on the offering and listing prospectus published by Cytos Biotechnology Ltd for such purpose.

The securities described herein are offered publicly in Switzerland only. The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, in any jurisdiction in which such offer or solicitation would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction.

This document does not constitute an offer or invitation to subscribe for or to purchase any securities in the United States of America or any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933.

The information contained herein does not constitute an offer of securities to the public in the United Kingdom. No prospectus offering securities to the public will be published in the United Kingdom. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

Any offer of securities to the public that may be deemed to be made pursuant to this communication in any Member State of the European Economic Area (EEA) that has implemented Directive 2003/71/EC (together with the 2010 PD Amending Directive 2010/73/EU, including any applicable implementing measures in any Member State, the "Prospectus Directive") is only addressed to "qualified investors" within the meaning of the Prospectus Directive in that Member State.

This media release shall not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities in any jurisdiction; nor shall part or all of the information herein form the basis of or be relied on in connection with any investment decision relating to the securities; nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

Forward Looking Statements

This media release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements.  You are urged to consider statements that include the words "committed", "could", "will", "plans", "enable", "expected", "proposed", "intends", "planned," or the negative of those words or other similar words to be uncertain and forward-looking. Factors that may cause actual results to differ materially from any future results expressed or implied by any forward-looking statements include scientific, business, economic and financial factors, including that CYT003 may not demonstrate safety or efficacy in clinical trials, that there may be delays in development or that CYT003 may not receive marketing approval, and that the Company relies on outside financing to meet capital requirements, which may not be available under acceptable terms or at all. Against the background of these uncertainties, readers should not rely on forward-looking statements. The Company assumes no responsibility for updating forward-looking statements or adapting them to future events or developments.

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