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MATEON THERAPEUTICS REPORTS SECOND QUARTER 2020 FINANCIAL RESULTS

On August 17, 2020 Mateon Therapeutics (OTC.QB: MATN), a leading developer of TGF-β therapeutics, reported financial results for the second quarter ended June 30, 2020 (Press release, Mateon Therapeutics, AUG 17, 2020, View Source [SID1234563710]). Unless otherwise stated, all comparisons are for the second quarter of 2020 compared to the second quarter of 2019.

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We recorded services revenue of $1.4 million during the three months ended June 30, 2020 as compared to no revenues during the same period ended in 2019. The revenue of $0.9 million was recorded from services provided to Golden Mountain Partners (GMP) during the period ended June 30, 2020 in connection with the development of OT-101 for COVID-19. We also recorded $0.5 million in revenues from Autotelic Bio (ATB) upon the successful completion of the in-vivo efficacy studies of OT-101 combination with IL-2 based on the ATB Agreement.

Research and development ("R&D") expenses increased by approximately $0.1 million for the three months ended June 30, 2020 compared to the same period in 2019. The higher R&D cost was primarily due to by higher amortization of intangibles of $0.1 million. The financial information presented does not include any R&D activity for PointR for the period ended June 30, 2019. General and administrative ("G&A") expenses increased by approximately $0.1 million for the three months ended June 30, 2020 compared to the three months ended June 30, 2019, primarily due to increases of approximately $0.1 million due to increase in legal and professional expenses.

As a result of our mergers with Oncotelic and PointR, we expect to increase R&D and G&A expenses, including the initiation of new clinical trials including those for COVID-19, and therefore believe that research and development expenses will increase for the remainder of 2020 compared to research and development expenses in 2019.

"We are pleased to announce that despite the challenges presented by the COVID-19 situation, we were able to achieve revenue of $1.4 million," said Amit Shah, CFO of Mateon. "Additionally, 2020 Financing has resulted in gross proceeds of $2.5 million to the Company. Coupled with the $2.0 million in debt funding by GMP specifically for the COVID-19 trial, the company is in a position to execute on its objectives, including the spinoff of Edgepoint in the coming months and the development of OT-101 and Artemisinin. Overall, the company has raised over $6.0 million between revenues and financing in 1H20."

"Based on the approval accorded by the shareholders of Mateon, we anticipate the name change of the Company to Oncotelic Inc. (Oncotelic) on or before the end of September. The change in name reflects the acquisition of Mateon by Oncotelic back in April 2019", said Dr. Vuong Trieu, CEO of Mateon. "In addition, the assets of the Company, in OT-101 and Artemisinin, are both Oncotelic assets and the Company has been developing them to create shareholder value. The legacy Mateon assets are being repositions as therapeutics for rare pediatric oncology and may be spun off in the future. Over the past year, the Company has been working on development of OT-101, as an Oncology therapeutic as well for COVID-19, as well as Artemisinin for COVID-19. We expect that the development of these drugs will enhance significant shareholder value for the Company. We are also developing technologies within the artificial intelligence space (AI) through our AI division in EdgePoint Inc. (EdgePoint). The Company will develop these technologies in-house and at the appropriate time, consider how to monetize of spin-off of these assets and technologies. We are confident our efforts will create significant shareholder value similar to companies within the similar space.

We expect the EdgePoint spinoff to be completed on or before year end. We are confident that the EdgePoint spinoff will be successful given the early involvement of luminaries such as IBM, Balaji Baktha – Leading Silicon Valley VC, and Dr. Sanjay Jha- the former CEO of Motorola and COO/President of Qualcomm.

ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On August 16, 2020, Immune Therapeutics, Inc. (the "Company" or "Immune") and Cytocom, Inc. ("Cytocom") reported that closed on an agreement for the Company to sublicense Lodonal ("LDN") and Methionine Enkephalin ("MENK") for emerging markets (Filing, 8-K, TNI BioTech, AUG 16, 2020, View Source [SID1234563748]). Under the terms of the agreement, Cytocom will assume approximately $5,200,000 in the Company’s note, loan and other financial obligations. Separate from the sublicensing agreement, the Company owns an equity stake of approximately 15% in Cytocom.

Pursuant to the sublicensing agreement, Cytocom will assume the following approximate obligations of the Company: $1,051,000 in accrued liabilities and accounts payable, $3,038,000 in notes and loans payable, and $1,111,000 in obligations owed to former Immune employees.

The Company’s Board of Directors believes that despite the difficulty of the decision to take these actions, they are in the clear best interest of the Company and its shareholders and consistent with the Company’s forward-looking transition strategy of improving Immune’s financial position.

Entry Into a Material Definitive Agreement

On August 16, 2020, OncoSec Medical Incorporated (the "Company"), reported that it entered into a Securities Purchase Agreement (the "Purchase Agreement") with certain new and existing investors (the "Purchasers"), pursuant to which the Company agreed to issue and sell in a registered direct offering (the "Offering") an aggregate of 4,608,589 shares (the "Shares") of common stock of the Company, par value $0.0001 (the "Common Stock"), at an offering price of $3.25 per share, for gross proceeds of approximately $15 million before the deduction of placement agent fees and offering expenses (Filing, 8-K, OncoSec Medical, AUG 16, 2020, View Source [SID1234563737]). The Shares are being offered by the Company pursuant to a shelf registration statement on Form S-3 (File No. 333-233447), which was initially filed with the Securities and Exchange Commission (the "Commission") on August 23, 2019, amended on June 23, 2020, and was declared effective by the Commission on June 26, 2020, as supplemented by a prospectus supplement, dated August 17, 2020, relating to the Offering.

