Beyond Air Announces Formation of Beyond Cancer , a New Private Company Dedicated to Oncology Utilizing Ultra-High Concentration Nitric Oxide to Treat Solid Tumors $23.9 million committed in concurrent equity private pla

Air Announces Formation of Beyond Cancer , a New Private Company Dedicated to Oncology Utilizing Ultra-High Concentration

Nitric Oxide to Treat Solid Tumors

million committed in concurrent equity private placement to form Beyond Cancer that will leverage Beyond Air's nitric oxide (NO)

expertise and take over development of current solid tumor pipeline

Cancer is led by Selena Chaisson, M.D., as Chief Executive Officer, as well as a seasoned leadership team with experience in emerging

healthcare companies and clinical oncology

concentration NO (UNO) has shown anticancer properties in preclinical trials by eliciting an immune response which confers immunity to

enables Beyond Air to focus on its core business of advancing LungFit for respiratory diseases, and Beyond Cancer to

accelerate development of the oncology pipeline with new funding and leadership

CITY, N.Y., Nov. 04, 2021 (GLOBE NEWSWIRE) - Beyond Air, Inc. (NASDAQ: XAIR), a clinical-stage medical device and biopharmaceutical

company focused on developing inhaled nitric oxide (NO) for the treatment of patients with respiratory conditions, including serious

lung infections and pulmonary hypertension, and ultra-high concentration nitric oxide (UNO) for the treatment of solid tumors, today

announced the separation of its oncology business into a new and independently managed, private company called Beyond Cancer, Ltd. Beyond

Air retains its respiratory business and will continue to focus on advancing the LungFit platform of nitric oxide generators

and delivery systems to the market. Beyond Air's preclinical oncology team and the exclusive right to the intellectual property

portfolio utilizing UNO for the treatment of solid tumors now reside with Beyond Cancer.

decision to spin off our oncology business was made in close collaboration with the Board of Directors and Beyond Air leadership as part

of our overall strategy to maximize efficiency and drive value creation to achieve our goals for both patients and shareholders. After

a careful assessment of our active portfolio management strategy, it became clear that our oncology business would be more productive

as a separate, independently managed entity with its own leadership team and investor base," said Steve Lisi, Chairman and Chief

Executive Officer of Beyond Air. "Beyond Air was founded on the promise of NO in respiratory diseases, and this separation will

enable a greater focus on the transformational LungFit platform technology. This will also allow for investment into

other respiratory diseases where we can have a significant impact on our patients. I am confident that through an ongoing, collaborative

partnership, the new Beyond Cancer leadership team will be able to leverage our knowledge of ultra-high concentration NO to treat solid

tumors. We are excited and energized to enter this new era of transformation and innovation, as Beyond Cancer takes on its own mission

of creating the next generation of immuNO-oncology treatments."

Air believes the spin-off of the oncology business will create long-term value for shareholders through the following:

Chaisson, M.D., is joining Beyond Cancer as Chief Executive Officer. Previously, Dr. Chaisson was the Director of Healthcare Investments

at Bailard, where she spent 16 years focusing on highly specialized, emerging healthcare opportunities with more than one-third of her

portfolio dedicated to investments in oncology-related companies.

am honored to lead Beyond Cancer as we move forward to unlock the possibilities of using ultra-high concentration NO as a new treatment

modality for solid tumors," said Dr. Chaisson. "Immuno-oncology has been hailed as a breakthrough therapy for many cancer

patients, especially those suffering from hematological malignancies, such as leukemia and lymphoma. However, solid tumors represent

approximately 90% of human cancers, with metastatic disease causing the overwhelming majority of cancer-related deaths. Beyond Cancer's

goal is to be at the forefront of a completely novel approach in preventing metastatic disease by harnessing the power of ultra-high

concentration NO. In preclinical studies, intra-tumoral delivery of UNO elicited an immunogenic response with potent antitumor activity

in addition to the immediate cytotoxic effect of NO-mediated tumor ablation, while limiting off-target effects. As CEO, I am excited

to have the opportunity to build a biotech company around such an innovative approach and bring on a seasoned leadership team to spearhead

this effort. I will continue Beyond Air's legacy of investing in NO and look forward to maintaining a close partnership."

to Bailard, Dr. Chaisson held senior executive roles at RCM Capital Management and Tiger Management. RCM Capital Management was acquired

and then merged with Allianz Global Investors U.S. in 2013. Dr. Chaisson received a BS in Microbiology in 1987 from Louisiana State University

in Baton Rouge, LA, where she graduated summa cum laude. She earned her M.B.A. and M.D. from Stanford University in 1992 and 1993, respectively.

Confino, Ph.D., is joining Beyond Cancer as Chief Scientific Officer from Beyond Air, where she served as Head of Research in Israel.

At Beyond Air, Dr. Confino led the oncology preclinical team and conducted in vitro and in vivo studies for ultra-high

concentration nitric oxide in solid tumors. Dr. Confino has over 12 years of experience in cancer immunology research in both the academic

and industry settings. Her work has been featured in numerous scientific conferences and published in multiple peer-reviewed journals.

