By a News Reporter-Staff News Editor at Biotech Week -- TNI BioTech, Inc. - (OTCQB: TNIB) ("TNIB" or the "Company"), a biotechnology company focused on developing innovative, targeted immune therapies, announced that its Board of Directors has extended the record date of our spin-off of Cytocom, Inc., a subsidiary of TNIB (see also TNI BioTech, Inc.).
The Company's Board received a Letter on July 13, 2014 from Carricklee Consulting Ltd on behalf of shareholders holding warrants demanding a 30-day extension of the record date. The extension will grant them the opportunity to convert some if not all of their remaining warrants priced between Fifty Cents and One Dollar Fifty. If such warrants are converted, it will provide them with additional shares in Cytocom on the payment date. Shareholders last week converted warrants at $.50 cents at a premium to market. Due to the official demand and significant positions of those shareholders, the Company believes we have a fiduciary obligation to extend the record date until August 15, 2014.
At the time of the distribution, each TNIB shareholder will receive one common share of Cytocom for every one share of TNIB common stock held by such TNIB stockholder as of 5:00 p.m., Eastern Time, on August 15, 2014, which is the "record date" for the distribution; however, to the extent that a TNIB shareholder sells a portion or all of that stockholder's shares of TNIB common stock prior to the record date, such stockholder also will be pro-rata selling the right to receive common shares of Cytocom through the distribution. TNIB stockholders need not pay any consideration to participate in the distribution; however, mandatory surrender of existing TNIB shares will be required to receive shares of Cytocom through the distribution. TNIB shareholders as of the record date will continue to own shares in TNIB in the same form and in the same quantity as of the record date.
Cytocom, Inc., has received interest from two investment banking firms to underwrite and fund Cytocom pursuant to a S-1 Registration Statement that would fund the company's development plan.
"Upon the spin-off, Cytocom will be able to focus on its development stage, targeted immunology and oncology pipeline and once spin-off and distribution is complete, Cytocom will operate as a stand-alone publicly traded company," said Dr. Graham Burton President and CEO of Cytocom.
Keywords for this news article include: Biotechnology, Investment and Finance, TNI BioTech, TNI BioTech Inc.
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