Full Press Release Details
INC. announces EXCHANGE AGREEMENT with its largest investor
NJ - August 14, 2019 - CorMedix Inc. (NYSE American: CRMD), a biopharmaceutical company focused on developing
and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory disease, today announced
that it has entered into an Exchange Agreement with Elliott Associates, L.P., Elliott International, L.P, and Manchester Securities
Corp. (together, "Elliott"), its largest investor, which will strengthen and simplify the Company's balance sheet.
with the Exchange Agreement, Elliott has agreed to make a cash payment of $2 million and to exchange all of its outstanding warrants,
10% Senior Secured Convertible Notes (the principal and accrued interest of which would have amounted to a repayment obligation
of approximately $10.1 million or been convertible into approximately 1.35 million shares if held to maturity), and Series C-2,
Series D and Series F Convertible Preferred Stock for new Series G Convertible Preferred Stock. The new Series G Convertible Preferred
Stock is convertible into an aggregate of 5,560,138 shares of Common Stock, subject to a claw back of up to 139,769 shares of Common
Stock, depending upon the occurrence of certain stock price-related conditions. Elliott is retaining the shares of Common Stock
and Series E Preferred Stock that it currently holds. With the completion of this exchange, the Company will have
raised additional capital, will be debt-free and will have substantially reduced the amount of outstanding warrants as well as
its classes of outstanding preferred stock. A Special Committee of the Board of the Company, consisting of independent
directors with no relationship to Elliott, after consulting with independent financial advisors, determined that the Exchange
Agreement was in the best interests of the Company and recommended it to the Board for approval. No placement agent or brokers'
fees were paid by the Company in connection with this agreement. The completion of the exchange is subject to customary closing
CorMedix CEO commented, "We are very pleased to have completed this transaction. We believe that, as we approach our next
goal of receiving marketing approval of Neutrolin for the hemodialysis market and launching the product commercially in the U.S.,
this exchange substantially improves our attractiveness to investors and to potential strategic partners. We appreciate the support
we have received from Elliott in helping us complete this transaction."
CorMedix Inc. is a biopharmaceutical company
focused on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory
diseases. The Company is focused on developing its lead product Neutrolin , a novel, non-antibiotic antimicrobial
solution designed to prevent costly and dangerous bloodstream infections associated with the use of central venous catheters, currently
in Phase 3 development for patients undergoing chronic hemodialysis. Such infections have significant treatment costs and lead
to increased morbidity and mortality. Neutrolin has FDA Fast Track status and is designated as a Qualified Infectious Disease Product,
which provide the potential for priority review of a marketing application by FDA and allow for a total of ten years of market
exclusivity in the event of U.S. approval. Neutrolin is already marketed as a CE Marked product in Europe and other territories.
In parallel, CorMedix is leveraging its taurolidine technology to develop a pipeline of antimicrobial medical devices, with active
programs in surgical sutures and meshes, and topical hydrogels. The company is also working with top-tier researchers to
develop taurolidine-based therapies for rare pediatric cancers. For more information, visit: www.cormedix.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties.
All statements, other than statements of historical facts, regarding management's expectations, beliefs, goals, plans or
CorMedix's prospects, future financial position, financing plans, future revenues and projected costs should be considered
forward-looking. Readers are cautioned that actual results may differ materially from projections or estimates due to a variety
of important factors, including: the results of our discussions with the FDA regarding the Neutrolin development path, including
whether a second Phase 3 clinical trial for Neutrolin will be required; the resources needed to complete the information required
to submit a new drug application for Neutrolin to the FDA; the risks and uncertainties associated with CorMedix's ability
to manage its limited cash resources and the impact on current, planned or future research, including the continued development
of Neutrolin and research for additional uses for taurolidine; obtaining additional financing to support CorMedix's research
and development and clinical activities and operations; preclinical results are not indicative of success in clinical trials and
might not be replicated in any subsequent studies or trials; and the ability to retain and hire necessary personnel to staff our
operations appropriately. These and other risks are described in greater detail in CorMedix's filings with the SEC, copies
of which are available free of charge at the SEC's website at www.sec.gov or upon request from CorMedix. CorMedix may not
actually achieve the goals or plans described in its forward-looking statements, and investors should not place undue reliance
on these statements. CorMedix assumes no obligation and does not intend to update these forward-looking statements, except as required