Aethlon Medical Seeks Shareholder Approval for Over 200% Dilution to Fund Operations and Equity Plan

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Aethlon Medical is proposing several measures at its upcoming Annual Meeting that, if approved, would result in substantial dilution for existing shareholders. The company is seeking approval to increase its authorized common stock from 6 million to 100 million shares, a significant expansion signaling future capital needs. Additionally, shareholders will vote on the issuance of approximately 1.66 million shares related to a private placement (PIPE) and 0.37 million shares for inducement warrants, which together represent over 200% dilution relative to the current outstanding shares. The company also seeks to add 100,000 shares to its equity incentive plan. While these capital-raising efforts are critical for the company's ability to fund ongoing clinical and research programs, including positive progress in its oncology trial, the magnitude of the potential dilution is highly negative for current equity holders. The company explicitly states its ability to continue as a going concern is dependent on maximizing capital raising opportunities.

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• Massive Increase in Authorized Shares Proposed

  The company proposes to amend its Articles of Incorporation to increase the number of authorized common stock from 6,000,000 to 100,000,000 shares, indicating a significant intent for future capital raises.

• Significant Dilution from Warrant Issuances

  Shareholder approval is sought for the issuance of up to 1,662,553 shares from PIPE warrants and 368,471 shares from inducement warrants. These combined issuances represent over 200% dilution of current outstanding shares and could generate approximately $5.8 million in proceeds.

• Equity Incentive Plan Expansion

  A proposal to increase the shares authorized for issuance under the 2020 Equity Incentive Plan by an additional 100,000 shares is also on the ballot.

• Positive Clinical Trial Update

  The company announced the successful completion of the first cohort in its Australian oncology trial, with no device-related serious adverse events or dose-limiting toxicities, and is advancing to the second treatment cohort.

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Aethlon Medical is proposing several measures at its upcoming Annual Meeting that, if approved, would result in substantial dilution for existing shareholders. The company is seeking approval to increase its authorized common stock from 6 million to 100 million shares, a significant expansion signaling future capital needs. Additionally, shareholders will vote on the issuance of approximately 1.66 million shares related to a private placement (PIPE) and 0.37 million shares for inducement warrants, which together represent over 200% dilution relative to the current outstanding shares. The company also seeks to add 100,000 shares to its equity incentive plan. While these capital-raising efforts are critical for the company's ability to fund ongoing clinical and research programs, including positive progress in its oncology trial, the magnitude of the potential dilution is highly negative for current equity holders. The company explicitly states its ability to continue as a going concern is dependent on maximizing capital raising opportunities.