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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and Exchange
Commission on July 11, 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No.&nbsp;333-[&#9679;]</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM S-1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REGISTRATION STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>UNDER</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>THE SECURITIES ACT OF 1933</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>XYNOMIC PHARMACEUTICALS HOLDINGS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact name of registrant as specified
in its charter)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 32%; border-bottom: black 1.5pt solid; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 32%; border-bottom: black 1.5pt solid; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2834</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 32%; border-bottom: black 1.5pt solid; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>83-4696467</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(State or other jurisdiction of</B><BR>
<B>incorporation or organization)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Primary Standard Industrial</B><BR>
<B>Classification Code Number)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(I.R.S. Employer</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Identification Number)</B></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Suite 3306, K. Wah Centre,<BR>
1010 Middle Huaihai Road<BR>
Shanghai 200031, China<BR>
(86) 21-5418-0212</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Address, including zip code, and telephone
number, including area code, of registrant&rsquo;s principal executive offices) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Yinglin Mark Xu</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chairman of the Board</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chief Executive Officer</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>President and Interim Chief Financial
Officer</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Xynomic Pharmaceuticals Holdings, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Suite 3306, K. Wah Centre,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>1010 Middle Huaihai Road</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Shanghai 200031, China</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(86) 21-5418-0212 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Name, address, including zip code, and
telephone number, including area code, of agent for service) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>With copies to:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Arila Er Zhou, Esq.</B></FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Hunter Taubman Fischer &amp;Li LLC</B></FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1450 Broadway, 26th Floor</B></FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>New York, NY 10018</B></FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Tel: 212.530.2232</B></FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Fax: 212.202.6380</B></FONT></TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Approximate date of commencement of
proposed sale of the securities to the public: </B>As soon as practicable after this registration statement is declared effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the
following box.&nbsp;&#9746;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.
See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting company&rdquo;
and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 0; padding-left: 0; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated filer &#9744;</FONT></TD>
    <TD STYLE="width: 50%; padding-right: 0; padding-left: 0; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer &#9744;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer &#9746;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller reporting company &#9746;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; padding-top: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company &#9746;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CALCULATION OF REGISTRATION FEE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid; text-indent: -0.125in; padding-left: 0.125in">Title of Each Class of Securities to be Registered</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount to be<BR> Registered(1)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Proposed<BR> Maximum<BR> Offering<BR> Price Per<BR> Share(1)(2)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Proposed<BR> Maximum<BR> Aggregate<BR> Offering<BR> Price(6)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount of<BR> Registration<BR> Fee(3)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-indent: -0.125in; padding-left: 0.125in">Shares of Common Stock, par value $0.0001 per share</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><P STYLE="margin: 0pt 0">[&#9679;]</P>


</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">[&#9679;]</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">65,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,878</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Underwriter Warrants (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">[&#9679;]</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt">Shares of Common Stock, par value $ .001 per share underlying Underwriter Warrants</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">[&#9679;]</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">[&#9679;]</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">[&#9679;]</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1.5pt solid">$</TD><TD STYLE="text-align: right; border-bottom: Black 1.5pt solid">[&#9679;]</TD><TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in; padding-bottom: 4pt"><B>Total Registration Fee</B></TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">[&#9679;]</TD><TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">[&#9679;]</TD><TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 4pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 4pt double">[&#9679;]</TD><TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="white-space: nowrap; width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes the aggregate offering price of additional shares that the underwriters have the option to purchase to cover over-allotments, if any.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="white-space: nowrap; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimated solely for the purpose of computing the amount of the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
that specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Securities
and Exchange Commission, acting pursuant to said Section 8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Red"><B>The information
in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed
with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell and is not soliciting an offer
to buy these securities in any jurisdiction where the offer or sale is not permitted.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Red">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Red"><B>SUBJECT TO
COMPLETION, DATED JULY 11, 2019</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PRELIMINARY PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;<IMG SRC="image_01.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>[&#9679;] Shares of Common Stock </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>PRICE US$&#8199;&#8199;&#8199;&#8199;&#8199;&#8199;</I>&nbsp;<I>PER</I>&nbsp;<I>SHARES</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This is a &ldquo;firm
commitment&rdquo; public offering (the &ldquo;Offering&rdquo;) of securities of Xynomic Pharmaceuticals Holdings, Inc.
(referred to herein as &ldquo;we&rdquo;, &ldquo;us&rdquo;, &ldquo;our&rdquo;, &ldquo;XYN&rdquo;, &ldquo;Registrant&rdquo;, or
the &ldquo;Company&rdquo;). We are selling shares of common stock of the Company, par value $0.0001 per share (the
&ldquo;Common Shares&rdquo;) for an aggregate of $65,000,000, with the
underwriter&rsquo;s option to exercise over-allotment option to purchase additional 15% of the shares issued in the Offering
within 45 days of the closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Common Stock is listed on The Nasdaq
Capital Market under the symbol &ldquo;XYN.&rdquo; On July 10, 2019, the last reported sale price of our Common Stock on The Nasdaq
Capital Market was US$3.26  per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are an &ldquo;emerging growth company&rdquo; as defined under the federal securities laws. Investing in our shares of common stock
involves risks. See &ldquo;</I></B></FONT><B><I><FONT STYLE="font-family: Times New Roman, Times, Serif"><U>Risk Factors</U>&rdquo;
beginning on page 21.</FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Public<BR> Offering<BR>
    Price&nbsp;per Share</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total&nbsp;<BR> Public<BR> Offering<BR> Price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Underwriting<BR> Commissions&nbsp;(1)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Proceeds&nbsp;to Our<BR> Company Before<BR> Expenses</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; width: 52%"><P STYLE="margin: 0pt 0">Offering Amount</P>


</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD><TD STYLE="text-align: right; width: 9%">[&#9679;]</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD><TD STYLE="text-align: right; width: 9%">65,000,000</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD><TD STYLE="text-align: right; width: 9%">[&#9679;]</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD><TD STYLE="text-align: right; width: 9%">[&#9679;]</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">See
                                         the section titled &ldquo;Underwriters&rdquo; for a description of the compensation payable
                                         to the underwriters.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Xynomic
Pharmaceuticals Holdings, Inc. has granted the underwriters the right to purchase up to an additional</I>&nbsp;<I>[</I></FONT><I>&#9679;<FONT STYLE="font-family: Times New Roman, Times, Serif">]shares
of Common Stock at the public offering price less underwriting discount.</FONT></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The Securities and Exchange Commission and state regulators
have not approved or disapproved of these securities, or determined if this prospectus is truthful or complete. Any representation
to the contrary is a criminal offense. The underwriters expect to deliver the share of common stock to purchasers on or about</I>&nbsp;<I>_____,
2019.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[&#9679;]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The date of this prospectus is&nbsp;&nbsp;______,
2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; width: 91%; text-align: left"><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>PROSPECTUS
    CONVENTIONS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0; width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>INDUSTRY
    AND MARKET DATA</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">4</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>PROSPECTUS
    SUMMARY</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">5</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>THE
    OFFERING</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">15</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>SELECTED
    HISTORICAL FINANCIAL INFORMATION OF BISON</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">17</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>SELECTED
    UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">18</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>RISK
    FACTORS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">21</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>CAUTIONARY
    NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">62</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>USE
    OF PROCEEDS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">63</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_011"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>DIVIDEND
    POLICY</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">64</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_012"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>CAPITALIZATION</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">65</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_013"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>DILUTION</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">66</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_014"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>MANAGEMENT&rsquo;S
    DISCUSSION AND ANALYSIS&nbsp;OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0; vertical-align: bottom">67</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_015"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>XYNOMIC&rsquo;S
    MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS&nbsp;OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">70</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_016"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>BISON&rsquo;S MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS&nbsp;OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">83</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_017"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>BUSINESS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">86</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_018"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>MANAGEMENT</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">144</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_019"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>EXECUTIVE
    COMPENSATION</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">148</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_020"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">153</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_021"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>CERTAIN
    RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">155</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_022"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>DESCRIPTION
    OF SECURITIES</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">159</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_023"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>SHARES
    ELIGIBLE FOR FUTURE SALE</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">164</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_024"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>UNDERWRITING</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">165</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_025"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>TAXATION</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; padding-top: 0; text-indent: 0"><FONT STYLE="text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; padding-top: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">168</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_025a"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>LEGAL
    MATTERS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">178</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_025b"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>EXPERTS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">178</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_026"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>WHERE
    YOU CAN FIND MORE INFORMATION</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; text-align: right; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center; padding-top: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">179</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0.125in; padding-top: 0; text-indent: -0.125in; text-align: left"><A HREF="#a_028"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none"><B>PART
    II&nbsp;&mdash;&nbsp;INFORMATION NOT REQUIRED IN PROSPECTUS</B></FONT></A></TD>
    <TD STYLE="vertical-align: top; padding-right: 0; padding-left: 0; padding-top: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; padding-top: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: none">II-1</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">You should rely only
on the information contained in this prospectus or in any free writing prospectus that we may specifically authorize to be delivered
or made available to you. We and our Underwriter have not authorized anyone to provide you with any information other than that
contained in this prospectus or in any free writing prospectus we may authorize to be delivered or made available to you. We take
no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This
prospectus may only be used where it is legal to offer and sell our securities. The information in this prospectus is accurate
only as of the date of this prospectus, regardless of the time of delivery of this prospectus or any sale of our securities. Our
business, financial condition, results of operations and prospects may have changed since that date. We are not making an offer
of these securities in any jurisdiction where the offer is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Unless the context requires otherwise, the
words &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;the Company&rdquo; and &ldquo;XYN&rdquo; refer to Xynomic Pharmaceuticals
Holding, Inc. and its subsidiaries and consolidated affiliated entities taken as a whole. For purposes of this prospectus, unless
the context otherwise requires, the term &ldquo;shareholders&rdquo; shall refer to the holders of our shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">For investors outside the United States,
neither we nor any of the underwriters have done anything that would permit this offering or possession or distribution of this
prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons who come into
possession of this prospectus in jurisdictions outside the United States are required to inform themselves about and to observe
any restrictions as to this offering and the distribution of this prospectus and any such free-writing prospectus outside the United
States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_001"></A><B>PROSPECTUS CONVENTIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Unless otherwise
stated or unless the context otherwise requires, the terms &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; the &ldquo;Company,&rdquo;
&ldquo;XYN&rdquo;, &ldquo;combined company&rdquo; and &ldquo;post-combination company&rdquo; refer to Xynomic Pharmaceuticals
Holdings, Inc. and its subsidiaries including Xynomic Pharmaceuticals, Inc. following the consummation of the Business Combination
on May 15, 2018, which was known as Bison Capital Acquisition Corp., prior to the consummation of the Business Combination.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, in this
document:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>10% Shareholder</I>&rdquo;
means a U.S. Holder of the Company&rsquo;s common shares who actually and constructively owns (after taking into account the attribution
rules of Section 424(d) of the Code) 10% or more (by vote or value) of Xynomic&rsquo;s common shares.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Aggregate
Merger Consideration</I>&rdquo; means the sum of Earnout Consideration and Closing Merger Consideration.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Bison,</I>&rdquo;
means Bison Capital Acquisition Corp., originally formed as a British Virgin Islands company and continue as a Delaware
corporation renamed &ldquo;<FONT STYLE="background-color: white">Xynomic Pharmaceuticals Holdings,
Inc.</FONT>&rdquo;&nbsp;following the consummation of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Bison ordinary
shares</I>&rdquo; or &ldquo;<I>ordinary shares</I>&rdquo; means ordinary shares, no par value, of Bison.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Business
Combination</I>&rdquo; means the acquisition by us of all of the equity interests of Xynomic Pharmaceuticals Inc.
(&ldquo;Xynomic&rdquo;), pursuant to the Merger Agreement, whereby Merger Sub, a wholly-owned subsidiary of Bison, merged
with and into Xynomic, with Xynomic surviving the merger and being the whole owned subsidiary of Bison and other transactions
contemplated in the Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Closing</I>&rdquo;
means the closing of the public offering as set forth in this prospectus.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Closing Merger
Consideration</I>&rdquo; means $350,000,000, minus (i) the amount of Xynomic&rsquo;s Business Combination closing indebtedness,
plus (ii) the amount of Xynomic&rsquo;s Business Combination closing cash, minus (iii) the amount of Xynomic&rsquo;s Business Combination
transaction expenses, plus (iv) certain closing tax assets, plus (v) the amount, if any, by which Xynomic&rsquo;s Business Combination
closing working capital exceeds an agreed upon target amount of working capital, minus (vi) the amount, if any, by which such target
amount of working capital exceeds Xynomic&rsquo;s Business Combination closing working capital.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Closing Consideration
Shares</I>&rdquo; means the aggregate number of newly issued shares of Company common stock equal to the Closing Merger Consideration
divided by $10.15.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Code</I>&rdquo;
means the Internal Revenue Code of 1986, as amended or now in effect or as hereafter amended, including, but not limited to, any
successor or substitute federal Tax codes or legislation.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Current Bylaws</I>&rdquo;
means the Xynomic&rsquo;s bylaws as effective on May 15, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;<I>&ldquo;Domestication&rdquo;
</I>means on May 14, 2019, Bison Capital Acquisition Corp. re-domiciled out of the British Virgin Islands and continue as a company
incorporated in the State of Delaware.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>EarlyBirdCapital</I>&rdquo;
means EarlyBirdCapital, Inc., an underwriter and sole book-running manager in the IPO.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Earnout Shares</I>&rdquo;
means 9,852,216 shares of Company common stock (representing $100,000,000 based on a $10.15 per share value of the Company&rsquo;s
common stock).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>&ldquo;Earnout Escrow
Account&rdquo; </I>means the account where the Merger Agreement provided that the Earnout Shares would be deposited at Closing.<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>&ldquo;Effective
Time&rdquo; </I>means the time of filing the certificate of merger with the Secretary of State of the State of Delaware or such
other time specified in the certificate of merger.<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>&ldquo;Escrow Account&rdquo;
</I>means at the Business Combination Closing, 3% of the Closing Consideration Shares were deposited in an escrow account to serve
as security for, and the exclusive source of payment of, the Company&rsquo;s indemnity rights under the Merger Agreement and any
excess of the estimated Closing Merger Consideration over the final Closing Merger Consideration amount determined post-Closing.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Escrow Agent</I>&rdquo;
means Continental Stock Transfer &amp; Trust Company.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Escrow Agreement</I>&rdquo;
means an escrow agreement to be entered among Bison, the shareholder representative on behalf of certain Xynomic stockholders,
and the Escrow Agent pursuant to which, certain Xynomic stockholders will deposit certain Escrow Shares with the Escrow Agent to
security the performance of the indemnification obligations of the Xynomic stockholders under the Merger Agreement.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Escrow Shares</I>&rdquo;
means 3% of the Closing Consideration Shares were deposited into escrow to support certain indemnification obligations under the
Merger Agreement in accordance with the terms set forth in certain escrow agreement.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Founder Shares</I>&rdquo;
means the 1,509,375 shares of Bison ordinary shares issued to our Sponsor and James Jiayuan Tong in a private placement prior to
our IPO.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Group</I>&rdquo; means 1) upon the consummation of the Business Combination dated May 15, 2019,
XYN, Xynomic, and its subsidiaries, including Xynomic Pharmaceuticals (Nanjing) Co., Ltd., Xynomic Pharmaceuticals (Shanghai) Co.,
Ltd., and Xynomic Pharmaceuticals (Zhongshan) Co., Ltd.; and 2) prior to the consummation of the Business Combination dated May
15, 2019, Xynomic, and its subsidiaries, including Xynomic Pharmaceuticals (Nanjing) Co., Ltd., Xynomic Pharmaceuticals (Shanghai)
Co., Ltd., and Xynomic Pharmaceuticals (Zhongshan) Co., Ltd.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Incentive
Plan</I>&rdquo; means the Xynomic 2018 Equity Incentive Plan which was assumed and adopted by the Company on May 15,
2019.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Initial Shareholders</I>&rdquo;
means our Sponsor and each of our current officers and current directors and an advisor, in each case, that hold Founder Shares.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Initial Public
Offering</I>&rdquo; or &ldquo;<I>IPO</I>&rdquo; means the initial public offering of Bison units, each comprised of one ordinary
share, one-half of one warrant, and one right to receive one&ndash;tenth of an ordinary share upon the Closing, consummated on
June 23, 2017 with respect to 5,250,000 units and on June 28, 2017 with respect to 787,500 units related to the full exercise of
the underwriter&rsquo;s over-allotment option, in each case at $10.00 per unit.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Merger</I>&rdquo;
or &ldquo;<I>merger</I>&rdquo; means acquisition by us of all of Xynomic equity interests, pursuant to the Merger Agreement, whereby
Merger Sub, a wholly-owned subsidiary of Bison, merged with and into Xynomic Pharmaceuticals, Inc., with Xynomic Pharmaceuticals,
Inc. surviving the merger and being the wholly-owned subsidiary of Bison.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Merger Agreement</I>&rdquo;
means the Merger Agreement, dated as of September 12, 2018, as it may be amended, by and among the Company, Merger Sub, Xynomic
and a representative of Xynomic stockholders, a copy of which is attached hereto as <U>Exhibit 2.1</U>.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Merger Sub</I>&rdquo;
means Bison Capital Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of Bison, solely set up for the purpose
of facilitate and effect the Business Combination.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Merger Consideration
Shares</I>&rdquo; means the sum of Closing Consideration Shares and Earnout Shares.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>common stocks</I>&rdquo;
or &ldquo;<I>our shares of common stock</I>&rdquo; means shares of common stock, par value $0.0001 per share, of XYN.<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>PRC</I>&rdquo;
or &ldquo;<I>China</I>&rdquo; means the People&rsquo;s Republic of China excluding Taiwan, Hong Kong and Macau for purposes of
this proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Previous
Charters</I>&rdquo; means the memorandum and articles of association of Bison as amended and restated on June 19, 2017 and March
21, 2019, previously registered by the Registrar of Corporate Affairs in the British Virgin Islands before the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>private shares,</I>&rdquo;
&ldquo;<I>private rights</I>&rdquo; and &ldquo;<I>private warrants</I>&rdquo; mean the ordinary shares, rights and warrants included
within the private units.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Private Units</I>&rdquo;
or &ldquo;<I>private units</I>&rdquo; means the 432,062 units Bison sold privately to our Sponsor and EarlyBirdCapital in connection
with the IPO.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>private warrants</I>&rdquo;
means the 216,031 warrants included in the private units, each of which entitles the holder to purchase one Bison Ordinary
Share at a price of $11.50 per whole share, subject to certain adjustment.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>public rights</I>&rdquo;
mean rights included in units issued in our IPO (whether they were purchased in the IPO or thereafter in the open market) and common
stocks issued in this offering.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Public Shareholders</I>&rdquo;
or &ldquo;<I>public shareholders</I>&rdquo; means holders of public shares, including the Initial Shareholders to the extent the
Initial Shareholders hold public shares, provided that the Initial Shareholders will be considered a &ldquo;<I>public shareholder</I>&rdquo;
only with respect to any public shares held by them.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Public Shares</I>&rdquo;
or &ldquo;<I>public shares</I>&rdquo; means the ordinary shares issued in our IPO (whether they were purchased in the IPO or thereafter
in the open market) and common stocks issued in this public offering.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>public warrants</I>&rdquo;
means the warrants issued in our IPO, each of which is exercisable for one Bison ordinary share in accordance with its terms.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Registration
Rights Agreement</I>&rdquo; means the Amended and Restated Registration Rights Agreement dated May 15, 2019 among the Company, and certain
Xynomic stockholders and each of our Initial Shareholders.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>rights</I>&rdquo;
means the private rights and the public rights, taken together.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>shares</I>,&rdquo;
with respect to Bison, means, (1) prior to the Domestication, our ordinary shares with no par value, and (2) after the Domestication,
shares of our common stock, $0.0001 par value per share.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Sponsor</I>&rdquo;
means Bison Capital Holding Company Limited, a Cayman Islands company.<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Trust Account</I>&rdquo;
means the trust account where the Company places its net proceeds of the sale of the Units in the Initial Public Offering and the
Private Units upon the closing of the Initial Public Offering and the private placement on June 23, 2017.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Xynomic</I>&rdquo;
means Xynomic Pharmaceuticals, Inc. a Delaware corporation, and, unless the context requires otherwise, its consolidated subsidiaries,
taken together.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Xynomic stockholders</I>&rdquo;
means the stockholders of Xynomic Pharmaceuticals, Inc. immediately prior to the closing of the Business Combination.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Zhongshan
Bison</I>&rdquo; means Zhongshan Bison Healthcare Investment Limited, a limited partnership holding 1,553,265 shares of Series
B preferred stock of Xynomic representing approximately 2.96% equity interest in Xynomic immediately prior to the Closing.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">For
clarification, this prospectus follows English naming convention of first name followed by last name, regardless of whether an
individual&rsquo;s name is Chinese or English.<BR STYLE="clear: both">
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_002"></A>INDUSTRY AND MARKET DATA</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">This
prospectus includes information with respect to market and industry conditions and market share from third-party sources or based
upon estimates using such sources when available. We have not, directly or indirectly, sponsored or participated in the publication
of any of such materials. We believe that such information and estimates are reasonable and reliable. We also assume the information
extracted from publications of third-party sources has been accurately reproduced.&nbsp; We understand that the Company would be
liable for the information included in this prospectus if any part of the information was incorrect, misleading or imprecise to
a material extent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<DIV STYLE="padding: 5pt; border: Black 1.5pt solid; width: 98%">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_003"></A>PROSPECTUS SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>This summary highlights information
contained elsewhere in this prospectus and does not contain all of the information that you should consider in making your investment
decision. Before investing in our securities, you should carefully read this entire prospectus, including our&nbsp;financial statements
and the related notes and the information set forth under the headings &ldquo;Risk Factors&rdquo; and &ldquo;Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&rdquo; in each case included elsewhere in this prospectus.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Company Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">We are a clinical stage
biopharmaceutical company that discovers and develops innovative small molecule drug candidates for the treatment of cancer in
humans. Our approach is to focus on drug candidates that target both hematological malignancies and solid tumors. Our lead drug
candidate is abexinostat, an orally dosed, hydroxamic acid-based&nbsp;small molecule histone deacetylase (&ldquo;<I>HDAC</I>&rdquo;)
inhibitor. Our other clinical stage drug candidate is XP-105, an orally bioavailable kinase inhibitor, which inhibits both raptor-mammalian&nbsp;target
of rapamycin (&ldquo;<I>mTOR</I>&rdquo;) complex 1 and rictor-mTOR&nbsp;complex 2. In addition, we have several pre-clinical&nbsp;oncology
drug candidates in our pipeline. Among these drug candidates, XP-102&nbsp;(also known as BI 882370), a selective pan-RAF inhibitor,
is the closest to clinical testing. The following is a summary of our product development pipeline:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_02.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">We have not completed
any clinical trials since our inception. With respect to the pipeline programs referenced in the above figure, all of the completed
clinical trials of abexinostat were conducted by or on behalf of either Pharmacyclics LLC (&ldquo;<I>Pharmacyclics</I>&rdquo;)
or Servier Laboratories and the one completed clinical trial of XP-105&nbsp;was conducted by or on behalf of Boehringer Ingelheim
International GmbH (&ldquo;<I>Boehringer Ingelheim</I>&rdquo; or &ldquo;<I>BII&rdquo;</I>). We have obtained exclusive rights to
use all the data generated in these previously completed clinical trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><B><I>&#9679;</I></B></TD><TD STYLE="text-align: justify"><B><I>Abexinostat&nbsp;</I></B>&mdash; our most advanced
drug candidate, abexinostat, has been evaluated in 18 Phase 1/2 clinical trials for lymphoma and solid tumors. In February 2017,
Xynomic, our subsidiary, entered into a license agreement with Pharmacyclics, a subsidiary of AbbVie Inc. (&ldquo;<I>AbbVie</I>&rdquo;),
for the worldwide exclusive rights to develop and commercialize abexinostat for all human and non-human&nbsp;diagnostic, prophylactic,
and therapeutic uses. Since its in-licensing&nbsp;of abexinostat, Xynomic has started enrolling patients in clinical trials for
three different indications: (1) in follicular lymphoma, as a monotherapy, (2) in renal cell carcinoma, in combination with pazopanib,
and (3) in multiple solid tumors, in combination with Keytruda<SUP>&reg;</SUP>. In addition, we plan to initiate four clinical
trials of abexinostat in the next six&nbsp;months.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"></P>

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<DIV STYLE="padding: 5pt; border: Black 1.5pt solid; width: 98%">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><B><I>XP-105&nbsp;</I></B>(also known as BI 860585)
&mdash; In December 2018, Xynomic entered into a license agreement with Boehringer Ingelheim for the worldwide exclusive rights
to develop and commercialize XP-105 for all human and non-human&nbsp;diagnostic, prophylactic,
and therapeutic uses. Prior to this license, BII had completed one Phase 1 clinical trial for solid tumors. We plan to initiate
one clinical trial of XP-105&nbsp;in late 2019.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Pre-Clinical&nbsp;Programs</I></B>&nbsp;&mdash; In addition, we have several
                                                                                      pre-clinical&nbsp;oncology drug candidates in our pipeline. Among these drug candidates, XP-102&nbsp;(also known as BI
                                                                                      882370), a selective pan-RAF inhibitor to which Xynomic obtained a worldwide exclusive license from Boehringer Ingelheim to <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">develop and commercialize
abexinostat for all human and non-human&nbsp;diagnostic, prophylactic, and therapeutic uses</FONT>, is the closest to clinical testing. We have completed pre-IND meeting with the FDA and expect to initiate
Phase I clinical trial of XP-102 in the fourth quarter of 2019.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-indent: 0.5in; text-align: justify">The
following is a summary of our on-going and planned trials:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_03.jpg" ALT="" STYLE="width: 550px; height: 318px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Business Strategy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">Our business strategy
has been designed to enable us to achieve our mission of developing and commercializing innovative drug products in the field of
oncology. The key tenets of  our strategy include the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><B><I>Build an
oncology franchise to maximize value. </I></B>Oncology is our therapeutic focus. According to data published by
EvaluatePharma<SUP>&reg;</SUP>, oncology was the top therapy area in the global pharmaceutical market with sales of
$93.7&nbsp;billion in 2016, or 11.7% of the market
(Source:<I>http://info.evaluategroup.com/rs/607-YGS-364/images/wp16.pdf</I>). This number is projected to grow to
$192.2&nbsp;billion in 2022, highlighting the rapid growth in this market. The strong and sustainable growth of the oncology
market is mainly driven by three factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">cancer remains one of the leading causes of natural
deaths worldwide;</TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">there are a high degree of unmet medical needs in oncology;
and</TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">oncology drugs that have obtained regulatory approval
have demonstrated commercial success for numerous pharma companies.</TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"></P>
</DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><B><I>Capitalize on
our expertise to develop a pipeline of small molecule, oral, targeted drug candidates.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Our core
scientific team has many years of experience in research, development and manufacturing of small molecule, oral, targeted drug
candidates against cancer and other diseases. This expertise as our core strength will continue to be leveraged as we expand our
pipeline. According to a 2015 IMS study, targeted therapies make up approximately 87% of the late-phase&nbsp;oncology pipelines
under development worldwide. Thus, our focus on targeted drug candidates aligns with this global trend in oncology treatments.
Oral dosage represents another recent trend in oncology medication as oral dosage has been shown to significantly improve patient
compliance and quality of life.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><B><I>Strategically
in-license&nbsp;global rights to late stage drug candidates.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Our lead drug candidate abexinostat
was licensed from Pharmacyclics. Prior to Xynomic&rsquo;s acquisition of the global exclusive license, Pharmacyclics had tested
abexinostat on approximately 600 patients globally and had assembled a large amount of potentially valuable clinical data on safety
and efficacy, which, subject to the outcome of further clinical trials, potentially could enable us to launch the product in the
U.S., China, EU and other key markets. Our ability to obtain global licenses on assets from multinational pharmaceutical companies
such as AbbVie and BII is a result of our management&rsquo;s extensive network within the global biopharmaceutical industry and
deal making and deal execution expertise. We will continue to leverage this competitive advantage to access top-quality&nbsp;drug
candidates for in-licensing&nbsp;and co-development&nbsp;opportunities, and potential future co-marketing&nbsp;partnerships.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><B><I>Build a strong
internal research and development team to enrich the pipeline.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;In addition to our in-licensing&nbsp;strategy,
we have built a team of researchers with expertise in epigenetics and kinase inhibition, which could enable us to potentially discover
new mechanisms of action (&ldquo;<I>MOA</I>&rdquo;), potentially design innovative molecules around these MOAs, and potentially
move promising molecules to clinical testing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><B><I>Utilize
global resources to lower cost and improve efficiency.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;With our presence in both the U.S. and
China, we can potentially leverage high-quality, low-cost&nbsp;global resources to efficiently develop our pipeline. We keep
core competencies such as research, clinical development management and business development in house, while outsourcing
commoditized activities such as small-molecule&nbsp;manufacturing and clinical study management to reputable vendors. This
hybrid model potentially allows us to access efficient resources globally, manage investment in redundant infrastructure, and
secure a more favorable return on investment. We have established a vigorous vendor selection process to ensure that we
receive the highest quality and compliance level at a reasonable cost. For instance, abexinostat&rsquo;s active
pharmaceutical ingredient (&ldquo;<I>API</I>&rdquo;) and finished dosage formulation are manufactured in Europe, whereas its
pivotal clinical trials are managed by top multinational contract research organizations, or CROs such as PPD Development, LP
(&ldquo;<I>PPD</I>&rdquo;) and Parexel International (IRL) Ltd. (&ldquo;<I>Parexel</I>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><B><I>Capture potential
lower research and development costs, better access to patient pool and growing market in China.&nbsp;&nbsp;&nbsp;&nbsp;</I></B>In
addition to their years of professional training and industry experience in the U.S., our founders have significant personal and
professional experience in China, the second largest pharmaceutical market in the world. Building on this, we are well positioned
to capitalize on China, both as a potential market for Xynomic&rsquo;s oncology drugs and a location for lower research and development
costs and better access to patient pools. Pursuant to recent regulatory reform in China, China&rsquo;s drug approval process has
been enhanced to make it more similar to those of other developed countries. This will further allow us to potentially leverage
our resources in China to develop products for the U.S. and the rest of the world.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Market Opportunity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">The American Cancer
Society estimates that approximately 1,735,350&nbsp;million new cancer cases will be diagnosed in the U.S. in 2018, and there
will be approximately 609,640 cancer deaths. According to a report published by Allied Market Research, the global market for
cancer therapeutics was valued at $81.2&nbsp;billion in 2016 and is projected to reach $178.9&nbsp;billion by 2023, at a CAGR
of 11.9% from 2017-2023. This growth will be driven by factors such as development of novel cancer therapeutics and an increase
in cancer awareness and availability of oncology drugs in developing markets. Specifically, the global market size for follicular
lymphoma (&ldquo;FL&rdquo;) is expected to reach $4.1&nbsp;billion by 2023, for &nbsp;renal cell carcinoma&nbsp; (&ldquo;RCC&rdquo;),
$4.7&nbsp;billion, for certain solid tumors treated by Keytruda<SUP>&reg;</SUP>, $8.0&nbsp;billion, for breast cancer, $20.0&nbsp;billion
and for diffuse large B-cell&nbsp;lymphoma (&ldquo;DLBCL&rdquo;), $14.4&nbsp;billion. According to a September 2018 report by
WHO&rsquo;s International Agency for Research on Cancer, among females, breast cancer is the most commonly diagnosed cancer, whereas
colorectal cancer is the 2<SUP>nd</SUP>&nbsp;among females and the 3<SUP>rd</SUP>&nbsp;among males. According to IMS and iHealthcareanalyst,
drugs treating breast cancers and rectal cancers are expected to generate annual revenue of approximately $25.4&nbsp;billion by
2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
</DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Competition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">Our industry is highly
competitive and subject to rapid and significant technological change, with over 500 companies worldwide developing late-phase&nbsp;oncology
drugs, according to a 2015 IMS study. Our potential competitors include large pharmaceutical and biotechnology companies and specialty
pharmaceutical companies, academic institutions, government agencies, and research institutions. The market for oncology therapeutics
is becoming increasingly competitive. Our products, however, upon approval, will be focused, at least initially, on specific oncology
indications with high unmet medical need. Key competitive factors affecting the commercial success of our product candidates are
likely to be efficacy, safety and tolerability profile, reliability and durability of response, convenience of dosing, and price
and reimbursement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">If abexinostat is approved
to treat relapsed or refractory (&ldquo;R/R&rdquo;) follicular lymphoma (&ldquo;FL&rdquo;), abexinostat will compete with approved therapies including Gilead&rsquo;s Zydelig<SUP>&reg;&nbsp;</SUP>(a PI3
inhibitor), Bayer&rsquo;s Aliqopa&trade;, and Roche&rsquo;s Gazyva<SUP>&reg;</SUP>&nbsp;(an antibody). If abexinostat is approved
to treat R/R diffuse large B-cell lymphoma (&ldquo;DLBCL&rdquo;), abexinostat will compete with Gilead&rsquo;s Yescarta (a CAR-T&nbsp;therapy) and Novartis&rsquo; Kymriah<SUP>&reg;&nbsp;</SUP>(a
CAR-T&nbsp;therapy). If it is approved in first-line&nbsp;or second-line&nbsp;RCC, abexinostat, used in combination with pazopanib,
will compete with Bristol-Myers&nbsp;Squibb&rsquo;s Opdivo&trade;/Yervoy<SUP>&reg;</SUP>&nbsp;(a PD-1&nbsp;inhibitor and a monoclonal
antibody), Pfizer&rsquo;s Sutent<SUP>&reg;</SUP>, Novartis&rsquo; Afinitor<SUP>&reg;</SUP>&nbsp;(a mTORC inhibitor), Roche&rsquo;s
Avastin<SUP>&reg;&nbsp;</SUP>(a monoclonal antibody) in combination with interferon alfa, and Novartis&rsquo; Votrient<SUP>&reg;</SUP>&nbsp;(generic
name pazopanib, a VEGF inhibitor) as a single agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">If XP-105, combined
with paclitaxel, is approved to treat breast cancer, it will compete with approved therapies including standard-of-care&nbsp;chemotherapies such as paclitaxel and targeted agents such as Novartis&rsquo; Afinitor<SUP>&reg;</SUP>&nbsp;(a mTORC inhibitor) plus
exemestane, Novartis&rsquo; Kisqali<SUP>&reg;</SUP>&nbsp;(a CDK4/6 inhibitor), Roche&rsquo;s Herceptin<SUP>&reg;</SUP>(a monoclonal
antibody), AstraZeneca&rsquo;s Faslodex<SUP>&reg;</SUP>&nbsp;(a selective estrogen receptor degrader), and Pfizer&rsquo;s Ibrance<SUP>&reg;</SUP>&nbsp;(a
CDK4/6 inhibitor).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">We will develop
XP-102, in combination with a marketed MEK inhibitor, to treat colorectal cancer (&ldquo;CRC&rdquo;) and melanoma, and if
it is approved, it will compete with marketed combination RAF/MEK targeted therapy such as Daiichi-Sankyo&nbsp;and
Roche&rsquo;s Zelboraf<SUP>&reg;</SUP>&nbsp;+ Cotellic<SUP>&reg;</SUP>, Novartis&rsquo; Tafinlar<SUP>&reg;</SUP>&nbsp;+
Mekinist<SUP>&reg;</SUP>, and Array BioPharma&rsquo;s Braftovi<SUP>&trade;</SUP>&nbsp;+ Mektovi<SUP>&reg;</SUP>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Material Risks
and Challenges</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">We
face substantial competition from a great many established and emerging pharmaceutical and biotech companies that develop, distribute
or sell therapeutics to treat the same indications that our drug candidates are designed to treat. Our current and potential competitors
include large pharmaceutical and biotechnology companies, and specialty pharmaceutical and generic drug companies. Many of our
current and potential competitors have substantially greater financial, technical and human resources than we do and significantly
more experience in the marketing, commercialization, discovery, development and regulatory approvals of products, which could place
us at a significant competitive disadvantage or deny our marketing exclusivity rights. Typically, our competitors will most likely
have more capital resources to support their products than we do. In addition, you should <FONT STYLE="background-color: white">carefully
consider the risks described under the &ldquo;Risk Factors&rdquo; section beginning on page 21 before investing in us. Some of
these risks are:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
related to our financial position and need for additional capital including, but not limited to:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We are a biopharmaceutical company with a limited operating history and has not yet generated any revenue from product sales. Xynomic, our operating subsidiary, has incurred operating losses since its inception and may never achieve or maintain profitability; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We will need to raise substantial additional funding. If we are unable to raise capital when needed at favorable terms, it will be forced to delay, reduce, or eliminate some of its drug development programs or commercialization efforts.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
</DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
related to our business including but not limited to:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All of our drug candidates are still in development. If we are unable to obtain regulatory approval and ultimately commercialize our drug candidates or experiences significant delays in doing so, our business, financial condition, results of operations, and prospects will be materially and adversely affected;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We may be unable to obtain regulatory approval under applicable regulatory requirements;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clinical drug development involves a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results. Failure can occur at any stage of clinical development;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We may attempt to secure approval of abexinostat from the FDA through the use of the Accelerated Approval Program, but such mechanism may not actually lead to a faster development or regulatory review or approval process. If we are unable to obtain approval of abexinostat through the Accelerated Approval Program in the United States, we may be required to conduct additional nonclinical and clinical studies and trials beyond those that we currently contemplate, which could increase the expense of obtaining, reduce the likelihood of obtaining, and/or delay the timing of obtaining, necessary marketing approval. Even if we receive approval from the FDA under the Accelerated Approval Program, if our confirmatory post-marketing trial does not verify clinical benefit, or if it does not comply with rigorous post-marketing requirements, the FDA may seek to withdraw the approval;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we are unable to obtain the National Medical Products Administration of China (the &ldquo;NMPA,&rdquo; formerly known as CFDA) approval for our drug candidates to be eligible for an expedited registration pathway as Category 1 drug candidates, the time and cost we would incur to obtain regulatory approvals may increase. Even if we receive such Category 1 designation, it may not lead to a faster development, review or approval process;</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our drug candidates may cause
undesirable side effects that could delay or prevent their regulatory approval, limit the commercial profile of an approved label,
or result in significant negative consequences following regulatory approval, if any; and</P></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We face substantial competition, which may result in our competitors discovering, developing, or commercializing drugs before or more successfully than we do, or develop therapies that are more advanced or effective than ours. </FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
related to government regulation including but not limited to:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The regulatory approval process is highly uncertain and we may not obtain approval under the Accelerated Approval Program or the conventional pathway, as required for the commercialization;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Even if we receive regulatory approval for any of our drug candidates, we will be subject to ongoing regulatory obligations and continued regulatory review, which may result in significant additional expense. Additionally, our drug candidates, if approved, could be subject to labeling and other restrictions and market withdrawal, and we may be subject to penalties if we fail to comply with regulatory requirements or experiences unanticipated problems;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we or our current or future collaborators, manufacturers or service providers fail to comply with healthcare laws and regulations, we or they could be subject to enforcement actions, which could affect our ability to develop, market and sell our products and may harm our reputation; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legislative or regulatory FDA reforms in the United States may make it more difficult and costly for us to obtain regulatory clearance or approval and to produce, market and distribute its products after clearance or approval is obtained.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>



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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
related to our dependence on third parties including, but not limited to:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We depend on third party manufacturers for the manufacture of our drug candidates as well as on third parties for our supply chain, and if we experience problems with any of these third parties, the manufacture of our drug candidates or products could be delayed, which could harm our results of operations; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We rely on third parties to conduct our pre-clinical studies and clinical trials. If these third parties do not successfully carry out their contractual duties or meet expected deadlines, we may not be able to obtain regulatory approval for or commercialize our drug candidates and our business could be substantially harmed; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we lose our relationships with CROs, our drug development efforts could be delayed.</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
related to doing business in china including without limitation:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pharmaceutical companies in China are required to comply with extensive regulations and hold a number of permits and licenses to carry on their business. Our ability to obtain and maintain these regulatory approvals is uncertain, and future government regulation may place additional burdens on our efforts to commercialize our drug candidates;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we fail to comply with environmental, health, and safety laws and regulations of the PRC, we could become subject to fines or penalties or incur costs that could have a material adverse effect on the success of our business;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If additional remedial measures are imposed on the &ldquo;big four&rdquo; PRC-based accounting firms, including Xynomic&rsquo;s independent registered public accounting firm for the financial statements for the fiscal year ended December 31, 2018 and 2017, in administrative proceedings brought by the SEC alleging those firms&rsquo; failure to meet specific criteria set by the SEC with respect to requests for the production of documents, we could be unable to timely file our future financial statements in compliance with the requirements of the Exchange Act; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Uncertainties with respect to the PRC legal system and changes in laws, regulations, and policies in China could materially and adversely affect us. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks
related to intellectual property including without limitation:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we breach a license agreement or other intellectual property-related agreements for our drug candidates or otherwise experience disruptions to our business relationships with its licensors, we could lose the ability to continue the development and commercialization of ours drug candidates; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We depend on our licensors or patent owners of our in-licensed patent rights to prosecute and maintain patents and patent applications that are material to our business. Any failure by our licensors or such patent owners to effectively protect these patent rights could adversely impact our business and operations;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we are unable to obtain and maintain patent protection for our drug candidates through intellectual property rights, or if the scope of such intellectual property rights obtained is not sufficiently broad, third parties may compete directly against us; and </FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If our drug candidates infringe, misappropriate, or otherwise violate the intellectual property rights of third parties, we may incur substantial liabilities, and it may not be able to sell or commercialize these drug candidates. </FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
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related to our securities including without limitation:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
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    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We do not currently intend to pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on the appreciation in the price of our common stock;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We may not be able to timely and effectively implement controls and procedures required by Section 404 of the Sarbanes Oxley Act of 2002 that will be applicable to us after the Business Combination. Furthermore, if our internal control over financial reporting or our disclosure controls and procedures are not effective, we may not be able to accurately report our financial results, prevent fraud, or file our periodic reports in a timely manner, which may cause investors to lose confidence in our reported financial information and may lead to a decline in our stock price;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our independent auditors have issued an audit opinion for our company, which includes a statement describing our going concern status. Our financial status creates a doubt whether we will continue as a going concern;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We indemnify our directors and officers against certain liabilities and do not presently&nbsp;carry&nbsp;director and&nbsp;officer liability insurance;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There can be no assurance that our shares and warrants will continue to be so listed or, if listed, that we will be able to comply with the continued listing standards of Nasdaq;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The future exercise of registration rights may adversely affect the market price of our common stock; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrants will become exercisable for our Company common shares, which would increase the number of Company common shares eligible for future resale in the public market and result in dilution to our stockholders.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These and other risks
described in this prospectus could materially and adversely impact our business, financial condition, operating results and cash
flow, which could cause the trading price of our Common Stock to decline and could result in a loss of your investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recent Material Events</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Consummation of the Business Combination and Backstop
Subscription</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 15, 2019, Bison
Capital Acquisition Corp., our predecessor at that time (&ldquo;<B><I>Bison</I></B>&rdquo;), consummated the previously announced
business combination (the &ldquo;<B><I>Business Combination</I></B>&rdquo;) following a special meeting of shareholders held on
May 14, 2019 (the &ldquo;<B><I>Special Meeting</I></B>&rdquo;) where the shareholders of Bison, which, prior to the consummation
of the Business Combination, domesticated as a Delaware corporation and, immediately thereafter known as &ldquo;Xynomic Pharmaceuticals
Holdings, Inc.&rdquo;, considered and approved, among other matters, a proposal to adopt that certain Agreement and Plan of Merger
(as amended, the &ldquo;<B><I>Merger Agreement</I></B>&rdquo;), dated as of September 12, 2018, entered into by and
among (i) Bison; (ii) Bison Capital Merger Sub Inc., a Delaware corporation (&ldquo;<B><I>Merger Sub</I></B>&rdquo;) (iii) Xynomic
Pharmaceuticals, Inc., a Delaware corporation (&ldquo;<B><I>Xynomic</I></B>&rdquo;); and (iv) Yinglin Mark Xu (&ldquo;<B><I>Stockholder
Representative</I></B>&rdquo;), solely in his capacity as the Stockholder Representative thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Merger
Agreement, among other things, Merger Sub merged with and into Xynomic, with Xynomic continuing as the surviving entity
and a wholly-owned subsidiary of the Company (the &ldquo;<B><I>Merger</I></B>&rdquo; and the &ldquo;<B><I>Surviving Company</I></B>&rdquo;).
