Beyond Air Secures up to $40 Million Debt Financing Funding to support the commercialization of LungFit PH and advance the clinical development of high concentration nitric oxide treatment using Beyond Air's revolutionar

Air Secures up to $40 Million Debt Financing

to support the commercialization of LungFit PH and advance the clinical development of high concentration nitric

oxide treatment using Beyond Air's revolutionary LungFit platform technology

CITY, N.Y., June 15, 2023 - Beyond Air, Inc. (NASDAQ: XAIR) ("Beyond Air" or the "Company"),

a commercial 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, through its affiliate Beyond

Cancer, Ltd., ultra-high concentration nitric oxide (UNO) for the treatment of solid tumors, today announced securing a senior secured

debt financing of up to $40 million from funds managed by Avenue Capital Group. The term loan provides Beyond Air with funding to support

the ongoing commercial launch of LungFit PH and advance clinical development of the LungFit platform.

Capital Group has agreed to provide the Company with up to $40 million of senior secured term loans funded across three tranches with

$17.5 million fully funded at close. The facility has a four-year term from the funding of the first tranche. In addition to certain

fees, the Company shall grant the lender warrants to purchase 233,843 shares of common stock. Upon Beyond Air meeting certain milestones,

the remaining tranches of $10 million and $12.5 million will be made available, subject to the Company's discretion, until September

2024 and after April 2024, respectively.

transaction immediately strengthens our balance sheet and allows us to continue ramping up our commercial efforts for LungFit PH. We

are extremely pleased to have a strong partner in Avenue Capital, which has a strong track record in healthcare and a history with nitric

oxide," commented Steve Lisi, Chairman and Chief Executive Officer of Beyond Air. "Additionally, this funding allows for

the continued development of our clinical pipeline."

Norman, Senior Portfolio Manager at Avenue Capital Group, added, "We are impressed with Beyond Air's technology and its potential

to improve the lives of patients who are in need of inhaled nitric oxide. We believe the Company's convenient, tankless solution

is positioned to be a game changer for those living with chronic conditions."

features of the term loan

Sandler served as exclusive financial advisor and sole lead arranger to the Company on the transaction.

Air is a medical device and biopharmaceutical company dedicated to harnessing the power of nitric oxide through its 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 has received

FDA approval for its first system, LungFit PH for persistent pulmonary hypertension of the newborn. Beyond Air is currently advancing

its other revolutionary LungFit systems in clinical trials for the treatment of severe lung infections such as viral community-acquired

pneumonia (including COVID-19), nontuberculous mycobacteria (NTM) and severe lung infections in other settings. Additionally, Beyond

Cancer, an affiliate of Beyond Air, is investigating 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 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 resistant strains.

Air's LungFit is a cylinder-free, phasic flow generator and delivery system and has been designated as a medical device by the

U.S. Food and Drug Administration (FDA). The ventilator compatible version of the device can generate NO from ambient air on demand for

delivery to the lungs at concentrations ranging from 1 ppm to 80 ppm. The LungFit system could potentially replace large, high-pressure

NO cylinders providing significant advantages in the hospital setting, including greatly reducing inventory and storage requirements,

improving overall safety with the elimination of NO2 purging steps, and other benefits. The LungFit can also deliver NO at concentrations

at or above 80 ppm for potentially treating severe acute lung infections in the hospital setting (e.g. COVID-19, bronchiolitis)

and chronic, refractory lung infections in the home setting (e.g. NTM). With the elimination of cylinders, Beyond Air intends

to offer NO treatment in the home setting.

Beyond Air's LungFit PH is approved for commercial use only in the United States of America to treat term and near-term neonates

with hypoxic respiratory failure. Beyond Air's other LungFit systems are not approved for commercial use and are for investigational

use only. Beyond Air is not suggesting NO use over 80 ppm or use at home.

pulmonary hypertension of the newborn (PPHN) is a lethal condition and secondary to failure of normal circulatory transition at birth.

