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CINCINNATI, May 12, 2023 (GLOBE NEWSWIRE) -- Blue Water Biotech, Inc. (“Blue Water” or the “Company”), a biotechnology company spanning multiple sectors, today announced its financial results for the quarter ended March 31, 2023 and provided an update on recent business developments and Company progress. Blue Water Biotech is a biological and pharmaceutical technology company developing multiple preclinical vaccine candidates across various infectious diseases and owns the FDA-approved benign hyperplasia (“BPH”) asset, ENTADFI®. “Blue Water’s recent growth is highlighted by our acquisition of ENTADFI®, as well as our subsequent rebranding initiative and name change to reflect our transition into a commercial-stage biotechnology company,” said Joseph Hernandez, Chairman and Chief Executive Officer of Blue Water. “We believe this product has the potential to be transformative for men suffering from BPH, and we are confident that our experienced management team will be the driving force behind ENTADFI®’s anticipated success. We are also excited to bring in an approved asset to support the operations for our preclinical vaccine programs, including our Streptococcus pneumoniae vaccine candidate that is progressing towards clinical trials in the near term.” Q1 2023 and Recent Corporate Developments In April 2023, Blue Water announced the acquisition of ENTADFI®, an FDA-approved treatment for BPH that counteracts negative sexual side effects seen in men on alternative BPH therapies. Under the asset purchase agreement, Blue Water purchased ENTADFI® for a total consideration of up to $100 million, with $20 million upfront, paid in defined tranches through September 2024, and the possibility of an additional $80 million based on predetermined annual sales milestones. Following this acquisition, Blue Water announced in April 2023 that the Company changed its corporate name to Blue Water Biotech, Inc. to reflect its transition into a commercial-stage company. In February 2023, Blue Water announced the appointment of seasoned commercial operations leader Frank Jaeger as Senior Vice President of Marketing and Business Development. Blue Water will leverage Mr. Jaeger’s experience, specifically in Men’s Health through his experience with JATENZO® and AndroGel 1.62%, in the official launch of ENTADFI® and its anticipated success within the BPH market. Throughout the first quarter of 2023 and beyond, Blue Water management presented its corporate overview and Company updates at key investor, financial, and scientific conferences to highlight the value story of the Blue Water pipeline and target leaders within the investment community. In January 2023, Blue Water presented an overview of its vaccine candidate pipeline and progress at Biotech Showcase 2023 during the 41st annual J.P. Morgan Healthcare Conference Week in San Francisco, California. In addition, Blue Water management participated in the World Vaccine Congress in Washington D.C. in April 2023. To promote ENTADFI® and connect with key leaders in the urology space, Blue Water management sponsored a booth at the American Urological Association Annual Meeting 2023 in Chicago, Illinois. In January 2023, Blue Water announced the appointment of seasoned public market and private equity investment leader, Timothy Ramdeen, to its board of directors. Mr. Ramdeen has nearly a decade of experience in private equity and hedge fund investing, capital markets, and company formation. Q1 2023 and Recent Vaccine Candidate Developments In February 2023, Blue Water announced a partnership with AbVacc, Inc. (“AbVacc”) for the joint development of novel vaccine candidates targeting monkeypox and Marburg virus disease, among others. The vaccine candidates will utilize Blue Water’s norovirus shell and protrusion virus-like particle platform, which allows for the presentation of multiple antigens on the surface of either the S or P particle of a norovirus backbone. Under this partnership, Blue Water and AbVacc will work collaboratively to identify appropriate antigens to use within this platform and will work toward clinical development of vaccine candidates. In March 2023, Blue Water signed a sponsored research agreement with The University of Texas Health Science Center at San Antonio to initiate a non-human primate study for Blue Water’s live attenuated, orally delivered Chlamydia vaccine, BWV-401. In this study, non-human primates will be vaccinated with BWV-401 and