The merger became effective on May 15, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 14, 2019, prior
to the consummation of the Business Combination, Bison re-domiciled out of the British Virgin Islands and domesticated as a Delaware
corporation (the &ldquo;<B><I>Domestication</I></B>&rdquo;). As a result, Bison is no longer a company incorporated in the British
Virgin Islands.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
</DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 15, 2019, pursuant
to the Backstop Agreement&nbsp;dated May 1, 2019 entered into by and between Bison and Yinglin Mark Xu, Mr. Xu together with his
assignee Bison Capital Holding Company Limited, purchased from the Company 755,873 shares of common stock at a price of $10.15
per share for a total consideration of $7,672,112 (the &ldquo;<B><I>Backstop Shares</I></B>&rdquo; and &ldquo;<B><I>Backstop Subscription</I></B>&rdquo;).
As a result of Backstop Subscription, Bison had at least $7,500,001 of net tangible assets remaining at the Closing after giving
effect to the redemption of any Ordinary Shares by the public shareholders in connection with the Business Combination.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the closing on May
15, 2019, each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective Time was automatically
converted into the right to receive, on a pro rata basis, the Closing Consideration Shares (as defined below) and the Earnout Shares
(as defined below), and each option to purchase Xynomic stock that was outstanding immediately prior to the Effective Time was
assumed by the Company and automatically converted into an option to purchase shares of common stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the closing, pursuant
to the Merger Agreement, all Xynomic stockholders received a number of newly issued shares of Company common stock equal to the
Closing Merger Consideration divided by $10.15 per share (the &ldquo;<B><I>Closing Consideration Shares</I></B>&rdquo;). The Closing
Merger Consideration equals to (a) $350,000,000, minus (i) the amount of Xynomic&rsquo;s closing indebtedness, plus (ii) the amount
of Xynomic&rsquo;s closing cash, minus (iii) the amount of Xynomic&rsquo;s transaction expenses, plus (iv) certain closing tax
assets, plus (v) the amount, if any, by which Xynomic&rsquo;s closing working capital exceeds an agreed upon target amount of working
capital, minus (vi) the amount, if any, by which such target amount of working capital exceeds Xynomic&rsquo;s closing working
capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the
Closing Consideration Shares, Xynomic stockholders received an additional 9,852,216 shares of common stock in aggregate (the &ldquo;<B><I>Earnout
Shares</I></B>&rdquo; and, together with the Closing Consideration Shares, the &ldquo;<B><I>Merger Consideration Shares</I></B>&rdquo;).
As a result, the Company issued 42,860,772 common shares as in aggregate Merger Consideration Shares to shareholders of Xynomic
immediately prior to the closing (the &ldquo;<B><I>Sellers</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Merger
Agreement, 1,285,822 shares were deposited into an escrow account (the &ldquo;<B><I>Escrow Account</I></B>&rdquo;) to serve as
security for, and the exclusive source of payment of, the Company&rsquo;s indemnity rights under the Merger Agreement and any excess
of the estimated Closing Merger Consideration over the final Closing Merger Consideration amount determined post-Closing.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a result of the
Business Combination, the Sellers, as the former shareholders of Xynomic, became the controlling shareholders of the Company and
Xynomic became a subsidiary of the Company. The Business Combination was accounted for as a reverse merger, wherein Xynomic is
considered the acquirer for accounting and financial reporting purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to the Business
Combination, we were a &ldquo;shell company&rdquo; (as such term is defined in Rule 12b-2 under the Securities Exchange Act of
1934, as amended). As a result of the Business Combination, we have ceased to be a &ldquo;shell company&rdquo; and will continue
the existing business operations of Xynomic as a publicly traded company under the name &ldquo;Xynomic Pharmaceuticals Holdings,
Inc.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As used in this Report
henceforward, unless otherwise stated or the context clearly indicates otherwise, the terms the &ldquo;Registrant,&rdquo; &ldquo;Company,&rdquo;
&ldquo;we,&rdquo; &ldquo;us&rdquo;, &ldquo;our&rdquo;and &ldquo;XYN&rdquo; refer to Xynomic Pharmaceuticals Holdings, Inc., and
its subsidiaries at and after the Closing, giving effect to the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Nasdaq Listing Compliance</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 15, 2019, we
received written notice from the staff of The NASDAQ Stock Market LLC (&ldquo;<B><I>Nasdaq</I></B>&rdquo;) indicating that the
Staff had determined to delist the Company&rsquo;s securities from Nasdaq based upon the Company&rsquo;s non-compliance with Nasdaq
Listing Rules 5505(a)(3) and 5515(a)(4), which require a minimum of 300 round lot holders of common stock and 400 round lot holders
of common stock purchase warrants for initial listing on The Nasdaq Capital Market. The Staff&rsquo;s determination also cited
the Company&rsquo;s non-compliance with the minimum $5 million in stockholders&rsquo; equity requirement, as set forth in Nasdaq
Listing Rule 5505(b)(1)(A).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
</DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon request, a hearing
before the Panel was scheduled on July 11, 2019 and our request for hearing has stayed any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to the Company by
the Panel. We intend to pursue certain actions including this Offering to increase the number of round lot holders of its common
stock as well as increase its stockholders&rsquo; equity as soon as practicable to meet the applicable listing requirements; however,
there can be no assurances that the Company will be able to do so within the period of time that may be granted by the Panel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Unit Offering</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
or about July 10, 2019, we entered into certain Securities Purchase Agreement (the &ldquo;Unit SPA&rdquo;) with certain &ldquo;accredited
investors&rdquo; as defined in Rule 501(a) of Regulation D as promulgated under the Securities Act (the &ldquo;Unit Purchasers&rdquo;),
pursuant to which we agreed to sell to such Unit Purchasers an aggregate of approximate USD$10 million of units (the &ldquo;Units&rdquo;)
of the Company, at a purchase price of USD$3.80 per Unit (subject to adjustment) (the &ldquo;Unit Offering&rdquo;). Each Unit consists
of one share of Common Stock and one-half warrant (the &ldquo;Unit Warrant&rdquo;). Each whole Unit Warrant can be exercised to
purchase one share of Common Stock at $7.00 per share and shall expire in three (3) years of the issuance, and have the rights
and preference set forth in certain warrant agreement. Furthermore, the Unit SPA provides, among other terms, a maximum offering
in an aggregate of $15 million with the first closing of a minimum of $5 million upon delivery of the closing conditions set forth
in the Unit SPA, provided that no closing shall occur after September 30, 2019 subject to certain exception.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Units, the shares of Common Stock underlying the Units (the &ldquo;Unit Shares&rdquo;), the Unit Warrants issued in the Offering,
and shares of Common Stock issuable upon exercise of the Unit Warrants (the &ldquo;Unit Warrant Shares&rdquo;), are exempt from
the registration requirements of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
proceeds of this Unit Offering will be used for working capital and general corporate purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Unit SPA also contains customary representation and warranties of the Company and the Unit Purchasers, indemnification obligations
of the Company, termination provisions, and other obligations and rights of the parties. Additionally, we anticipate that the Unit
Purchasers will enter into a lock-up agreement at the closing pursuant to which that they would agree not to sell or otherwise
transfer or dispose the Units, Unit Shares, Unit Warrants, or Unit Warrant Shares during the six-month period commencing on the
earlier of the effective date of a registration statement in connection with the first follow-on public offering after the date
of the Unit SPA or the issuance date of the Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The Form of the Unit SPA and the Form of the Unit Warrants are filed as Exhibits 10.22 and 10.23 to this
prospectus, respectively; and such documents are incorporated herein by reference. The foregoing is only a brief description of
the material terms of the Unit SPA and the Unit Warrants, and does not purport to be a complete description of the rights and obligations
of the parties thereunder and is qualified in its entirety by reference to such exhibits.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Corporate Structure and Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The corporate structure of the
Company is illustrated as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_04.jpg" ALT="" STYLE="width: 500px; height: 105px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic Pharmaceuticals,
Inc. (&ldquo;Xynomic DE&rdquo;), a company established under the laws of the Delaware in 2016, is our primary operating entity
and 100% owned by us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">Xynomic Pharmaceuticals
(Nanjing) Co., Ltd. (&ldquo;Xynomic Najing&rdquo;), a limited company established under the laws of PRC in 2017, engages in research and development of pharmaceuticals
business and is 100% owned by Xynomic DE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">Xynomic Pharmaceuticals
(Zhongshan) Co., Ltd. (&ldquo;Xynomic Zhongshan&rdquo;), a limited company established under the laws of PRC in 2018, engages in
research and development of pharmaceuticals business and is 100% owned by Xynomic Nanjing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">Xynomic Pharmaceuticals
(Shanghai) Co., Ltd. (&ldquo;Xynomic Shanghai&rdquo;), a limited company established under the laws of PRC in 2018, engages in
research and development of pharmaceuticals business and is 100% owned by Xynomic Nanjing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: .5in">The mailing address
of our principal executive office is: Suite 3306, K. Wah Centre, 1010 Middle Huaihai Road, Shanghai 200031, China.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
</DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Implications of Our Being an &ldquo;Emerging Growth Company&rdquo;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
qualify as an &ldquo;emerging growth company&rdquo; </FONT>as defined in the Jumpstart Our Business Startups Act of 2012, or
the JOBS Act, until the earlier of (1) the last day of the fiscal year (a) following June 23, 2022, the fifth anniversary of
our IPO, (b) in which we have total annual gross revenue of at least $1.07 billion, (c) our non-convertible debt issued
within a three year period exceeds $1 billion, or (d) if the market value of our shares that are held by non-affiliates
exceeds $700 million on the last day of our second fiscal quarter. An &ldquo;emerging growth company&rdquo; may take
advantage of reduced reporting requirements that are otherwise generally applicable to public companies. In particular, as an
emerging growth company, we:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0; width: 0.5in">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing how those elements fit with our principles and objectives, which is commonly referred to as &ldquo;compensation discussion and analysis&rdquo;;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are not required to obtain an attestation and report from our auditors on our management&rsquo;s assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are not required to obtain a non-binding advisory vote from our shareholders on executive compensation or golden parachute arrangements (commonly referred to as the &ldquo;say-on-pay,&rdquo; &ldquo;say-on frequency&rdquo; and &ldquo;say-on-golden-parachute&rdquo; votes);</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under &sect;107 of the JOBS Act; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="padding-left: 0; text-align: justify; padding-top: 0; padding-right: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">will not be required to conduct an evaluation of our internal control over financial reporting for two years.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

</DIV>
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<DIV STYLE="padding: 5pt; border: Black 1.5pt solid; width: 98%">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_004"></A>THE OFFERING</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%"><FONT STYLE="font-size: 10pt">Issuer</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 59%; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;Xynomic Holdings Pharmaceuticals, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Securities being offered by us</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">[&#9679;]</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Price per share</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">[&#9679;]</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Option to purchase additional shares exercisable for 45 days from the closing of this offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">[&#9679;]</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Shares of Common Stock outstanding as of July 10, 2019 </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">46,273,846</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Shares of Common Stock outstanding immediately following the consummation of this Offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">[&#9679;]</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Amount of the Offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">[&#9679;]</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Minimum purchase</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">[&#9679;]</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Symbol</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">XYN for Common Stock</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Transfer Agent</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Continental Stock Transfer &amp; Trust Company</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Use of Proceeds</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Risk Factors</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Investing in our securities involves a high degree of risk and purchasers may lose part or all of their investment. See &ldquo;Risk Factors&rdquo; for a discussion of factors you should carefully consider before deciding to invest in our securities beginning on Page 21.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Dividend Policy</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">We have no present plan to declare dividends and plan to retain our earnings to continue to grow our business.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Underwriter Warrants </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">We have agreed to issue to the Underwriter warrants to purchase up to [&#9679;]</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The number of
                                                                                                                                                             shares of common stock to be outstanding after this offering is based on [&#9679;] shares of Common Stock&nbsp;outstanding as of
                                                                                                                                                             July 10, 2019, and excludes:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B>[&#9679;]</B> <FONT STYLE="font-family: Times New Roman, Times, Serif">shares
of Common Stock issuable upon the exercise of stock options outstanding as of July 10, 2019;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B>[&#9679;]</B> shares of common stock <FONT STYLE="font-family: Times New Roman, Times, Serif">issuable
upon the exercise of warrants (See &ldquo;Description of Securities &mdash;&nbsp;Warrants&rdquo;);</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B>[&#9679;]</B> <FONT STYLE="font-family: Times New Roman, Times, Serif">shares
of Common Stock reserved for future issuance under our 2018 Equity Incentive Plan, or Incentive Plan, as of July 10, 2019;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B>[&#9679;]</B> <FONT STYLE="font-family: Times New Roman, Times, Serif">shares
of Common Stock issuable upon the exercise of EarlyBirdCapital&rsquo;s purchase option (See &ldquo;Description of Securities &mdash;
Purchase Option&rdquo;); and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B>[&#9679;]</B><FONT STYLE="font-family: Times New Roman, Times, Serif">&#8199;shares of
                                                                                                                                                      Common Stock issuable upon the exercise of a warrant to be issued to [&#9679;] in connection with this
                                                                                                                                                      Offering.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Our Incentive Plan also provides for automatic
annual increases in the number of shares reserved thereunder. See &ldquo;Executive Compensation &mdash; Employee Benefit Plans&rdquo;
for additional information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">Except as otherwise indicated, all information
in this prospectus assumes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: .5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">no exercise or cancellation of outstanding options
or vesting of RSUs subsequent to July 10, 2019; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">no exercise by the underwriters of their overallotment
option.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -24pt">&nbsp;</P>
</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a_005"></A>SELECTED
HISTORICAL CONSOLIDATED FINANCIAL INFORMATION OF XYNOMIC</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth selected historical consolidated financial information derived from our wholly owned subsidiary following the consummation
of the Business Combinatin on May 15, 2019, Xynomic Pharmaceuticals, Inc.&rsquo;s audited consolidated financial statements as
of December 31, 2018 and 2017, and for the years ended December 31, 2018 and 2017, and its unaudited consolidated interim financial
data for the period ended March 31, 2019, each of which is included elsewhere in this prospectus.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
historical results presented below are not necessarily indicative of the results to be expected for any future period. You should
carefully read the following selected consolidated financial information in conjunction with the section entitled &ldquo;<I>Xynomic
Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</I>&rdquo; and Xynomic&rsquo;s consolidated
financial statements and the related notes appearing elsewhere in this prospectus</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the Year Ended</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">For the Three <B><BR>
Months ended</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Selected Consolidated Statements of Comprehensive Loss:</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">  <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>March 31,<BR>
 2019</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center">(dollars in thousands)</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; text-indent: -9pt; padding-left: 0.25in">Research and development</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">25,160</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,321</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,324</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,049</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">885</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,780</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">General and administrative to related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">362</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">249</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(28,571</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(5,455</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(14,130</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Other income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Interest expenses to a related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(33</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Loss from operations before income tax benefit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(28,587</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(5,455</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(14,145</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Income tax</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(28,587</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(5,455</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(14,145</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Accretion to preferred share redemption value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,831</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,269</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,698</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss attributable to ordinary shareholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(31,418</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(6,724</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(15,843</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>






<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">As of</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: normal; border-bottom: Black 1.5pt solid; font-style: normal"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Selected
    Consolidated Balance Sheets:</B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March 31,<BR>
 2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="10"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(dollars in thousands)&nbsp;</B></P></TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; text-indent: -10pt; padding-left: 10pt">Current assets</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,024</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">238</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,149</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Non-current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">438</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">663</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,462</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">240</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,812</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">17,645</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">895</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,494</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Non-current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">17,645</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">895</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,494</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Total mezzanine equity-Series Angel, A-1, B</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,911</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,080</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9,609</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Shareholders&rsquo; deficit:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Ordinary Shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,169</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,154</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accumulated other comprehensive income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Accumulated deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(34,323</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,736</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(48,468</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Total shareholders&rsquo; deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,094</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,735</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,291</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
</DIV>
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<DIV STYLE="padding: 5pt; border: Black 1.5pt solid; width: 98%">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a_006"></A>Selected
Historical Financial Information of Bison</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth selected historical financial information derived from our predecessor prior to the consummation of the Business Combination,
Bison&rsquo;s audited financial statements as of December 31, 2018, and 2017, and for the years ended December 31, 2018 and 2017,
and Bison&rsquo;s unaudited financial statements as of March 31, 2019, and for the three months ended March 31, 2019, which are
included elsewhere in this prospectus.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The historical results
presented below are not necessarily indicative of the results to be expected for any future period. You should carefully read the
following selected financial information in conjunction with the section entitled &ldquo;<I>Bison Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations</I>&rdquo; and Bison&rsquo;s financial statements and the related
notes appearing elsewhere in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Dollars in thousands except share and
per share amounts</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Year ended<BR> December&nbsp;31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Year ended<BR> December&nbsp;31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Three Months ended March&nbsp;31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Income Statement Data:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Operating costs</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">836</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">365</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">205</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,122</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">341</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">347</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Unrealized loss on marketable securities held in Trust Account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(19</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Net Income (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(41</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">140</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Weighted average number of shares outstanding, excluding shares subject to possible redemption, basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,426,155</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,870,947</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,477,069</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Net income (loss) per ordinary share: basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.30</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.18</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Cash Flow Data:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Net cash used in operating activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(687</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(376</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(129</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Net cash used in investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(61,884</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,178</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Net cash provided by financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">600</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,172</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(55,168</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March&nbsp;31,<BR>
2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Balance Sheet Data:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">123</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">210</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cash and marketable securities held in trust account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">63,310</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">62,208</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,477</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">63,461</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">62,508</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,496</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Ordinary shares subject to possible redemption</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,694</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,427</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,656</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total shareholders&rsquo; equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

</DIV>
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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->
<DIV STYLE="padding: 5pt; border: Black 1.5pt solid; width: 98%">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_007"></A>SELECTED UNAUDITED PRO FORMA CONDENSED
COMBINED FINANCIAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following unaudited
pro forma condensed combined balance sheet as of March 31, 2019 combines amounts derived from the unaudited consolidated balance
sheet of Xynomic as of March 31, 2019 with the unaudited consolidated balance sheet of Bison as of March 31, 2019, giving effect
to the Business Combination as if it had been consummated as of that date.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following unaudited
pro forma condensed combined statement of operations for the year ended December 31, 2018 combines the amounts derived from audited
consolidated statement of comprehensive loss of Xynomic for the year ended December 31, 2018 with the audited consolidated income
statement of Bison for the year ended December 31, 2018, giving effect to the Business Combination as if it had occurred on January
1, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following unaudited
pro forma condensed combined statements of operations for the three months ended March 31, 2019 combines the amounts derived from
the unaudited condensed consolidated statement of comprehensive loss of Xynomic for the three months ended March 31, 2019 with
the unaudited consolidated income statement of Bison for the three months ended March 31, 2019, giving effect to the Business
Combination as if it had occurred on January 1, 2018.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The historical financial
information has been adjusted to give effect to pro forma events that are related and/or directly attributable to the Business
Combination, are factually supportable, and are expected to have a continuing impact on the combined results. The adjustments presented
in the unaudited pro forma condensed combined financial statements have been identified and presented to provide relevant information
necessary for an accurate understanding of the combined company upon the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The selected unaudited
pro forma condensed combined financial information is for illustrative purposes only. The financial results may have been different
had the companies always been combined. You should not rely on the unaudited pro forma condensed combined financial information
as being indicative of the historical results that would have been achieved had the companies always been combined or the future
results that the combined company will experience. Bison and Xynomic have not had any historical relationship prior to the Business
Combination except that (a) Zhongshan Bison Healthcare Investment Limited (Limited Partnership) (&ldquo;<I>Zhongshan Bison</I>&rdquo;)
is holding 1,553,265 shares of Series B preferred stock of Xynomic representing approximately 2.96% equity interest in Xynomic
immediately prior to the Closing, and (b) Mr. Peixin Xu, the Chairman of Bison, is the beneficial owner of 21% of Zhongshan Bison
and his wife owns 100% of the Sponsor. Accordingly, no pro forma adjustments were required to eliminate activities between the
companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Business Combination
will be accounted for as a reverse merger in accordance with accounting principles generally accepted in the United States of America.
Under this method of accounting, Bison will be treated as the &ldquo;acquired&rdquo; company for financial reporting purposes.
This determination was primarily based on Xynomic comprising the ongoing operations of the combined entity, Xynomic&rsquo;s senior
management comprising the senior management of the combined company, and Xynomic&rsquo;s shareholders having a majority of the
voting power of the combined company. Accordingly, for accounting purposes, the Business Combination will be treated as the equivalent
of Xynomic issuing stock for the net assets of Bison, accompanied by a recapitalization. These transactions are not business combinations
because Bison is not a business under S-X Rule 11-01(d). The private operating company would credit equity for the fair value of
the net assets of the shell company (i.e., no goodwill or intangible assets would be recognized). Operations prior to the Business
Combination will be those of Xynomic.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P></DIV>

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<DIV STYLE="padding: 5pt; border: Black 1.5pt solid; width: 98%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The aggregate number
of Bison&rsquo;s ordinary shares that will be issued to Xynomic&rsquo;s equity holders at the closing of the Business Combination
will consist of the Closing Consideration Shares that equal to (a) $350,000,000 minus (b) the amount of the Closing Indebtedness,
plus (c) the amount of the Closing Cash (which may be a positive or negative dollar amount), minus (d) the amount of the Company
Transaction Expenses, plus (e) the Closing Tax Benefits, plus (f) if Closing Working Capital is greater than Target Working Capital,
an amount equal to (x) Closing Working Capital minus (y) Target Working Capital, minus (g) if Target Working Capital is greater
than the Closing Working Capital an amount equal to (x) Target Working Capital minus (y) Closing Working Capital (capitalized
terms are defined in the Merger Agreement), if any, divided by $10.15 and 9,852,216 Earnout Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Given that the Extension
Amendment Proposal and the Trust Amendment Proposal were approved at the Extension Meeting and shareholders holding 5,234,420 public
shares exercised their rights to redeem such public shares for a pro rata portion of the Trust Account, an aggregate of $55,177,977
(or $10.54 per share) was removed from the Trust Account to pay such shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Public shareholders further redeemed 789,269 public shares in connection with the expected shareholder vote to approve the proposed business combination
with Xynomic, which has been consummated by May 17, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based upon the adjusted
equity valuation of Xynomic of $435,036,831 as of the closing, a total of 42,860,772 Merger Consideration Shares were issued, of
which 9,852,216 of such shares are serving as the Earnout Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a condition to the
Business Combination and as further discussed in the Current Report on Form 8-K, the Backstop Investors purchased
$7.67 million of our ordinary shares through a private placement that occurred simultaneously with that of the Business Combination,
in order to ensure that there is at least $7.5 million in net tangible assets available in the Company immediately following the
Business Combination (the &ldquo;Backstop&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a result of the
Business Combination (i) after 789,269 ordinary shares were redeemed and converted into cash, (ii) an adjusted equity valuation
of $435,036,831, (iii) the issuance of 755,873 ordinary shares to Backstop investor, and (iv) Bison&rsquo;s sponsor select to convert
its promissory notes of $500,000 to ordinary shares at price of $10.00 per share, Xynomic stockholders will own approximately 94.24%
of the Company&rsquo;s ordinary shares to be outstanding immediately after the Business Combination, and Bison shareholders will
own approximately 5.76% of the Company&rsquo;s outstanding ordinary shares.</P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>
</DIV>
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<DIV STYLE="padding: 5pt; border: Black 1.5pt solid; width: 98%">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SELECTED UNAUDITED PRO FORMA CONDENSED
COMBINED FINANCIAL INFORMATION&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(dollars in thousands except shares and
per share amounts)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Income statement &ndash; year ended December 31, 2018</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Xynomic</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Bison</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Pro Forma </TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">28,571</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">836</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">27,555</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net operating loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,571</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(836</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,555</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other income/(expenses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,103</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Interest expenses to a related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(33</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Income (loss) from operations before income tax expenses/(benefit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,587</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,571</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Income tax</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,587</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,571</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accretion to preferred shares redemption value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,831</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net (loss) income attributable to ordinary shareholders</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(31,418</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">267</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(27,571</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,426,155</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">47,430,973</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Basic and diluted net loss per share</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">0.30</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.58</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Income statement &ndash; three months ended March 31, 2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Xynomic</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Bison</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Pro Forma</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">14,130</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">205</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">13,975</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net operating loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,130</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(205</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13,975</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other income/(expenses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">345</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Interest expenses to a related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(15</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(15</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Income (loss) from operations before income tax expenses/(benefit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,145</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">140</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13,990</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Income tax</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,145</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">140</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13,990</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accretion to preferred shares redemption value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,698</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net (loss) income attributable to ordinary shareholders</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(15,843</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">140</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(13,990</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,477,069</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">46,050</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Basic and diluted net loss per share</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.30</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Balance sheet data &ndash; as of March 31, 2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Xynomic</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Bison</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Pro Forma</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; width: 64%">Total Current Assets</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD><TD STYLE="text-align: right; width: 9%">1,149</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD><TD STYLE="text-align: right; width: 9%">18</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">$</TD><TD STYLE="text-align: right; width: 9%">5,218</TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total Non-Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">663</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,478</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">633</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,812</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,496</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,881</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,494</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">840</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,849</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,494</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">840</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,849</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total Shareholders&rsquo; Equity/(Deficit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(28,291</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(11,968</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>






<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.25in"></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a_008"></A>Risk
Factors</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>You should carefully review and consider
the following risk factors and the other information contained in this prospectus, including the financial statements and notes
to the financial statements included herein, in making investment decisions in connection with this Offering. The following risk
factors apply to the business and operations of Xynomic Parmaceuticals Holdings, Inc. following the completion of the Business
Combination. The occurrence of one or more of the events or circumstances described in these risk factors, alone, or in combination
with other events or circumstances, may adversely affect the ability to complete or realize the anticipated benefits of the Offering,
and may have a material adverse effect on the business, cash flows, financial condition, and results of operations of the combined
company. You should carefully consider the following risk factors in addition to the other information included in this proxy statement/prospectus,
including matters addressed in the section entitled &ldquo;Cautionary Note Regarding Forward-Looking Statements.&rdquo;&nbsp;We
may face additional risks and uncertainties that are not presently known to us, or that we currently deem immaterial, which may
also impair our business or financial condition. The following discussion should be read in conjunction with the financial statements
and notes to the financial statements included herein.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Risks Related to Our Financial Position
and Need for Additional Capital</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are a biopharmaceutical company
with a limited operating history and has not yet generated any revenue from product sales. Xynomic, our operating subsidiary, has
incurred operating losses since its inception and may never achieve or maintain profitability. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are a clinical stage
biopharmaceutical company with a limited operating history. Investment in biopharmaceutical product development is highly speculative
because it entails substantial upfront capital expenditures and significant risk that a drug candidate will fail to gain regulatory
approval or become commercially viable. Xynomic, our operating subsidiary, commenced operations in August 2016. Its operations
to date have been limited primarily to organizing and staffing the company, business planning, raising capital, in-licensing drug
candidates, undertaking pre-clinical studies, and clinically developing drug candidates. Xynomic has never generated any revenue
from drug sales, and has not obtained regulatory approvals for any of its drug candidates. For the year ended December 31, 2018,
Xynomic reported a net loss of $28.6 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We expect to incur
significantly higher expenses and operating losses over the next several years in connection with our ongoing activities, as we:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">continue
pre-clinical and clinical development of its programs;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in-license
and subsequently develop additional oncology drug candidates;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">continue
to discover, validate and develop additional drug candidates;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain,
expand and protect our intellectual property portfolio;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hire
additional research, development and business personnel;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">incur
costs associated with filing marketing authorization applications;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if
abexinostat is successfully approved for commercialization, incur additional costs associated with establishing sales and marketing
infrastructure for abexinostat in U.S., China and other territories; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">incur
additional costs associated with operating as a public company upon the Closing.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To become and remain
profitable, we must develop and eventually commercialize drug candidates with significant market potential. This will require it
to be successful in a range of challenging activities, including completing pre-clinical testing and clinical trials of its drug
candidates, obtaining marketing approval for these drug candidates, manufacturing, marketing and selling those drug candidates
for which it may obtain marketing approval, and satisfying any post-marketing requirements. It may never succeed in any or all
of these activities and, even if it does, we may never generate revenues that are significant or large enough to achieve profitability.