It is a syndrome characterized by elevated pulmonary vascular resistance (PVR) that causes labile hypoxemia due to decreased pulmonary

blood flow and right-to-left shunting of blood. Its incidence has been reported as 1.9 per 1000 live births (0.4-6.8/1000 live

births) with mortality rate ranging between 4-33%. This syndrome complicates the course of about 10% of infants with respiratory

failure and remains a source of considerable morbidity and mortality. NO gas is a vasodilator, is approved in dozens of countries to

improve oxygenation and reduces the need for extracorporeal membrane oxygenation (ECMO) in term and near-term (>34 weeks gestation)

neonates with hypoxic respiratory failure associated with clinical or echocardiographic evidence of pulmonary hypertension in conjunction

with ventilator support and other appropriate agents.

Cancer, Ltd., an affiliate of Beyond Air, Inc., is a development-stage biopharmaceutical and medical device company utilizing ultra-high

concentration nitric oxide (UNO) via a proprietary delivery platform to treat primary tumors and prevent metastatic disease. Nitric oxide

at ultra-high concentrations has been reported to show anticancer properties and to potentially serve as a chemosensitizer and radiotherapy

enhancer. A first-in-human study is underway in patients with solid tumors. The Company is conducting preclinical studies of UNO in multiple

solid tumor models to inform additional treatment protocols.

more information, visit www.beyondcancer.com.

press release contains "forward-looking statements" concerning, among other things, the Avenue Capital debt financing; the

Company's expected use of proceeds from the financing; the Company's commercial and clinical development plans and the expected

timing thereof; the potential safety and efficacy of inhaled nitric oxide and the ultra-high concentration nitric oxide product candidate,

as well as its therapeutic potential in a number of indications; the potential impact on patients and anticipated benefits associated

with inhaled nitric oxide and the ultra-high concentration nitric oxide product candidate; and other statements regarding the Company's

future operations, financial performance, financial position, prospects, objectives and other future events. Forward-looking statements

include statements about expectations, beliefs, or intentions regarding product offerings, business, results of operations, strategies

or prospects. You can identify such forward-looking statements by the words "expects," "plans," "anticipates,"

"believes" "expects," "intends," "looks," "projects," "goal,"

"assumes," "targets" and similar expressions and/or the use of future tense or conditional constructions (such

as "will," "may," "could," "should" and the like) and by the fact that these statements

do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events,

activities, trends or results as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred,

these statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from any future

results expressed or implied by the forward-looking statements. These forward-looking statements are only predictions and reflect views

as of the date they are made with respect to future events and financial performance. Many factors could cause actual activities or results

to differ materially from the activities and results anticipated in forward-looking statements, including risks and uncertainties related

to: Beyond Air's ability to meet the criteria necessary to achieve additional funding under the debt financing agreement; Beyond

Air's ability to comply with the covenants set forth in the debt financing agreement; the commercial success of Beyond Air's

LungFit PH; Beyond Cancer's ability to raise additional capital; the timing and results of future pre-clinical studies and clinical

trials concerning the ultra-high concentration nitric oxide product candidate; the potential that regulatory authorities, including the

FDA and comparable non-U.S. regulatory authorities, may not grant or may delay approval for the ultra-high concentration nitric oxide

product candidate; the approach to discover and develop novel drugs, which is unproven and may never lead to efficacious or marketable

products; Beyond Cancer's ability to fund and the results of further pre-clinical studies and clinical trials of the ultra-high

concentration nitric oxide product candidate; obtaining, maintaining and protecting intellectual property utilized by products; obtaining

regulatory approval for products; competition from others using similar technology and others developing products for similar uses; dependence

on collaborators; unanticipated costs and expenses and other risks, which may, in part, be identified and described in the "Risk

Factors" section of Beyond Air's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and its other filings

with the Securities and Exchange Commission, all of which are available on Beyond Air's website. Beyond Cancer and Beyond Air undertake

no obligation to update, and have no policy of updating or revising, these forward-looking statements, except as required by applicable

of Investor Relations