Statera Biopharma announced that the Company entered into a non-binding term sheet with respect to a strategic agreement with Immune Therapeutics, Inc. to sell Statera's rights to naltrexone and met-enkephalin. The transaction is contingent upon negotiation of a definitive agreement and satisfaction of a number of closing conditions, including a contingency on Immune Therapeutics financing. Under the anticipated terms of the agreement, Statera will receive an initial $2 million upfront payment and 5% of the issued and outstanding stock of Immune Therapeutics.

Additionally, Statera will receive payments for achievement of revenue-based milestones, new indications and royalties, Crohn's disease and COVID-19 indications and regulatory approvals, as well as any other payments from Immune Therapeutics in exchange for Statera's rights to any product containing low-dose naltrexone as an active ingredient. Potential indication payments will include asthma, multiple sclerosis, HIV and chemotherapy. In aggregate, this transaction has the ability to generate over $400 million in non-dilutive payments to Statera.