She holds a Ph.D. and Master of Science in Cancer Immunology from Tel Aviv University. Dr. Confino received a BS in Biotechnology from

Bar-Ilan University in Israel, where she graduated cum laude.

complete Beyond Cancer Board of Directors, Scientific Advisory Board and headquarters will be announced as they are finalized. The Board

of Directors is expected to consist of six members, four of whom include:

Cancer has secured commitments of $23.9 million in a concurrent private placement of common shares, not to exceed $30 million, providing

the investors with up to 20% equity ownership. The funding is expected to be used to accelerate ongoing preclinical work including the

completion of IND-enabling studies, completion of a Phase 1 study, expansion of preclinical programs for combination studies, hiring

of additional Beyond Cancer team members, and optimization of the delivery system, as well as for general corporate purposes. The concurrent

private placement is expected to close later in the fourth fiscal quarter.

common shares to be sold in the private placement have been and are being offered only to certain institutional and/or accredited investors

in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act").

The common shares have not been registered under the Securities Act or any state or other securities laws and may not be offered or sold

in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable

state securities laws. The Securities and Exchange Commission has not passed upon the merits of or given its approval to the common shares,

the terms of the private placement or the accuracy or completeness of any private placement materials. The common shares sold in the

private placement are subject to legal and contractual restrictions on transfer.

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 an offer, solicitation or sale would be unlawful prior to registration or qualification or

otherwise under the securities laws of any such state or jurisdiction.

Lovells US LLP, Arthur Cox LLP and Conyers Dill & Pearman Limited serve as legal counsel to Beyond Air.

Air management will provide more details on this news on Thursday, November 11, 2021, consistent with its scheduled time to report financial

results for its second fiscal quarter ended September 30, 2021. Management will host a conference call and webcast at 4:30 pm Eastern

addition, Steve Lisi, Chairman and Chief Executive Officer of Beyond Air, will participate in the Piper Sandler 33rd Annual

Virtual Healthcare Conference being held from November 30 - December 2, 2021, and will be available for virtual one-on-one meetings.

Air, Inc. is a clinical-stage medical device and biopharmaceutical company developing a revolutionary NO Generator and Delivery System,

LungFit , that uses NO generated from ambient air to deliver precise amounts of NO to the lungs for the potential treatment

of a variety of pulmonary diseases. The LungFit can generate up to 400 ppm of NO, for delivery either continuously or

for a fixed amount of time and has the ability to either titrate dose on demand or maintain a constant dose. The Company is currently

applying its therapeutic expertise to develop treatments for pulmonary hypertension in various settings, in addition to treatments for

respiratory tract infections that are not effectively addressed with current standards of care. Beyond Air is currently advancing its

revolutionary LungFit for clinical trials for the treatment of severe lung infections such as acute viral pneumonia (including

COVID-19) and nontuberculous mycobacteria (NTM). Additionally, Beyond Air, through its affiliate, Beyond Cancer, is using ultra-high

concentrations of NO with a proprietary delivery system to target certain solid tumors in the pre-clinical setting. For more information,

visit www.beyondair.net.

Oxide (NO) is a powerful molecule, naturally synthesized in the human body, proven to play a critical role in a broad array of biological

functions. In the airways, NO targets the vascular smooth muscle cells that surround the small resistance arteries in the lungs. Currently,

exogenous inhaled NO is used in adult respiratory distress syndrome, post certain cardiac surgeries and persistent pulmonary hypertension

of the newborn to treat hypoxemia. Additionally, NO is believed to play a key role in the innate immune system and in vitro studies suggest

that NO possesses anti-microbial activity not only against common bacteria, including both gram-positive and gram-negative, but also

against other diverse pathogens, including mycobacteria, viruses, fungi, yeast and parasites, and has the potential to eliminate multi-drug

is the second leading cause of death globally, with tumor metastases responsible for approximately 90% of all cancer-related deaths.

Current cancer treatment modalities generally include chemotherapy, immunotherapy, radiation, and/or surgery. Nitric oxide at ultra-high

concentrations has been reported to show anticancer properties and to serve as a potential chemosensitizer and radiotherapy enhancer.

Based on its current findings, Beyond Cancer is developing treatment protocols using ultra-high nitric oxide concentrations to ablate

primary tumors and treat metastatic disease. For more information, visit www.beyondcancer.com.

press release contains "forward-looking statements" concerning the expected closing date of the Beyond Cancer private placement;

the composition of Beyond Cancer's anticipated leadership team and the eventual makeup of its Board of Directors; the extent to

which the proposed transaction will allow Beyond Air to focus on the development of its LungFit product and invest in the treatment

of other respiratory diseases; the extent to which Beyond Cancer will be able to utilize Beyond Air's prior knowledge and experience;

the long-term value created for Beyond Cancer shareholders; the eventual equity ownership stakes in Beyond Cancer, including those owned

by Beyond Air; the anticipated use of proceeds from the private placement; the potential safety and efficacy of the ultra-high concentration

nitric oxide product candidate, as well as its therapeutic potential in a number of indications; and the potential impact on patients