subsequently challenged against Chlamydia to validate they hypothesis that this vaccine is both safe and efficacious in a human-like model. Q1 2023 Financial Highlights Cash Position: Cash was $20.3 million as of March 31, 2023, as compared to $25.8 million as of December 31, 2022. The decrease was primarily due to an increase in various business activities to support company growth, as well as increased research and development activities. Research and Development Expenses: For the three months ended March 31, 2023, research and development expenses increased by approximately $0.6 million compared to the same period in 2022. The increase was primarily attributable to an increase in preclinical development activities of approximately $0.3 million mainly related to BWV-101 and BWV-201, and an increase in research and development personnel costs. General and Administrative Expenses: For the three months ended March 31, 2023, general and administrative expenses increased by $0.2 million compared to the same period in 2022. The increase was mainly due to an increase in professional fees and an increase in various business activities related to company growth and development, such as business advisory services, travel, and rent expenses. These increases were offset by a decrease in employee compensation, as well as a non-recurring expense in the three months ended March 31, 2022 to early terminate an agreement with an underwriter, with no similar expense in the current period. Other Income: Other income relates to the change in fair value of the contingent warrant liability, which was incurred at the close of the Company’s private placements in April and August 2022. There was no other income or expense during the three months ended March 31, 2022. Net Loss: Net loss was approximately $2.8 million for the three months ended March 31, 2023, as compared to $2.1 million for the same period in 2022. The increase is primarily due to research and development of preclinical vaccine candidates. BLUE WATER BIOTECH, INC. Condensed Balance Sheets March 31, 2023 December 31, 2022 ASSETS (Unaudited) Current assets Cash $20,255,803 $25,752,659 Restricted cash 1,000,000 — Prepaid expenses and other current assets 780,173 469,232 Deferred offering costs 366,113 — Receivable from related parties 70,302 35,850 Total current assets 22,472,391 26,257,741 Prepaid expenses, long-term 15,500 38,617 Property and equipment, net 14,210 14,089 Total assets $22,502,101 $26,310,447 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $1,503,262 $1,499,296 Accrued expenses 1,292,951 2,409,128 Contingent warrant liability 12,406 14,021 Total current liabilities 2,808,619 3,922,445 Total liabilities 2,808,619 3,922,445 Commitments and Contingencies Stockholders’ equity Preferred stock, $0.00001 par value, 10,000,000 shares authorized at March 31, 2023 and December 31, 2022; 0 shares issued and outstanding at March 31, 2023 and December 31, 2022 — — Common stock, $0.00001 par value, 250,000,000 shares authorized at March 31, 2023 and December 31, 2022; 16,371,597 and 15,724,957 shares issued at March 31, 2023 and December 31, 2022, respectively; 15,879,230 and 15,265,228 shares outstanding at March 31, 2023 and December 31, 2022, respectively 164 157 Additional paid-in-capital 42,516,726 42,331,155 Treasury stock, at cost; 492,367 and 459,729 shares of common stock at March 31, 2023 and December 31, 2022, respectively (600,264) (566,810) Accumulated deficit (22,223,144) (19,376,500)Total stockholders’ equity 19,693,482 22,388,002 Total liabilities and stockholders’ equity $22,502,101 $26,310,447 BLUE WATER BIOTECH, INC. Condensed Statements of Operations (Unaudited) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Operating expenses General and administrative $1,766,022 $1,615,569 Research and development 1,082,237 455,092 Total operating expenses 2,848,259 2,070,661 Loss from operations (2,848,259) (2,070,661)Other income Change in fair value of contingent warrant liability (1,615) — Total other income (1,615) — Net loss $(2,846,644) $(2,070,661)Cumulative preferred stock dividends — 96,359 Net loss applicable to common stockholders (2,846,644) (2,167,020) Net loss per share attributable to common stockholders, basic and diluted $(0.18) $(0.34) Weighted average number of common shares outstanding, basic and diluted 15,910,415 6,339,435 About ENTADFI® ENTADFI® is an oral, once daily treatment for BPH that combines finasteride, a 5α-reductase inhibitor, and tadalafil, a phosphodiesterase 