Opthea Provides Corporate Update

Core Viewpoint - Opthea Limited has successfully settled the Development Funding Agreement (DFA) with its investors, ensuring the company's solvency and allowing it to continue operations after significant management changes and workforce reductions [1][6][7]. Group 1: DFA Settlement Details - The DFA was terminated following the failure to meet primary endpoints in the COAST and ShORe phase 3 clinical trials, leading to a mutual agreement with the DFA Investors [2][4]. - The settlement includes a one-time cash payment of USD20 million to the DFA Investors and the issuance of equity equivalent to 9.99% of the total issued share capital, amounting to 136,661,003 fully paid ordinary shares [4][6]. - The DFA Investors will enter a voluntary 12-month escrow period for the newly issued shares, with specific exceptions for legal requirements and certain corporate actions [4][5]. Group 2: Management Changes - Dr. Fred Guerard, the outgoing CEO, will step down on September 1, 2025, along with CFO Tom Reilly and Director Sujal Shah, who will leave on September 15, 2025 [1][7]. - Dr. Jeremy Levin will continue as Chairman and take on additional responsibilities as CEO starting September 1, 2025, overseeing the company's strategic direction [1][8]. Group 3: Financial Position and Future Strategy - Following the settlement, Opthea is expected to maintain approximately USD20 million in cash and cash equivalents, ensuring its ability to operate as a going concern [6]. - The company has reduced its workforce by over 80% and cut its Board of Directors by over 50% as part of a strategy to streamline operations [7]. - The Board will focus on maximizing shareholder value and may consider strategic partnerships, internal development, and potential capital returns to shareholders [11].