We may encounter unforeseen expenses, difficulties, complications, delays, and other unknown factors that may adversely affect
our business. The size of our future net losses will depend, in part, on the rate of future growth of our expenses and our ability
to generate revenue. Even if we achieve profitability in the future, we may not be able to sustain profitability in subsequent
periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are a holding company and will
conduct all of our operations through our subsidiaries.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Following consummation
of the Business Combination, we are a holding company and derive all of our operating income from subsidiaries of us. Other than
any cash we may retain, all of our assets will be held by our direct and indirect subsidiaries. We will rely on the earnings and
cash flows of us, which will be paid to us by our subsidiaries, if and only to the extent available, in the form of dividends and
other payments or distributions, to meet our debt service obligations. The ability of our subsidiaries to pay dividends or make
other payments or distributions to us will depend on their respective operating results and may be restricted by, among other things,
the laws of their jurisdiction of organization (which may limit the amount of funds available for the payment of dividends and
other distributions to us), the terms of existing and future indebtedness and other agreements of our subsidiaries and the covenants
of any future outstanding indebtedness we or our subsidiaries incur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We must obtain additional funds to
finance our operations and to remain a going concern.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Xynomic incurred recurring
losses from operations since inception and the net current liabilities (current assets less current liabilities) raise substantial
doubt about its ability to continue as a going concern. The Group has prepared its financial statements assuming that it will continue
as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business.
The Group has incurred recurring losses from operations since inception. The Group incurred a net loss of US$14,144,555 for the
three months ended March 31, 2019. Further, as of March 31, 2019, the Group had net current liabilities (current assets less current
liabilities) of US$19,345,343 and accumulated deficit of US$48,467,724. The Group&rsquo;s ability to continue as a going concern
is dependent on its ability to raise capital to fund its current research and development activities and future business plans.
Additionally, volatility in the capital markets and general economic conditions in the United States may be a significant obstacle
to raising the required funds. These factors raise substantial doubt about its ability to continue as a going concern. The financial
statements included herein do not include any adjustments that might be necessary should the Group be unable to continue as a going
concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the
carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Xynomic&rsquo;s ability
to continue as a going concern will require it to obtain additional funding. The perception of Xynomic&rsquo;s ability to continue
as a going concern may make it more difficult to obtain financing for the continuation of Xynomic&rsquo;s operations and could
result in the loss of confidence by investors and employees. Additionally, volatility in the capital markets and general economic
conditions in the United States may be a significant obstacle to raising the required funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After the consummation
of the Business Combination, Xynomic&rsquo;s business consists of our business. The current assets of the Group are lower than its current
liabilities. It raises substantial doubt our ability to continue as a going concern.</P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We will need to raise substantial
additional funding. If we are unable to raise capital when needed at favorable terms, it will be forced to delay, reduce, or eliminate
some of its drug development programs or commercialization efforts. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our ability to continue
as a going concern will require it to obtain additional funding. Furthermore, our future capital requirements will depend on and
could increase significantly as a result of many factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
scope, progress, results, and costs of drug discovery, pre-clinical studies, laboratory testing, and clinical trials for our drug
candidates;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
outcome, timing and cost of regulatory approvals by the Food and Drug Administration (&ldquo;<I>FDA</I>&rdquo;), National Medical
Products Administration (&ldquo;<I>NMPA</I>&rdquo;), EMA and comparable regulatory authorities, including the potential that the
FDA, NMPA, EMA or comparable regulatory authorities may require that we to perform additional studies;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
costs, timing, and outcome of regulatory review of abexinostat and other drug candidates;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
success of its effort to commercially launch abexinostat;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
ability to in-license additional drug candidates on favorable terms, if at all;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
achievement of milestones or occurrence of other developments that trigger payments under existing and new licensing agreements;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
costs of preparing, filing, and prosecuting patent applications, maintaining and enforcing our intellectual property rights, and
defending intellectual property-related claims;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
costs of securing outsourced manufacturing arrangements for commercial production; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
costs of establishing or contracting for sales and marketing capabilities if we obtain regulatory clearances to market abexinostat
or another drug candidate.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additional fundraising
efforts may distract management from their day-to-day activities, which may adversely affect our ability to develop and commercialize
its drug candidates. There is no guarantee that future financing will be available in sufficient amounts or on terms acceptable
to us, if at all. Moreover, additional financing may adversely affect the holdings or the rights of stockholders, and the issuance
of additional securities, whether equity or debt, by us, or the possibility of such issuance, may cause the market price of our
shares to decline. The sale of additional equity or convertible securities would dilute all of our stockholders. The incurrence
of indebtedness would result in increased interest payment obligations and we may be required to agree to certain restrictive covenants,
such as limitations on its ability to incur additional debt, limitations on our ability to acquire, sell, or license intellectual
property rights, and other operating restrictions that could adversely impact our ability to conduct our business. We could also
be required to agree to terms unfavorable to us, any of which may have a material adverse effect on our business, operating results
and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we are unable to
obtain funding on a timely basis, we will be required to significantly curtail, delay, or discontinue one or more of our research
or development programs or the commercialization of any drug candidate or be unable to expand our operations or otherwise capitalize
on our business opportunities, as desired, which could materially adversely affect our business, financial condition, and results
of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Raising additional capital may cause
dilution to our existing stockholders, restrict our operations, or require us to relinquish rights to its technologies or drug
candidates. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Identifying and acquiring
rights to develop potential drug candidates and conducting pre-clinical testing and clinical trials is a time-consuming, expensive,
and uncertain process that may take years to complete, and our commercial revenue, if any, will be derived from sales of drug candidates
that we do not expect to be commercially available until we receive regulatory approval, if at all. We may never generate the necessary
data or results required to obtain regulatory approval and achieve product sales, and even if one or more of its drug candidates
are approved, they may not achieve commercial success. Accordingly, we may need to continue to rely on additional financing to
achieve our business objectives. Adequate additional financing may not be available to us on acceptable terms, or at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may seek additional
funding through a combination of equity offerings, debt financings, collaborations, licensing arrangements, strategic alliances,
and marketing or distribution arrangements. To the extent that we raise additional capital through the sale of equity or convertible
debt securities, the ownership interest of our existing stockholders will be diluted, and the terms may include liquidation or
other preferences that adversely affect the rights as a holder of our common stock. The incurrence of additional indebtedness or
the issuance of certain equity securities could result in increased fixed payment obligations and could also result in certain
additional restrictive covenants, such as limitations on our ability to incur additional debt or issue additional equity, limitations
on our ability to acquire or license intellectual property rights, and other operating restrictions that could adversely impact
our ability to conduct our business. In addition, issuance of additional equity securities, or the possibility of such issuance,
may cause the market price of our common stock to decline. In the event that we enters into collaborations or licensing arrangements
to raise capital, we may be required to accept unfavorable terms, including relinquishing or licensing to a third party on unfavorable
terms to our rights to technologies or drug candidates that we otherwise would seek to develop or commercialize ourselves or potentially
reserve for future potential arrangements when we might be able to achieve more favorable terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have a very limited operating
history, which may make it difficult for you to evaluate the success of our business to date and to assess its future viability.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We commenced its operations
in August 2016. Its operations to date have been limited to organizing and staffing the company, identifying potential partnerships
and drug candidates, acquiring product and technology rights, and conducting research and development activities for its drug candidates.
We have not yet demonstrated the ability to successfully complete large-scale, pivotal clinical trials. We have also not yet obtained
regulatory approval for, or demonstrated an ability to manufacture or commercialize, any of its drug candidates. Consequently,
any predictions about our future success, performance, or viability may not be as accurate as they could be if it had a longer
operating history or approved products on the market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our limited operating
history, particularly in light of the rapidly evolving drug research and development industry in which it operates, may make it
difficult to evaluate our current business and prospects for future performance. Its short history makes any assessment of its
future performance or viability subject to significant uncertainty. We will encounter risks and difficulties frequently experienced
by early-stage companies in rapidly evolving fields as it seeks to transition to a company capable of supporting commercial activities.
In addition, as a new business, it may be more likely to encounter unforeseen expenses, difficulties, complications, and delays
due to limited experience. If we do not address these risks and difficulties successfully, its business will suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Risks Related to Our Business</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>All of our drug candidates are still
in development. If we are unable to obtain regulatory approval and ultimately commercialize our drug candidates or experiences
significant delays in doing so, our business, financial condition, results of operations, and prospects will be materially and
adversely affected. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All of our drug candidates
are still in development. One of our drug candidates is in clinical development and various others are in pre-clinical development.
Our ability to generate revenues from our drug candidates is dependent on our receipt of regulatory approval and successfully commercializing
such products, which may never occur. Each of our drug candidates will require additional pre-clinical and/or clinical development,
regulatory approval in multiple jurisdictions, development of manufacturing supply and capacity, substantial investment, and significant
marketing efforts before we generates any revenue from product sales. The success of our drug candidates will depend on several
factors, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">successful
completion of pre-clinical and/or clinical studies;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">successful
enrollment in, and completion of, clinical trials;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">receipt
of regulatory approvals from applicable regulatory authorities for planned clinical trials, future clinical trials, or drug registrations,
manufacturing, and commercialization;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">successful
completion of all safety studies required to obtain regulatory approval in China, the United States, and other jurisdictions for
our drug candidates;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">developing
commercial manufacturing capabilities to the specifications for our drug candidates for clinical supply and commercial manufacturing;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">making
and maintaining arrangements with third-party manufacturers;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtaining
and maintaining patent, trade secret, and other intellectual property protection and/or regulatory exclusivity for our drug candidates;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">launching
commercial sales of our drug candidates, if and when approved, whether alone or in collaboration with others;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">acceptance
of the drug candidates, if and when approved, by patients, the medical community, and third-party payors;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">effectively
competing with other therapies and alternative drugs;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtaining
and maintaining healthcare coverage and adequate reimbursement;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">successfully
enforcing and defending intellectual property rights and claims; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintaining
a continued acceptable safety profile of the drug candidates following regulatory approval.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The success of our
business is dependent upon our ability to develop and commercialize its clinical-stage drug candidates, particularly abexinostat,
which has three clinical trials currently on-going As a result, our business is substantially dependent on our ability to complete
the development of, obtain regulatory approval for, and successfully commercialize abexinostat and other drug candidates in a timely
manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We cannot commercialize
drug candidates in the United States or another jurisdiction outside of China without obtaining regulatory approval from the FDA
or comparable foreign regulatory authorities. Similarly, we cannot commercialize drug candidates in China without first obtaining
regulatory approval from the NMPA. The process to develop, obtain regulatory approval for, and commercialize drug candidates is
long, complex, and costly and approval may not be granted. Clinical trials conducted in one country may not be accepted by regulatory
authorities in other countries, and obtaining regulatory approval in one country does not mean that regulatory approval will be
obtained in any other country. Approval processes vary among countries and can involve additional product testing and validation
and additional administrative review periods. Even if our drug candidates were to successfully obtain approval from the FDA and
comparable foreign regulatory authorities, we would still need to seek approval in China and any other jurisdictions where we plan
to market the product. Any safety issues, product recalls, or other incidents related to products approved and marketed in one
jurisdictions may impact approval of those products by another jurisdiction. If we are unable to obtain regulatory approval for
our drug candidates in one or more jurisdictions, or any approval contains significant limitations imposed on certain drug candidates,
we may not be able to obtain sufficient funding or generate sufficient revenue to continue the development of our drug candidates
or any other drug candidate that we may in-license, acquire, or develop in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may be unable to obtain regulatory
approval under applicable regulatory requirements. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To gain approval to
market a drug product, regardless of whether it is through Accelerated Approval or the conventional pathway, we must provide the
FDA and foreign regulatory agencies with clinical data that adequately demonstrates the safety and efficacy of the product for
the intended indication applied for in the New Drug Application, or &ldquo;<I>NDA</I>,&rdquo; or other respective regulatory filing.
Drug development is a long, expensive and uncertain process, and delay or failure can occur at any stage of any of our clinical
trials. A number of companies in the pharmaceutical industry have suffered significant setbacks in clinical trials even after promising
results in earlier nonclinical or clinical studies and trials. These setbacks have been caused by, among other things, nonclinical
findings made while clinical trials were underway and safety or efficacy observations made in clinical trials, including previously
unreported Adverse Events (&ldquo;<I>AEs</I>&rdquo;). Success in nonclinical testing and early clinical trials does not ensure
that later clinical trials will be successful, and the results of clinical trials by other parties may not be indicative of the
results in trials we may conduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Clinical drug development involves
a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future
trial results. Failure can occur at any stage of clinical development. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Clinical testing is
expensive and can take many years to complete, and its outcome is inherently uncertain. Failure can occur at any time during the
clinical trial process. The results of nonclinical and clinical studies and trials of our drug candidate may not be predictive
of the results of later-stage clinical trials. Drug candidates in later stages of clinical trials may fail to show the desired
safety and efficacy despite having progressed through nonclinical and clinical studies and trials. A number of companies in the
pharmaceutical industry have suffered significant setbacks in advanced clinical trials due to lack of efficacy or adverse safety
profiles, notwithstanding promising results in earlier studies and trials, and we cannot be certain that it will not face similar
setbacks. Based upon negative or inconclusive results, we or any potential future collaborator may decide, or regulators may require
us, to conduct additional nonclinical and clinical studies and trials. In addition, data obtained from trials and studies are susceptible
to varying interpretations, and regulators may not interpret our data as favorably as we do, which may delay, limit, or prevent
regulatory approval. Furthermore, we rely on contract research organizations (&ldquo;<I>CROs</I>&rdquo;) and clinical trial sites
to ensure the proper and timely conduct of our clinical trials and, while we have agreements governing their committed activities,
we have limited influence over their actual performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, we do
not know whether future clinical trials, if any, will begin on time, need to be redesigned, enroll an adequate number of patients
on time or be completed on schedule, if at all. Clinical trials can be delayed or aborted for a variety of reasons, including delay
or failure to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
regulatory approval to commence a trial, if applicable;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reach
agreement on acceptable terms with prospective CROs and clinical trial sites, the terms of which can be subject to extensive negotiation
and may vary significantly among different CROs and trial sites;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
ethics committee or institutional review board, or &ldquo;<I>IRB</I>,&rdquo; approval at each site;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recruit
suitable patients to participate in a trial and have such patients complete the clinical trial or return for post-treatment follow-up;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ensure
that clinical sites follow the trial protocol, comply with Good Clinical Practice, or &ldquo;<I>GCP</I>,&rdquo; and continue to
participate in a clinical trial;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">address
any patient safety concerns that arise during the course of a clinical trial;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ensure
that patients comply with and complete clinical trial protocol;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">achieve
a sufficient level of endpoint events in the placebo group, if applicable;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">initiate
or add a sufficient number of clinical trial sites;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ensure
that trial sites do not deviate from clinical trial protocol or drop out of a clinical trial;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">address
any conflicts with new or existing laws or regulations;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">manufacture
sufficient quantities of drug candidate for use in clinical trials and ensure clinical trial material is provided to clinical
sites in a timely manner; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
the statistical analysis plan to be used to evaluate the clinical trial data.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Patient enrollment
is a significant factor in the timing of clinical trials and is affected by many factors, including the size and nature of the
patient population, the proximity of patients to clinical sites, the eligibility criteria for the trial, the design of the clinical
trial, competing clinical trials and clinicians&rsquo; and patients&rsquo; perceptions as to the potential advantages of the drug
being studied in relation to other available therapies, including any new drugs or treatments that may be approved for the indications
we are investigating.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We could also encounter
delays if a clinical trial is suspended or terminated by it, by the ethics committees or IRBs of the institutions in which such
trials are being conducted, by an independent Safety Review Board, for such trial or by the FDA or other regulatory agencies. Such
parties may suspend or terminate a clinical trial due to a number of factors, including failure to conduct the clinical trial in
accordance with regulatory requirements or our clinical protocols, inspection of the clinical trial operations or trial site by
the FDA or other regulatory agencies resulting in the imposition of a clinical hold, unforeseen safety issues or adverse side effects,
failure to demonstrate a benefit from using a drug, changes in governmental regulations or administrative actions or lack of adequate
funding to continue the clinical trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> Further,
conducting clinical trials in foreign countries presents additional risks that may delay completion of our clinical trials. These
risks include the failure of physicians or enrolled patients in foreign countries to adhere to clinical protocol as a result of
differences in healthcare services or cultural customs, managing additional administrative burdens associated with foreign regulatory
schemes, as well as political and economic risks relevant to such foreign countries. In addition, the FDA may determine that clinical
trial results obtained in foreign subjects do not represent the safety and efficacy of a product when administered in U.S. patients
and are thus not supportive of an NDA approval in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we experience delays
in the start or completion of, or termination of, any clinical trial of our drug candidates, the commercial prospects of our drug
candidates may be harmed, and our ability to generate product revenues will be delayed. In addition, any delays in completing its
clinical trials will increase our costs, slow down our drug candidates&rsquo; development and approval process and jeopardize our
ability to commence product sales and generate revenues. Any of these occurrences may significantly harm our business, financial
condition and prospects. In addition, many of the factors that cause, or lead to, a delay in the commencement or completion of
clinical trials may also ultimately lead to the denial of regulatory approval of its drug candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may allocate our limited resources
to pursue a particular drug candidate or indication and fail to capitalize on drug candidates or indications that may later prove
to be more profitable or for which there is a greater likelihood of success. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because we have limited
financial and managerial resources, we must limit our licensing, research, and development programs to specific drug candidates
that we identify for specific indications. As a result, we may forego or delay pursuit of opportunities with other drug candidates
or for other indications that later prove to have greater commercial potential. Ourresource allocation decisions may cause us to
fail to capitalize on viable commercial drugs or profitable market opportunities. In addition, if we do not accurately evaluate
the commercial potential or target market for a particular drug candidate, we may relinquish valuable rights to that drug candidate
through collaboration, licensing, or other royalty arrangements when it would have been more advantageous for us to retain sole
development and commercialization rights to such drug candidate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may attempt to secure approval
of abexinostat from the FDA through the use of the Accelerated Approval Program, but such mechanism may not actually lead to a
faster development or regulatory review or approval process. If we are unable to obtain approval of abexinostat through the Accelerated
Approval Program in the United States, we may be required to conduct additional nonclinical and clinical studies and trials beyond
those that we currently contemplate, which could increase the expense of obtaining, reduce the likelihood of obtaining, and/or
delay the timing of obtaining, necessary marketing approval. Even if we receive approval from the FDA under the Accelerated Approval
Program, if our confirmatory post-marketing trial does not verify clinical benefit, or if it does not comply with rigorous post-marketing
requirements, the FDA may seek to withdraw the approval. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently plan to
seek U.S. approval for our lead drug candidate, abexinostat, through the FDA&rsquo;s Accelerated Approval Program. For any approval
to market a drug product, we must provide the FDA and foreign regulatory agencies with clinical data that adequately demonstrate
the safety and efficacy of the product for the indication applied for in the NDA or other respective regulatory filings. As described
in the section titled &ldquo;Information about Xynomic&mdash;United States Regulation&rdquo;, the Accelerated Approval Program
is one of several approaches used by the FDA to make prescription drugs more rapidly available for the treatment of serious or
life-threatening diseases. Section 506(c) of the Federal Food, Drug and Cosmetic Act, or the &ldquo;<I>FFDCA</I>,&rdquo; provides
that the FDA may grant accelerated approval to &ldquo;a product for a serious or life-threatening condition upon a determination
that the product has an effect on a surrogate endpoint that is reasonably likely to predict clinical benefit, or on a clinical
endpoint that can be measured earlier than irreversible morbidity or mortality, that is reasonably likely to predict an effect
on irreversible morbidity or mortality or other clinical benefit, taking into account the severity, rarity, or prevalence of the
condition and the availability or lack of alternative treatments.&rdquo; Approval under the Accelerated Approval Program is subject,
however, to the requirement that the applicant conduct additional post-marketing clinical trials to verify and describe the drug&rsquo;s
clinical benefit, where there is uncertainty as to the relationship of the surrogate endpoint to the clinical benefit, or of the
observed clinical endpoint to ultimate outcome. Typically, clinical benefit is verified when post-marketing clinical trials show
that the drug provides a clinically meaningful positive therapeutic effect, that is, an effect on how a patient feels, functions,
or survives. The FDA may require that any confirmatory post-marketing trial be initiated or substantially underway prior to the
submission of an application under the Accelerated Approval Program. And, if such confirmatory post-marketing trial fails to confirm
the drug&rsquo;s clinical profile or risks and benefits, the FDA may withdraw its approval of the drug.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FDA has broad discretion
with regard to approval under the Accelerated Approval Program, and even if we believe that the Accelerated Approval Program is
appropriate for abexinostat, it cannot assure you that the FDA will ultimately agree. Furthermore, even if we do obtain approval
under the Accelerated Approval Program, we may not experience a faster development process, review or approval compared to conventional
FDA procedures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even if we receive
approval for abexinostat under the Accelerated Approval Program, we will be subject to rigorous post-marketing requirements, including
the completion of one or more confirmatory post-marketing trials to verify the clinical benefit of the product, and submission
to the FDA of all promotional materials prior to their dissemination. The FDA could seek to withdraw an accelerated approval for
multiple reasons, including if we fail to conduct any required confirmatory post-marketing trial with due diligence, a confirmatory
post-marketing trial does not confirm the predicted clinical benefit, other evidence shows that the product is not safe or effective
under the conditions of use, or we disseminate promotional materials that are found by the FDA to be false and misleading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any delay in obtaining,
or inability to obtain, approval under the Accelerated Approval Program would delay or prevent commercialization of abexinostat
and would materially adversely affect our business, financial condition, results of operations, cash flows, and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we are unable to obtain NMPA approval
for our drug candidates to be eligible for an expedited registration pathway as Category 1 drug candidates, the time and cost we
would incur to obtain regulatory approvals may increase. Even if we receive such Category 1 designation, it may not lead to a faster
development, review or approval process. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The NMPA categorizes
domestically-manufactured innovative drug applications as Category 1, provided such drug has a new and clearly defined structure,
pharmacological property and apparent clinical value and has not been marketed anywhere in the world. Domestically developed and
manufactured innovative drugs will be attributed to Category 1 for their CTA and NDA applications. Our clinical stage drug candidates
are eligible for Category 1 designation. A Category 1 designation by the NMPA may not be granted for any of its drug candidates
or may not lead to faster development or regulatory review or approval process. Moreover, a Category 1 designation does not increase
the likelihood that its drug candidates will receive regulatory approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The regulatory process
in China is evolving and subject to change. Any future policies, or changes to current polices, that the NMPA approves might require
us to change our planned clinical study design or otherwise spend additional resources and effort to obtain approval of our drug
candidates. In addition, policy changes may contain significant limitations related to use restrictions for certain age groups,
warnings, precautions or contraindications, or may be subject to burdensome post-approval study or risk management requirements.
If we are unable to obtain regulatory approval for its drug candidates in one or more jurisdictions, or any approval contains significant
limitations, we may not be able to obtain sufficient funding or generate sufficient revenue to continue the development of our
drug candidates or any other drug candidate that we may in-license, acquire or develop in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The research and development projects
under our internal discovery programs are at an early stage of development. As a result, we are unable to predict if or when we
will successfully develop or commercialize any drug candidates under such programs. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our internal discovery
programs are at an early stage of development and will require significant investment and regulatory approvals prior to commercialization.
We currently have no drug candidates beyond pre-clinical trials under its internal discovery programs. Each of our drug candidates
will require additional clinical and pre-clinical development, management of clinical, pre-clinical and manufacturing activities,
obtaining regulatory approval, obtaining manufacturing supply, building of a commercial organization, substantial investment, and
significant marketing efforts before it generates any revenue from product sales. We are not permitted to market or promote any
of our drug candidates before our recept of regulatory approval from the FDA, NMPA, or comparable regulatory authorities, and we
may never receive such regulatory approval for any such drug candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We cannot be certain
that clinical development of any drug candidates from our internal discovery programs will be successful or that we will obtain
regulatory approval or be able to successfully commercialize any of our drug candidates and generate revenue. Success in pre-clinical
testing does not ensure that clinical trials will be successful, and the clinical trial process may fail to demonstrate that our
drug candidates are safe and effective for their proposed uses. Any such failure could cause us to abandon further development
of any one or more of our drug candidates and may delay development of other drug candidates. Any delay in, or termination of,
our clinical trials will delay and possibly preclude the filing of any NDAs, with the FDA, NMPA, or comparable regulatory authorities
and, ultimately, our ability to commercialize its drug candidates and generate product revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we encounters difficulties enrolling
patients in our clinical trials, our clinical development activities could be delayed or otherwise adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We commenced three
clinical trials involving abexinostat. Timely completion of those clinical trials in accordance with their protocols depends, among
other things, on our ability to enroll a sufficient number of patients who meet the trial criteria and remain in the trial until
the conclusion. We may experience difficulties enrolling and retaining appropriate patients in its clinical trials for a variety
of reasons, including but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
size and nature of the patient population;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">patient
eligibility criteria defined in the clinical protocol;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
size of study population required for statistical analysis of the trial&rsquo;s primary endpoints;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
proximity of patients to trial sites;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
design of the trial and changes to the design of the trial;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
ability to recruit clinical trial investigators with the appropriate competencies and experience;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">competing
clinical trials for similar therapies or other new therapeutics, which will reduce the number and types of patients available;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">clinicians&rsquo;
and patients&rsquo; perceptions as to the potential advantages and side effects of the drug candidates being studied in relation
to other available therapies, including any new drug candidates or treatments that may be approved for the indications we are
investigating;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
ability to obtain and maintain patient consents;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">patients
enrolled in clinical trials that may not complete a clinical trial; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
availability of approved therapies that are similar to our drug candidates.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even if we are able
to enroll a sufficient number of patients in its clinical trials, delays in patient enrollment may result in increased costs or
may affect the timing or outcome of the planned clinical trials, which could prevent completion of these trials and adversely affect
its ability to advance the development of our drug candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have limited experience in conducting
clinical trials and results of earlier studies and trials may not be reproduced in future clinical trials.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For our drug candidates,
clinical testing is expensive and can take many years to complete, while failure can occur at any time during the clinical trial
process. The results of studies in animals and early clinical trials of our drug candidates may not predict the results of later-stage
clinical trials. Drug candidates in later stages of clinical trials may fail to show the desired safety and efficacy traits despite
having progressed through studies in animals and initial clinical trials. In some instances, there can be significant variability
in safety and/or efficacy results between different trials of the same drug candidate due to numerous factors, including changes
in trial procedures set forth in protocols, differences in the size and type of the patient populations (including genetic differences),
patient adherence to the dosing regimen and the patient dropout rate. Results in later trials may also differ from earlier trials
due to a larger number of clinical trial sites and additional countries and languages involved in such trials. In addition, the
design of a clinical trial can determine whether its results will support approval of a drug candidate, and flaws in the design
of a clinical trial may not become apparent until the clinical trial is well advanced and significant expense has been incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A number of companies
in the pharmaceutical and biotechnology industries have suffered significant setbacks in advanced clinical trials due to lack of
demonstrated efficacy or adverse safety profiles, notwithstanding promising results in earlier trials. Clinical trials of potential
products often reveal that it is not practical or feasible to continue development efforts. Furthermore, if the trials we conduct
fail to meet their primary statistical and clinical endpoints, they will not support the approval from the FDA, NMPA, EMA or other
comparable regulatory authorities for its drug candidates. If this occurs, we would need to replace the failed study with new trials,
which would require significant additional expense, cause substantial delays in commercialization and materially adversely affect
our business, financial condition, cash flows and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Results from completed human clinical
trials may not be representative of the results that are obtained after approval, if obtained, and product launch. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Human clinical trials
are very complicated undertakings. If we obtain FDA approval under the Accelerated Approval Program, safety risks not identified
in our prior clinical trials may first appear after we obtain approval and commercializes our drug candidates. Any new post-marketing
AEs may significantly impact our ability to market our drug candidates and may require that we recall and discontinue commercialization
of our drug candidates. Furthermore, if any confirmatory post-marketing trial fails to confirm a drug candidate&rsquo;s clinical
profile or clinical benefits, the FDA may withdraw its approval. Any of these events would materially harm our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our drug candidates may cause undesirable
side effects that could delay or prevent their regulatory approval, limit the commercial profile of an approved label, or result
in significant negative consequences following regulatory approval, if any. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Undesirable side effects
caused by our drug candidates could cause it to interrupt, delay, or halt clinical trials or could cause regulatory authorities
to interrupt, delay, or halt its clinical trials or could result in a more restrictive label or the delay or denial of regulatory
approval by the NMPA, FDA, or other regulatory authorities. In particular, as is the case with all oncology drugs, it is likely
that there may be side effects, such as fatigue, nausea, and low blood cell levels, associated with the use of certain of our oncology
drug candidates. The drug-related side effects could affect patient recruitment or the ability of enrolled patients to complete
the trial or result in potential product liability claims. Any of these occurrences may harm our business, financial condition,
and prospects significantly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Clinical trials assess
a sample of the potential patient population. With a limited number of patients and duration of exposure, rare and severe side
effects of our drug candidates may only be uncovered with a significantly larger number of patients exposed to the drug candidate.
If our drug candidates receive regulatory approval and we, our partners, or others identify undesirable side effects caused by
such drug candidates (or any other similar drugs) after such approval, a number of potentially significant negative consequences
could result, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
NMPA, FDA, or other comparable regulatory authorities may withdraw or limit their approval of such drug candidates;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
NMPA, FDA, or other comparable regulatory authorities may require the addition of labeling statements, such as a &ldquo;boxed&rdquo;
warning or a contra-indication;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we
may be required to create a medication guide outlining the risks of such side effects for distribution to patients;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we
may be required to change the way such drug candidates are distributed or administered, conduct additional clinical trials, or
change the labeling of our drug candidates;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
NMPA, FDA, or other comparable regulatory authorities may require a Risk Evaluation and Mitigation Strategy, or REMS (or analogous
requirement), plan to mitigate risks, which could include medication guides, physician communication plans, or elements to assure
safe use, such as restricted distribution methods, patient registries, and other risk minimization tools;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we
may be subject to regulatory investigations and government enforcement actions;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we
may decide to remove such drug candidates from the marketplace;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">we
could be sued and held liable for injury caused to individuals exposed to or taking our drug candidates; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">our
reputation may suffer.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any of these events
could prevent us from achieving or maintaining market acceptance of the affected drug candidates and could substantially increase
the costs of commercializing our drug candidates, if approved, and significantly impact our ability to successfully commercialize
our drug candidates and generate revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our clinical development program
may not uncover all possible AEs that patients may experience. The number of subjects exposed to our drug candidates and the average
exposure time in the clinical development program may be inadequate to detect AEs, or chance findings, that may only be detected
once our drug candidates are administered to more patients and for greater periods of time. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Clinical trials by
their nature utilize a sample of the potential patient population. With a limited number of subjects and limited duration of exposure,
however, we cannot be fully assured that any of our drug candidates has no serious or severe side effects, and any such side effects
may only be uncovered with a significantly larger number of patients exposed to the drug candidate. It is possible that ongoing
and future clinical trials, as well as reports received from commercial use, if any of our drug candidates are approved, may identify
safety concerns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we have monitored
the subjects in our trials for certain safety concerns and it has not seen evidence of significant safety concerns in our clinical
trials to date, patients treated with any of our drug candidates may experience adverse reactions. If safety problems occur or
are identified after a product candidate reaches the market, the FDA may require that we amend the labeling or conduct recall.
The FDA could also request that we withdraw a product form the market, or seek to withdraw its approval of a product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The incidence and prevalence for
target patient populations of our drug candidates are based on estimates and third-party sources. If the market opportunities for
our drug candidates are smaller than we estimate or if any approval that we obtain is based on a narrower definition of the patient
population, our revenue and ability to achieve profitability might be materially and adversely affected. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Periodically, we make
estimates regarding the incidence and prevalence of target patient populations for particular diseases based on various third-party
sources and internally generated analysis and use such estimates in making decisions regarding our drug development strategy, including
acquiring or in-licensing drug candidates and determining indications on which to focus in pre-clinical or clinical trials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These estimates may
be inaccurate or based on imprecise data. The total addressable market opportunity for abexinostat and our other drug candidates
will ultimately depend upon, among other things, the diagnosis criteria included in the final label for each of our drug candidates,
acceptance by the medical community and patient access, drug pricing and reimbursement. The number of patients in the major markets
and elsewhere may turn out to be lower than expected, patients may not be otherwise amenable to treatment with our drugs, or new
patients may become increasingly difficult to identify or gain access to, all of which would adversely affect our business, results
of operations, and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We face substantial competition,
which may result in our competitors discovering, developing, or commercializing drugs before or more successfully than we do, or
develop therapies that are more advanced or effective than ours. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The development and
commercialization of new drugs are highly competitive. We face competition with respect to our current drug candidates, and will
face competition with respect to any drug candidates that we may seek to develop or commercialize in the future, from major pharmaceutical
companies, specialty pharmaceutical companies, and biotechnology companies worldwide. For example, there are a number of large
pharmaceutical and biotechnology companies that are currently marketing drugs or are pursuing the development of therapies in the
field of HDAC inhibition to treat cancer. Some of these competitive drugs and therapies are based on scientific approaches that
are the same as or similar to our drug candidates. Potential competitors also include academic institutions, government agencies,
and other public and private research organizations that conduct research, seek patent protection, and establish collaborative
arrangements for research, development, manufacturing, and commercialization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Specifically, there
are a large number of companies developing or marketing treatments for cancer. If abexinostat receives marketing approval for renal
cell carcinoma (&ldquo;<I>RCC</I>&rdquo;), follicular lymphoma (&ldquo;<I>FL</I>&rdquo;), and/or diffuse large B-cell lymphoma
(&ldquo;<I>DLBCL</I>&rdquo;), it may face competition from approved drugs marketed by Bayer AG, Bristol-Myers Squibb Company, Gilead
Sciences, Inc., Merck &amp; Co., Inc., Novartis AG, and Pfizer Inc. If XP-102 receives marketing approval for patients with colorectal
cancer or melanoma, it will face competition from Merck &amp; Co., Inc., Novartis AG, Roche AG, and potentially other companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Many of the companies
against which we are competing against or which we may compete against in the future have significantly greater financial resources
and expertise in research and development, manufacturing, pre-clinical testing, conducting clinical trials, obtaining regulatory
approvals, and marketing approved drugs than us. Mergers and acquisitions in the pharmaceutical, biotechnology, and diagnostic
industries may result in even more resources being concentrated among a smaller number of its competitors. Smaller or early stage
companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established
companies. These competitors also compete with us in recruiting and retaining qualified scientific and management personnel and
in establishing clinical trial sites and patient registration for clinical trials, as well as in acquiring technologies complementary
to, or necessary for, its programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our commercial opportunities
could be reduced or eliminated if our competitors develop and commercialize drugs that are safer, more effective, with fewer or
less severe side effects, more convenient, or less expensive than drugs that we may develop. Our competitors also may obtain FDA,
NMPA or other regulatory approval for their drugs more rapidly than we may obtain approval for our drugs, which could result in
our competitors establishing a strong market position before we are able to enter the market. Additionally, technologies developed
by our competitors may render our potential drug candidates uneconomical or obsolete, and we may not be successful in marketing
our drug candidates against competitors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Even if our drug candidates obtain
regulatory approval, they may never achieve market acceptance or commercial success, which will depend, in part, upon the degree
of acceptance among physicians, patients, patient advocacy groups, health care payors, and the medical community. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even if we obtain FDA
or other regulatory approvals, our drug candidates may not achieve market acceptance among physicians, patients, patient advocacy
groups, health care payors, or the medical community, and may not be commercially successful. If approved, market acceptance of
our drug candidates depends on a number of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
efficacy of the product as demonstrated in clinical trials;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
prevalence and severity of any side effects and overall safety profile of the product;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
clinical indications for which the product is approved;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
potential and perceived advantages of our drug candidates over current options or future alternative treatments;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
strength of our marketing organization and distribution channels;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
quality of our relationships with patient advocacy groups;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
availability and sufficiency of third-party coverage and adequate reimbursement;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">acceptance
by physicians, major operators of clinics and patients of the product as a safe and effective chronic daily treatment and willingness
of physicians to prescribe our drug candidates;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
cost of treatment in relation to alternative treatments and willingness to pay for our drug candidates, if approved, on the part
of patients;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">relative
convenience and ease of administration of our drug candidates; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
availability of the product and our ability to meet market demand, including providing a reliable supply for long-term daily treatment.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any failure by our
drug candidates, if they obtain regulatory approval, to achieve market acceptance or commercial success would adversely affect
our results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If any of our drug candidates are
approved for marketing and commercialization and we are unable to develop sales, marketing and distribution capabilities on our
own or enter into agreements with third parties to perform these functions on acceptable terms, we will be unable to successfully
commercialize any such future therapeutics.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently has no
sales, marketing, or distribution capabilities or experience. In order to commercialize our drug candidates, if approved, we must
build marketing and sales capabilities or make arrangements with third parties to perform these services, and we may not be successful
in doing so. Building the requisite sales, marketing or distribution capabilities will be expensive and time-consuming and will
require significant attention of our leadership team to manage. Any failure or delay in the development of our sales, marketing
or distribution capabilities would adversely impact the commercialization of our products. The competition for talented individuals
experienced in selling and marketing pharmaceutical products is intense, and we cannot assure you that we can assemble an effective
team. Additionally, we may choose to collaborate, either globally or on a territory-by-territory basis, with third parties on the
commercialization of our drug candidates. If we are unable to enter into such arrangements on acceptable terms or at all, we may
not be able to successfully commercialize our drug candidates if and when we receive regulatory approval or any such commercialization
may experience delays or limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may be subject to
additional risks related to operating in foreign countries either oursevles or through a third-party, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">differing
regulatory requirements in foreign countries;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">unexpected changes in tariffs, trade barriers, price and exchange controls and other regulatory requirements;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">economic weakness, including inflation or political instability in particular foreign economies and markets;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">compliance with tax, employment, immigration and labor laws for employees living or traveling abroad;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">foreign taxes, including withholding of payroll taxes;</FONT></TD></TR>
</TABLE>
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    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">foreign currency fluctuations, which could result in increased operating expenses and reduced revenues, and other obligations incident to doing business in another country;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties staffing and managing foreign operations;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">workforce uncertainty in countries where labor unrest is more common than in the United States;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential liability under the Foreign Corrupt Practices Act of 1977 or comparable foreign regulations;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">challenges enforcing our contractual and intellectual property rights, especially in those foreign countries that do not respect and protect intellectual property rights to the same extent as the United States;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">production shortages resulting from any events affecting raw material supply or manufacturing capabilities abroad; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
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    <TD STYLE="width: 0.5in; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">business interruptions resulting from geopolitical actions, including war and terrorism.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we fail to obtain and sustain
an adequate level of coverage and reimbursement for our drug candidates by third-party payors, sales would be adversely affected.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We expect patients
who have cancer to need chronic treatment but we anticipate that most patients will rely on coverage and reimbursement by a third-party
payor, such as Medicare, Medicaid or a private health insurer, to pay for such treatment. There will be no commercially viable
market for our drug candidates without coverage and reimbursement from third-party payors. Additionally, even if we obtain third-party
payor coverage and reimbursement for our drug candidates, if the level of coverage and reimbursement is below our expectations,
our revenue and gross margins will be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Obtaining coverage
and reimbursement approval for a product from a government or other third-party payor can be an expensive and time-consuming process
that could require us to provide supporting scientific, clinical and cost effectiveness data for the use of our products to the
payor. We cannot be certain if and when it will obtain formulary approval to allow us to sell our drug candidates, if approved,
into its target markets. Even if we obtain formulary approval, third-party payors, may carefully review and increasingly question
the coverage of, and challenge the prices charged for, drugs. Reimbursement rates from third-party payors vary depending on the
payor, the insurance plan and other factors. A current trend in the United States health care industry is toward cost containment.
