Filing Details

Daniel Radden

c/o Armistice Capital LLC

510 Madison Avenue

7^th Floor

New York, NY 10022

Telephone Number: (212) 231-4930

(Name, Address and Telephone Number of Person Authorized to Receive

Notices and Communications)

Armistice Capital is an investment adviser registered with the Securities and Exchange Commission (the “SEC”) that is principally engaged in the business of providing investment management services to private investment vehicles, including the Master Fund. The principal business address of Armistice Capital is 510 Madison Avenue, 7^th Floor, New York, New York 10022.

The Master Fund is principally engaged in the business of investing in securities. The principal business address of the Master Fund is c/o dms Corporate Services Ltd., 20 Genesis Close, P.O. Box 314, Grand Cayman KY1-1104, Cayman Islands. The board of directors of the Master Fund consists of Steven Boyd, Kevin A. Phillip and Gregory S. Bennett.

Steven Boyd is the managing member of Armistice Capital and a director of the Master Fund. Mr. Boyd’s business address is 510 Madison Avenue, 7^th Floor, New York, New York 10022.

The funds for the purchase of the 39,368,948 Shares beneficially owned by the Armistice Capital and Mr. Boyd came from the working capital of the Master Fund and a separately managed account client of Armistice Capital that is not a Reporting Person. No borrowed funds were used to purchase the Shares, other than any borrowed funds used for working capital purposes (including certain leverage arrangements) in the ordinary course of business.

The funds for the purchase of the 38,968,948 Shares directly owned by the Master Fund came from its working capital. No borrowed funds were used to purchase the Shares, other than any borrowed funds used for working capital purposes (including certain leverage arrangements) in the ordinary course of business.

On December 5, 2019, the Issuer and the Master Fund entered into a backstop agreement (the “Backstop Agreement”) in connection with the Issuer’s proposed merger with Aevi Genomic Medicine, Inc. Pursuant to the Backstop Agreement, the Master Fund will be obligated until March 20, 2020 (unless the Backstop Agreement is earlier terminated) to purchase from Issuer, upon its request, up to $15 million in Shares, less the dollar amount of gross proceeds, if any, received by the Issuer from a sale of its equity or equity-linked securities or from the sale of a certain asset. The price per Share payable by the Master Fund upon the Issuer’s request that it purchase Shares under the terms of the Backstop Agreement will be equal to the closing price of the Shares on the relevant request date.

The foregoing was a summary of certain material terms of the Backstop Agreement. The foregoing description is not, and does not purport to be, complete and is qualified in its entirety by reference to the full text of the form of Backstop Agreement, which has been filed as Exhibit B hereto, and is incorporated herein by reference.

Mr. Boyd currently serves as a member of the Issuer’s board of directors (the “Board”).

The Reporting Persons purchased the Shares for investment in the ordinary course of their investment activities based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. The Reporting Persons intend to review their investment in the Issuer on a continuing basis. Depending on various factors including, without limitation, the Issuer’s financial position, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, participating on the Board, engaging in communications with management and/or the Board, engaging in discussions with stockholders of the Issuer and others about the Issuer and the Reporting Persons’ investment, reshaping the Issuer's corporate strategy, recommending business development transactions, proposing changes to management, operations and the structure of the Board (including the composition of the Board), purchasing additional Shares, selling some or all of their Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares, or changing their intention with respect to any and all matters referred to in subparagraphs (a) - (j) of Item 4 of Schedule 13D.

Except as otherwise set forth herein, the Reporting Persons do not have any present plans or proposals which would relate to, or result in, the matters set forth in subparagraphs (a) – (j) of Item 4 of Schedule 13D. However, subject to market conditions and in compliance with applicable securities laws, the Reporting Persons reserve the right, at a later date, to effect one or more of such changes or transactions in the number of Shares they may be deemed to beneficially own in open-market or privately negotiated transactions, on such terms and at such times as the Reporting Persons may deem advisable.

As of the date hereof, Armistice Capital and Mr. Boyd may be deemed to be the beneficial owner of 39,368,948 Shares, constituting 63.1% of the Shares, based upon 62,392,509 Shares outstanding as of the date hereof, as adjusted for warrants and convertible preferred stock of the Issuer beneficially owned by Armistice Capital and Mr. Boyd. Each of Armistice Capital and Mr. Boyd has the sole power to vote or direct the vote of 0 Shares and the shared power to vote or direct the vote of 39,368,948 Shares. Each of Armistice Capital and Mr. Boyd has the sole power to dispose or direct the disposition of 0 Shares and the shared power to dispose or direct the disposition of 39,368,948 Shares.

As of the date hereof, the Master Fund may be deemed to be the direct owner of 38,968,948 Shares, constituting 62.5% of the Shares, based upon 62,392,509 Shares outstanding as of the date hereof, as adjusted for warrants and convertible preferred stock of the Issuer directly owned by the Master Fund. The Master Fund has the sole power to vote or direct the vote of 0 Shares and the shared power to vote or direct the vote of 38,968,948 Shares. The Master Fund has the sole power to dispose or direct the disposition of 0 Shares and the shared power to dispose or direct the disposition of 38,968,948 Shares.

There have been no transactions in the Shares by the Reporting Persons during the past sixty days.

N/A

Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

The information set forth in Item 4 above is incorporated by reference in its entirety in this Item 6. The Reporting Persons do not have any contract, arrangement, understanding or relationship with any person with respect to securities of the Issuer that is not described herein or in a prior Schedule 13D filed by the Reporting Persons in respect of the Issuer.

Exhibit A: Joint Filing Agreement

Exhibit B: Form of Backstop Agreement (incorporated by reference to Exhibit 10.5 to the Form 8-K filed with the SEC by the Issuer on December 5, 2019)

Name: Steven Boyd

Title: Managing Member

Name: Steven Boyd

Title: Director

/s/ Steven Boyd

Name: Steven Boyd

Title: Managing Member

Name: Steven Boyd

Title: Director

/s/ Steven Boyd