Kalytera Therapeutics Announces Filing of Short Form Prospectus

Kalytera Therapeutics, Inc. (the “Company”, or “Kalytera”) (TSXV:KALY) (OTCQB:KALTF) announced today that it has filed a final short form prospectus (the “Final Prospectus”) with securities regulatory authorities in the provinces of Alberta, British Columbia and Ontario (and received a receipt therefor) in connection with its previously announced marketed offering of a minimum of 90,000,000 units of the Company (“Units”, or each a “Unit”) and a maximum of 200,000,000 Units for gross proceeds of $4,500,000 to $10,000,000 (the “Offering”). The first closing of the Offering is expected to occur on or about April 26, 2019, or such other date or dates as the Company and the Agents (as defined below) may agree (the “Closing Date”).

Pursuant to the Final Prospectus, each Unit will be offered at an issue price of $0.05 per Unit. Each Unit will consist of one common share in the Company (each a “Common Share”) and one common share purchase warrant (each a “Warrant” and collectively the “Warrants”). Each Warrant will entitle the holder thereof to acquire one Common Share at a price of $0.065 for a period of 36 months from the first Closing Date.

The Company intends to use the net proceeds of the Offering: (i) to pay milestone payments owing to the former shareholders of Talent Biotechs Ltd; (ii) to progress its Phase 2 clinical study evaluating cannabidiol for the prevention of graft versus host disease (“GVHD”); (iii) for administrative expenses; and (iv) depending on the amount of proceeds, to progress its program to create a novel, proprietary CBD analogue for treatment of acute and chronic pain.

Echelon Wealth Partners Inc. and Paradigm Capital Inc. (collectively, the “Agents”) will conduct the Offering on a commercially reasonable efforts basis pursuant to an agency agreement dated April 16, 2019. The Agents shall be entitled to a cash commission equal to 7.5% of the gross proceeds of the Offering, which shall be payable on the Closing Date, and shall also be granted broker warrants (“Broker Warrants”) to acquire that number of Common Shares equal to 7.5% of the number of Common Shares sold in the Offering. Each Broker Warrant will entitle the holder thereof to acquire one Common Share at a price of $0.05 for a period of 24 months from the issuance thereof.

The TSX Venture Exchange has conditionally approved the listing of the Common Shares, the Warrants and the common shares underlying the Warrants and the Broker Warrants. Listing will be subject to the Corporation fulfilling all of the listing requirements. In connection with the Offering, the Corporation intends to change its trading symbol to “KLY” effective as of April 22, 2019, and under such change the trading symbol for its currently outstanding warrants issued to investors in August 2018 will become “KLY.WT.A”. The new Warrants to be issued in the Offering are expected to be listed under the trading symbol “KLY.WT.B”.

The Units may be offered for sale in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and applicable state laws.

For further details with respect to the Offering, please see the Final Prospectus, a copy of which is available on SEDAR at www.sedar.com.

The securities described herein have not been, and will not be, registered under the U.S. Securities Act, or any state securities laws, and accordingly, may not be offered or sold to, or for the account or benefit of, persons in the United States, except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements, or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company’s securities to, or for the account or benefit of, persons in the United States.

About Kalytera Therapeutics

Kalytera Therapeutics, Inc. is pioneering the development of CBD therapeutics. Through its proven leadership, drug development expertise, and intellectual property portfolio, Kalytera seeks to establish a leading position in the development of CBD medicines for a range of important unmet medical needs, with an initial focus on GVHD and treatment of acute and chronic pain.

• Website Home: https://kalytera.co/
• News and Insights: https://kalytera.co/news/
• Investors: https://kalytera.co/investors/

Cautionary Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation in respect of the use of the net proceeds of the Offering, the Closing Date and the effective date of the change in its trading symbol and other statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that future clinical studies may not proceed as expected or may produce unfavourable results, the risk that the Offering may not be completed, the risk Kalytera may not be able to obtain all necessary regulatory and stock exchange approvals and the risk that Kalytera may apply the proceeds of the Offering differently than as stated herein depending on future circumstances.

Kalytera undertakes no obligation to comment on analyses, expectations or statements made by third parties, its securities, or financial or operating results (as applicable). Although Kalytera believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Kalytera’s control. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Kalytera disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information

Robert Farrell
President, CEO
(888) 861-2008
info@kalytera.co

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Source: www.globenewswire.com