Large public and private payors, managed care organizations, group purchasing organizations and similar organizations are exerting
increasing influence on decisions regarding the use of, and reimbursement levels for, particular treatments. Such third-party payors,
including Medicare, are questioning the coverage of, and challenging the prices charged for medical products and services, and
many third-party payors limit coverage of, or reimbursement for, newly approved health care products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, there
may be significant delays in obtaining such coverage and reimbursement for newly approved products, and coverage may be more limited
than the purposes for which the product is approved by the FDA or comparable foreign regulatory authorities. Moreover, eligibility
for coverage and reimbursement does not imply that a product will be paid for in all cases or at a rate that covers our costs,
including research, development, intellectual property, manufacture, sale and distribution expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We cannot be sure that
reimbursement will be available for its drug candidates and, if coverage and reimbursement are available, what the level of reimbursement
will be. Our inability to promptly obtain coverage and adequate reimbursement rates from both government-funded and private payors
for any approved products that we develop could have a material adverse effect on our operating results, our ability to raise capital
needed to commercialize products and our overall financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Reimbursement may impact
the demand for, and the price of, our drug candidates, if approved. Assuming we obtain coverage for its drug candidates by a third-party
payor, the resulting reimbursement payment rates may not be adequate or may require co-payments that patients find unacceptably
high. Patients who are prescribed medications for the treatment of their conditions, and their prescribing physicians, generally
rely on third-party payors to reimburse all or part of the costs associated with those medications. Patients are unlikely to use
our drug candidates unless coverage is provided and reimbursement is adequate to cover all or a significant portion of the cost
of such drug candidates. Therefore, coverage and adequate reimbursement is critical to new product acceptance. Coverage decisions
may depend upon clinical and economic standards that disfavor new products when more established or lower cost therapeutic alternatives
are already available or subsequently become available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Outside the United
States, international operations are generally subject to extensive governmental price controls and market regulations, and we
believe the increasing emphasis on cost-containment initiatives in Europe, Canada, China and other countries will put pressure
on the pricing and usage of its drug candidates. In many countries, the prices of medical products are subject to varying price
control mechanisms as part of national health systems. Other countries allow companies to fix their own prices for medicinal products,
but monitor and control company profits. Additional foreign price controls or other changes in pricing regulation could restrict
the amount that we are able to charge for our drug candidates, if approved. Accordingly, in markets outside the United States,
the reimbursement for our drug candidates compared with the United States and may be insufficient to generate commercially reasonable
revenue and profits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our future success depends on our
ability to retain key executives and to attract, retain, and motivate qualified personnel.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are highly dependent
on the research, clinical and business development expertise of Yinglin Mark Xu, its Chairman, Chief Executive Officer, and President;
Wentao Jason Wu, its Chief Operating Officer; Yong Cui, our Vice President of Chemistry, Manufacturing, and Controls; as well as
the other principal members of its management, scientific, and clinical team. We have not entered into employment letter agreements
with all of its executive officers. Under the employment letter agreements we have entered with its executive officers, any of
them may terminate his or her employment with it at any time. We do not maintain key person insurance for any of its executives
or other employees. In addition, we rely on consultants and advisors, including scientific and clinical advisors, to assist it
in formulating its research, development, and commercialization strategy. Our consultants and advisors may have commitments under
consulting or advisory contracts with other entities that may limit their availability to us. If we are unable to continue to attract
and retain high-quality personnel, its ability to pursue its growth strategy will be limited. While we are working on rectifying
its failure to put proper employment arrangements in place in the past for certain senior management positions, it is uncertain
that such failure could be retroactively rectified completely.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Recruiting and retaining
qualified management, scientific, clinical, manufacturing, and sales and marketing personnel will also be critical to our success.
The loss of the services of its executive officers or other key employees could impede the achievement of our research, development,
and commercialization objectives and seriously harm its ability to successfully implement its business strategy. Furthermore, replacing
executive officers and key employees may be difficult and may take an extended period of time because of the limited number of
individuals in our industry with the breadth of skills and experience required to successfully develop, gain regulatory approval
of, and commercialize drugs. Competition to hire from this limited pool is intense, and we may be unable to hire, train, retain,
or motivate these key personnel on acceptable terms given the competition among numerous pharmaceutical and biotechnology companies
for similar personnel. We also experience competition for the hiring of scientific and clinical personnel from universities and
research institutions. In addition, even though Dr. James Jiayuan Tong, the current Bison Chief Executive Officer, remains as a
Chief Strategy Officer at the combined entity, our management will be required to devote significant time to new compliance initiatives
from its status as a U.S. public company, which may require it to recruit more management personnel. Failure to succeed in clinical
trials may make it more challenging to recruit and retain qualified scientific personnel.<B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We will need to develop and expand
our business, and we may encounter difficulties in managing this development and expansion, which could disrupt its operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of July 10, 2019,
there were 24 full-time and 10 part-time employees and consultants in our total staff headcount of 34. To manage its anticipated
development and expansion, we must continue to implement and improve our managerial, operational, and financial systems, expand
our facilities and continue to recruit and train additional qualified personnel. Also, our management may need to divert a disproportionate
amount of their attention away from its day-to-day activities and devote a substantial amount of time to managing these development
activities. Due to our limited resources, we may not be able to effectively manage the expansion of our operations or recruit
and train additional qualified personnel. If our management is unable to effectively manage its expected development and expansion,
our expenses may increase more than expected, our ability to generate or increase our revenue could be reduced and we may not
be able to implement our business strategy. Our future financial performance and our ability to commercialize our drug candidates,
if approved, and compete effectively will depend, in part, on our ability to effectively manage the future development and expansion
of the Company.<B><I>&nbsp;</I></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Product liability claims or lawsuits
could cause us to incur substantial liabilities. </I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will face an inherent
risk of product liability exposure related to the testing of our drug candidates in human clinical trials and will face an even
greater risk if we commercially sell any drug candidates that we may develop. If we cannot successfully defend oursevles against
claims that our drug candidates caused injuries, we could incur substantial liabilities.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we
maintain product liability insurance coverage, it may not be adequate to cover all liabilities that we may incur. Insurance
coverage is increasingly expensive. We may not be able to maintain insurance coverage at a reasonable cost or in an amount
adequate to satisfy any liability that may arise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our Current Charter provides for
an exclusive forum for any derivative action or proceeding brought on our behalf, which may limit a shareholder&rsquo;s ability
to bring a claim in a judicial forum that it finds favorable for such disputes and may discourage lawsuits with respect to such
claims.&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Current Charter
specifies that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by law,
the Court of Chancery of the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding
brought on behalf of us; (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers
or other employees or agents to us or our stockholders; (iii) any action asserting a claim against us arising pursuant to any provision
of the DGCL or our amended and restated certificate of incorporation or amended and restated bylaws; or (iv) any action asserting
a claim against us governed by the internal affairs doctrine; provided that, the exclusive forum provision will not apply to suits
brought to enforce any liability or duty created by the Securities Act, the Exchange Act or rules and regulations thereunder. We
believe these provisions may benefit us by providing increased consistency in the application of Delaware law and federal securities
laws by chancellors and judges, as applicable, particularly experienced in resolving corporate disputes, efficient administration
of cases on a more expedited schedule relative to other forums and protection against the burdens of multi-forum litigation. However,
these provisions may have the effect of discouraging lawsuits against our directors and officers. The enforceability of similar
choice of forum provisions in other companies&rsquo; certificates of incorporation has been challenged in legal proceedings, and
it is possible that, in connection with any applicable action brought against us, a court could find the choice of forum provisions
contained in our restated certificate of incorporation to be inapplicable or unenforceable in such action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our internal IT systems, or those
of our third-party CROs or other contractors or consultants, may fail or suffer security breaches, which could result in a material
disruption of its drug candidates&rsquo; development programs. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Despite the implementation
of security measures, our internal IT systems and those of its third-party CROs and other contractors and consultants are vulnerable
to damage from computer viruses, unauthorized access, natural disasters, terrorism, war, and telecommunication and electrical failures.
While we have not experienced any such system failure, accident, or security breach to date, if such an event were to occur and
cause interruptions in its operations, it could result in a material disruption of our programs. For example, the loss of clinical
trial data for its drug candidates could result in delays in our regulatory approval efforts and significantly increase our costs
to recover or reproduce the data. To the extent that any disruption or security breach results in a loss of or damage to its data
or applications or other data or applications relating to its technology or drug candidates, or inappropriate disclosure of confidential
or proprietary information, including health information collected through clinical trials, we could incur liabilities and the
further development of its drug candidates could be delayed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Risks Related to Government Regulation</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The regulatory approval process is
highly uncertain and we may not obtain approval under the Accelerated Approval Program or the conventional pathway, as required
for the commercialization. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The research, testing,
manufacturing, labeling, approval, selling, import, export, pricing and reimbursement, marketing and distribution of drug products
are subject to extensive regulation by the FDA and other regulatory agencies in the United States and other countries, which regulations
differ from country to country. Neither we nor any future collaboration partner is permitted to market a drug product in the United
States until we receive approval of an NDA from the FDA. We have not submitted an application or obtained marketing approval for
any drug candidate anywhere in the world. Obtaining regulatory approval of an NDA, even under the Accelerated Approval Program,
can be a lengthy, expensive and uncertain process. In addition, failure to comply with FDA and other applicable U.S. and foreign
regulatory requirements may subject us to administrative or judicially imposed sanctions or other actions, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">warning
letters;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">civil
and criminal penalties;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">injunctions;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">withdrawal
of regulatory approval of products;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">product
seizure or detention;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">product
recalls;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">total
or partial suspension of production; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">refusal
to approve pending NDAs or supplements to approved NDAs.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to obtaining
approval to commercialize a drug candidate in the United States or abroad, We or our collaborators must demonstrate with substantial
evidence from well-controlled clinical trials, and to the satisfaction of the FDA or other foreign regulatory agencies, that such
drug candidates are safe and effective for their intended uses. The number of nonclinical and clinical studies and trials that
will be required for FDA approval varies depending on the drug candidate, the disease or condition that the drug candidate is designed
to address, and the regulations applicable to any particular drug candidate. We may seek approval for one or more drug candidates
under the FDA&rsquo;s Accelerated Approval Program, which would allow it to demonstrate an effect on a surrogate endpoint that
is reasonably likely to predict clinical benefit, but it will be subject to rigorous post-marketing requirements, including the
completion of one or more confirmatory post-marketing trials to verify the clinical benefit of the product candidate. If unable
to obtain approval under the Accelerated Approval Program, we will have to pursue a conventional approval pathway. In addition,
in such case, the FDA could determine that any pivotal Phase 3 clinical trials we have conducted are not sufficient to support
approval under the conventional pathway. Results from nonclinical and clinical trials and studies can be interpreted in different
ways. Even if we believe the nonclinical or clinical data for our drug candidate is promising, such data may not be sufficient
to support approval by the FDA and other regulatory agencies. Administering drug candidates to humans may produce undesirable side
effects, which could interrupt, delay or halt clinical trials and result in the FDA or other regulatory agencies denying approval
of a drug candidate for any or all targeted indications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Both accelerated and
conventional regulatory approval pathways of an NDA or NDA supplement are not guaranteed, and the approval process is expensive
and may take several years. The FDA also has substantial discretion in the approval process and we may encounter matters with the
FDA that require us to expend additional time and resources and delay or prevent the approval of our drug candidates. For example,
the FDA may require us to conduct additional studies or trials either prior to approval or post-marketing, such as additional drug-drug
interaction studies or safety or efficacy studies or trials, or it may object to elements of our clinical development program such
as the number of subjects enrolled in its current clinical trials from the United States. Despite the time and expense exerted,
failure can occur at any stage. The FDA can delay, limit or deny approval of a drug candidate for many reasons, including, but
not limited to, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
drug candidate may not be deemed safe or effective;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
FDA might not approve our trial design and analysis plan;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
FDA may not find the data from nonclinical and clinical studies and trials sufficient;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">clinical
inspection(s) by the FDA or other regulatory authorities may result in unacceptable findings that could negatively impact approval;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
FDA might not accept or deem acceptable a third-party manufacturers&rsquo; processes or facilities; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
FDA may change its approval policies or adopt new regulations.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we fail to demonstrate
safety and efficacy in clinical trials or do not gain regulatory approval, our business and results of operations will be materially
and adversely harmed. Additionally, if the FDA requires that we conduct additional clinical trials, places limitations on product
use in our FDA-approved labeling, delays approval to market or limits the use of any drug candidate, our business and results of
operations may be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are conducting and may in the
future conduct clinical trials for our drug candidates outside the United States and the FDA may not accept data from such trials.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the FDA may
accept data from clinical trials conducted outside the United States in support of safety and efficacy claims, this is subject
to certain conditions. For example, such foreign clinical trials should be conducted in accordance with GCPs, including review
and approval by an independent ethics committee and obtaining the informed consent from subjects of the clinical trials. The foreign
clinical data should also be applicable to the U.S. population and U.S. medical practice. Other factors that may affect the acceptance
of foreign clinical data include differences in clinical conditions, study populations or regulatory requirements between the United
States and the foreign country. To the extent that we have conducted, are conducting, and will conduct trials with majority enrollment
outside the United States, the FDA may not accept our foreign clinical data, and in such event, we may be required to re-conduct
the relevant clinical trials within the United States, which would be costly and time-consuming, and which could have a material
and adverse effect on its ability to carry out its business plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Even if we receive regulatory approval
for any of our drug candidates, we will be subject to ongoing regulatory obligations and continued regulatory review, which may
result in significant additional expense. Additionally, our drug candidates, if approved, could be subject to labeling and other
restrictions and market withdrawal, and we may be subject to penalties if we fail to comply with regulatory requirements or experiences
unanticipated problems. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even if a drug is approved
by the FDA and/or foreign regulatory agencies, regulatory agencies may still impose significant restrictions on a product&rsquo;s
indicated uses or marketing or impose various ongoing requirements. Furthermore, any new legislation addressing drug safety issues
could result in delays or increased costs to assure compliance. In addition, if a drug receives approval under the FDA&rsquo;s
Accelerated Approval Program, it will be subject to special post-marketing requirements, including the completion of confirmatory
post-marketing clinical trials to verify the clinical benefit of the product, and submission to the FDA of all promotional materials
prior to their dissemination. The FDA could seek to withdraw the approval for multiple reasons, including if we fail to conduct
any required confirmatory post-marketing trial with due diligence, a confirmatory post-marketing trial does not confirm the predicted
clinical benefit, other evidence shows that the product is not safe or effective under the conditions of use, or we disseminate
promotional materials that are found by the FDA to be false and misleading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If any of our drug
candidates receives approval under the Accelerated Approval Program, it will be subject to ongoing regulatory requirements for
conducting post-marketing clinical studies and trials, labeling, packaging, storage, advertising, promotion, sampling, record-keeping
and submission of safety and other post-market information, including both federal and state requirements in the United States.
In addition, manufacturers and manufacturers&rsquo; facilities are required to comply with extensive FDA requirements, including
ensuring that quality control and manufacturing procedures conform to the current Good Manufacturing Practices, or &ldquo;<I>cGMP</I>&rdquo;.
As such, we and our contract manufacturers are subject to continual review and periodic inspections to assess compliance with cGMP.
Accordingly, we must conduct the confirmatory post-marketing trial in a diligent manner and we and others with whom we work must
continue to expend time, money, and effort in all areas of regulatory compliance, including manufacturing, production, and quality
control. We will also be required to report certain adverse reactions and production problems, if any, to the FDA, and to comply
with requirements concerning advertising and promotion. Promotional communications with respect to prescription drugs are subject
to a variety of legal and regulatory restrictions and must be consistent with the information in the product&rsquo;s approved label.
As such, we may not promote any product, if approved, for indications or uses for which it does not have FDA approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> If
any of our product candidates receives approval under the Accelerated Approval Program but we fail to conduct the required confirmatory
post-marketing trials with due diligence or such post-marketing trials fail to confirm the clinical profile or risks and benefits,
the FDA may withdraw its approval. If a regulatory agency discovers previously unknown problems with a product, if approved, such
as AEs of unanticipated severity or frequency, or problems with the facility where the product is manufactured, or disagrees with
the promotion, marketing, or labeling of a product, the regulatory agency may impose restrictions on the product or us, including
requiring withdrawal of the product from the market. If we fail to comply with applicable regulatory requirements, a regulatory
agency or enforcement authority may:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">issue
warning letters;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">impose
civil or criminal penalties;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">suspend
regulatory approval;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">suspend
any of our ongoing clinical trials;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">refuse
to approve pending applications or supplements to approved applications submitted by us;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">impose
restrictions on our operations, including closing our contract manufacturers&rsquo; facilities; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">seize
or detain products or require a product recall.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any government investigation
of alleged violations of law could require us to expend significant time and resources in response and could generate negative
publicity. Any failure to comply with ongoing regulatory requirements may significantly and adversely affect our ability to commercialize
and generate revenues. If regulatory sanctions are applied or if regulatory approval is withdrawn, the value of our company and
our operating results will be adversely affected. Additionally, if we are unable to generate revenues from the sale of any of product
candidates, if approved, our potential for achieving profitability will be diminished and the capital necessary to fund our operations
will be increased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The regulatory requirements
and policies may change, and additional government regulations may be enacted for which we may also be required to comply. We cannot
predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative action,
either in the United States or in other countries. If we or any future collaboration partner are not able to maintain regulatory
compliance, we or such collaboration partner, as applicable, may face government enforcement action and our business will suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may be exposed to liabilities
under the U.S. Foreign Corrupt Practices Act, or FCPA, and Chinese anti-corruption laws, and any determination that we have violated
these laws could have a material adverse effect on our business or our reputation. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are subject to the
FCPA. The FCPA generally prohibits us from making improper payments to non-U.S. officials for the purpose of obtaining or retaining
business. We are also subject to the anti-bribery laws of other jurisdictions, particularly China. As our business expands, the
applicability of the FCPA and other anti-bribery laws to our operations will increase. Our procedures and controls to monitor anti-bribery
compliance may fail to protect us from reckless or criminal acts committed by our employees or agents. If we, due to either our
own deliberate or inadvertent acts or those of others, fails to comply with applicable anti-bribery laws, our reputation could
be harmed and we could incur criminal or civil penalties, other sanctions and/or significant expenses, which could have a material
adverse effect on our business, including our financial condition, results of operations, cash flows and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our business may be affected by litigation
and government investigations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may from time to
time receive inquiries and subpoenas and other types of information requests from government authorities and others and it may
become subject to claims and other actions related to our business activities. While the ultimate outcome of investigations, inquiries,
information requests and legal proceedings is difficult to predict, defense of litigation claims can be expensive, time-consuming
and distracting, and adverse resolutions or settlements of those matters may result in, among other things, modification of our
business practices, costs and significant payments, any of which could have a material adverse effect on our business, financial
condition, results of operations and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we or our current or future collaborators,
manufacturers or service providers fail to comply with healthcare laws and regulations, we or they could be subject to enforcement
actions, which could affect our ability to develop, market and sell our our products and may harm our reputation.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we do not
currently have any products on the market, once our drug candidates or clinical trials are covered by federal health care programs,
we will be subject to additional healthcare statutory and regulatory requirements and enforcement by the federal, state and foreign
governments of the jurisdictions in which we conduct our business. Healthcare providers, physicians and third-party payors play
a primary role in the recommendation and prescription of any therapeutic candidates for which we obtain marketing approval. Our
arrangements with third-party payors and customers may expose us to broadly applicable fraud and abuse and other healthcare laws
and regulations that may constrain the business or financial arrangements and relationships through which we would market, sell
or distribute our therapeutic candidates for which we obtain marketing approval. Restrictions under applicable federal and state
healthcare laws and regulations, include, but are not limited to, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
U.S. federal Anti-Kickback Statute, which prohibits, among other things, persons from soliciting, receiving, offering or providing
remuneration, directly or indirectly, to induce either the referral of an individual for a healthcare item or service, or the
purchasing or ordering of an item or service, for which payment may be made, in whole or in part, under a federal healthcare program,
such as Medicare or Medicaid;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
U.S.&nbsp;federal False Claims Act, which imposes criminal and civil penalties, including through civil whistleblower or qui tam
actions, against individuals or entities for knowingly presenting, or causing to be presented, to the federal government, claims
for payment that are false or fraudulent or making a false statement to avoid, decrease or conceal an obligation to pay money
to the federal government. In addition, the government may assert that a claim including items and services resulting from a violation
of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the False Claims Act;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">HIPAA
includes a fraud and abuse provision referred to as the HIPAA All-Payor Fraud Law, which imposes criminal and civil liability
for executing a scheme to defraud any healthcare benefit program (<I>i.e.</I>, not just federal healthcare programs), or knowingly
and willfully falsifying, concealing or covering up a material fact or making any materially false statement in connection with
the delivery of or payment for healthcare benefits, items or services; similar to the federal Anti-Kickback Statute, a person
or entity does not need to have actual knowledge of the statute or specific intent to violate it in order to have committed a
violation;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">HIPAA,
as amended by HITECH, and its implementing regulations, which impose obligations on certain covered entity healthcare providers,
health plans, and healthcare clearinghouses as well as their business associates that perform certain services involving the use
or disclosure of individually identifiable health information, including mandatory contractual terms, with respect to safeguarding
the privacy, security, and transmission of individually identifiable health information, and require notification to affected
individuals and regulatory authorities of certain breaches of security of individually identifiable health information;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
federal Physician Payment Sunshine Act and the implementing regulations, also referred to as &ldquo;Open Payments,&rdquo; issued
under the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act, collectively,
the ACA, which require that manufacturers of pharmaceutical and biological drugs reimbursable under Medicare, Medicaid, or the
Children&rsquo;s Health Insurance Program report to the Department of Health and Human Services all consulting fees, travel reimbursements,
research grants, and other payments, transfers of value or gifts made to U.S.-licensed physicians and U.S. teaching hospitals
with limited exceptions; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">analogous
state laws and regulations, such as, state anti-kickback and false claims laws potentially applicable to sales or marketing arrangements
and claims involving healthcare items or services reimbursed by non-governmental third-party payors, including private insurers;
and some state laws require pharmaceutical companies to comply with the pharmaceutical industry&rsquo;s voluntary compliance guidelines
and the relevant compliance guidance promulgated by the federal government in addition to requiring drug manufacturers to report
information related to payments to physicians and other healthcare providers or marketing expenditures, and state laws governing
the privacy and security of health information in certain circumstances, many of which differ from each other in significant ways
and often are not preempted by HIPAA, thus complicating compliance efforts; and state transparency laws that require the reporting
of certain pricing information; among other state laws.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Ensuring that our future
business arrangements with third-parties comply with applicable healthcare laws and regulations could involve substantial costs.
If our operations are found to be in violation of any such requirements, we may be subject to penalties, including civil or criminal
penalties, monetary damages, the curtailment or restructuring of its operations, or exclusion from participation in government
contracting, healthcare reimbursement or other government programs, including Medicare and Medicaid, any of which could adversely
affect its financial results. Although an effective compliance program can mitigate the risk of investigation and prosecution for
violations of these laws, these risks cannot be entirely eliminated. Any action against us for an alleged or suspected violation
could cause it to incur significant legal expenses and could divert our management&rsquo;s attention from the operation of its
business, even if its defense is successful. In addition, achieving and sustaining compliance with applicable laws and regulations
may be costly to us in terms of money, time and resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we or our current
or future collaborators, manufacturers or service providers fail to comply with applicable federal, state or foreign laws or regulations,
we could be subject to enforcement actions, which could affect its ability to develop, market and sell its therapeutics successfully
and could harm our reputation and lead to reduced acceptance of its therapeutics by the market. These enforcement actions include,
among others:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">adverse
regulatory inspection findings;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">warning
or untitled letters;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">voluntary
product recalls or public notification or medical product safety alerts to healthcare professionals;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">restrictions
on, or prohibitions against, marketing our therapeutics;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">restrictions
on, or prohibitions against, importation or exportation of our therapeutics;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">suspension
of review or refusal to approve pending applications or supplements to approved applications;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">exclusion
from participation in government-funded healthcare programs;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">exclusion
from eligibility for the award of government contracts for our therapeutics;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FDA
debarment;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">suspension
or withdrawal of therapeutic approvals;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">seizures
or administrative detention of therapeutics;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">injunctions;
and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">civil
and criminal penalties and fines.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The healthcare industry is heavily
regulated in the U.S. at the federal, state, and local levels, and our failure to comply with applicable requirements may subject
us to penalties and negatively affect our financial condition.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a healthcare company,
our operations, clinical trial activities and interactions with healthcare providers may be subject to extensive regulation in
the U.S., particularly if the Company receives FDA approval for any of its therapeutics in the future. For example, if we receive
FDA approval for a therapeutic for which reimbursement is available under a federal healthcare program (e.g., Medicare, Medicaid),
we would be subject to a variety of federal laws and regulations, including those that prohibit the filing of false or improper
claims for payment by federal healthcare programs (e.g., the False Claims Act), prohibit unlawful inducements for the referral
of business reimbursable by federal healthcare programs (e.g., the federal Anti-Kickback Statute), and require disclosure of certain
payments or other transfers of value made to U.S.-licensed physicians and teaching hospitals, or Open Payments. We are not able
to predict how third parties will interpret these laws and apply applicable governmental guidance and may challenge our practices
and activities under one or more of these laws. If our past or present operations are found to be in violation of any of these
laws, we could be subject to civil and criminal penalties, which could hurt our business, our operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I> </I></B>Similarly,
HIPAA prohibits, among other offenses, knowingly and willfully executing a scheme to defraud any health care benefit program, including
private payors, or falsifying, concealing or covering up a material fact or making any materially false, fictitious or fraudulent
statement in connection with the delivery of or payment for items or services under a health care benefit program. To the extent
that it acts as a business associate to a healthcare provider engaging in electronic transactions, we may also be subject to the
privacy and security provisions of HIPAA, as amended by HITECH, which restricts the use and disclosure of patient-identifiable
health information, mandates the adoption of standards relating to the privacy and security of patient-identifiable health information,
and requires the reporting of certain security breaches to healthcare provider customers with respect to such information. Additionally,
many states have enacted similar laws that may impose more stringent requirements on entities like us. Failure to comply with applicable
laws and regulations could result in substantial penalties and adversely affect our financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If approved, our product candidates
may cause or contribute to adverse medical events that it is required to report to regulatory agencies and if we fail to do so
it could be subject to sanctions that would materially harm its business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we are successful
in commercializing any product candidate, FDA and most foreign regulatory agency regulations require that we report certain information
about adverse medical events if the product may have caused or contributed to those AEs. The timing of our obligation to report
would be triggered by the date we become aware of the adverse event as well as the nature of the event. We may fail to report AEs
within the prescribed timeframe. We may also fail to appreciate a reportable adverse event, especially if it is not reported to
us as an adverse event or if it is an adverse event that is unexpected or removed in time from the use of a product, if approved.
If we fail to comply with our reporting obligations, the FDA or a foreign regulatory agency could take action, including criminal
prosecution, the imposition of civil monetary penalties, and seizure of our products, if approved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our ability to obtain services, reimbursement
or funding from the federal government may be impacted by possible reductions in federal spending.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">U.S. federal government
agencies currently face potentially significant spending reductions. The Budget Control Act of 2011, or the &ldquo;<I>BCA</I>,&rdquo;
established a Joint Select Committee on Deficit Reduction, which was tasked with achieving a reduction in the federal debt level
of at least $1.2 trillion. That committee did not draft a proposal by the BCA&rsquo;s deadline. As a result, automatic cuts, referred
to as sequestration, in various federal programs were scheduled to take place, beginning in January 2013, although the American
Taxpayer Relief Act of 2012 delayed the BCA&rsquo;s automatic cuts until March&nbsp;1, 2013. While the Medicare program&rsquo;s
eligibility and scope of benefits are generally exempt from these cuts, Medicare payments to providers and Part D health plans
are not exempt. The BCA did, however, provide that the Medicare cuts to providers and Part D health plans would not exceed two
percent. President Obama issued the sequestration order on March&nbsp;1, 2013, and cuts went into effect on April&nbsp;1, 2013.
Additionally, the Bipartisan Budget Act of 2018 extended sequestration for Medicare through fiscal year 2027.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The U.S.&nbsp;federal
budget remains in flux, which could, among other things, cut Medicare payments to providers. Although the BBA passed in February
2018 enacts a two-year federal spending agreement and raises the federal spending cap on non-defense spending for fiscal years
2018 and 2019, the Medicare program is frequently identified as a target for spending cuts. The full impact on our business of
any future cuts in Medicare or other programs is uncertain. In addition, we cannot predict any impact President Trump&rsquo;s administration
and the U.S.&nbsp;Congress may have on the federal budget. If federal spending is reduced, anticipated budgetary shortfalls may
also impact the ability of relevant agencies, such as the FDA or the National Institutes of Health, to continue to function at
current levels. Amounts allocated to federal grants and contracts may be reduced or eliminated. These reductions may also impact
the ability of relevant agencies to timely review and approve therapeutic research and development, manufacturing, and marketing
activities, which may delay our ability to develop, market, and sell any drugs it may develop.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our business may be affected by litigation
and government investigations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may from time to
time receive inquiries and subpoenas and other types of information requests from government authorities and others and it may
become subject to claims and other actions related to its business activities. While the ultimate outcome of investigations, inquiries,
information requests and legal proceedings is difficult to predict, defense of litigation claims can be expensive, time-consuming
and distracting, and adverse resolutions or settlements of those matters may result in, among other things, modification of our
business practices, costs and significant payments, any of which could have a material adverse effect on its business, financial
condition, results of operations and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Legislative or regulatory FDA reforms
in the United States may make it more difficult and costly for us to obtain regulatory clearance or approval and to produce, market
and distribute its products after clearance or approval is obtained. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time,
legislation is drafted and introduced in Congress that could significantly change the statutory provisions governing the regulatory
clearance or approval, manufacture, and marketing of regulated products or the reimbursement thereof. In addition, FDA regulations
and guidance are often revised or reinterpreted by the FDA in ways that may significantly affect our business and our drug candidates.
Any new regulations or revisions or reinterpretations of existing regulations may impose additional costs or lengthen review times
of our drug candidates. We cannot determine what effect changes in regulations, statutes, legal interpretation or policies, when
and if promulgated, enacted or adopted may have on our business in the future. Such changes could, among other things, require:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">additional
clinical trials to be conducted prior to obtaining approval;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
to manufacturing methods;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recall,
replacement, or discontinuance of our drug candidates, if approved; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">additional
record keeping.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each of these would
likely entail substantial time and cost and could materially harm our business and our financial results. In addition, delays in
receipt of or failure to receive regulatory clearances or approvals would harm its business, financial condition and results of
operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Further, the United
States and some foreign jurisdictions have enacted or are considering a number of legislative and regulatory proposals to change
the healthcare system in ways that could affect our ability to sell our products, if approved, and profitably. Among policy makers
and payors in the United States and elsewhere, there is significant interest in promoting changes in healthcare systems with the
stated goals of containing healthcare costs, improving quality and expanding access.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the United States,
the pharmaceutical industry has been a particular focus of these efforts and has been significantly affected by major legislative
initiatives, including the Patient Protection and Affordable Care Act (the &ldquo;<I>PPACA</I>&rdquo;), which contains provisions
that may potentially reduce the profitability of products, including, for example, increased rebates for products sold to Medicaid
programs, extension of Medicaid rebates to Medicaid managed care plans, mandatory discounts for certain Medicare Part D beneficiaries
and annual fees based on pharmaceutical companies&rsquo; share of sales to federal health care programs. There have been judicial
and Congressional challenges to the PPACA, as well as efforts by the Trump administration to repeal or replace certain aspects
of the PPACA. Since January 2017, President Trump has signed two Executive Orders and other directives designed to delay the implementation
of certain provisions of the PPACA or otherwise circumvent some of the requirements for health insurance mandated by the PPACA.
While Congress has not passed comprehensive repeal legislation, two bills affecting the implementation of certain taxes under the
PPACA have been signed into law, including the repeal, effective January 1, 2019, of the tax-based shared responsibility payment
imposed by the PPACA on certain individuals who fail to maintain qualifying health coverage for all or part of a year that is commonly
referred to as the &ldquo;individual mandate.&rdquo; Additionally, on January 22, 2018, President Trump signed a continuing resolution
on appropriations for fiscal year 2018 that delayed the implementation of certain fees mandated by the PPACA, including the so-called
&ldquo;Cadillac&rdquo; tax on certain high cost employer-sponsored insurance plans, the annual fee imposed on certain health insurance
providers based on market share, and the medical device excise tax on non-exempt medical devices. Moreover, the Bipartisan Budget
Act of 2018, among other things, amends the PPACA, effective January 1, 2019, to increase from 50% to 70% the point-of-sale discount
to eligible beneficiaries during their coverage gap period that is owed by pharmaceutical manufacturers who participate in Medicare
Part D and to close the coverage gap in most Medicare drug plans, commonly referred to as the &ldquo;donut hole.&rdquo; In the
future, there may be additional challenges and amendments to the PPACA. It remains to be seen precisely what new legislation will
provide, when it will be enacted, and what impact it will have on the availability of healthcare and containing or lowering the
cost of healthcare, including the cost of pharmaceutical products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, there
has been increasing legislative and enforcement interest in the United States with respect to specialty drug pricing practices.