The closing of the Offering is subject to satisfaction of customary closing conditions set forth in the Purchase Agreement and is expected to occur on or about August 19, 2020.

In addition, on August 16, 2020, the Company entered into an placement agency agreement (the "Placement Agreement") with ThinkEquity, a division of Fordham Financial Management, Inc. and Torreya Capital LLC (the "Placement Agents"), pursuant to which the Placement Agents agreed to serve as the exclusive placement agents for the Company, on a best efforts basis, in connection with the Offering. The Company has agreed to pay the Placement Agents and other financial advisors an aggregate cash fee equal to 8.0% of the gross proceeds received in the Offering.

The summaries of the Purchase Agreement and the Placement Agreement set forth above do not purport to be complete and are subject to and qualified in their entireties by reference to the text of such Purchase Agreement and Placement Agreement. A form of the Purchase Agreement is filed herewith as Exhibit 10.1, and a copy of the Placement Agreement is filed herewith as Exhibit 10.2. The Purchase Agreement and Placement Agreement include customary representations, warranties, closing conditions and covenants by the Company and the Purchasers.

OncoSec Medical Incorporated Announces Pricing of Public Offering

On August 16, 2020 OncoSec Medical Incorporated (NASDAQ: ONCS) (the "Company" or "OncoSec") reported that in connection with its previously announced offering of common stock, it has entered into purchase agreements for the purchase of an aggregate 4,608,589 shares of the Company at an offering price of $3.25 per share for aggregate gross proceeds of approximately $15 million, before placement agent fees and other offering expenses (Press release, OncoSec Medical, AUG 16, 2020, View Source [SID1234563709]). The offering is expected to close on or about August 19, 2020.

The Company intends to use the net proceeds from this offering for clinical, regulatory, manufacturing and, if and when approved, potential commercial activities of its product candidates; research and development activities, including potential acquisitions and in-licensing; and other general corporate purposes.

ThinkEquity, a division of Fordham Financial Management, Inc., and Torreya Capital, LLC are acting as the exclusive placement agents for the offering.

All of the common stock in this offering were offered on a best efforts, any and all basis pursuant to an effective shelf registration statement on Form S-3 (File No. 333-233447). A prospectus supplement relating to the offering will be filed by the Company with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus may also be obtained from ThinkEquity, 17 State Street, 22nd Floor, New York, NY 10004, by telephone at (877) 436-3673, by email at [email protected].

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Ascentage Pharma Becomes a Constituent of Three Major Indexes Including Hang Seng Composite Index

On August 16, 2020 Ascentage Pharma (6855.HK), a globally focused, clinical-stage biotechnology company engaged in developing novel therapies for cancers, chronic hepatitis B (CHB), and age-related diseases, reported that the company has been selected as a constituent stock of the Hang Seng Composite Index (HSCI), the Hang Seng Hong Kong-Listed Biotech Index (HSHKBIO) and the Hang Seng Healthcare Index (HSHCI) in accordance with the quarterly adjustment results of the latest index series released by Hang Seng Indexes Company Limited, with effect from September 7th , 2020 (Press release, Ascentage Pharma, AUG 16, 2020, View Source [SID1234563690]).

HSCI is one of the important indexes in the Hong Kong equity market. Adopting the free-float-adjusted market capitalization methodology, the HSCI can be used as a basis for index funds, mutual funds as well as performance benchmarks. It now has 485 component stocks. This index offers a comprehensive Hong Kong market benchmark that covers the top 95th percentile of the total market capitalization of companies listed on the Main Board of the Stock Exchange of Hong Kong. The HSHCI aims to reflect the overall performance of stocks listed in Hong Kong that are related to healthcare businesses. This adjustment adds 12 new constituent stocks. It now has 47 component stocks. The HSHKBIO reflects the overall performance of the biotech companies that are listed in Hong Kong. Six new constituent stocks are selected this time and total 43 high-quality biotech stocks including Ascentage Pharma are included. The aforesaid three indexes provide important references for the Hong Kong equity market. It is particularly noteworthy that five biotechnology companies including Ascentage Pharma listed under Chapter 18A of the Listing Rules are included in HSCI, reflecting that the capital market has paid attention to and recognized this sector. Ascentage Pharma is one of the two biotechnology companies selected as components of the aforesaid three indexes.

Ascentage Pharma was successfully listed in Hong Kong in October 2019 and became the first stock related to small molecule innovative drugs. The company has further advanced global clinical development after listing and made a number of R&D progresses. It submitted the first New Drug Application (NDA) in June this year, making another milestone and taking an important step from a R&D company to a listed company with products.

"The selection of Ascentage Pharma as a constituent stock of the abovementioned index series of Hang Seng Indexes Company Limited represents the capital market’s recognition of and confidence in the company’s business, stock liquidity and development prospects. Additionally, it is expected to be conducive in introducing more diversified investors for the company and to promote the company’s reputation in the capital market," said Dr. Dajun Yang, Chairman & CEO of Ascentage Pharma. "Leveraging our core competency in research and development as well as operation, we will continue to seize the major opportunities in the development of the biopharmaceutical industry. Furthermore, we are committed to providing safe and effective treatment options for global patients and endeavor to create value for shareholders."