Company: CDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010405
Chunk: 94

Company: CDT Equity Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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straZeneca an up-front payment of $1.5 million,
and (iii) is obligated to pay AstraZeneca a percentage (on a tiered basis) of any amounts it may receive in connection with a grant of
a sublicense (subject to various customary exceptions). The Issuance Agreement called for the Company to issue AstraZeneca 95,044
shares of the Company’s Common Stock. The
Issuance Agreement provides AstraZeneca with resale registration rights for such shares.

    17

AstraZeneca
has been granted a right of first negotiation to develop, manufacture, and commercialize a Licensed Product if the Company receives an
offer for, or solicits, a transaction where a third party would obtain the right to develop, manufacture, or commercialize a Licensed
Product. If AstraZeneca exercises such right, the parties will negotiate in good faith for an agreed period of time on an exclusive basis.

Either
party may terminate the August 2024 License Agreement for material breach (subject to a cure period) or insolvency of the other party.
The Company may terminate the August 2024 License Agreement for convenience (in its entirety or on a Licensed Product-by-Licensed Product
basis). In addition, AstraZeneca may terminate the August 2024 License Agreement in certain circumstances, including (but not limited
to) the Company ceasing development of all Licensed Products (subject to certain exceptions for normal pauses or gaps between clinical
studies).

As
a result of the above, the Company is no longer funding the development of AZD1656 or AZD5904 under the terms of the Exclusive Funding
Agreement, dated March 26, 2021 with St George Street Capital (the “Funding Agreement”). In this regard, the Company previously
entered into a deed of amendment amending such Funding Agreement. The parties agreed that the project funding provisions of such Funding
Agreement whereby the Company had the right to fund a project or refer other parties to St George Street Capital, were amended to provide
that St George Street Capital must still include the Company in any project funding opportunities and requests but may now seek other
third-parties to fund projects in addition to the Company. In November and December 2024, the Company received a letter from St George
Street Capital and formal complaints filed with the Intellectual Property Office claiming the Company was not the sole owner of the AZD
1656 co-crystal patent. See Note 15 for