Specifically, there have been several recent U.S. Congressional inquiries and proposed and enacted federal and state legislation
designed to, among other things, bring more transparency to drug pricing, review the relationship between pricing and manufacturer
patient programs, and reform government program reimbursement methodologies for drugs. At the federal level, the Trump administration&rsquo;s
budget proposal for fiscal year 2019 contains additional drug price control measures that could be enacted during the 2019 budget
process or in other future legislation, including, for example, measures to end Medicare Part B coverage of medications and to
shift those medication costs to Medicare Part D, to allow some states to negotiate drug prices under Medicaid and to eliminate
cost sharing for generic drugs for low-income patients. While any proposed measures will require authorization through additional
legislation to become effective, Congress and the Trump administration have each indicated that it will continue to seek new legislative
and/or administrative measures to control drug costs. At the state level, legislatures are increasingly passing legislation and
implementing regulations designed to control pharmaceutical and biological product pricing, including price or patient reimbursement
constraints, discounts, restrictions on certain product access and marketing cost disclosure and transparency measures, and, in
some cases, designed to encourage importation from other countries and bulk purchasing. The implementation of cost containment
measures or other healthcare reforms may prevent us from being able to generate revenue, attain profitability, or commercialize
its drug candidates for which it may receive regulatory approval in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Any therapeutics we develos may become
subject to unfavorable pricing regulations, third party coverage and reimbursement practices or healthcare reform initiatives,
thereby harming our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The regulations that
govern marketing approvals, pricing and reimbursement for new therapeutics vary widely from country to country. Some countries
require approval of the sale price of a therapeutic before it can be marketed. In many countries, the pricing review period begins
after marketing or therapeutic licensing approval is granted. In some foreign markets, prescription pharmaceutical pricing remains
subject to continuing governmental control even after initial approval is granted. Although we intend to monitor these regulations,
our programs are currently in the early stages of development and we will not be able to assess the impact of price regulations
for a number of years. As a result, we might obtain regulatory approval for a therapeutic in a particular country, but then be
subject to price regulations that delay its commercial launch of the therapeutic and negatively impact the revenues we are able
to generate from the sale of the therapeutic in that country.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our ability to commercialize
any therapeutics successfully also will depend in part on the extent to which coverage and reimbursement for these therapeutics
and related treatments will be available from government health administration authorities, private health insurers and other organizations.
However, there may be significant delays in obtaining coverage for newly-approved therapeutics. Moreover, eligibility for coverage
does not necessarily signify that a therapeutic will be reimbursed in all cases or at a rate that covers our costs, including research,
development, manufacture, sale and distribution costs. Also, interim payments for new therapeutics, if applicable, may be insufficient
to cover our costs and may not be made permanent. Thus, even if we succeed in bringing one or more therapeutics to the market,
these therapeutics may not be considered cost-effective, and the amount reimbursed for any therapeutics may be insufficient to
allow us to sell its therapeutics on a competitive basis. Because its programs are in the early stages of development, we are unable
at this time to determine their cost effectiveness or the likely level or method of reimbursement. Increasingly, the third party
payors who reimburse patients or healthcare providers, such as government and private insurance plans, are seeking greater upfront
discounts, additional rebates and other concessions to reduce the prices for therapeutics. If the price we are able to charge for
any therapeutics it develops, or the reimbursement provided for such therapeutics, is inadequate in light of its development and
other costs, its return on investment could be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We believe that the
efforts of governments and third party payors to contain or reduce the cost of healthcare, and specifically, therapeutics, and
legislative and regulatory proposals to broaden the availability of healthcare will continue to affect the business and financial
condition of pharmaceutical and biotechnology companies. A number of legislative and regulatory changes in the healthcare system
in the U.S. and other major healthcare markets have been proposed. These developments could, directly or indirectly, affect our
ability to sell its therapeutics, if approved, at a favorable price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Risks Related to Our Dependence on
Third Parties </U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We depend on third party manufacturers
for the manufacture of our drug candidates as well as on third parties for our supply chain, and if we experience problems with
any of these third parties, the manufacture of our drug candidates or products could be delayed, which could harm our results of
operations. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We rely on third-party
manufacturers to manufacture our drug candidates, such reliance entails risks to which we would not be subject to if we manufactured
drug candidates or products ourselves, including reliance on the third party for regulatory compliance and quality assurance, the
possibility of breach of the manufacturing agreement by the third party because of factors beyond our control (including a failure
to synthesize and manufacture our drug candidates or any products we may eventually commercialize in accordance with its specifications)
and the possibility of termination or nonrenewal of the agreement by the third party, based on its own business priorities, at
a time that is costly or damaging to us. In addition, the FDA, NMPA and other regulatory authorities require that our drug candidates
and any products that we may eventually commercialize be manufactured according to the current Good Manufacturing Practices, or
&ldquo;<I>cGMP</I>,&rdquo; standards. Any failure by its third-party manufacturers to comply with cGMP standards or failure to
scale up manufacturing processes, including any failure to deliver sufficient quantities of drug candidates in a timely manner,
could lead to a delay in, or failure to obtain, regulatory approval of any of our drug candidates. In addition, such failure could
be the basis for the FDA, NMPA, or other regulatory authorities to issue a warning or untitled letter, withdraw approvals for drug
candidates previously granted to us, or take other regulatory or legal action, including recall or seizure, total or partial suspension
of production, suspension of ongoing clinical trials, refusal to approve pending applications or supplemental applications, detention
or product, refusal to permit the import or export of products, injunction, or imposing civil and criminal penalties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We rely on third parties to conduct
our pre-clinical studies and clinical trials. If these third parties do not successfully carry out their contractual duties or
meet expected deadlines, we may not be able to obtain regulatory approval for or commercialize our drug candidates and our business
could be substantially harmed. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have relied upon
and plan to continue to rely upon third-party CROs to conduct, monitor and/or manage some of our ongoing pre-clinical and clinical
programs. We rely on these parties for execution of our pre-clinical studies and clinical trials, and controls only certain aspects
of their activities. Nevertheless, we are responsible for ensuring that each of our studies is conducted in accordance with the
applicable protocol and legal, regulatory, and scientific standards, and our reliance on the CROs does not relieve us of our regulatory
responsibilities. We also relyon third parties to assist in conducting our pre-clinical studies in accordance with Good Laboratory
Practices, or &ldquo;<I>GLP</I>,&rdquo; and the Administrative Regulations on Experimental Animals, or the Animal Welfare Act requirements.
We and our CROs are required to comply with GCP, regulations and guidelines enforced by the FDA, NMPA, and comparable foreign regulatory
authorities for all of our drug candidates in clinical development. Regulatory authorities enforce these GCP requirements through
periodic inspections of trial sponsors, investigators, and trial sites. If we or any of our CROs fail to comply with applicable
GCP requirements, the clinical data generated in its clinical trials may be deemed unreliable and the FDA, NMPA or comparable foreign
regulatory authorities may require us to perform additional clinical trials before approving its marketing applications. We cannot
assure you that upon inspection by a given regulatory authority, such regulatory authority will determine that any of its clinical
trials comply with International Conference on Harmonisation-Good Clinical Practice, or &ldquo;<I>ICH-GCP</I>,&rdquo; requirements.
In addition, our clinical trials must be conducted with product produced under the cGMP requirements. Failure to comply with these
regulations may require us to repeat pre-clinical and clinical trials, which would delay the regulatory approval process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our CROs are not our
employees, and except for remedies available to us under our agreements with such CROs. We cannot control whether or not they devote
sufficient time and resources to our on-going clinical, non-clinical, and pre-clinical programs. If CROs do not successfully carry
out their contractual duties or obligations or meet expected deadlines or if the quality or accuracy of the clinical data they
obtain are compromised due to their failure to adhere to our clinical protocols, regulatory requirements, or for other reasons,
our clinical trials may be extended, delayed, or terminated and we may not be able to obtain regulatory approval for or successfully
commercialize its drug candidates. As a result, our results of operations and the commercial prospects for its drug candidates
would be harmed, our costs could increase, and our ability to generate revenues could be delayed or compromised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we lose our relationships with
CROs, our drug development efforts could be delayed. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We rely on third-party
vendors and CROs for some of our pre-clinical studies and clinical trials related to our drug development efforts. Switching or
adding additional CROs involves additional cost and requires management&rsquo;s time and focus. Our CROs have the right to terminate
their agreements with us in the event of an uncured material breach. In addition, some of our CROs have the ability to terminate
their respective agreements with us if it can be reasonably demonstrated that the safety of the subjects participating in our clinical
trials warrants such termination, if we make a general assignment for the benefit of our creditors, or if we are liquidated. Identifying,
qualifying, and managing performance of third-party service providers can be difficult and time-consuming, and will cause delays
in its development programs. In addition, there is a natural transition period when a new CRO commences work and the new CRO may
not provide the same type or level of services as the original provider. If any of our relationships with our third-party CROs
are terminated, we may not be able to enter into arrangements with alternative CROs or to do so on commercially reasonable terms,
and we may not be able to meet our desired clinical development timelines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our employees, principal investigators,
CROs, and consultants may engage in misconduct or other improper activities, including non-compliance with regulatory standards
and requirements and insider trading. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are exposed to the
risk that iour employees, principal investigators, CROs, and consultants may engage in fraudulent conduct or other illegal activity.
Misconduct by these parties could include intentional, reckless and/or negligent conduct or disclosure of unauthorized activities
to us that violate the regulations of the FDA, the Centers for Medicare and Medicaid Services (&ldquo;<I>CMS</I>&rdquo;), the Department
of Health and Human Services (&ldquo;<I>HHS</I>&rdquo;), Office of Inspector General (&ldquo;<I>OIG</I>&rdquo;), and other regulatory
authorities, including those laws requiring the reporting of true, complete and accurate information to such authorities, healthcare
fraud and abuse laws and regulations in the United States and abroad, or laws that require the reporting of financial information
or data accurately. In particular, sales, marketing, and business arrangements in the healthcare industry are subject to extensive
laws and regulations intended to prevent fraud, misconduct, kickbacks, self-dealing, and other abusive practices. These laws and
regulations may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer
incentive programs, and other business arrangements. Activities subject to these laws also involve the improper use of information
obtained in the course of clinical trials or creating fraudulent data in our pre-clinical studies or clinical trials, which could
result in regulatory sanctions and cause serious harm to its reputation. We intend to adopt, prior to the completion of the Merger,
a code of conduct, and other applicable policies and procedures, applicable to all of our employees, but it is not always possible
to identify and deter misconduct by employees and other third parties, and the precautions we take to detect and prevent this activity
may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or
other actions or lawsuits stemming from a failure to comply with these laws or regulations. Additionally, we are subject to the
risk that a person could allege such fraud or other misconduct, even if none occurred. If any such actions are instituted against
us, and it is not successful in defending itself or asserting its rights, those actions could have a significant impact on our
business, including the imposition of civil, criminal and administrative penalties, damages, monetary fines, possible exclusion
from participation in Medicare, Medicaid and other federal healthcare programs, contractual damages, reputational harm, diminished
profits and future earnings, and curtailment of its operations, any of which could adversely affect our ability to operate its
business and its results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Risks Related to Doing Business in
China </U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Pharmaceutical companies in China
are required to comply with extensive regulations and hold a number of permits and licenses to carry on their business. Our ability
to obtain and maintain these regulatory approvals is uncertain, and future government regulation may place additional burdens on
our efforts to commercialize our drug candidates. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The pharmaceutical
industry in China is subject to extensive government regulation and supervision. The regulatory framework addresses all aspects
of operating in the pharmaceutical industry, including approval, registration, production, distribution, packaging, labelling,
storage and shipment, advertising, licensing and certification requirements and procedures, periodic renewal and reassessment processes,
registration of new drugs, and environmental protection. Violation of applicable laws and regulations may materially and adversely
affect our business. In order to commercialize its drug candidates and manufacture and distribute pharmaceutical products in China,
we are required to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
a pharmaceutical manufacturing permit and Good Manufacturing Practice (&ldquo;<I>GMP</I>&rdquo;) certificate for each production
facility from the NMPA and its relevant branches for trading and distribution of drugs not manufactured by the drug registration
certificate holder;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
a drug registration certificate, which includes a drug approval number, from the NMPA for each drug manufactured by it;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
a pharmaceutical distribution permit and good supply practice, or &ldquo;<I>GSP</I>,&rdquo; certificate from the NMPA and its
relevant branches; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">renew
the pharmaceutical manufacturing permits, the pharmaceutical distribution permits, drug registration certificates, GMP certificates,
and GSP certificates every five years, among other requirements.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> If
we are unable to obtain or renew such permits or any other permits or licenses required for its operations, we will not be able
to engage in the commercialization, manufacture, and distribution of our drug candidates and our business may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The regulatory framework
governing the pharmaceutical industry in China is subject to changes and amendments from time to time. In recent years, the regulatory
framework in China regarding the pharmaceutical industry has undergone significant changes, and we expect that it will continue
to undergo significant changes. Any such changes or amendments may result in increased compliance costs on its business or cause
delays in or prevent the successful development or commercialization of its drug candidates in China and reduce the current benefits
we believe are available to us from developing and manufacturing drugs in China. Chinese authorities have become increasingly vigilant
in enforcing laws in the pharmaceutical industry and any failure by us or our partners to maintain compliance with applicable laws
and regulations or obtain and maintain required licenses and permits may result in the suspension or termination of its business
activities in China. We believe our strategy and approach is aligned with the Chinese government&rsquo;s policies, but we cannot
ensure that its strategy and approach will continue to be aligned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we fail to comply with environmental,
health, and safety laws and regulations of the PRC, we could become subject to fines or penalties or incur costs that could have
a material adverse effect on the success of our business. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are subject to numerous
environmental, health, and safety laws and regulations, including those governing laboratory procedures and the handling, use,
storage, treatment, and disposal of hazardous materials and wastes. Our operations primarily occur in China and involve the use
of hazardous materials, including chemical materials. Our operations also produce hazardous waste products. We are therefore subject
to PRC laws and regulations concerning the discharge of waste water, gaseous waste, and solid waste during its processes of research
and development of drugs. Although we engage competent third party contractors for the transfer and disposal of these materials
and wastes, we may not at all times comply fully with environmental regulations. Any violation of these regulations may result
in substantial fines, criminal sanctions, revocations of operating permits, shutdown of its facilities, and obligation to take
corrective measures. We cannot completely eliminate the risk of contamination or injury from these materials and wastes. In the
event of contamination or injury resulting from the use or discharge of hazardous materials, we could be held liable for any resulting
damages, and any liability could exceed its resources. we also could incur significant costs associated with civil, administrative,
or criminal fines and penalties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we maintain
workers&rsquo; compensation insurance to cover costs and expenses incurred due to on-the-job injuries to our employees and third
party liability insurance for injuries caused by unexpected seepage, pollution, or contamination, such insurance may not provide
adequate coverage against potential liabilities. Furthermore, the PRC government may take steps towards the adoption of more stringent
environmental regulations. Due to the possibility of unanticipated regulatory or other developments, the amount and timing of future
environmental expenditures may vary substantially from those currently anticipated. If there is any unanticipated change in the
environmental regulations, we may need to incur substantial capital expenditures to install, replace, upgrade, or supplement our
manufacturing facility and equipment or make operational changes to limit any adverse impact or potential adverse impact on the
environment in order to comply with new environmental protection laws and regulations. If such costs become prohibitively expensive,
we may be forced to cease certain aspects of our business operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Xynomic&rsquo;s audit report for
the fiscal years ended December 31, 2018 and 2017 included in this prospectus is prepared by an auditor who is not inspected by
the Public Company Accounting Oversight Board and, as such, our investors are deprived of the benefits of such inspection.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic&rsquo;s independent
registered public accounting firm who audited its financial statements for the fiscal years ended December 31, 2018 and 2017, as
auditors of companies that are traded publicly in the United States and a firm registered with the U.S. Public Company Accounting
Oversight Board (the &ldquo;PCAOB&rdquo;), is required by the laws of the United States to undergo regular inspections by the PCAOB
to assess its compliance with the laws of the United States and professional standards. Because Xynomic&rsquo;s auditors are located
in China, a jurisdiction where the PCAOB is currently unable to conduct inspections without the approval of the PRC authorities,
Xynomic&rsquo;s auditors are not currently inspected by the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Inspections of other
firms that the PCAOB has conducted outside China have identified deficiencies in those firms&rsquo; audit procedures and quality
control procedures, which may be addressed as part of the inspection process to improve future audit quality. This lack of PCAOB
inspections in China prevents the PCAOB from regularly evaluating Xynomic&rsquo;s auditor&rsquo;s audits and its quality control
procedures. As a result, investors may be deprived of the benefits of PCAOB inspections.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The inability of the
PCAOB to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of Xynomic&rsquo;s auditor&rsquo;s
audit procedures or quality control procedures as compared to auditors outside of China that are subject to PCAOB inspections.
Investors may lose confidence in Xynomic&rsquo;s reported financial information and procedures and the quality of its consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If additional remedial measures are
imposed on the &ldquo;big four&rdquo; PRC-based accounting firms, including Xynomic&rsquo;s independent registered public accounting
firm for the financial statements for the fiscal year ended December 31, 2018 and 2017, in administrative proceedings brought by
the SEC alleging those firms&rsquo; failure to meet specific criteria set by the SEC with respect to requests for the production
of documents, we could be unable to timely file our future financial statements in compliance with the requirements of the Exchange
Act.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Starting
in 2011, the PRC affiliates of the &ldquo;big four&rdquo; accounting firms, including Xynomic&rsquo;s independent registered public
accounting firm, were affected by a conflict between U.S. and PRC law. Specifically, for certain U.S.&nbsp;listed companies operating
and audited in mainland China, the SEC and the PCAOB sought to obtain from the PRC-based accounting firms access to their audit
work papers and related documents. The firms were, however, advised and directed that under PRC law they could not respond directly
to the U.S.&nbsp;regulators on those requests, and that requests by foreign regulators for access to such papers in China had to
be channeled through the China Securities Regulatory Commission, or the&nbsp;CSRC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
late 2012, this impasse led the SEC to commence administrative proceedings under Rule&nbsp;102(e) of its Rules of Practice and
also under the Sarbanes-Oxley Act of 2002 against the PRC-based accounting firms, including Xynomic&rsquo;s independent registered
public accounting firm. In January&nbsp;2014, the administrative law judge reached an initial decision to impose penalties on the
firms including a temporary suspension of their right to practice before the SEC. The accounting firms filed a petition for review
of the initial decision. In February&nbsp;2015, before a review by the commissioners of the SEC had taken place, the firms reached
a settlement with the SEC. Under the settlement, the SEC accepts that future requests by the SEC for the production of documents
will normally be made to the CSRC. The firms will receive matching Section&nbsp;106 requests, and&nbsp;are required to abide by
a detailed set of procedures with respect to such requests, which in substance require them to facilitate production via the CSRC.
If they fail to meet specified criteria, the SEC retains authority to impose a variety of additional remedial measures on the firms
depending on the nature of the failure. Remedies for any future noncompliance could include, as appropriate, an automatic six-month
bar on a single firm&rsquo;s performance of certain audit work, commencement of a new proceeding against a firm, or in extreme cases
the resumption of the current proceeding against all four firms. If additional remedial measures are imposed on the Chinese affiliates
of the &ldquo;big four&rdquo; accounting firms, including Xynomic&rsquo;s independent registered public accounting firm, in administrative
proceedings brought by the SEC alleging the firms&rsquo; failure to meet specific criteria set by the SEC with respect to requests for
the production of documents, we could be unable to timely file future financial statements in compliance with the requirements
of the Exchange&nbsp;Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that the
SEC restarts the administrative proceedings, depending upon the final outcome, companies listed in the U.S. with major PRC operations
may find it difficult or impossible to retain auditors in respect of their operations in China, which could result in financial
statements being determined to not be in compliance with the requirements of the Exchange Act, including possible delisting. Moreover,
any negative news about any such future proceedings against these audit firms may cause investor uncertainty regarding PRC-based,
U.S.-listed companies and the market price of our ordinary shares may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If Xynomic&rsquo;s
independent registered public accounting firm was denied, even temporarily, the ability to practice before the SEC and Xynomic
was unable to timely find another registered public accounting firm to audit and issue an opinion on its financial statements,
its financial statements could be determined not to be in compliance with the requirements of the Exchange Act. Such a determination
could ultimately lead to the delay or abandonment of this offering, delisting of our ordinary shares from Nasdaq or deregistration
from the SEC, which would substantially reduce or effectively terminate the trading of our ordinary shares in the U.S.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The PRC&rsquo;s economic, political,
and social conditions, as well as governmental policies, could affect the business environment and financial markets in China,
and our ability to operate its business, maintain its liquidity, and keep our access to capital. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A significant portion
of our operations are conducted in China. Accordingly, our business, results of operations, financial condition, and prospects
may be influenced to a significant degree by economic, political, legal, and social conditions in China. China&rsquo;s economy
differs from the economies of developed countries in many respects, including with respect to the amount of government involvement,
level of development, growth rate, control of foreign exchange, and allocation of resources. While the PRC economy has experienced
significant growth over the past 30 years, growth has been uneven across different regions and among various economic sectors of
China. The PRC government has implemented various measures to encourage economic development and guide the allocation of resources.
Some of these measures may benefit the overall PRC economy, but may have a negative effect on us. For example, our financial condition
and results of operations may be adversely affected by government control over capital investments or changes in tax regulations
that are currently applicable to it. In addition, in the past the PRC government implemented certain measures, including interest
rate increases, to control the pace of economic growth. These measures may cause decreased economic activity in China, which may
adversely affect our business and results of operation. More generally, if the business environment in China deteriorates from
the perspective of domestic or international investment, our business in China may also be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Uncertainties with respect to the
PRC legal system and changes in laws, regulations, and policies in China could materially and adversely affect us. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We conduct our business
primarily through our subsidiaries in China. PRC laws and regulations govern our operations in China. Our subsidiaries are generally
subject to laws and regulations applicable to foreign investments in China, which may not sufficiently cover all of the aspects
of our economic activities in China. In addition, the implementation of laws and regulations may be in part based on government
policies and internal rules that are subject to the interpretation and discretion of different government agencies (some of which
are not published on a timely basis or at all) that may have a retroactive effect. As a result, we may not always be aware of any
potential violation of these policies and rules. Such unpredictability regarding its contractual, property, and procedural rights
could adversely affect our business and impede our ability to continue our operations. Furthermore, since PRC administrative and
court authorities have significant discretion in interpreting and implementing statutory and contractual terms, it may be more
difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy in Chinese
legal system than in more developed legal systems. These uncertainties could materially and adversely affect our business and results
of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, any administrative
and court proceedings in China may be protracted, resulting in substantial costs and diversion of resources and management attention.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Restrictions on dividend distribution
and currency exchange may limit our PRC Subsidiaries to distribute dividend to us or limit our ability to utilize revenues generated
by our PRC subsidiaries effectively.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A portion of our future
revenue potentially will be generated by our PRC subsidiaries. Under PRC laws and regulations, our PRC subsidiaries, each of which
is a wholly foreign-owned enterprise, may pay dividends only out of its respective accumulated profits as determined in accordance
with PRC accounting standards and regulations. In addition, a wholly foreign-owned enterprise is required to set aside at least
10% of its accumulated after-tax profits each year, if any, to fund a certain statutory reserve fund, until the aggregate amount
of such fund reaches 50% of its registered capital. Such reserve funds cannot be distributed to us as dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, our PRC
subsidiaries will generate primarily all of their revenue in RMB and the Chinese government imposes controls on the convertibility
of RMB into foreign currencies and, in certain cases, the remittance of currency out of China. Such control and restrictions could
affect the ability of our PRC subsidiaries to remit sufficient foreign currency to us for us to pay dividends or make other payments
or otherwise to satisfy our foreign currency denominated obligations. The RMB is currently convertible under the &ldquo;current
account,&rdquo; which includes dividends, trade and service-related foreign exchange transactions, but not under the &ldquo;capital
account,&rdquo; which includes foreign direct investment and loans, including loans that we may secure from our PRC subsidiaries.
Currently, our PRC subsidiaries may purchase foreign currency for settlement of &ldquo;current account transactions,&rdquo; including
payment of dividends to us, without the approval of the state administration of foreign exchange, or the &ldquo;<I>SAFE</I>.&rdquo;,
by complying with certain procedural requirements. However, in response to the persistent capital outflow in China and the RMB&rsquo;s
depreciation against the U.S. dollar, the relevant Chinese governmental authorities have tightened up their control over currency
exchange. Any existing and future restrictions on currency exchange could limit our ability to utilize revenue generated in RMB
to fund our business activities outside of China or pay dividends in US dollars to our shareholders. Foreign exchange transactions
under the capital account remain subject to limitations and require approvals from, or registration with, SAFE and other relevant
Chinese governmental authorities. This could affect our ability to obtain foreign currency through debt or equity financing for
our subsidiaries. Any limitation on the ability of our PRC subsidiaries to pay dividends or make other kinds of payments to us
could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business,
pay dividends, or otherwise fund and conduct our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Restrictions on currency exchange
may limit our ability to receive and use financing in foreign currencies effectively. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our PRC subsidiaries&rsquo;
ability to obtain foreign exchange is subject to significant foreign exchange controls and, in the case of transactions under the
capital account, requires the approval of and/or registration with PRC government authorities, including the SAFE. In particular,
if we finance its PRC subsidiaries by means of foreign debts from us or other foreign lenders, the amount is not allowed to, among
other things, exceed the statutory limits and such loans must be registered with the local counterpart of the SAFE. If we finance
its PRC subsidiaries by means of additional capital contributions, the amount of these capital contributions must first be approved
or filed by the relevant government approval authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> In
light of the various requirements imposed by PRC regulations on loans to, and direct investment in, PRC entities by offshore holding
companies, we cannot assure you that it will be able to complete the necessary government registrations or obtain the necessary
government approval on a timely basis, if at all, with respect to future loans or capital contributions by us to our PRC subsidiaries.
If we fail to complete such registrations or obtain such approval, our ability to use the proceeds we receive from this offering
and to capitalize or otherwise fund our PRC operations may be negatively affected, which could materially and adversely affect
our liquidity and our ability to fund and expand our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Any failure to comply with PRC regulations
regarding the registration requirements for our employee equity incentive plans may subject it to fines and other legal or administrative
sanctions, which could adversely affect its business, financial condition and results of operations. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In February 2012, the
SAFE promulgated the Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in
Stock Incentive Plans of Overseas Publicly Listed Companies, or the Stock Option Rules. In accordance with the Stock Option Rules
and relevant rules and regulations, PRC citizens or non-PRC citizens residing in China for a continuous period of not less than
one year, who participate in any stock incentive plan of an overseas publicly listed company, subject to a few exceptions, are
required to register with SAFE through a domestic qualified agent, which could be a PRC subsidiary of such overseas listed company,
and complete certain procedures. Our PRC subsidiaries and our employees who are PRC citizens or who reside in China for a continuous
period of not less than one year and who participate in our stock incentive plan will be subject to such regulation. We plans to
assist our employees to register their share options or shares. However, any failure of our PRC individual beneficial owners and
holders of share options or shares to comply with the SAFE registration requirements may subject them to fines and legal sanctions
and may limit the ability of our PRC subsidiaries to distribute dividends to us. we also faces regulatory uncertainties that could
restrict its ability to adopt additional incentive plans for our directors and employees under PRC law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Risks Related to Intellectual Property
</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we breach a license agreement
or other intellectual property-related agreements for our drug candidates or otherwise experience disruptions to our business relationships
with its licensors, we could lose the ability to continue the development and commercialization of ours drug candidates. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our business relies,
in large part, on our ability to develop and commercialize drug candidates it has licensed and sublicensed from third parties,
including abexinostat from Pharmacyclics and XP-102 and XP-105 from Boehringer Ingelheim. If our licensors breach such agreements,
we may not be able to enforce such agreements against our licensors&rsquo; parent entity or affiliates. Under each of our licenses
and intellectual property-related agreements, in exchange for licensing or sublicensing to Xynomic the right to develop and commercialize
the applicable drug candidates, our licensors will be eligible to receive from milestone payments, royalties from commercial sales
of such drug candidates, assuming relevant approvals from government authorities are obtained, or other payments. Our licenses
and intellectual property-related agreements also require it to comply with other obligations including development and diligence
obligations, providing certain information regarding our activities with respect to such drug candidates, and/or maintaining the
confidentiality of information it receives from our licensors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we fail to meet any
of our material obligations under our license and intellectual property-related agreements, our licensors have the right to terminate
their licenses and sublicenses and, upon the effective date of such termination, have the right to re-obtain the licensed and sub-licensed
technology and intellectual property. While we would expect to exercise all rights and remedies available to it, including seeking
to cure any breaches by it, and otherwise seek to preserve our rights under the intellectual property rights licensed and sublicensed
to it, we may not be able to do so in a timely manner, at an acceptable cost, or at all. In particular, some of the milestone payments
are payable upon our drug candidates reaching development milestones and before we have commercialized, or received any revenue
from the sales of such drug candidates, and we cannot guarantee that it will have sufficient resources to make such milestone payments.
Any uncured material breach under the license agreements could result in our loss of exclusive rights and may lead to a complete
termination of our rights to the applicable drug candidate. Any of the foregoing could have a material adverse effect on our business,
financial conditions, results of operations, and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the agreements
under which we currently license intellectual property or technology from third parties are complex, and certain provisions in
such agreements may be susceptible to multiple interpretations. The resolution of any contract interpretation disagreement that
may arise could narrow what we believe to be the scope of our rights to the relevant intellectual property or technology, or increase
what we believe to be our financial or other obligations under the relevant agreement, either of which could have a material adverse
effect on our business, financial condition, results of operations, and prospects. Moreover, if disputes over intellectual property
that we have licensed or sublicensed prevents or impairs our ability to maintain our current licensing arrangements on commercially
acceptable terms, we may be unable to successfully develop and commercialize the affected drug candidates, which could have a material
adverse effect on our business, financial conditions, results of operations, and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We depend on our licensors or patent
owners of our in-licensed patent rights to prosecute and maintain patents and patent applications that are material to our business.
Any failure by our licensors or such patent owners to effectively protect these patent rights could adversely impact our business
and operations. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have licensed and
sublicensed patent rights from third parties for some of our development programs, including abexinostat from Pharmacyclics and
XP-102 and XP-105 from Boehringer Ingelheim. As a licensee and sublicensee of third parties, we rely on these third parties to
file and prosecute patent applications, maintain patents, and otherwise protect the licensed intellectual property under certain
of our license agreements. In addition, we have not had and does not have primary control over these activities for certain of
our patents or patent applications and other intellectual property rights that it jointly owns with certain of our licensors and
sub-licensors. We cannot be certain that these patents and patent applications have been or will be prepared, filed, prosecuted,
or maintained by such third parties in compliance with applicable laws and regulations, in a manner consistent with the best interests
of our business, or in a manner that will result in valid and enforceable patents or other intellectual property rights that cover
our drug candidates. If our licensors or such third parties fail to prepare, prosecute, or maintain such patent applications and
patents, or lose rights to those patent applications or patents, the rights we have licensed may be reduced or eliminated, and
our rights to develop and commercialize any of our drug candidates that are subject of such licensed rights could be adversely
affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we are unable to obtain and maintain
patent protection for our drug candidates through intellectual property rights, or if the scope of such intellectual property rights
obtained is not sufficiently broad, third parties may compete directly against us. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our success depends,
in part, on our ability to protect our drug candidates from competition by obtaining, maintaining, and enforcing our intellectual
property rights, including patent rights. We seek to protect the drug candidates and technology that it considers commercially
important by filing U.S., PRC, and international patent applications, relying on trade secrets or pharmaceutical regulatory protection
or employing a combination of these methods. We also seek to protect our proprietary position by in-licensing intellectual property
relating to our technology and drug candidates. We do not own or exclusively license any issued patents with respect to certain
of our drug candidates in all territories in which it plans to commercialize our drug candidates. If we or our licensors are unable
to obtain or maintain patent protection with respect to our drug candidates and technology it develops, our business, financial
condition, results of operations, and prospects could be materially harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The patent prosecution
process is expensive, time-consuming, and complex, and we may not be able to file, prosecute, maintain, enforce, or license all
necessary or desirable patent applications at a reasonable cost or in a timely manner. In addition, our license and intellectual
property-related agreements may not provide it with exclusive rights to use our in-licensed intellectual property rights relating
to the applicable drug candidates in all relevant fields of use and in all territories in which it may wish to develop or commercialize
our technology and products in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Patents may be invalidated
and patent applications may not be granted for a number of reasons, including known or unknown prior art, deficiencies in the patent
application, or the lack of novelty of the underlying invention or technology. It is also possible that we will fail to identify
patentable aspects of our research and development output in time to obtain patent protection. Although we enter into non-disclosure
and confidentiality agreements with parties who have access to confidential or patentable aspects of our research and development
output, such as our employees, corporate collaborators, outside scientific collaborators, contract manufacturers, consultants,
advisors, and any other third parties, any of these parties may breach such agreements and disclose such output before a patent
application is filed, thereby jeopardizing our ability to seek patent protection. In addition, publications of discoveries in the
scientific literature often lag behind the actual discoveries, and patent applications in the United States and other jurisdictions
are typically not published until 18 months after filing, or in some cases, not at all. Therefore, we cannot be certain that it
or our licensors were the first to make the inventions claimed in our owned or in-licensed patents or pending patent applications
or that we or our licensors were the first to file for patent protection of such inventions. Furthermore, the PRC and, recently,
the United States have adopted the &ldquo;first-to-file&rdquo; system under which whoever first files a patent application will
be awarded the patent if all other patentability requirements are met. Under the first-to-file system, third parties may be granted
a patent relating to a technology, which we invented.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, under the
PRC Patent Law, any organization or individual that applies for a patent in a foreign country for an invention or utility model
accomplished in China is required to report to the State Intellectual Property Office, or &ldquo;<I>SIPO</I>,&rdquo; for confidentiality
examination. Otherwise, if an application is later filed in China, the patent right will not be granted. Moreover, even if a patent
is granted from any of the applications, the grant of a patent is not conclusive as to our scope, validity, or enforceability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The coverage claimed
in a patent application can be significantly reduced before the patent is issued, and our scope can be reinterpreted after issuance.
Even if patent applications we currently, or in the future, license or own are issued as patents, they may not be issued in a form
that will provide us with any meaningful protection, prevent competitors or other third parties from competing with it, or otherwise
provide us with any competitive advantage. In addition, the patent position of biotechnology and pharmaceutical companies generally
is highly uncertain, involves complex legal and factual questions, and has been the subject of much litigation in recent years.
As a result, the issuance, scope, validity, enforceability, and commercial value of our patent rights are highly uncertain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The issuance of a patent
is not conclusive as to our inventorship, scope, validity, or enforceability, and our patents may be challenged in the courts or
patent offices in the PRC, United States, and abroad. We and our licensors may be subject to a third-party pre-issuance submission
of prior art to the United States Patent and Trademark Office, or &ldquo;<I>USPTO</I>,&rdquo; or become involved in opposition,
derivation, revocation, re-examination, post-grant and <I>inter partes</I> review, or interference proceedings or similar proceedings
in foreign jurisdictions challenging our patent rights or the patent rights of others. An adverse determination in any such submission,
proceeding, or litigation could reduce the scope of, or invalidate, our owned or in-licensed patent rights, allow third parties
to commercialize our technology or drug candidates and compete directly with us without payments to it, or result in our inability
to manufacture or commercialize drug candidates without infringing, misappropriating, or otherwise violating third-party patent
rights. Moreover, Xynomic, or one of our licensors, may have to participate in interference proceedings declared by the USPTO to
determine priority of invention or in post-grant challenge proceedings, such as oppositions in a foreign patent office, that challenge
the priority of our or our licensor&rsquo;s invention or other features of patentability of our owned or in-licensed patents and
patent applications. Such challenges may result in the loss of patent rights, the loss of exclusivity, or in patent claims being
narrowed, invalidated, or held unenforceable, which could limit our ability to stop others from using or commercializing similar
or identical technology and products, or limit the duration of the patent protection of our technology and drug candidates. Such
proceedings also may result in substantial costs and require significant time from our scientists and management, even if the eventual
outcome is favorable to it. Consequently, we do not know whether any of our technologies or drug candidates will be protectable
or remain protected by valid and enforceable patents. Xynomic&rsquo;s competitors or other third parties may be able to circumvent
our owned or in-licensed patents by developing similar or alternative technologies or products in a non-infringing manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, the terms
of patents are finite. The patents we own or in-license and the patents that may issue from our currently pending owned and in-licensed
patent applications generally have a 20-year protection period starting from the earliest filing date of such patents and patent
applications. Given the amount of time required for the development, testing, and regulatory review of new drug candidates, patents
protecting such drug candidates might expire before or shortly after such drug candidates are commercialized. As a result, our
owned or in-licensed patents and patent applications may not provide it with sufficient rights to exclude others from commercializing
products similar or identical to those of Xynomic. Moreover, some of our patents and patent applications are, and may in the future
be, co-owned with third parties. If it is unable to obtain an exclusive license to any such third-party co-owners&rsquo; interest
in such patents or patent applications, such co-owners may be able to license their rights to other third parties, including our
competitors, and our competitors could market competing products and technology. In addition, we may need the cooperation of any
such co-owners of our patents in order to enforce such patents against third parties, and such cooperation may not be provided
to Xynomic. Any of the foregoing could have a material adverse effect on our competitive position, business, financial conditions,
results of operations, and prospects.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may not be able to protect our
intellectual property and proprietary rights throughout the world. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Filing, prosecuting,
maintaining, and defending patents on drug candidates in all countries throughout the world would be prohibitively expensive, and
the laws of foreign countries may not protect our rights to the same extent as the laws of the United States. Consequently, we
may not be able to prevent third parties from practicing our inventions in all countries outside the United States or PRC or from
selling or importing products made using our inventions in or into the United States, the PRC, or other jurisdictions. Competitors
may use our technologies in jurisdictions where it has not obtained patent protection to develop their own competing products and,
in addition, may export otherwise infringing products to territories where we have patent protection or licenses but the enforcement
is not as strong as that in the United States. These products may compete with our products, and our patents or other intellectual
property rights may not be effective or sufficient to prevent them from competing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Many companies have
encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions, including China.