5 (PDE5) inhibitor, offering a more effective treatment option compared to other available therapies. Clinical trials have shown that ENTADFI® is more effective in treating BPH symptoms, including urinary frequency, urgency, weak stream, and difficulty initiating or maintaining urination, compared to finasteride monotherapy. Additionally, ENTADFI® has demonstrated a favorable safety profile, with fewer adverse sexual side effects compared to finasteride. ENTADFI® reduces potential for adverse sexual side effects, making it a preferred choice for men seeking relief from BPH symptoms without compromising their sexual health. ENTADFI® has received FDA approval for the indication of initiating treatment of the signs and symptoms of BPH in men with an enlarged prostate for up to 26 weeks. More information about BPH and full ENTADFI® prescribing information can be found on the product website at https://entadfipatient.com/. About Blue Water Biotech Blue Water Biotech, Inc. is a biological and pharmaceutical technology company focused on developing and providing transformational therapies to address significant health challenges globally. Headquartered in Cincinnati, OH, the Company holds the rights to proprietary technology developed at the University of Oxford, Cincinnati Children’s Hospital Medical Center, St. Jude Children’s Hospital, and The University of Texas Health Science Center at San Antonio. Blue Water is developing a Streptococcus pneumoniae vaccine candidate, designed to specifically prevent highly infectious middle ear infections, known as acute otitis media (AOM), in children, and prevention of pneumonia in the elderly. The Company is also developing a universal flu vaccine that will provide protection from all virulent strains in addition to licensing a novel norovirus (NoV) S&P nanoparticle versatile virus-like particle (VLP) vaccine platform from Cincinnati Children’s to develop vaccines for multiple infectious diseases, including Marburg and monkeypox, among others. Additionally, the Company is developing a Chlamydia vaccine candidate with UT Health Science Center San Antonio to prevent infection and reduce the need for antibiotic treatment associated with contracting Chlamydia disease. Outside of its vaccine franchise, Blue Water owns ENTADFI®, an FDA-approved, once daily pill that combines finasteride and tadalafil for the treatment of benign prostatic hyperplasia. This combination allows men to receive treatment for their symptoms of BPH without the negative sexual side effects typically seen in patients on finasteride alone. For more information about Blue Water, visit www.bwbioinc.com.

The SPAC waters have been choppy for a few quarters, and the leaders of Blue Water Vaccines are joining the wave of blank-check operators ditching plans to dock their boat on Wall Street. While the Blue Water duo of Joseph Hernandez and Jon Garfield was successful in getting their first SPAC to merge with a biotech, testosterone drug maker Clarus Therapeutics, and also take their own biotech public in February, they have decided to back out of the SPAC market, following the suit of many others. Blue Water Vaccines CEO Hernandez and CFO Garfield had filed their second SPAC, aptly named Blue Water Acquisition II, for a $75 million IPO in October 2021, a month after their first blank check completed its merger with Clarus, taking the Illinois biotech public with $25.3 million in gross proceeds. But they have pulled the IPO plans for their second attempt, according to an SEC filing Thursday morning. They had planned to merge with a life sciences or pharmaceutical services company in the US or Europe. Clarus, which markets the drug Jatenzo, is a mere shell of the typical $10 that most SPACs trade at. Since landing on Nasdaq last autumn, Clarus $CRXT has sunk to 28 cents per share. Meanwhile, Blue Water Vaccines raised $20 million in its IPO back in February, one of very few biotechs to go public in the market doldrums of 2022. The preclinical company, looking at vaccines for universal flu, norovirus, rotavirus and malaria vaccines, priced at $9 but has since fallen to about $2.50 per share $BWV . The decision to pull the second Blue Water SPAC comes after Innovatus Life Sciences Acquisition withdrew its $175 million IPO two weeks ago. But the SPAC merger window isn’t completely shut. Two deals were announced in recent weeks, with a company attempting to revive an old Amgen cardio drug and a Phase I biotech in the renal and inflammatory disease space.