The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade
secrets, and other intellectual property protection, particularly those relating to biotechnology products, which could make it
difficult for us to stop the infringement of our patents or marketing of competing products in violation of our intellectual property
and proprietary rights generally. Proceedings to enforce our intellectual property and proprietary rights in foreign jurisdictions
could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our patents
at risk of being invalidated or interpreted narrowly, could put our patent applications at risk of not issuing, and could provoke
third parties to assert claims against us. We may not prevail in any lawsuits that it initiates, and the damages or other remedies
awarded, if any, may not be commercially meaningful. Accordingly, our efforts to enforce our intellectual property and proprietary
rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that it develops
or licenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, many countries
have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties. In addition, many
countries limit the enforceability of patents against government agencies or government contractors. In these countries, the patent
owner may have limited remedies, which could materially diminish the value of such patent. If we or any of our licensors is forced
to grant a license to third parties with respect to any patents relevant to our business, our competitive position may be impaired,
and our business, financial condition, results of operations, and prospects may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If our drug candidates infringe,
misappropriate, or otherwise violate the intellectual property rights of third parties, we may incur substantial liabilities, and
it may not be able to sell or commercialize these drug candidates. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our commercial success
depends significantly on our ability to develop, manufacture, market, and sell our drug candidates and use our proprietary technologies
without infringing, misappropriating, or otherwise violating the patents and other proprietary rights of third parties. The biotechnology
and pharmaceutical industries are characterized by extensive litigation regarding patents and other intellectual property rights.
In the PRC and the United States, invention patent applications are generally maintained in confidence until their publication,
which typically is 18 months after the filing date. The publication of discoveries in the scientific or patent literature frequently
occurs substantially later than the date on which the underlying discoveries were made and invention patent applications were filed.
Even after reasonable investigation, we may not know with certainty whether any third party may have filed a patent application
without our knowledge while it is still developing or producing that product. We may become a party to, or threatened with, adversarial
proceedings or litigation regarding intellectual property rights with respect to our technologies and any drug candidates it may
develop, including interference proceedings, post-grant review, <I>inter partes</I> review, and derivation proceedings before the
USPTO and similar proceedings in foreign jurisdictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Third parties may assert
infringement claims against us based on existing patents or patents that may be granted in the future, regardless of their merit.
Even if we believe third-party intellectual property claims are without merit, there is no assurance that a court would find in
our favor on questions of infringement, validity, enforceability, or priority. A court of competent jurisdiction could hold that
these third-party patents are valid, enforceable, and infringed, which could materially and adversely affect our ability to commercialize
any drug candidates it may develop and any other drug candidates or technologies covered by the asserted third-party patents. In
order to successfully challenge the validity of any such U.S. patent in federal court, we would need to overcome a presumption
of validity. There is no assurance that a court of competent jurisdiction would invalidate the claims of any such U.S. patent.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we are found to infringe
a third party&rsquo;s patent rights, and is unsuccessful in demonstrating that such patents are invalid or unenforceable, we could
be required to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify; text-indent: -18pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
royalty-bearing licenses from such third party to such patents, which may not be available on commercially reasonable terms, if
at all, and even if we were able to obtain such licenses, they could be non-exclusive, thereby giving our competitors and other
third parties access to the same technologies licensed to Xynomic, and could require it to make substantial licensing and royalty
payments;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">defend litigation or administrative proceedings;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reformulate product(s) so that it does not infringe the intellectual property rights of others, which may not be possible or could be very expensive and time consuming;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">cease developing, manufacturing, and commercializing the infringing technology or drug candidates; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">pay such third party significant monetary damages, including treble damages and attorneys&rsquo; fees, if we are found to have willfully infringed a patent or other intellectual property right.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Claims that we have
misappropriated the confidential information or trade secrets of third parties could have a similar material adverse effect on
our business, financial condition, results of operations, and prospects. Even if we are successful in such litigation or administrative
proceedings, such litigation and proceedings may be costly and could result in a substantial diversion of management resources.
Any of the foregoing may have a material adverse effect on our business, prospects, financial condition, and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Intellectual property litigation
and proceedings could cause us to spend substantial resources and distract our personnel from their normal responsibilities. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even if resolved in
our favor, litigation or other legal proceedings relating to us, our licensor&rsquo;s or other third parties&rsquo; intellectual
property claims may cause us to incur significant expenses and could distract our personnel from their normal responsibilities.
In addition, there could be public announcements of the results of hearings, motions, or other interim proceedings or developments,
and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the
price of our common stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources
available for development activities or any future sales, marketing, or distribution activities. We may not have sufficient financial
or other resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the costs
of such litigation or proceedings more effectively than Xynomic can because of their greater financial resources and more mature
and developed intellectual property portfolios. Uncertainties resulting from the initiation and continuation of patent litigation
or other proceedings could have a material adverse effect on our ability to compete in the marketplace.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may not be successful in obtaining
necessary intellectual property rights to drug candidates for our development pipeline through acquisitions and in-licenses.&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we also intend
to develop drug candidates through our own internal research, our near-term business model is predicated, in large part, on our
ability to successfully identify and acquire or in-license drug candidates to grow our drug candidate pipeline. However, we may
be unable to acquire or in-license intellectual property rights relating to, or necessary for, any such drug candidates from third
parties on commercially reasonable terms, or at all, because we are focusing on specific areas of care such as oncology and inflammatory
and infectious diseases. In that event, it may be unable to develop or commercialize such drug candidates. We may also be unable
to identify drug candidates that we believe are an appropriate strategic fit for our company and intellectual property relating
to, or necessary for, such drug candidates. Any of the foregoing could have a materially adverse effect on our business, financial
condition, results of operations, and prospects.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The in-licensing and
acquisition of third-party intellectual property rights for drug candidates is a competitive area, and a number of more established
companies are also pursuing strategies to in-license or acquire third-party intellectual property rights for drug candidates that
we may consider attractive or necessary. These established companies may have a competitive advantage over us due to their size,
cash resources, and greater clinical development and commercialization capabilities. Furthermore, companies that perceive us to
be a competitor may be unwilling to assign or license rights to it. If we are unable to successfully obtain rights to suitable
drug candidates, our business, financial condition, results of operations, and prospects for growth could suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, we expect
that competition for the in-licensing or acquisition of third-party intellectual property rights for drug candidates that are attractive
to it may increase in the future, which may mean fewer suitable opportunities for us as well as higher acquisition or licensing
costs. We may be unable to in-license or acquire the third-party intellectual property rights for drug candidates on terms that
would allow it to make an appropriate return on our investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Risks Related to Our Securities</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We do not currently intend to pay
dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on the appreciation
in the price of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on our current
indebtedness, financial condition and operating requirements, we do not expect to pay cash dividends on our shares. Any future
dividend payments are within the absolute discretion of our board of directors and will depend on, among other things, our results
of operations, working capital requirements, capital expenditure requirements, financial condition, level of indebtedness, contractual
restrictions with respect to payment of dividends, business opportunities, anticipated cash needs, provisions of applicable law,
and other factors that our board of directors may deem relevant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may not be able to timely and
effectively implement controls and procedures required by Section 404 of the Sarbanes Oxley Act of 2002 that will be applicable
to us after the Business Combination. Furthermore, if our internal control over financial reporting or our disclosure controls
and procedures are not effective, we may not be able to accurately report our financial results, prevent fraud, or file our periodic
reports in a timely manner, which may cause investors to lose confidence in our reported financial information and may lead to
a decline in our stock price.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a public company,
we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley&nbsp;Act of 2002 (the &ldquo;<I>Sarbanes Oxley
Act</I>&rdquo;), the Dodd-Frank&nbsp;Wall Street Reform and Consumer Protection Act, the listing requirements of Nasdaq and other
applicable securities rules and regulations. We will be required to provide management&rsquo;s attestation on internal controls
commencing with the Company&rsquo;s annual report for the year ending December&nbsp;31, 2019, in accordance with applicable SEC
guidance. The standards required for a public company under Section 404 of the Sarbanes Oxley Act of 2002 are significantly more
stringent than those required of a privately held company. Management may not be able to effectively and timely implement controls
and procedures that adequately respond to the regulatory compliance and reporting requirements that will be applicable to the Company
after the Business Combination. If we are not able to implement the additional requirements of Section 404 in a timely manner or
with adequate compliance, we may not be able to assess whether our internal controls over financial reporting are effective, which
may subject us to adverse regulatory consequences and could harm investor confidence and the market price of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>There is uncertainty regarding Xynomic&rsquo;s
ability to continue in business as disclosed in its</I></B>&nbsp; <B><I>financial statements which includes a statement describing
its</I></B>&nbsp; <B><I>going concern status. Xynomic&rsquo;s financial status creates a doubt whether Xynomic will continue as
a going concern.</I></B></P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has prepared
its financial statements assuming that it will continue as a going concern, however, there is substantial doubt Xynomic can continue
as an ongoing business for the next twelve months. Xynomic&rsquo;s independent auditor has issued an audit opinion for Xymomic
with an explanatory paragraph describing an uncertainty about Xynomic&rsquo;s ability to continue as a going concern. The financial
statements do not include any adjustments that might result from the uncertainty regarding Xynomic&rsquo;s ability to continue
in business. As such Xymomic may have to cease operations and investors could lose part or all of their investment in Xynomic&rsquo;s
company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After the consummation
of the Business Combination, Xynomic&rsquo;s business consists of our business. The current assets of the Group is lower than its current
liabilities. It raises substantial doubt our ability to continue as a going concern.</P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The price of our common stock may
be volatile and fluctuate substantially, which could result in substantial losses for holders of our common stock. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our stock price is likely
to be volatile. The stock market in general and the market for biopharmaceutical companies in particular have experienced extreme
volatility that has often been unrelated to the operating performance of particular companies. As a result of this volatility,
you may not be able to sell your common stock at or above the price at which you purchased it. The market price for our common
stock may be influenced by many factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify; text-indent: -18pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the success of competitive drugs; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">results of clinical trials of our drug candidates or those of our competitors; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulatory or legal developments in the United States and other countries; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">developments or disputes concerning patent applications, issued patents, or other proprietary rights; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the recruitment or departure of key personnel; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the level of expenses related to any of our drug candidates or clinical development programs; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the results of our efforts to discover, develop, acquire, or in-license additional drug candidates or drugs; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">actual or anticipated changes in estimates as to financial results, development timelines, or recommendations by securities analysts; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">variations in our financial results or those of companies that are perceived to be similar to us; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in the structure of healthcare payment systems; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">market conditions in the pharmaceutical and biotechnology sectors; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">general economic, industry, and market conditions; and </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the other factors described in this &ldquo;Risk Factors&rdquo; section. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If securities or industry analysts do not publish research
or publish inaccurate or unfavorable research about our business, our stock price and any trading volume could decline. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any trading market for
our Common Stock that may develop will depend in part on the research and reports that securities or industry analysts publish
about us or our business. Securities and industry analysts do not currently, and may never, publish research on us or our business.
If no securities or industry analysts commence coverage of our company, the trading prices for our Common Stock could be negatively
affected. If securities or industry analysts initiate coverage, and one or more of those analysts downgrade our stock or publish
inaccurate or unfavorable research about our business, our stock price would likely decline. If one or more of these analysts cease
coverage of our company or fail to publish reports on us regularly, demand for our Common Stock could decrease, which might cause
our stock price and any trading volume to decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future sales and issuances of our
Common Stock or rights to purchase Common Stock, including pursuant to our equity incentive plan or otherwise, could result in
dilution of the percentage ownership of our stockholders and could cause our stock price to fall. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We expect that we
will need significant additional capital in the future to continue our planned operations. To raise capital, we may sell Common
Stock, convertible securities or other equity securities in one or more transactions at prices and in a manner we determine from
time to time. If we sell Common Stock, convertible securities or other equity securities in more than one transaction, including
issuance of equity securities pursuant to any future stock incentive plan to our officers, directors, employees and non-employee
consultants for their services to us, investors in a prior transaction may be materially diluted by subsequent sales. Additionally,
any such sales may result in material dilution to our existing stockholders, and new investors could gain rights, preferences
and privileges senior to those of holders of our Common Stock. Further, any future sales of our Common Stock by us or resales
of our Common Stock by our existing stockholders could cause the market price of our Common Stock to decline. Any future grants
of options, warrants or other securities exercisable or convertible into our Common Stock, or the exercise or conversion of such
shares, and any sales of such shares in the market, could have an adverse effect on the market price of our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We indemnify our directors and officers
against certain liabilities and do not presently&nbsp;carry&nbsp;director and&nbsp;officer liability insurance.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As permitted under Delaware
law and pursuant to our governing documents and indemnification agreements with certain of our officers and directors, we indemnify
our directors and officers against monetary damages, including advancing expenses, to the fullest extent permitted by the Delaware
law. We do not&nbsp;carry&nbsp;director and&nbsp;officer liability insurance, so our assets are at risk in the event of successful
claims against us or our officers and directors. Our assets may not be sufficient to satisfy judgments against us and our officers
and directors in the event of such successful claims. In addition, our lack of director and officer liability insurance may adversely
affect our ability to attract and retain highly qualified directors and officers in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Our Common
Stock may be subject to the &ldquo;penny stock&rdquo; rules of the Securities and Exchange Commission, which may make it more difficult
for stockholders to sell our Common Stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt; background-color: white">The
SEC has adopted Rule 15g-9 which establishes the definition of a &ldquo;penny stock,&rdquo; for the purposes relevant to us, as
any equity security that has a market price of less than $5.00 per share, subject to certain exceptions. For any transaction involving
a penny stock, unless exempt, the rules require that a broker or dealer approve a person&rsquo;s account for transactions in penny
stocks, and the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and
quantity of the penny stock to be purchased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt; background-color: white">In
order to approve a person&rsquo;s account for transactions in penny stocks, the broker or dealer must obtain financial information
and investment experience objectives of the person, and make a reasonable determination that the transactions in penny stocks are
suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating
the risks of transactions in penny stocks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt; background-color: white">The
broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating
to the penny stock market, which, in highlight form sets forth the basis on which the broker or dealer made the suitability determination,
and that the broker or dealer received a signed, written agreement from the investor prior to the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt; background-color: white">Generally,
brokers may be less willing to execute transactions in securities subject to the &ldquo;penny stock&rdquo; rules. This may make
it more difficult for investors to dispose of the Company&rsquo;s Common Stock if and when such shares are eligible for sale and
may cause a decline in the market value of our stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt; background-color: white">Disclosure
also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the
commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the
rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to
be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our executive officers, directors,
principal shareholders, and their affiliates continue to exercise significant influence over our company, which will limit your
ability to influence corporate matters and could delay or prevent a change in corporate control.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our executive officers,
directors, principal shareholders and their affiliates will beneficially hold in aggregate 86.17% of the outstanding voting power.
These insiders are able to control all matters requiring stockholder approval, including the election of directors and approval
of significant corporate transactions. This could delay or prevent an outside party from acquiring or merging with us even if our
other stockholders wanted it to occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Anti-takeover provisions under Delaware
law could make an acquisition of us, which may be beneficial to our shareholders, more difficult and may prevent attempts by our
shareholders to replace or remove our current management. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are currently governed
by the provisions of Section&nbsp;203 of the DGCL, which limits the ability of shareholders owning in excess of 15% of our outstanding
voting stock to merge or combine with us. Although we believe these provisions collectively provide for an opportunity to obtain
greater value for shareholders by requiring potential acquirors to negotiate with our board of directors, they would apply even
if an offer rejected by our board were considered beneficial by some shareholders. In addition, these provisions may frustrate
or prevent any attempts by our shareholders to replace or remove our current management by making it more difficult for shareholders
to replace members of our board of directors, which is responsible for appointing the members of our management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Sales of a substantial number of
shares of our common stock in the public market could cause our stock price to fall. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic
stockholders have agreed to lock up their Merger Consideration Shares until Febraury 15, 2020 (subject to certain exceptions)
and our Initial Shareholders have agreed to lock up 50% of the Founder Shares until the earlier of (a) May 15, 2020, or (b)
the date on which the closing price of the Company common shares equals or exceeds $12.50 per share for any 20 trading days
within any 30-trading day period and lock up the remaining 50% of the Founder Shares until May 15, 2020. If our Initial
Shareholders or Xynomic stockholders sell, or indicate an intention to sell, substantial amounts of our common stock in the
public market after all legal restrictions on resale lapse, the market price of our common stock could decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The unaudited pro forma financial
information included in this document may not be indicative of what our actual financial position or results of operations would
have been.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The unaudited pro forma
financial information in this prospectus is presented for illustrative purposes only and is not necessarily indicative of what
our actual financial position or results of operations would have been had the companies always been combined or for the periods
presented, or which may be realized in the future. See the section entitled &ldquo;<I>Unaudited Pro Forma Condensed Combined Financial
Information</I>&rdquo; for more information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>There is no guarantee that the public
warrants will ever be in the money, and they may expire worthless and the terms of our warrants may be amended.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The exercise price for
our warrants is $11.50 per whole share, subject to certain adjustment. Warrants may be exercised only for a whole number of Company
common shares. No fractional shares will be issued upon exercise of the warrants. There is no guarantee that the public warrants
will ever be in the money prior to their expiration and they may expire worthless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the warrant
agreement between Continental Stock Transfer &amp; Trust Company, as the warrant agent, and us provides that the terms of the warrants
may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, but requires the approval
by the holders of at least a majority of the then outstanding public warrants to make any change that adversely affects the interests
of the registered holders. Accordingly, we may amend the terms of the warrants in a manner adverse to a holder if holders of at
least a majority of the then outstanding public warrants approve of such amendment. Examples of such amendments could be amendments
to, among other things, increase the exercise price of the warrants, shorten the exercise period or decrease the number of Company
common shares purchasable upon exercise of a warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A market for our securities may not
continue, which would adversely affect the liquidity and price of our securities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Following the Business
Combination, the price of our securities may fluctuate significantly due to the market&rsquo;s reaction to the Business Combination,
the business of Xynomic and general market and economic conditions. An active trading market for our securities following the Business
Combination may never develop or, if developed, may not be sustained. In addition, the price of our securities after the Business
Combination can vary due to general economic conditions and forecasts, our general business condition, and the release of our financial
reports. Additionally, if our securities are not listed on, or become delisted from, Nasdaq for any reason, and are quoted on the
OTC Bulletin Board, an inter-dealer automated quotation system for equity securities that is not a national securities exchange,
the liquidity and price of our securities may be more limited than if we were quoted or listed on Nasdaq or another national securities
exchange. You may be unable to sell your securities unless a market can be established or sustained.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>There can be no assurance that our
shares and warrants will continue to be so listed or, if listed, that we will be able to comply with the continued listing standards
of Nasdaq.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with the
consummation of the Business Combination, we have received a written notice from Nasdaq indicating that Nasdaq determined to delist
the our securities based upon our non-compliance with Nasdaq Listing Rules 5505(a)(3) and 5515(a)(4), which require a minimum of
300 round lot holders of common stock and 400 round lot holders of warrants for initial listing on The Nasdaq Capital Market as
well as our non-compliance with the minimum $5 million in stockholders&rsquo; equity requirement, as set forth in Nasdaq Listing
Rule 5505(b)(1)(A). Though we believe that the closing of this Offering will cure such deficiency as indicated in the letter from
Nasdaq, we cannot assure you that we may be granted additional time for stay by Nasdaq hearing panel before we close this Offering
or we can successfully close this Offering if at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If, Nasdaq delists our
shares or warrants from trading on its exchange due to our failure to meet Nasdaq&rsquo;s initial and/or continued listing standards,
we and our shareholders could face significant material adverse consequences including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
limited availability of market quotations for our securities;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a determination that our shares are &ldquo;penny stock,&rdquo; which will require brokers trading in our shares to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for our shares;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a limited amount of analyst coverage; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a decreased ability to issue additional securities or obtain additional financing in the future.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Pursuant to the Jumpstart Our Business
Startups Act of 2012 (the &ldquo;JOBS Act&rdquo;), our independent registered public accounting firm will not be required to attest
to the effectiveness of our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002
for so long as we are an &ldquo;emerging growth company.&rdquo;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 404 of the Sarbanes-Oxley
Act of 2002 requires annual management assessments of the effectiveness of our internal control over financial reporting, and generally
requires in the same report a report by our independent registered public accounting firm on the effectiveness of our internal
control over financial reporting. Following the Business Combination, the combined company will continue to be required to provide
management&rsquo;s attestation on internal controls effective with respect to the year ended December 31, 2018, in accordance with
applicable SEC guidance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">However, under the JOBS
Act, our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control
over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 until we are no longer an &ldquo;emerging growth
company.&rdquo; We could be an &ldquo;emerging growth company&rdquo; until the earlier of (1) the last day of the fiscal year (a)
following June 23, 2022, the fifth anniversary of our IPO, (b) in which we have total annual gross revenue of at least $1.07 billion,
(c) our non-convertible debt issued within a three year period exceeds $1 billion, or (d) if the market value of our shares that
are held by non-affiliates exceeds $700 million on the last day of our second fiscal quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, Section
107 of the JOBS Act also provides that an &ldquo;emerging growth company&rdquo; can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. An &ldquo;emerging
growth company&rdquo; can therefore delay the adoption of certain accounting standards until those standards would otherwise apply
to private companies. We have chosen not to &ldquo;opt out&rdquo; of such extended transition period, which means that when a standard
is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company,
can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison
of our financial statements with another public company which is neither an emerging growth company nor an emerging growth company
which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting
standards used. Such circumstances could adversely affect the value and liquidity of our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The future exercise of registration
rights may adversely affect the market price of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have entered
into registration rights agreement with majority shareholders of the Company which grants holders of our Founder Shares,
Private Units, Working Capital Units, Backstop Shares and the Merger Consideration Shares respective demand registration
rights and piggy back registration rights. See description of &ldquo;<I>Registration Rights Agreement</I>&rdquo; on page 3.
We also granted investors in the Unit Offering certain piggy-back registration rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Warrants will become exercisable
for our Company common shares, which would increase the number of Company common shares eligible for future resale in the public
market and result in dilution to our stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently have 3,259,779
warrants issued and outstanding Each warrant entitles the holder thereof to purchase one share of our Common Stock at a price of
$11.50 per whole share, subject to adjustments. No fractional shares will be issued upon exercise of the warrants. In addition,
we expect to issue additional up to [&nbsp;&nbsp;] Series A Warrants at the closings of the Unit Offering, each of which would entitle the
holder to purchase one share of Common Stock at a price of $7.00 per whole share, subject to adjustments. To the extent warrants
are exercised, additional shares will be issued, which will result in dilution to the then existing holders of Company common shares
and increase the number of Company common shares eligible for resale in the public market. Sales of substantial numbers of such
shares in the public market could adversely affect the market price of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The foreign subsidiaries of the combined
entity may qualify as a controlled foreign corporation (&ldquo;CFC&rdquo;), which could result in adverse U.S. federal income tax
consequences to the combined entity.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the CFC rules,
a 10% Shareholder generally must include annually as ordinary income its pro rata share of its CFC&rsquo;s &ldquo;subpart F income&rdquo;
and &ldquo;global intangible low-taxed income,&rdquo; even if no distributions are made by the foreign subsidiaries to the combined
entity. Therefore, the combined entity must generally include annually as ordinary income its foreign subsidiaries&rsquo; &ldquo;subpart
F income&rdquo; and &ldquo;global intangible low-taxed income,&rdquo; even if no distributions are made by the foreign subsidiaries
to the combined entity, causing adverse U.S. federal income tax consequences to the combined entity. We urge U.S. investors to
consult their own tax advisors regarding the possible application of the CFC rules.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>We may have
been, and may become, subject to income tax (or an increased amount of income tax) in one or more countries, including the United
States, which could materially reduce our after-tax returns and the value of Company common shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt; background-color: white">All
or a portion of the income of our foreign subsidiaries may be treated in the United States as effectively connected with a U.S.
trade or business. Whether our foreign subsidiaries have been, or will be, subject to tax in the United States is not free from
doubt in light of the applicable tax law and guidance regarding activities that constitute being engaged in a trade or business
in the United States for U.S. federal income tax purposes. Accordingly, the Company cannot assure you that the IRS will not contend,
perhaps successfully, that a our foreign subsidiary is engaged in a trade or business in the United States or is subject to more
U.S. income tax than it currently incurs. A foreign corporation deemed to be so engaged would be subject to U.S. federal income
tax, as well as branch profits tax, on its income that is treated as effectively connected with the conduct of that trade or business
unless the corporation is entitled to relief under an applicable tax treaty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We could become subject
to income tax in one or more countries, including the United States, as a result of activities performed by it, adverse developments
or changes in law, contrary conclusions by the relevant tax authorities or other causes. The imposition of any of these income
taxes could materially reduce the combined company&rsquo;s post-tax returns available for distributions on, and consequently the
value of, Company common shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>An investor may be subject to adverse
U.S. federal income tax consequences in the event the Internal Revenue Service (&ldquo;IRS&rdquo;) were to disagree with the U.S.
federal income tax consequences described herein.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have not sought
a ruling from the IRS as to any U.S. federal income tax consequences described herein. The IRS may disagree with the descriptions
of U.S. federal income tax consequences contained herein, and its determination may be upheld by a court. Any such determination
could subject an investor or our company to adverse U.S. federal income tax consequences that would be different than those described
herein. Accordingly, each prospective investor is urged to consult a tax advisor with respect to the specific tax consequences
of the acquisition, ownership and disposition of our ordinary shares, rights, and warrants, including the applicability and effect
of state, local, or non-U.S. tax laws, as well as U.S. federal tax laws.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_009"></A><FONT STYLE="text-transform: uppercase"><B>CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">This prospectus contains forward-looking
statements, including, without limitation, in the sections captioned &ldquo;<I>Description of Business</I>,&rdquo; &ldquo;<I>Risk
Factors</I>,&rdquo; and &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Plan of Operations</I>,&rdquo;
and elsewhere. Any and all statements contained in this Report that are not statements of historical fact may be deemed forward-looking
statements. Terms such as &ldquo;may,&rdquo; &ldquo;might,&rdquo; &ldquo;would,&rdquo; &ldquo;should,&rdquo; &ldquo;could,&rdquo;
&ldquo;project,&rdquo; &ldquo;estimate,&rdquo; &ldquo;pro-forma,&rdquo; &ldquo;predict,&rdquo; &ldquo;potential,&rdquo; &ldquo;strategy,&rdquo;
&ldquo;anticipate,&rdquo; &ldquo;attempt,&rdquo; &ldquo;develop,&rdquo; &ldquo;plan,&rdquo; &ldquo;help,&rdquo; &ldquo;believe,&rdquo;
&ldquo;continue,&rdquo; &ldquo;intend,&rdquo; &ldquo;expect,&rdquo; &ldquo;future,&rdquo; and terms of similar import (including
the negative of any of the foregoing) may be intended to identify forward-looking statements. However, not all forward-looking
statements may contain one or more of these identifying terms. Forward-looking statements in this Report may include, without limitation,
statements regarding (i) the plans and objectives of management for future operations, (ii) a projection of income (including income/loss),
earnings (including earnings/loss) per share, capital expenditures, dividends, capital structure or other financial items, (iii)
our future financial performance, including any such statement contained in a discussion and analysis of financial condition by
management or in the results of operations included pursuant to the rules and regulations of the Securities and Exchange Commission
(&ldquo;SEC&rdquo;), (iv) estimates of our future revenue, expenses, capital requirements and our need for financing, and (v) the
assumptions underlying or relating to any statement described in points (i), (ii), (iii), or (iv) above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">The forward-looking statements are not meant
to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon
our current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks
and uncertainties and other influences, many of which we have no control over. Actual results and the timing of certain events
and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties.
Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially
from expected or desired results may include, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
ability to meet anticipated clinical trial commencement, enrollment and completion dates and regulatory filing dates for our product
candidates and to move new development candidates into the clinic;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the occurrence of adverse safety events with our product candidates;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the costs associated with our research, development, manufacturing, commercialization and other activities;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the conduct, timing and results of preclinical and clinical studies of our product candidates, including that preclinical data and early-stage clinical data may not be replicated in later-stage clinical studies;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the adequacy of our capital resources and the availability of additional funding;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">patent protection and third-party intellectual property claims;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">risks
related to key employees, markets, economic conditions, health care reform, prices and reimbursement rates; and</FONT></TD>
</TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">other
risks and uncertainties, including those listed under the section title &ldquo;<I>Risk Factors</I>.&rdquo;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Readers are cautioned not to place undue
reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. We disclaim
any obligation to update the forward-looking statements contained in this Report to reflect any new information or future events
or circumstances or otherwise, except as required by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Readers should read this Report in conjunction
with the discussion under the caption &ldquo;<I>Risk Factors</I>,&rdquo; our financial statements and the related notes thereto
in this Report, and other documents which we may file from time to time with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_010"></A><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We estimate that we
will receive net proceeds from this Offering of up to $<B>[&#9679;]</B> million, based on an assumed price to the public in this
Offering of $<B>[&#9679;]</B>, the midpoint of the price range set forth on the cover page of this prospectus, after deducting
underwriting discounts and commissions and estimated offering expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><I>Use of net proceeds</I></B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Fund preclinical and clinical development&nbsp;:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"></TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 72%; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Abeinostat clinical development and outsourced manufacturing</TD><TD STYLE="width: 1%; font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; font-style: italic; text-align: center">&nbsp;</TD><TD STYLE="width: 25%; font-weight: bold; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>approximately
                                                                                                US$ [&#9679;]</I></B></FONT></TD><TD STYLE="width: 1%; font-weight: bold; font-style: italic; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">XP-105 clinical development</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD STYLE="font-weight: bold; font-style: italic; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>approximately
                                                                                     US$ [&#9679;]</I></B></FONT></TD><TD STYLE="font-weight: bold; font-style: italic; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">XP-102 clinical development</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD STYLE="font-weight: bold; font-style: italic; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>approximately
                                                                                     US$ [&#9679;]</I></B></FONT></TD><TD STYLE="font-weight: bold; font-style: italic; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Fund Other non-Lead Projects under Development, general research and development activities, working capital and other general corporate activities</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD STYLE="font-weight: bold; font-style: italic; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>approximately
                                                                                     US$ [&#9679;]</I></B></FONT></TD><TD STYLE="font-weight: bold; font-style: italic; text-align: left">&nbsp;</TD></TR>
</TABLE>






<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
of the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds from this Offering.
The amounts and timing of our actual expenditures may vary significantly from our expectations depending upon numerous factors,
including the progress of our research, development and commercialization efforts, the progress of our preclinical trials, and
our operating costs and capital expenditures. Drug discovery and development in the pharmaceutical industry is characterized by
significant risks and uncertainties inherent in the research, clinical development and regulatory approval process. These uncertainties
make it difficult for us to estimate the costs to conduct our research and development and complete our preclinical trials. Accordingly,
we will retain broad discretion in the allocation of the net proceeds of this Offering, and we reserve the right to change the
allocation of use of these proceeds as a result of contingencies such as the progress and results of our preclinical trials and
our research and development activities, the results of our commercialization efforts, competitive developments and our manufacturing
requirements. In addition, when and if the opportunity arises, we may use a portion of the proceeds to license, acquire or invest
in complementary businesses, products, or technologies. In order to license, acquire or invest in complementary businesses, products
or technologies, we may need to curtail our development of our Other Projects under Development described above, or enter into
agreements allowing others to obtain rights for further development of one or more of our drug and device candidates earlier than
anticipated. We currently have no commitments or agreements to acquire any such businesses, products or technologies, and we cannot
determine with certainty which, if any, of the programs above might be affected should we enter into any such commitments</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The net proceeds from
this offering, together with our cash and marketable securities, will not be sufficient for us to fund any of our product candidates
through regulatory approval, and we will need to raise additional capital to complete the development of our product candidates.
We may satisfy our future cash needs through the sale of equity securities, debt financings, working capital lines of credit, corporate
collaborations or license agreements, grant funding, through interest income earned on cash balances or a combination of one or
more of these sources. This expected use of net proceeds from this offering represents our intentions based upon our current plans
and business conditions, which could change in the future as our plans and business conditions evolve. The amounts and timing of
our actual expenditures may vary significantly depending on numerous factors, including the progress of our development, the status
of and results from different preclinical and clinical trials, as well as any collaborations that we may enter into with third
parties for our programs, and any unforeseen cash needs. As a result, our management will retain broad discretion over the allocation
of the net proceeds. We cannot specify with certainty all of the particular uses for the net proceeds to be received upon the closing
of this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_011"></A>DIVIDEND POLICY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have never paid our
holders of Common Stock any cash dividends, and currently intend to retain future earnings, if any, to finance the expansion of
its business.&nbsp; As a result, we do not anticipate paying any cash dividends on our Common Stock in the foreseeable future as
we intend to retain any earnings for use in our business. Any future determination to pay dividends to the holders of our Common
Stock will be at the discretion of our Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_012"></A><B>CAPITALIZATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth our cash and cash equivalents and capitalization as of March 31, 2019. Such information is set forth on the following
basis:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on
an actual basis;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on
a pro forma basis; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">as adjusted basis to give effect to the sale and issuance
of &#8199;[&#9679;]&#8199;shares of Common Stock by us in this offering, based upon the receipt by us of the estimated net proceeds
from this offering at an assumed public offering price of $[&#9679;] per share, the last reported sale price of our Common Stock
on The Nasdaq Stock Market on [&#9679;], 2019, and after deducting the estimated underwriting discounts and commissions and estimated
offering expenses payable by us and the application of the net proceeds from this offering as described in &ldquo;Use of Proceeds.&rdquo;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">You should consider
this table in conjunction with &ldquo;Description of Securities&rdquo; on page 159 and our financial statements and the notes to
those financial statements included elsewhere in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>As
of March 31, 2019</B></FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Actual</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Pro&nbsp;Forma</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Pro&nbsp;Forma</B></FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As&nbsp;Adjusted<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash, cash equivalents and marketable securities</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%; border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="width: 9%; border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shareholders&rsquo; equity:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Share capital:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[[&#9679;]</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additional paid-in capital</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accumulated earnings/(deficit)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total shareholders&rsquo; equity(deficit)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD STYLE="vertical-align: top; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total capitalization</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp; [&#9679;]</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Each $1.00 increase (decrease) in the assumed public offering
price of $[&#9679;] per share, which is the last reported sale price of our shares of common stock on The Nasdaq Stock Market
on&nbsp;[&#9679;], 2019, would increase (decrease) our cash, cash equivalents and marketable securities, total shareholders&rsquo;
equity and total capitalization by approximately $[&#9679;] million, assuming that the number of shares offered by us, as set
forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions
payable by us. Each increase (decrease) of 1,000,000 shares in the number of shares offered by us would increase (decrease) the
amount of our cash, cash equivalents and marketable securities, total shareholders&rsquo; equity and total capitalization by approximately
$[&#9679;] million, assuming a public offering price of $[&#9679;] per share, which is the last reported sale price of our shares
on The Nasdaq Stock Market on [&#9679;], 2019, after deducting estimated underwriting discounts and commissions payable by us.
The as adjusted information discussed above is illustrative only and will adjust based on the actual initial price to the public
and other terms of this offering determined at pricing.</TD>
</TR></TABLE>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_013"></A>DILUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">If you purchase shares of common stock in
this offering, assuming no value is attributed to the Representative&rsquo;s Warrants, you will experience dilution to the extent
of the difference between the price per share you pay in this offering and the net tangible book value per share of our shares
of common stock immediately after this offering. The net tangible book value of our shares of common stock on March 31, 2019 was
$[&nbsp;&nbsp; ] million, or $[ &nbsp;] per share. Net tangible book value per share is equal to the amount of consolidated total assets, less intangible
assets, goodwill and consolidated total liabilities, divided by number of shares of common stock outstanding. Such calculation
does not reflect any dilution associated with the exercise of the Representative&rsquo;s Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">After giving effect to the assumed sale by
us of an aggregate of [&nbsp;&nbsp;] shares of common stock in this offering at an assumed public offering price of $[&nbsp;&nbsp;] per share, after deducting
the underwriting discount and estimated offering expenses payable by us and assuming no value is attributed to the Representative&rsquo;s
Warrants, our as adjusted net tangible book value as of March 31, 2019 would have been $[&nbsp;&nbsp;] million, or $[&nbsp;&nbsp;] per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">This represents an immediate increase in
net tangible book value of $[&nbsp;&nbsp;] per share to existing stockholders and an immediate dilution of $[&nbsp;&nbsp;] per share to new investors purchasing
shares of common stock in this offering. The following table illustrates this per share dilution assuming no value is attributed
to the Representative&rsquo;s Warrants:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 88%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assumed public offering price per share </FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$ </FONT></TD>
    <TD STYLE="width: 9%; text-align: right">[&nbsp;&nbsp;]</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net tangible book value per share as of March 31, 2019 </FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$ </FONT></TD>
    <TD STYLE="text-align: right">[&nbsp;&nbsp;]</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As adjusted net tangible book value per share as of March 31, 2019 after giving effect to this offering </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$ </FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right">[&nbsp;&nbsp;]</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dilution per share to investors participating in this offering </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$ </FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">[&nbsp;&nbsp;]</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Each $0.50
increase (decrease) in the assumed public offering price of $[&nbsp;&nbsp;] per share would increase (decrease) our as adjusted net
tangible book value after this offering by $[&nbsp;&nbsp;] million, or $[&nbsp;&nbsp;] per share, and the dilution per share to new investors by $[&nbsp;&nbsp;]
per share, assuming that the number of shares of common stock offered by us, as set forth above, remains the same and after
deducting the underwriting discount and estimated offering expenses payable by us. We may also increase or decrease the
number of shares of common stock we are offering from the number of shares of common stock set forth above. An increase
(decrease) of 500,000 shares of common stock in the number of shares of common stock offered by us from the number of shares
of common stock set forth above would increase (decrease) our as adjusted net tangible book value after this offering by $[&nbsp;&nbsp;]
million, or $[&nbsp;&nbsp;] per share, and the dilution per share to new investors by $[ &nbsp;] per share, assuming that the public offering
price remains the same and after deducting the underwriting discount and estimated offering expenses payable by us. The
information discussed above is illustrative only and will adjust based on the actual public offering price, the actual number
of shares of common stock that we offer in this offering, and other terms of this offering determined at pricing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">The number of shares of common stock reflected
in the discussion and table above is based on [&nbsp;&nbsp;] shares of common stock issued and outstanding as of March 31, 2019 and excludes
certain shares (See &ldquo;Capitalization&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_014"></A>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS&nbsp;OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The following discussion and analysis
should be read together with our financial statements and the related notes appearing elsewhere in this prospectus. This discussion
contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. See &ldquo;Cautionary
Note Regarding Forward-Looking Statements and Industry Data&rdquo; for a discussion of the uncertainties, risks and assumptions
associated with these statements. Actual results and the timing of events could differ materially from those discussed in our forward-looking
statements as a result of many factors, including those set forth under &ldquo;Risk Factors&rdquo; and elsewhere in this prospectus.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Special
Note Regarding Forward-Looking Statements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">This prospectus includes &ldquo;forward-looking
statements&rdquo; within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934 that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially
from those expected and projected. All statements, other than statements of historical fact included in this prospectus including,
without limitation, statements in this &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of
Operations&rdquo; regarding the Company&rsquo;s financial position, business strategy and the plans and objectives of management
for future operations, are forward-looking statements. Words such as &ldquo;expect,&rdquo; &ldquo;believe,&rdquo; &ldquo;anticipate,&rdquo;
&ldquo;intend,&rdquo; &ldquo;estimate,&rdquo; &ldquo;seek&rdquo; and variations and similar words and expressions are intended
to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but
reflect management&rsquo;s current beliefs, based on information currently available. A number of factors could cause actual events,
performance or results to differ materially from the events, performance and results discussed in the forward-looking statements.
For information identifying important factors that could cause actual results to differ materially from those anticipated in the
forward-looking statements, please refer to the Risk Factors section of this prospectus. The Company&rsquo;s securities filings
can be accessed on the EDGAR section of the SEC&rsquo;s website at <I>www.sec.gov</I>. Except as expressly required by applicable
securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as
a result of new information, future events or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to the consummation
of the Business Combination with Xynomomic Pharmaceuticals, Inc., a Delaware corporate (&ldquo;<B><I>Xynomic</I></B>&rdquo;) on
May 15, 2019, we were a blank check company formed for the purpose of acquiring, engaging in a share exchange, share reconstruction
and amalgamation, purchasing all or substantially all of the assets of, entering into contractual arrangements, or engaging in
any other similar business combination with one or more businesses or entities. As a result of the Business Combination, we now
are a clinical stage biopharmaceutical company that discovers and develops innovative small molecule drug candidates for the treatment
of cancer in humans. Our approach is to focus on drug candidates that target both hematological malignancies and solid tumors.
Our lead drug candidate is abexinostat, an orally dosed, hydroxamic acid-based small molecule histone deacetylase (&ldquo;<B><I>HDAC</I></B>&rdquo;)
inhibitor. Our other clinical stage drug candidate is XP-105, an orally bioavailable kinase inhibitor, which inhibits both raptor-mTOR
complex 1 and rictor-mTOR complex 2. In addition, Xynomic has several pre-clinical oncology drug candidates in its pipeline. Among
these drug candidates, XP-102 (also known as BI 882370), a selective RAF inhibitor, is the closest to clinical testing. The following
is a summary of our product development pipeline:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><IMG SRC="image_05.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have not completed
any clinical trials since its inception. With respect to the pipeline programs referenced in the above figure, all of the completed
clinical trials of abexinostat were conducted by or on behalf of either Pharmacyclics LLC (&ldquo;<B><I>Pharmacyclics</I></B>&rdquo;)
or Servier Laboratories and the one completed clinical trial of XP-105 was conducted by or on behalf of Boehringer Ingelheim International
GmbH (&ldquo;<B><I>Boehringer Ingelheim</I></B>&rdquo; or &ldquo;<B><I>BII</I></B><I>&rdquo;</I>). We have obtained exclusive rights
to use all the data generated in these previously completed clinical trial.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Abexinostat&nbsp;</I></B>&ndash; our most advanced
drug candidate, abexinostat, has been evaluated in 18 Phase 1/2 clinical trials for lymphoma and solid tumors. In February 2017,
Xynomic entered into a license agreement with Pharmacyclics for the worldwide exclusive rights to develop and commercialize abexinostat
for all human and non-human diagnostic, prophylactic, and therapeutic uses. Since its in-licensing of abexinostat, Xynomic has
started enrolling patients in clinical trials for three different indications: (1) in follicular lymphoma, as a monotherapy, (2)
in renal cell carcinoma, in combination with pazopanib, and (3) in multiple solid tumors, in combination with Keytruda<SUP>&reg;</SUP>.
In addition, Xynomic plans to initiate four clinical trials of abexinostat in the next six months.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><B><I>XP-105&nbsp;</I></B>(also known as BI 860585)
&ndash; In December 2018, Xynomic entered into a license agreement with Boehringer Ingelheim for the worldwide exclusive rights
to develop and commercialize XP-105 (also known as BI 860585) for all human and non-human diagnostic, prophylactic, and therapeutic
uses. Prior to this license, BII had completed one Phase 1 clinical trial for solid tumors. Xynomic plans to initiate two clinical
trials of XP-105 in late 2019.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Pre-Clinical Programs</I></B>&nbsp;&ndash; In
addition, Xynomic has several pre-clinical oncology drug candidates in its pipeline. Among these drug candidates, XP-102 (also
known as BI 882370), a selective RAF inhibitor to which Xynomic obtained a worldwide exclusive license from Boehringer Ingelheim,
is the closest to clinical testing.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Business Combination:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On September 12, 2018,
Bison Capital Acquistiion Corp., our processor at that time (&ldquo;<B><I>Bison</I></B>&rdquo;) entered into an Agreement and Plan
of Merger (the &ldquo;<B><I>Merger Agreement</I></B>&rdquo;) with (i) Xynomic; (ii) Bison Capital Merger Sub Inc., a Delaware corporation
(&ldquo;<B><I>Merger Sub</I></B>&rdquo;) (iii) Mark Xu (&ldquo;<B><I>Stockholder Representative</I></B>&rdquo;), solely in his
capacity as the Stockholder Representative thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 21, 2019, Bison&rsquo;s
stockholders approved the following items: (i) an amendment to the Bison&rsquo;s Amended and Restated Memorandum of Association
and Articles of Association extending the date by which Bison must consummate its initial business combination and the date for
cessation of operations of Bison if Bison has not completed an initial business combination from March 23, 2019 to June 24, 2019
or such earlier date as determined by the Board of Directors of Bison and (ii) an amendment (the &ldquo;<B><I>Amendment to Trust
Agreement</I></B>&rdquo;) to the Trust Agreement (the &ldquo;<B><I>Trust Agreement</I></B>&rdquo;) between Bison and the trust
agent extending the date on which to commence liquidation of the Trust Account in accordance with the Trust Agreement, as amended
by the Amendment to Trust Agreement, from March 23, 2019 to June 24, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 15, 2019 (the
&ldquo;<B><I>Closing Date</I></B>&rdquo;), Bison consummated the previously announced business combination (the &ldquo;<B><I>Business
Combination</I></B>&rdquo;) following a special meeting of shareholders held on May 14, 2019 (the &ldquo;<B><I>Special Meeting</I></B>&rdquo;)
where the shareholders of Bison, which, prior to the consummation of the Business Combination, domesticated as a Delaware corporation
and, immediately thereafter known as &ldquo;Xynomic Pharmaceuticals Holdings, Inc.&rdquo;, considered and approved, among other
matters, a proposal to adopt the Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Merger
Agreement, among other things, Merger Sub merged with and into Xynomic, with Xynomic continuing as the surviving entity
and a wholly-owned subsidiary of the Company (the &ldquo;<B><I>Merger</I></B>&rdquo; and the &ldquo;<B><I>Surviving Company</I></B>&rdquo;).
The merger became effective on May 15, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 14, 2019, prior
to the consummation of the Business Combination, Bison continued out of the British Virgin Islands and domesticated as a Delaware
corporation (the &ldquo;<B><I>Domestication</I></B>&rdquo;). As a result, Bison is no longer a company incorporated in the British
Virgin Islands.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Closing Date,
pursuant to the Backstop Agreement&nbsp;dated May 1, 2019 entered into by and between Bison and Yinglin Mark Xu, Mr. Xu togher
with his assignee Bison Capital Holding Company Limited, purchased from the Company 755,873 shares of common stock at a price of
$10.15 per share for a total consideration of $7,672,112 (the &ldquo;<B><I>Backstop Shares</I></B>&rdquo; and &ldquo;<B><I>Backstop
Subscription</I></B>&rdquo;). As a result of Backstop Subscription, Bison had at least $7,500,001 of net tangible assets remaining
at the Closing after giving effect to the redemption of any Ordinary Shares by the public shareholders in connection with the Business
Combination.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Closing Date,
each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective Time was automatically converted
into the right to receive, on a pro rata basis, the Closing Consideration Shares (as defined below) and the Earnout Shares (as
defined below), and each option to purchase Xynomic stock that was outstanding immediately prior to the Effective Time was assumed
by the Company and automatically converted into an option to purchase shares of common stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the closing, pursuant
to the Merger Agreement, all Xynomic stockholders received a number of newly issued shares of Company common stock equal to the
Closing Merger Consideration divided by $10.15 per share (the &ldquo;<B><I>Closing Consideration Shares</I></B>&rdquo;). The Closing
Merger Consideration equals to (a) $350,000,000, minus (i) the amount of Xynomic&rsquo;s closing indebtedness, plus (ii) the amount
of Xynomic&rsquo;s closing cash, minus (iii) the amount of Xynomic&rsquo;s transaction expenses, plus (iv) certain closing tax
assets, plus (v) the amount, if any, by which Xynomic&rsquo;s closing working capital exceeds an agreed upon target amount of working
capital, minus (vi) the amount, if any, by which such target amount of working capital exceeds Xynomic&rsquo;s closing working
capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the Closing
Consideration Shares, Xynomic stockholders received an additional 9,852,216 shares of common stock in aggregate (the &ldquo;<B><I>Earnout
Shares</I></B>&rdquo; and, together with the Closing Consideration Shares, the &ldquo;<B><I>Merger Consideration Shares</I></B>&rdquo;).
As a result, the Company issued 42,860,772 common shares as in aggregate Merger Consideration Shares to shareholders of Xynomic
immediately prior to the closing (the &ldquo;<B><I>Sellers</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Merger
Agreement, 1,285,822 shares were deposited into an escrow account (the &ldquo;<B><I>Escrow Account</I></B>&rdquo;) to serve as
security for, and the exclusive source of payment of, the Company&rsquo;s indemnity rights under the Merger Agreement and any
excess of the estimated Closing Merger Consideration over the final Closing Merger Consideration amount determined post-Closing.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a result of the Business
Combination, the Sellers, as the former shareholders of Xynomic, became the controlling shareholders of the Company and Xynomic
became a subsidiary of the Company. The Business Combination was accounted for as a reverse merger, wherein Xynomic is considered
the acquirer for accounting and financial reporting purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to the Business
Combination, we were a &ldquo;shell company&rdquo; (as such term is defined in Rule 12b-2 under the Securities Exchange Act of
1934, as amended). As a result of the Business Combination, we have ceased to be a &ldquo;shell company&rdquo; and will continue
the existing business operations of Xynomic as a publicly traded company under the name &ldquo;Xynomic Pharmaceuticals Holdings,
Inc.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Nasdaq Listing Compliance</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 15, 2019, we
received written notice from the staff of The NASDAQ Stock Market LLC (&ldquo;<B><I>Nasdaq</I></B>&rdquo;) indicating that the
Staff had determined to delist the Company&rsquo;s securities from Nasdaq based upon the Company&rsquo;s non-compliance with Nasdaq
Listing Rules 5505(a)(3) and 5515(a)(4), which require a minimum of 300 round lot holders of common stock and 400 round lot holders
of common stock purchase warrants for initial listing on The Nasdaq Capital Market. The Staff&rsquo;s determination also cited
the Company&rsquo;s non-compliance with the minimum $5 million in stockholders&rsquo; equity requirement, as set forth in Nasdaq
Listing Rule 5505(b)(1)(A).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon request, a hearing
before the Panel was scheduled on July 11, 2019 and our request for hearing has stayed any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to the Company by
the Panel. We intend to pursue certain actions including this Offering to increase the number of round lot holders of its common
stock as well as increase its stockholders&rsquo; equity as soon as practicable to meet the applicable listing requirements; however,
there can be no assurances that the Company will be able to do so within the period of time that may be granted by the Panel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Unit Offering</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
or about July 10, 2019, we entered into certain Securities Purchase Agreement (the &ldquo;Unit SPA&rdquo;) with certain &ldquo;accredited
investors&rdquo; as defined in Rule 501(a) of Regulation D as promulgated under the Securities Act (the &ldquo;Unit Purchasers&rdquo;),
pursuant to which we agreed to sell to such Unit Purchasers an aggregate of approximate USD$10 million of units (the &ldquo;Units&rdquo;)
of the Company, at a purchase price of USD$3.80 per Unit (subject to adjustment) (the &ldquo;Unit Offering&rdquo;). Each Unit consists
of one share of Common Stock and one-half warrant (the &ldquo;Unit Warrant&rdquo;). Each whole Unit Warrant can be exercised to
purchase one share of Common Stock at $7.00 per share and shall expire in three (3) years of the issuance, and have the rights
and preference set forth in certain warrant agreement. Furthermore, the Unit SPA provides, among other terms, a maximum offering
in an aggregate of $15 million with the first closing of a minimum of $5 million upon delivery of the closing conditions set forth
in the Unit SPA, provided that no closing shall occur after September 30, 2019 subject to certain exception.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Units, the shares of Common Stock underlying the Units (the &ldquo;Unit Shares&rdquo;), the Unit Warrants issued in the Offering,
and shares of Common Stock issuable upon exercise of the Unit Warrants (the &ldquo;Unit Warrant Shares&rdquo;), are exempt from
the registration requirements of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
proceeds of this Unit Offering will be used for working capital and general corporate purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white; text-align: justify">The
Unit SPA also contains customary representation and warranties of the Company and the Unit Purchasers, indemnification obligations
of the Company, termination provisions, and other obligations and rights of the parties. Additionally, we anticipate that the Unit
Purchasers will enter into a lock-up agreement at the closing pursuant to which that they would agree not to sell or otherwise
transfer or dispose the Units, Unit Shares, Unit Warrants, or Unit Warrant Shares during the six-month period commencing on the
earlier of the effective date of a registration statement in connection with the first follow-on public offering after the date
of the Unit SPA or the issuance date of the Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white; text-align: justify">The
Form of the Unit SPA and the Form of the Unit Warrants are filed as Exhibits 10.22 and 10.23 to this prospectus, respectively;
and such documents are incorporated herein by reference. The foregoing is only a brief description of the material terms of the
Unit SPA and the Unit Warrants, and does not purport to be a complete description of the rights and obligations of the parties
thereunder and is qualified in its entirety by reference to such exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a_015"></A>Xynomic&rsquo;s
Management&rsquo;s Discussion And Analysis&nbsp;Of Financial Condition And Results Of Operations</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Since inception in 2016, Xynomic&rsquo;s
operations have focused on organizing and staffing the company, business planning, raising capital, in-licensing drug candidates,
identifying kinase drug targets and potential drug candidates, establishing its intellectual property, producing drug substance
and drug product materials for use in clinical trials and pre-clinical studies, and conducting clinical trials and pre-clinical
studies. Xynomic does not have any drugs approved for sale, has not generated any revenue from product sales to date, and it will
not generate any product revenue until it receives approval from the FDA or equivalent foreign regulatory bodies to begin selling
its pharmaceutical product candidates. Developing pharmaceutical products is a lengthy and expensive process. Even assuming that
Xynomic does not encounter any unforeseen safety or other issues during the course of developing its product candidates, Xynomic
does not expect to complete the development of a product candidate in several years, if ever. To date, almost all of Xynomic&rsquo;s
development expenses have been incurred on its product candidates: abexinostat, XP-102, XP-103, XP-104, and XP-105.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">From inception through March 31, 2019, Xynomic
has raised an aggregate of $26.5 million of gross proceeds to fund its operations, of which $0.5 million was from the issuance
of Angel Preferred Shares, $4.3 million was from the issuance of Series A-1 Preferred Shares, $2.5 million was from convertible
notes, $1.4 million was from advances from a Series B shareholder, $0.9 million was from short-term loan provided by Shanghai Jingshu
Venture Capital Center, $2.4 million was from financing provided by Yinglin Mark Xu, and $17 million was from issuance of Redeemable
Convertible Series B Preferred Shares, including the conversion of convertible notes of US$2.5 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Since
inception, Xynomic has incurred operating losses. Xynomic&rsquo;s net losses were $618,930 and $14,144,555 </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">for
the three months ended March 31, 2018 and 2019, respectively. As of March 31, 2019, Xynomic had accumulated deficit of $48,467,724</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">.
Xynomic expects to incur significantly higher expenses and operating losses over the next several years in connection with its
ongoing activities, as Xynomic:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">continues pre-clinical and clinical development of
its programs;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">in-licenses and subsequently develops additional oncology
drug candidates;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">continues to discover, validate, and develop additional
drug candidates;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">maintains, expands, and protects its intellectual property
portfolio;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">hires additional research, development, and business
personnel;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">if abexinostat is successfully approved for commercialization,
incurs additional costs associated with filing marketing authorization applications and establishing sales and marketing infrastructure
for abexinostat in the U.S., China, and other territories; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">incurs additional costs associated with operating as
a public company following the closing of the business combination with Bison (defined below).</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Financial Position</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since Xynomic have
not generated any revenues from product sales, substantial additional financing will be required to continue to fund its research
and development activities. No assurance can be given that any such financing will be available when needed or that our research
and development efforts will be successful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic ability to
fund operations is based on our ability to attract investors and Xynomic&rsquo;s ability to borrow funds on reasonable economic
terms. Historically, the Group has relied principally on equity financing and shareholder&rsquo;s
borrowings to fund its operations and business development. The Group&rsquo;s ability to continue as a going concern is dependent
on management&rsquo;s ability to successfully execute its business plan, which includes generating revenues after drug marketing,
controlling operating expenses, as well as, continuing to obtain additional equity financing. On April 3, 2018, the Group issued
convertible notes to Northern Light Venture Capital V, Ltd., and Bo Tan and received proceeds of US$2,500,000, which were converted
into 776,633 Series B Preferred Shares in August 2018. Further in August 2018, the Group raised US$17 million by issuance of 5,281,101
Series B Preferred Shares to certain investors, including the conversion of convertible notes of US$2.5 million. On September 12,
2018, the Group entered into an Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;) with Yinglin Mark Xu, Bison Capital
Acquisition Corp., a NASDAQ listed company, (&ldquo;Bison&rdquo; and after the consummation of the Business Combination, sometimes
referred to as &ldquo;Company&rdquo;), a Special Purpose Acquisition Company listed in Nasdaq, and Bison Capital Merger Sub Inc.
(&ldquo;Merger Sub&rdquo;). Pursuant to the Merger Agreement, among other things, Merger Sub will merge with and into Xynomic,
with Xynomic continuing as the surviving entity and a wholly-owned subsidiary of Bison (the &ldquo;Merger&rdquo; and the &ldquo;Surviving
Company&rdquo;). On March 21, 2019, Bison&rsquo;s stockholders approved the following items: (i) an amendment to the Bison&rsquo;s
Amended and Restated Memorandum of Association and Articles of Association extending the date by which Bison must consummate its
initial business combination and the date for cessation of operations of Bison if Bison has not completed an initial business combination
from March 23, 2019 to June 24, 2019 or such earlier date as determined by the Board of Directors of Bison and (ii) an amendment
(the &ldquo;Amendment to Trust Agreement&rdquo;) to the Trust Agreement (the &ldquo;Trust Agreement&rdquo;) between Bison and Continental
extending the date on which to commence liquidation of the Trust Account in accordance with the Trust Agreement, as amended by
the Amendment to Trust Agreement, from March 23, 2019 to June 24, 2019. The Company completed the business combination with Bison
on May 15, 2019. The Group also plans to attract institutional investors following the business combination. Further, the Group
can adjust the pace of its clinical development and patient recruitment and control the operating expenses of the Group.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">The Group currently does not have any commitments
to obtain additional funds except to the private placement and this Offering that the Company is contemplating; and may be unable
to obtain sufficient funding in the future on acceptable terms, if at all. If the Group cannot obtain the necessary funding, it
will need to delay, scale back or eliminate some or all of its research and development programs to: commercialize potential products
or technologies that it might otherwise seek to develop or commercialize independently; consider other various strategic alternatives,
including another merger or sale of the Group; or cease operations. If the Group engages in collaborations, it may receive lower
consideration upon commercialization of such products than if it had not entered into such arrangements or if it entered into such
arrangements at later stages in the product development process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Group has prepared
its financial statements assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction
of liabilities in the normal course of business. The Group has incurred recurring losses from operations since inception. The Group
incurred a net loss of US$14,144,555 for the three months ended March 31, 2019. Further, as of March 31, 2019, the Group had net
current liabilities (current assets less current liabilities) of US$19,345,343 and accumulated deficit of US$48,467,724. The Group&rsquo;s
ability to continue as a going concern is dependent on its ability to raise capital to fund its current research and development
activities and future business plans. Additionally, volatility in the capital markets and general economic conditions in the United
States may be a significant obstacle to raising the required funds. These factors raise substantial doubt about its ability to
continue as a going concern. The financial statements included herein do not include any adjustments that might be necessary should
the Group be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements,
adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications
used.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">

&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Operations of the Group are subject to certain
risks and uncertainties including various internal and external factors that will affect whether and when the Group&rsquo;s product
candidates become approved drugs and how significant their market share will be, some of which are outside of the Group&rsquo;s
control. The length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage
of the drug approval process will materially affect the Group&rsquo;s financial condition and future operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Financial Operations Overview&nbsp;of Xynomic</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Organization </I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Xynomic was incorporated on August 24, 2016,
in Wyoming and was re-domiciled to Delaware on April 3, 2018. As of March 31, 2019, Xynomic has one wholly owned subsidiary in
China, Xynomic Pharmaceuticals (Nanjing) Co., Ltd., which has two wholly owned subsidiaries, namely Xynomic Pharmaceuticals (Zhongshan)
Co., Ltd. and Xynomic Pharmaceuticals (Shanghai) Co., Ltd. Xynomic consolidates its financial statements in accordance with U.S. GAAP.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Revenue </I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">To date, Xynomic has not generated any revenue.
In the future, Xynomic will seek to generate revenue from drug sales and potential strategic relationships. Assuming Xynomic commences
abexinostat&rsquo;s pivotal clinical trials in FL, one ongoing in the U.S. and Europe and another expected in China and such trials
generate satisfactory efficacy and safety data to a commercialization approval, the earliest time Xynomic would seek to commercialize
abexinostat in any region is 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Expenses </I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><I>Research and Development Expenses&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Xynomic&rsquo;s research and development
expenses include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-indent: -18pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-indent: -18pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">upfront and milestone payments to Xynomic&rsquo;s licensors
associated with the in-licensing of global exclusive rights to abexinostat, XP-102 and XP-105;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the cost of discovery and development of Xynomic&rsquo;s
pre-clinical product candidates XP-103 and XP-104;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">employee-related expenses including salaries, benefits
and bonuses;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">direct research and development expenses incurred under
arrangements with third parties such as contract research organizations (&ldquo;CROs&rdquo;), contract manufacturing organizations,
and consultants;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the cost of lab supplies and acquiring, developing,
and manufacturing pre-clinical study materials; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">other operating costs.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-indent: -18pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-indent: -18pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-indent: -18pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Research and development costs are
recognized as expenses as incurred. Costs for certain activities are recognized based on an evaluation of the progress to completion
of specific tasks. Non-refundable advance payments for goods or services to be received in the future for use in research and development
activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services
are performed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">The successful development of Xynomic&rsquo;s
drug candidates is subject to substantial risks and uncertainties, which make the nature, timing, and costs of the efforts associated
with the development of these drug candidates, as well as the timing or amount of any potential net cash inflows from these drug
candidates, difficult to estimate. These risks and uncertainties include without limitation, risks and uncertainties associated
with:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">establishing an appropriate safety profile with IND-enabling
toxicology studies;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">successful enrollment in, and completion of clinical
trials;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">receipt of marketing approvals from applicable regulatory
authorities;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">establishing commercial manufacturing capabilities
or making arrangements with third-party manufacturers;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">obtaining and maintaining patent and trade secret protection
and regulatory exclusivity for Xynomic&rsquo;s drug candidates;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">commercializing the drug candidates, if and when approved,
whether alone or in collaboration with others; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the acceptable safety profile of the drugs following
approval.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">A change in the outcome of any of these variables
with respect to the development of any of Xynomic&rsquo;s drug candidates would significantly change the costs and timing associated
with the development of that drug candidate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Research and development activities are central
to Xynomic&rsquo;s business model. Drug candidates in later stages of clinical development generally have higher development costs
than those in earlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical
trials. Xynomic expects research and development costs to increase significantly in the foreseeable future as its drug candidate
development programs progress. Xynomic, however, does not believe that it is possible at this time to accurately project total
program-specific expenses through commercialization. There are numerous factors associated with the successful commercialization
of any of Xynomic&rsquo;s drug candidates, including future trial design and various regulatory requirements, many of which cannot
be determined with accuracy at this time based on Xynomic&rsquo;s stage of development. Additionally, future commercial and regulatory
factors beyond Xynomic&rsquo;s control will impact Xynomic&rsquo;s clinical development programs and plans.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A significant portion
of Xynomic&rsquo;s research and development costs have been external costs, predominantly incurred for abexinostat. Xynomic&rsquo;s
internal research and development costs are primarily personnel-related costs and supply costs.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><I>General and Administrative Expenses&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">General and administrative
expenses consist primarily of salaries, and other related costs&nbsp;for personnel in executive, finance, accounting, business
development, legal, and human resources functions, and share-based compensation expenses. Other significant costs include rent,
legal fees relating to patent and corporate matters, and fees for accounting and consulting services.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Xynomic anticipates that its general and
administrative expenses will increase in the future to support continued research and development activities, including the expansion
of Xynomic&rsquo;s ongoing clinical trials, the initiation of additional clinical trials, and increased costs of operating as a
public company. The last one will likely include costs for audit, legal, regulatory, and tax-related services, director and officer
insurance premiums, and investor relations costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Critical Accounting Policies and Estimates of Xynomic
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.4pt">We believe that the
following accounting policies are the most critical to aid you in fully understanding and evaluating this &ldquo;Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operation.&rdquo;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Share-based Compensation</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Group granted share options to its selected
employee and non-employee consultants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Share-based awards granted to employees with service
conditions attached are measured at the grant date fair value and are recognized as an expense using graded vesting method over
the requisite service period, which is generally the vesting period. The forfeitures are accounted when they occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In June 2018, the FASB issued ASU No. 2018-07, Compensation
- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (&ldquo;ASU 2018-07&rdquo;). The new
guidance largely aligns the accounting for share-based awards issued to employees and nonemployees. Existing guidance for employee
awards will apply to non-employee share-based transactions with limited exceptions. Xynomic adopted this guidance on January 1,
2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Share-based awards granted to non-employees are measured
at the grant date fair value. When no future services are required to be performed by the non-employee in exchange for an award
of equity instruments, the cost of the award is expensed on the grant date.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Option-pricing models are adopted
to measure the value of awards at each grant date. The determination of fair value is affected by the share price as well as assumptions
relating to a number of complex and subjective variables, including but not limited to the expected share price volatility, actual
and projected employee and non-employee share option exercise behavior, risk-free interest rates and expected dividends. The use
of the option-pricing model requires extensive actual employee and non-employee exercise behavior data for the relative probability
estimation purpose, and a number of complex assumptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Redeemable Convertible Preferred Shares</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In January 2017, 24,435,379 Redeemable
Convertible Angel Preferred Shares (&ldquo;Angel Preferred Shares&rdquo;) were issued to the founder of Xynomic, Mr. Yinglin Mark
Xu, for consideration of US$500,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In February 2017, Xynomic entered
into a Preferred Share Purchase Agreement (&ldquo;SPA&rdquo;) with certain investors, pursuant to which 12,147,500 Redeemable
Convertible Series A-1 Preferred Shares (&ldquo;Series A-1 Preferred Shares&rdquo;) were issued for consideration of US$4,300,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On June 4, 2018, Xynomic entered
into a shares purchase agreement with certain investors, pursuant to which a total of 5,281,101 Redeemable Convertible Series B
Preferred Shares (&ldquo;Series B Preferred Shares&rdquo;) were to be issued for an aggregated cash consideration of US$17,000,000.
On August 16, 2018, the Series B Preferred Shares were issued and US$17,000,000 was received, including the conversion of convertible
notes of US$2.5 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has classified the
Angel Preferred Shares, the Series A-1 Preferred Shares and Series B Preferred Shares (collectively &ldquo;Preferred Shares&rdquo;)
as mezzanine equity in the consolidated balance sheets since they are contingently redeemable at the option of the holders or upon
the occurrence of an event that is not solely within the control of the issuer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has determined that
conversion and redemption features embedded in the Angel Preferred Shares and the Series A-1 Preferred shares are not required
to be bifurcated and accounted for as a derivative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has determined that
there was a beneficial conversion feature attributable to Series B Preferred Shares, as the initial effective conversion price
of the Series B Preferred Shares was lower than the fair value of the ordinary shares at the commitment date. The intrinsic value
of the beneficial conversion feature was greater than the proceeds allocated to the Series B Preferred Shares. The amount of the
discount assigned to the beneficial conversion feature is limited to the amount of the proceeds allocated to the Series B Preferred
Shares. The intrinsic value of the beneficial conversion feature was recorded as additional paid-in capital with a corresponding
discount against Series B Preferred Shares issued, which resulted in an initial carrying amount of zero.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group accretes changes in the redemption value over the period from the date of issuance to the earliest
redemption date of the security using the interest method. As the initial carrying amount of Series B Preferred Shares is zero,
the Group amortizes the discount using the straight-line method. The accretion is recorded against retained earnings, or in the
absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital has been exhausted,
additional charges are recorded by increasing the accumulated deficit.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Limited Operating History; Need for
Additional Capital</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">We have no assurance that future financing
will be available to us on acceptable terms, or at all.&nbsp;&nbsp;If financing is not available on satisfactory terms, we may
be unable to continue, develop or expand our operations.&nbsp;&nbsp;Equity financing could result in additional dilution to existing
shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">If we are unable to raise additional capital
to maintain our operations in the future, we may be unable to carry out our full business plan or we may be forced to cease operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">The following discussion and analysis should be read in conjunction with the unaudited financial statements
of the Company for years ended December 31, 2018 and 2017 and unaudited financial statements for the periods ended March 31, 2019
and 2018 and accompanying notes that appear in this prospectus and the financial statements included in this Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Results of Operations of Xynomic</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">The following table
summarizes Xynomic&rsquo;s results of operations for the years ended December&nbsp;31, 2017, and 2018:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Year Ended<BR> December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 9pt">Research and development</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,321,247</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">25,159,602</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">884,980</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,049,353</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">General and administrative to related parties</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">248,737</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">362,336</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,454,964</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">28,571,291</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Loss from operations</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">5,454,964</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">28,571,291</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Other income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Investment income</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">16,541</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total other income, net</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">16,541</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Interest expenses to a related party</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">32,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Loss from operations before income tax benefit</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">5,454,964</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">28,587,624</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Income tax</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,454,964</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">28,587,624</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>Research and Development
Expense </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Research and development
expense was $4.3&nbsp;million for the year ended December&nbsp;31, 2017 and research and development expense for the year ended
December 31, 2018 increased significantly to $25.2 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Research and development expense for the
year ended 2017 was mainly comprised of the following items:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">$3.8&nbsp;million upfront payments to Xynomic&rsquo;s
licensors in accordance to licensing agreements of abexinostat and XP-102;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">$0.5 million payments to clinical development costs
associated with abexinostat;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Research and development
expense for the year ended December 31, 2018 was mainly comprised of the following items:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">$18.5 million payments to clinical development costs
associated with abexinostat;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">$1.0 million payments to external IND-enabling pre-clinical
and toxicology studies as well as the commencement of manufacturing activities for XP-102.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">$3.5 million milestone payments of license fee for
abexinostat.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">$1.0 million upfront payments of license fee for XP-105.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-align: justify; text-indent: -10pt"><B><I>General
and Administrative Expense </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-align: justify; text-indent: -10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">General and administrative
expense was primarily attributable to the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Office leases and business travel expenses;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">personnel costs;&nbsp;and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">professional fees including external legal fees, external
auditing fees, corporate communications, and public relations costs.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic expects that
its general and administrative expense will increase in future periods as Xynomic expands its operations and incurs additional
costs in connection with being a public company. These increases will likely include legal, auditing, and filing fees, additional
insurance premiums, and general compliance and consulting expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-align: justify; text-indent: -10pt"><B><I>Other
Income</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-align: justify; text-indent: -10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the year ended
December 31, 2018, Xynomic earned income of $16,541 (investment income from short-term investments).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
summarizes Xynomic&rsquo;s results of operations for the three months ended March&nbsp;31, 2018 and 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">For the Three Months&nbsp;Ended<BR> March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Operating expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.125in">Research and development</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">466,402</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">5,324,310</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.125in">General and administrative</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">103,475</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,779,249</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">General and administrative to related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">49,053</TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">25,908</TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">618,930</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">14,129,467</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Loss from operations</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">618,930</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">14,129,467</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">Interest expenses to a related party</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">15,088</TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Loss from operations before income tax benefit</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">618,930</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">14,144,555</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">Income tax</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">618,930</TD><TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">14,144,555</TD><TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>Research and Development
Expense&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt; text-align: justify">Research and development expense
was $5.32 million for the three months ended March 31, 2019, compared to research and development expense of $466,402 for the same
period in 2018, representing an increase of $4,857,908 or 1,042%. The substantial increase was mainly due to the increase of the
clinical development costs associated with abexinostat, and payment to commence of manufacturing activities of XP-102 as provided
in the breakdowns below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt; text-align: justify">Research and development expense
for the three months ended March 31, 2018 was mainly comprised of the following items:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify">$396,838 payments to clinical development costs associated
with abexinostat and XP-102;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify">$62,874 payroll expenses to research and development
staff.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Research and development expense for the
three months ended March 31, 2019 was mainly comprised of the following items:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify">$3.82 million clinical development costs associated
with abexinostat;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify">$0.60 million external IND-enabling pre-clinical and
toxicology studies for XP-102.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify">$0.46 million payments of research and development
staff costs.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt; text-align: justify"><B><I>General and Administrative
Expense</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">General and administrative expense was $8.78&nbsp;million
for the three months ended March&nbsp;31, 2019, compared to general and administrative expense of $103,475 for the same period
in 2018, representing an increase of $8.68 million or 8,384%. The substantial increase was mainly due to the $7.68 million expense
related to the options Xynomic issued to an employee and a consultant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Variance of other general and administrative
expenses was primarily attributable to our expanded operation in the three months ended March 31, 2019 compared to the same period
of year 2018, and mainly due to the following in addition to the expense related to the options abovementioned:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify">professional fees including external legal fees, external
auditing fees, corporate communications, and public relations costs increased $0.47 million during the three months ended March
31,2019 when compared to the same period in year 2018 due to the merger transaction with BCAC.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify">there were $0.07 million listing fees including NASDAQ
fee, etc. incurred in the three months ended March 31, 2019 while there was no such fee in the same period of year 2018;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify">we incurred $0.03 million consulting service fee during
the three months ended March 31, 2019;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: justify"></TD><TD STYLE="width: 0.25in; text-align: justify">&#9679;</TD><TD STYLE="text-align: justify">personnel salaries and employee benefits increased
$0.18 million during the three months ended March 31, 2019 compared to that in the three months ended March 31, 2018;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Xynomic&rsquo;s agreements some Contract Research Organizations
and Contract Manufacture Organizations include terms that interests for overdue invoices. $222,999 interest expenses was accrued
for the three months ended March 31, 2019 due to the invoices that were not paid by the due dates.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Xynomic expects that its general and administrative
expense will increase in future periods as Xynomic expands its operations and incurs additional costs in connection with being
a public company. These increases will likely include legal, auditing, and filing fees, additional insurance premiums, and general
compliance and consulting expenses.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>Interest Expense to a Related
Party</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Xynomic Nanjing accrued interest expense
of US$15,088 for the advance from Zhongshan Bison for the three months ended March 31, 2019. There was no such loan or interest
in the three months ended March 31, 2018.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Liquidity and Capital Resources&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>For fiscal years ended December 31, 2018</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>Sources of Liquidity&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">From inception through
December&nbsp;31, 2018, the Group has financed its operations to date primarily through gross proceeds of $21.8&nbsp;million from
private placements of preferred shares, and proceeds of $4.3million from debt financing. As of December&nbsp;31, 2018, the Group
had cash of $4,746,370.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">From inception through
December&nbsp;31, 2018, Xynomic Pharmaceuticals (Nanjing) Co., Ltd. borrowed $0.9&nbsp;million from Shanghai Jingshu Venture Capital
Center per a loan agreement signed in April 2018 and repaid in August 2018; Xynomic Pharmaceuticals (Nanjing) Co., Ltd. borrowed
$1.4&nbsp;million from Zhongshan Bison Healthcare Investment Limited (Limited Partnership) per a loan agreement signed in May 2018
and has repaid $0.3&nbsp;million in August 2018; the Group borrowed $2.0&nbsp;million from Yinglin Mark Xu per a bridge loan agreement
signed in August 2017; and the Group in aggregate raised $21.8&nbsp;million through equity financing. The Group, on a consolidated
basis, had $3,153,088 in outstanding principal and interest under the aforementioned loan agreements as of December&nbsp;31, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Group&rsquo;s recurring
losses from operations since inception and the net current liabilities (current assets less current liabilities) as of December
31, 2018 raise substantial doubt about its ability to continue as a going concern. The Group&rsquo;s ability to fund operations
is based on its ability to attract investors and its ability to borrow funds on reasonable economic terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Group also plans
to attract institutional investors following the business combination. Further, the Group can adjust the pace of its clinical development
and patient recruitment and control the operating expenses of the Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Group currently
does not have any commitments to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable
terms, if at all. If the Group cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all
of its research and development programs to: commercialize potential products or technologies that it might otherwise seek to develop
or commercialize independently; consider other various strategic alternatives, including another merger or sale of the Group; or
cease operations. If the Group engages in collaborations, it may receive lower consideration upon commercialization of such products
than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the product development
process.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Group has prepared
its financial statements assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction
of liabilities in the normal course of business. The Group has incurred recurring losses from operations since inception. The Group
incurred a net loss of US$5,454,964 and US$28,587,624 for the years ended December 31, 2017 and 2018, respectively. Further as
of December 31, 2018, the Group had net current liabilities (current assets less current liabilities) of US$12,621,823 and accumulated
deficit of US$34,323,169. The Group&rsquo;s ability to continue as a going concern is dependent on its ability to raise capital
to fund its current research and development activities and future business plans. Additionally, volatility in the capital markets
and general economic conditions in the United States may be a significant obstacle to raising the required funds. These factors
raise substantial doubt about its ability to continue as a going concern. The financial statements included herein do not include
any adjustments that might be necessary should the Group be unable to continue as a going concern. If the going concern basis were
not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities,
the reported expenses and the balance sheet classifications used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Operations of the Group
are subject to certain risks and uncertainties including various internal and external factors that will affect whether and when
the Group&rsquo;s product candidates become approved drugs and how significant their market share will be, some of which are outside
of the Group&rsquo;s control. The length of time and cost of developing and commercializing these product candidates and/or failure
of them at any stage of the drug approval process will materially affect the Group&rsquo;s financial condition and future operations.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cash Flows</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">The following table
provides information regarding Xynomic&rsquo;s cash flows for the periods reported:</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year<BR> ended<BR> December&nbsp;31,<BR> 2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year<BR> ended<BR> December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -10pt; padding-left: 10pt">Net cash used in operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(5,362,778</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(14,723,189</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Net cash used in investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,044</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(129,351</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Net cash provided by financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,465,166</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,570,965</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Effect of foreign exchange rate changes on cash</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(72,399</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Net increase in cash and cash equivalents</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">100,344</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,646,026</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Cash Used in Operating Activities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">The use of cash in
all periods resulted primarily from Xynomic&rsquo;s net losses adjusted for non-cash&nbsp;charges and changes in components of
working capital. Net cash used in operating activities was $5,362,778, and $14,723,189 for the years ended December&nbsp;31, 2017
and 2018, respectively. The net cash used in operating activities in 2017 was mainly due to the upfront payment for abexinostat
according to the Exclusive License Agreement with Pharmacyclics amounted to $3.5&nbsp;million and $0.3&nbsp;million for XP-102&nbsp;to
Boehringer Ingelheim International GmbH (&ldquo;<I>Boehringer Ingelheim</I>&rdquo; or &ldquo;<I>BII&rdquo;</I>). The net cash
used in operating activities in 2018 include the first milestone payment to AbbVie for abexinostat in the amount of $3.5&nbsp;million.
The payment for contract research organizations (&ldquo;<I>CROs</I>&rdquo;) and contract manufacture organizations (&ldquo;<I>CMOs</I>&rdquo;)
was approximately $0.36&nbsp;million and $7.5&nbsp;million for the year ended December&nbsp;31, 2017 and 2018, respectively. The
other cost was approximately $1.2&nbsp;million and $3.7&nbsp;million for the year ended December&nbsp;31, 2017 and 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Cash Used in Investing Activities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Net cash used in investing
activities was $2,044 and $129,351 for the year ended December&nbsp;31, 2017 and 2018, respectively. The net cash used in investing
activities in 2018 is mainly due to the purchase of properties and equipment to be used in research and development activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Cash Provided by Financing Activities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">Net cash provided by
financing activities was $5,465,166 and $19,570,965 for the year ended December31, 2017 and 2018, respectively. Net cash provided
by financing activities during 2017 was primarily from our issuance of $4.8&nbsp;million of preferred shares to certain investors
and $630,585 debt financing provided by Yinglin Mark Xu. Net cash provided by financing activities during the year ended December&nbsp;31,
2018 was primarily from $14.5&nbsp;million Series B convertible preferred shares issued, $2.5&nbsp;million convertible notes issued,
$1.4&nbsp;million advance from Zhongshan Bison Healthcare Investment Limited (Limited Partnership) and $1.4million financing provided
by Yinglin Mark Xu.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>For The Three Months ended March 31,
2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>Sources of Liquidity&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">From inception through March 31, 2019, the
Group has financed its operations primarily through gross proceeds of $21.8&nbsp;million from private placements of preferred shares,
and proceeds of $4.7&nbsp;million from debt financing. As of March 31, 2019, the Group had cash of $1,049,561.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">From inception through March 31, 2019, Xynomic
Pharmaceuticals (Nanjing) Co., Ltd. borrowed $0.9 million from Shanghai Jingshu Venture Capital Center pursuant to a loan agreement
signed in April 2018 and repaid such loan in August 2018; Xynomic Pharmaceuticals (Nanjing) Co., Ltd. borrowed $1.4 million from
Zhongshan Bison Healthcare Investment Limited (Limited Partnership) pursuant to a loan agreement signed in May 2018 and has repaid
$1.0 million as of March 31, 2019; the Group&nbsp;borrowed $2.4 million from Yinglin Mark Xu pursuant to a bridge loan agreement
signed in August 2017. The Group, on a consolidated basis, had $2.87 million in outstanding principal and interest under the aforementioned
loan agreements as of March 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Group&rsquo;s recurring losses from
operations since inception and the net current liabilities (current assets less current liabilities) as of March 31, 2019 raise
substantial doubt about its ability to continue as a going concern. The Group&rsquo;s ability to fund operations is based on its
ability to attract investors and its ability to borrow funds on reasonable economic terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">On May 15, 2019, Xynomic closed a merger
(the &ldquo;Closing&rdquo;), pursuant to certain Agreement and Plan of Merger (as amended, the &ldquo;Merger Agreement&rdquo;),
dated as of September 12, 2018, entered into by and among by and among (i) Bison Capital Acquisition Corp., a British Virgin Islands
company to be domesticated to Delaware immediately prior to the Merger (&ldquo;Bison&rdquo;, sometimes is referred as &ldquo;XYN&rdquo;
posting the Merger); (ii) Bison Capital Merger Sub Inc., a Delaware corporation (&ldquo;Merger Sub&rdquo;) (iii) Xynomic; and (iv)
Yinglin Mark Xu (&ldquo;Stockholder Representative&rdquo;), solely in his capacity as the Stockholder Representative thereunder,
among other things, Merger Sub merged with and into Xynomic, with Xynomic continuing as the surviving entity and a wholly-owned
subsidiary of Bison, which then changed its name to &ldquo;Xynomic Pharmaceuticals Holdings, Inc.&rdquo; (the &ldquo;Merger&rdquo;
and &ldquo;XYN&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">On the same day, XYN received written notice
from the staff of the NASDAQ Stock Market LLC (&ldquo;Nasdaq&rdquo;) indicating that the Staff had determined to delist its securities
from NASDAQ based upon the non-compliance with the requirement of a minimum of 300 round lot holders of and 400 round lot holders
of purchase warrants and the requirement of the minimum US$5 million in stockholders&rsquo; equity. XYN intends to request a hearing
before the Nasdaq Hearings Panel (the &ldquo;Panel&rdquo;), and such request will stay any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to XYN by the Panel.
XYN intends to pursue certain actions to increase the number of round lot holders of its common stock and warrants as well as increase
its stockholders&rsquo; equity as soon as practicable to meet the applicable listing requirements; however, there can be no assurances
that XYN will be able to do so within the period of time that may be granted by the Panel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Group also plans to attract institutional
investors following the business combination. Further, the Group can adjust the pace of its clinical development and patient recruitment
and control the operating expenses of the Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Group currently does not have any commitments
to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable terms, if at all. If the
Group cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its research and development
programs to: commercialize potential products or technologies that it might otherwise seek to develop or commercialize independently;
consider other various strategic alternatives, including another merger or sale of the Group; or cease operations; or its securities
may be delisted from Nasdaq. If the Group engages in collaborations, it may receive lower consideration upon commercialization
of such products than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the
product development process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Group has prepared its financial statements
assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities
in the normal course of business. The Group has incurred recurring losses from operations since inception. The Group incurred a
net loss of US$14,144,555 for the three months ended March 31, 2019. Further, as of March 31, 2019, the Group had net current liabilities
(current assets less current liabilities) of US$19,345,343 and accumulated deficit of US$48,467,724. The Group&rsquo;s ability
to continue as a going concern is dependent on its ability to raise capital to fund its current research and development activities
and future business plans. Additionally, volatility in the capital markets and general economic conditions in the United States
may be a significant obstacle to raising the required funds. These factors raise substantial doubt about its ability to continue
as a going concern. The financial statements included herein do not include any adjustments that might be necessary should the
Group be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements,
adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications
used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Operations of the Group are subject to certain
risks and uncertainties including various internal and external factors that will affect whether and when the Group&rsquo;s product
candidates become approved drugs and how significant their market share will be, some of which are outside of the Group&rsquo;s
control. The length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage
of the drug approval process will materially affect the Group&rsquo;s financial condition and future operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cash Flows&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table provides information
regarding Xynomic&rsquo;s cash flows for the periods reported:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">For the three months ended<BR> March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font: 10pt Times New Roman, Times, Serif; text-align: left">Net cash used in operating activities</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">(551,510</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,268,589</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Net cash used in investing activities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(92,367</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Net cash provided by/(used in) financing activities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">466,934</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(333,142</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt">Effect of foreign exchange rate changes on cash</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,711</TD><TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 4pt">Net decrease in cash and cash equivalents</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(84,576</TD><TD STYLE="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,696,809</TD><TD STYLE="padding-bottom: 4pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10.1pt; text-indent: -10.1pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10.1pt; text-indent: -10.1pt"><B><I>Net Cash Used in Operating
Activities</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The use of cash in all periods resulted
primarily from Xynomic&rsquo;s net losses adjusted for non-cash charges and changes in components of working capital. Net cash
used in operating activities was $551,510, and $3,268,589 for the three months ended March 31, 2018 and 2019, respectively. The
net cash used in operating activities in the three months ended March 31, 2018 was mainly due to the payments to Contract Manufacture
Organizations of $273,349, payments of $78,225 to Contract Research Organizations for the research and development of abexinostat,
and $33,417 payment for patent maintenance. The net cash used in operating activities in the three months ended March 31, 2019
was mainly due to the payments to Contract Manufacture Organizations of $257,060, payments of $1,671,201 to Contract Research Organizations
for the research and development of abexinostat, payments of $339,930&nbsp;to professional service providers such as lawyers and
accountants, $496,218&nbsp;payments for staff salaries.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>Net Cash Used in Investing
Activities&nbsp;</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Net cash used in investing activities was
$0 and $92,367 for the three months ended March&nbsp;31, 2018 and 2019, respectively. The net cash used in investing activities
in 2019 is mainly due to the purchase of properties and equipment to be used in research and development activities.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>Net Cash Provided by/(used
in) Financing Activities</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Net cash provided by financing activities
was $466,934 for the three months ended March 31, 2018 and net cash used in financing activities was $333,142 for the three months
ended March 31, 2019. Net cash provided by financing activities during three months ended March 31, 2018 was primarily from $498,222
advance from a shareholder Yinglin Mark Xu. Net cash used in financing activities during the three months ended March 31, 2018
was primarily due to a $747,189 repayment of the advance from a Series B shareholder Zhongshan Bison Healthcare Investment Limited
(Limited Partnership), which was offset by $412,961 advance from a shareholder Mr.Yinglin Mark Xu.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10pt; text-indent: -10pt"><B><I>Funding Requirements&nbsp;</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Xynomic expects its expenses to increase
in connection with its ongoing activities, particularly as Xynomic continues the research and development of, initiates clinical
trials of, and seeks marketing approval for, its drug candidates. In addition, if Xynomic obtains marketing approval for any of
its drug candidates, Xynomic expects to incur significant commercialization expenses related to drug sales, marketing, manufacturing,
and distribution to the extent that such sales, marketing, and distribution are not the responsibility of potential collaborators.
Furthermore, as a public reporting company, Xynomic starts to incur additional costs associated with operating as a public company.
Accordingly, Xynomic may need to obtain substantial additional funding in connection with its continuing operations. If Xynomic
is unable to raise capital when needed, or is unable to raise capital on favorable terms, Xynomic would be forced to delay, reduce,
or eliminate its research and development programs or future commercialization efforts.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Xynomic&rsquo;s future capital requirements
will depend on many factors, including:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the scope, progress, results, and costs of drug discovery,
pre-clinical development, laboratory testing, and clinical trials for Xynomic&rsquo;s drug candidates;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the scope, prioritization, and number of Xynomic&rsquo;s
research and development programs;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the costs, timing, and outcome of regulatory review
of Xynomic&rsquo;s drug candidates;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Xynomic&rsquo;s ability to establish and maintain collaborations
on favorable terms, if at all;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the achievement of milestones or occurrence of other
developments that trigger payments under any collaboration agreements Xynomic currently has and may have in the future;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the extent to which Xynomic is obligated to reimburse,
or entitled to reimbursement of, clinical trial costs under future collaboration agreements, if any;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the costs of preparing, filing, and prosecuting patent
applications, maintaining and enforcing Xynomic&rsquo;s intellectual property rights, and defending intellectual property-related
claims;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the extent to which Xynomic acquires or in-licenses
other drug candidates and technologies;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the costs of securing manufacturing arrangements for
commercial production; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the costs of establishing, or contracting for, sales
and marketing capabilities if Xynomic obtains regulatory approvals to market its drug candidates.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Identifying potential drug candidates and
conducting pre-clinical testing and clinical trials is a time-consuming, expensive, and uncertain process that takes many years
to complete, and Xynomic may never generate the necessary data or results required to obtain marketing approval and achieve drug
sales. In addition, Xynomic&rsquo;s drug candidates, if approved, may not achieve commercial success. Xynomic&rsquo;s commercial
revenues, if any, will be derived from sales of drugs that Xynomic does not expect to be commercially available for quite a few
years, if at all. Accordingly, Xynomic will need to continue to rely on additional financing to achieve its business objectives.
Adequate additional financing may not be available to Xynomic on acceptable terms, or at all.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Until such time, if ever, as Xynomic can
generate substantial drug revenues, Xynomic expects to finance its cash needs through a combination of equity offerings, debt financings,
collaborations, strategic alliances, and licensing arrangements.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">If Xynomic raises funds through collaborations,
strategic alliances, or licensing arrangements with third parties, Xynomic may have to relinquish valuable rights to its future
revenue streams, research programs, or drug candidates or to grant licenses on terms that may not be favorable to Xynomic. If Xynomic
is unable to raise additional funds through equity or debt financings when needed, Xynomic may be required to delay, limit, reduce,
or terminate its drug development or future commercialization efforts or grant rights to develop and market drug candidates that
Xynomic would otherwise prefer to develop and market itself.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Contractual Obligations&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table summarizes Xynomic&rsquo;s
significant contractual obligations as of payment due date by period at December 31, 2018:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Less&nbsp;<BR> than&nbsp;<BR> 1 Year</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">1 to 3&nbsp;Years</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">3 to 5&nbsp;Years</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">More&nbsp;<BR> than&nbsp;<BR> 5&nbsp;years</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Debt repayments (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,153,088</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,153,088</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
of payment obligations for loan agreement with Yinglin Mark Xu and Zhongshan Bison Healthcare Investment Limited (Limited Partnership).
As of December 31, 2018, Xynomic had $2,008,936 in outstanding principal under the agreement with Yinglin Mark Xu and $1,144,152
outstanding principal and interest under the agreement with Zhongshan Bison Healthcare Investment Limited (Limited Partnership).</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Xynomic also have obligations to make future
payments to third party licensors that become due and payable on the achievement of certain development, regulatory and commercial
milestones. This includes milestone payments associated with Xynomic&rsquo;s license agreements. Possible future payments under
Xynomic&rsquo;s license arrangements include up to $10.5 million in payments related to abexinostat, up to $ 17.7 million related
to XP-102, and up to $18 million related to XP-105. Xynomic have not included these commitments on our balance sheet or in the
table above because the commitments are cancellable if the milestones are not completed and achievement and timing of these obligations
are not fixed or determinable.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Xynomic enters into agreements in the normal
course of business with CROs for clinical trials and clinical supply manufacturing and with vendors for pre-clinical research studies,
synthetic chemistry, and other services and products for operating purposes. Xynomic has not included these payments in the table
of contractual obligations above since the contracts are cancelable at any time by Xynomic, generally upon 30&nbsp;days prior written
notice to the vendor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Off-Balance Sheet Arrangements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic did not have,
during the periods presented, and Xynomic does not currently have, any off-balance&nbsp;sheet arrangements, as defined under applicable
Securities and Exchange Commission rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Quantitative and Qualitative Disclosures
about Market Risk</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic is exposed to
market risks related to changes in interest rates. Xynomic&rsquo;s primary exposure to market risks is interest rate sensitivity,
which is affected by changes in the general level of U.S. interest rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic is also exposed
to market risk related to changes in foreign currency exchange rates. Xynomic contracts with vendors that are located in Asia and
Europe, which are denominated in foreign currencies. Xynomic is subject to fluctuations in foreign currency rates in connection
with these agreements. Xynomic does not currently hedge its foreign currency exchange rate risk. As of December&nbsp;31, 2018,
Xynomic had $2.25million liabilities denominated in foreign currencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Inflation generally
affects Xynomic by increasing its labor costs and clinical trial costs. Xynomic does not believe that inflation had a material
effect on its business, financial condition, or results of operations since its inception.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a_016"></A>Bison&rsquo;s Management&rsquo;s Discussion And Analysis&nbsp;Of Financial Condition And Results Of Operations</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison was a blank check
company incorporated in the British Virgin Islands on October 7, 2016 formed for the purpose of a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Bison&rsquo;s Sponsor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison&rsquo;s sponsor,
Bison Capital Holding Company Limited, founded in 2013, is an alternative investment company that invests in high growth opportunities
in the media/entertainment, financial services and healthcare industries. Its investment strategy focus on identifying undervalued
assets, bringing strategic resources and relationships to portfolio companies and generating new growth opportunities to realize
appreciation under improved growth and valuation metrics.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Results of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison has neither engaged
in any operations nor generated any revenues to date. Bison&rsquo;s only activities from inception to March 31, 2019 were organizational
activities and those necessary to prepare for the Initial Public Offering and private placement and the identification and evaluation
of prospective candidates for a Business Combination and activities in connection with the proposed acquisition of Xynomic. Since
the completion of Bison&rsquo;s Initial Public Offering, Bison has not generated any operating revenues and will not generate such
revenues until after the completion of Bison&rsquo;s Business Combination. Bison generates non-operating income in the form of
interest income on cash and marketable securities held after the Initial Public Offering. Bison incurs expenses as a result of
being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence and transaction
expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the year ended December
31, 2018, Bison had a net income of $266,626, which consists of interest income on marketable securities held in the Trust Account
of $1,121,740, offset by operating costs of $835,928 and unrealized losses on marketable securities held in the Trust Account of
$19,186. For the three months ended March 31, 2019, Bison had a net income of $140,102, which consists of interest income on marketable
securities held in the Trust Account of $347,210, offset by operating costs of $204,521 and an unrealized loss on marketable securities
held in the Trust Account of $2,587.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the year ended December 31, 2017, Bison
had a net loss of $41,260, which consists of operating costs of $365,215 and unrealized losses on marketable securities held in
the Trust Account $17,269, offset by interest income on marketable securities held in the Trust Account of $341,224.For the three
months ended March 31, 2018, Bison had a net income of $75,434, which consists of $220,841 of interest income on marketable securities
held in the Trust Account, offset by operating costs of $125,916 and an unrealized loss on marketable securities held in the Trust
Account of $19,491.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Liquidity and Capital Resources</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 23, 2017, Bison
consummated the initial public offering (the &ldquo;Initial Public Offering&rdquo;) of 5,250,000 units&nbsp;(the &ldquo;Units&rdquo;),
at a price of $10.00 per Unit, generating gross proceeds of $52,500,000. Simultaneously with the closing of the Initial Public
Offering, Bison consummated the sale of 388,750 private units (the &ldquo;Private Units&rdquo;), to Bison&rsquo;s sponsor and EarlyBirdCapital,
and their designees, generating gross proceeds of $3,887,500 (the &ldquo;Private Placement&rdquo;).&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 28, 2017, the
underwriters elected to fully exercise their over-allotment option to purchase 787,500 additional Units (the &ldquo;Over-allotment
Units&rdquo;) at a purchase price of $10.00 per Unit, generating gross proceeds of $7,875,000. In addition, simultaneously with
the sale of the Over-Allotment Units, Bison consummated the sale of an additional 43,312 private units (the &ldquo;Over-Allotment
Private Units&rdquo;) at $10.00 per unit, generating gross proceeds of $433,125.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A total of $61,884,375
of the net proceeds from the Initial Public Offering and the Private Placement (including the sale of the Over-Allotment Units
and the Over-Allotment Private Units) were deposited in the Trust Account. Bison incurred costs in the aggregate amount of $2,250,189
related to Initial Public Offering including $1,811,250 of underwriting fees and $438,939 of other costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31,
2018, Bison had $122,615 of cash held outside the Trust Account, available for working capital purposes. In addition, as of December
31, 2018, Bison had $164,893 of accounts payable and accrued expenses.As of March 31, 2019, Bison had $3,210 of cash held outside
the Trust Account, available for working capital purposes. In addition, as of March 31, 2019, Bison had $227,799 of accounts payable
and accrued expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31, 2018,
Bison had marketable securities held in the Trust Account of $63,310,884, consisting of U.S Treasury bills with a maturity of 180
days or less. Interest income earned on the balance in the Trust Account may be available to Bison to pay taxes. Through December
31, 2018, Bison did not withdraw any funds from the interest earned on the Trust Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of March 31, 2019,
Bison had marketable securities held in the Trust Account of $8,477,530, consisting of U.S Treasury bills with a maturity of 180
days or less. Interest income earned on the balance in the Trust Account may be available to Bison to pay taxes. Through March
31, 2019, Bison did not withdraw any funds from the interest earned on the Trust Account. As a result of the shareholders approval
to extend the time for which Bison is required to consummate a Business Combination, an aggregate of 5,234,420 shares were redeemed
and Bison paid cash in the aggregate amount of $55,177,977 to redeeming shareholders from the Trust Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31, 2018,
the sponsor loaned Bison an aggregate of $600,000 in order to finance transaction costs in connection with a Business Combination.
As of December 31, 2018, the Sponsor has loaned Bison an aggregate of $600,000. Bison&rsquo;s Sponsor has also committed to provide
an additional $200,000 in loans to the Company. The Company has drawn down the entire $600,000 as of the date of this Form 10-K.
The loans will become due upon the consummation of a business combination and carry no interest. $500,000 of the loans are evidenced
by two promissory notes issued by us, which are convertible, in whole or in part, at the Sponsor&rsquo;s discretion, upon the consummation
of the Business Combination, into the private units, at a price of $10.00 per private unit.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of March 31, 2019,
the Bison Capital loaned Bison an aggregate of $610,000 in order to finance transaction costs in connection with a Business Combination.
$500,000 of the loans are evidenced by promissory notes issued by us, which are non-interest bearing, unsecured, payable in cash
or convertible, in whole or in part, at Bison Capital&rsquo;s discretion, upon the consummation of the Business Combination into
the private units, at a price of $10.00 per private unit. $110,000 of the loans are non-interest bearing, unsecured and will become
due upon the consummation of a business combination.&nbsp;Bison Capital has also committed to provide an additional $190,000 in
loans to the Company. Any additional loans will be evidenced by a promissory note, will be non-interest bearing, unsecured and
will only be repaid upon the completion of a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the year ended December
31, 2018, cash used in operating activities amounted to $687,473. Net income of $266,626 was affected by interest earned on marketable
securities held in the Trust Account of $1,121,740, which is not available to the Company except for the payment of its tax obligations,
and an unrealized loss on marketable securities held in Bison&rsquo;s Trust Account of $19,186. Changes in operating assets and
liabilities provided $148,455 of cash for operating activities.&nbsp;For the three months ended March 31, 2019, cash used in operating
activities amounted to $129,405. Net income of $140,102 was affected by interest earned on marketable securities held in the Trust
Account of $347,210 and an unrealized loss on marketable securities held in Bison&rsquo;s Trust Account of $2,587. Changes in operating
assets and liabilities provided $75,116 of cash for operating activities.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the year ended December
31, 2017, cash used in operating activities amounted to $376,076, resulting primarily from a net loss of $41,260, interest earned
on cash and marketable securities held in the Trust Account of $341,224 which is not available to the Company except for the payment
of its tax obligations and an unrealized loss on marketable securities held in Bison&rsquo;s Trust Account of $17,269. Changes
in operating assets and liabilities used $10,861 of cash for operating activities.&nbsp;For the three months ended March 31, 2018,
cash used in operating activities amounted to $67,209, resulting primarily from interest earned on marketable securities held in
the Trust Account of $220,841 offset by net income of $75,434 and&nbsp;an unrealized loss on marketable securities held in Bison&rsquo;s
Trust Account of $19,491. Changes in operating assets and liabilities provided $58,707 of cash for operating activities.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison intended to
use the net proceeds of the Initial Public Offering, including the funds held in the Trust Account, to pay Bison&rsquo;s expenses
relating thereto, including a fee payable to EarlyBirdCapital for its services in connection with Bison&rsquo;s Business Combination
upon the consummation of such Business Combination in an amount equal to 3% of the gross proceeds of the Initial Public Offering,
or $1,940,869, which will be reduced by an amount equal to 2% of the dollar amount, or $1,293,913 of purchases of Bison&rsquo;s
ordinary shares by investors introduced to Bison by Bison&rsquo;s sponsor, officers, directors or their respective affiliates
following announcement by Bison of the Business Combination, where such investors hold the purchased ordinary shares through the
vote on such business combination and do not seek conversion of their shares in connection with such proposed business combination;
provided, however, that the fee will not be reduced by more than $500,000. The remaining proceeds held in the Trust Account, as
well as any other net proceeds not expended, will be used as working capital to finance the operations of the target business.
Such working capital funds could be used in a variety of ways including continuing or expanding the target business&rsquo; operations,
for strategic acquisitions and for marketing, research and development of existing or new products. Such funds could also be used
to repay any operating expenses or finders&rsquo; fees which Bison had incurred prior to the completion of Bison&rsquo;s Business
Combination if the funds available to Bison outside of the Trust Account were insufficient to cover such expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison has used the funds
held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence on prospective
target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives
or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete
a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison had sufficient funds to meet the expenditures required for operating Bison&rsquo;s business through
May 15, 2019, the consummation date of the Business Combination with Xynomic. Additionally, Bison&rsquo;s sponsor has provided
additional loans in a total amount of $610,000 to support Bison&rsquo;s operation. Such loans are evidenced by promissory notes.
Upon consummation of the Business Combination, $500,000 of loans were converted into additional Private Units at a price of $10.00
per unit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Off-balance sheet financing arrangements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison has no obligations,
assets or liabilities which would be considered off-balance sheet arrangements. Bison does not participate in transactions that
create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which
would have been established for the purpose of facilitating off-balance sheet arrangements. Bison has not entered into any off-balance
sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or
purchased any non-financial assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Contractual obligations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison does not have
any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities other than an agreement to
pay Bison&rsquo;s sponsor a monthly fee of $5,000 for office space, utilities and secretarial support provided to the Company.
Bison began incurring these fees on June 23, 2017 and will continue to incur these fees monthly until the earlier of the completion
of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Critical Accounting Policies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The preparation of financial
statements and related disclosures in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of
contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported.
Actual results could materially differ from those estimates. Bison has identified the following critical accounting policies:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Ordinary shares subject to redemption</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison accounts for Bison&rsquo;s
ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (&ldquo;ASC&rdquo;)
Topic 480 &ldquo;Distinguishing Liabilities from Equity.&rdquo; Ordinary shares subject to mandatory redemption are classified
as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that
feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain
events not solely within Bison&rsquo;s control) are classified as temporary equity. At all other times, ordinary shares are classified
as shareholders&rsquo; equity. Bison&rsquo;s ordinary shares feature certain redemption rights that are considered to be outside
of Bison&rsquo;s control and subject to occurrence of uncertain future events. Accordingly, ordinary shares subject to possible
redemption are presented at redemption value as temporary equity, outside of the shareholders&rsquo; equity section of Bison&rsquo;s
balance sheet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Net income (loss) per ordinary share</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bison applies the two-class
method in calculating earnings per share. Ordinary shares subject to possible redemption which are not currently redeemable and
are not redeemable at fair value, have been excluded from the calculation of basic net income (loss) per ordinary share since such
shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. Bison&rsquo;s net income is adjusted
for the portion of income that is attributable to ordinary shares subject to redemption, as these shares only participate in the
earnings of the Trust Account and not Bison&rsquo;s income or losses<FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Recent accounting pronouncements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Management does not
believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material
effect on the Company&rsquo;s condensed consolidated financial statements.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_017"></A><B>BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Industry</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The biotechnology industry focuses on developing breakthrough products and technologies to combat various
types of diseases through pre-clinical research, clinical development, and efficient industrial manufacturing process. Such industry
is an important business sector in the world&rsquo;s economies&nbsp;and plays a key role in human health. Biotechnology&nbsp;companies
generally require large amounts of capital investment for their research &amp; development activities. &nbsp;It may take up to
tens of years to develop and commercialize a new drug or a new medical device.</P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Business Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are a clinical
stage biopharmaceutical company that discovers and develops innovative small molecule drug candidates for the treatment of cancer
in humans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our lead drug candidate
is abexinostat, an orally dosed, hydroxamic acid-based&nbsp;small molecule histone deacetylase (&ldquo;HDAC&rdquo;) inhibitor.
In February 2017, Xynomic entered into a license agreement with Pharmacyclics LLC (&ldquo;Pharmacyclics&rdquo;), a subsidiary of
AbbVie Inc. (&ldquo;AbbVie&rdquo;), for the worldwide exclusive rights to develop and commercialize abexinostat for all human and
non-human&nbsp;diagnostic, prophylactic, and therapeutic uses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Abexinostat is a pan-HDAC inhibitor that inhibits HDACs&nbsp;1,&nbsp;2,&nbsp;3,&nbsp;6, and 10. HDAC enzymes can affect a number of cell functions,
including the viability of cancer cells, by regulating the acetylation of both histone and non-histone&nbsp;substrates. Thus, HDACs
have become a therapeutic target for various types of cancers. Prior to granting the license to Xynomic, Pharmacyclics and its
partners evaluated abexinostat in 18 Phase 1/2 clinical trials for lymphoma and solid tumors. As a result of the license, Xynomic
has obtained exclusive rights to use the data generated in the 18 previously completed clinical trials. The data from many of these
trials have also been published by the investigators in scientific journals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In December 2018, Xynomic
entered into a license agreement with Boehringer Ingelheim for the worldwide exclusive rights to develop and commercialize XP-105&nbsp;(also
known as BI 860585) for all human and non-human&nbsp;diagnostic, prophylactic, and therapeutic uses. XP-105&nbsp;is an orally bioavailable
mTORC1/2 kinase inhibitor, which inhibits both raptor-mammalian&nbsp;target of rapamycin (&ldquo;mTOR&rdquo;) complex 1 (known
as mTORC1) and rictor-mTOR&nbsp;complex 2 (known as mTORC2). Prior to this license, Boehringer Ingelheim International GmbH (&ldquo;Boehringer
Ingelheim&rdquo; or &ldquo;BII&rdquo;) had completed one Phase 1 clinical trial for solid tumors. As a result of the license, Xynomic
has obtained exclusive rights to use all the data generated in this Phase 1 clinical trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>On-Going Clinical Trials of Abexinostat</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 23.75pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since its in-licensing&nbsp;of
abexinostat, Xynomic has started enrolling patients in clinical trials for three different indications: (1) in renal cell carcinoma
(&ldquo;<I>RCC</I>&rdquo;), in combination with pazopanib, (2) in follicular lymphoma (&ldquo;<I>FL</I>&rdquo;), as a monotherapy,
(3)in mantle cell lymphoma(&ldquo;MCL&rdquo;) and diffuse large B&ndash;cell lymphoma(&ldquo;DLBCL&rdquo;), in combination with
imbruvica, and (4) in multiple solid tumors, in combination with Keytruda<SUP>&reg;</SUP>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Abexinostat, in combination with Pazopanib,
in Renal Cell Carcinoma (XYN-602)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic is investigating abexinostat, in combination with pazopanib, in a Phase 3 trial as the first-line&nbsp;or
second-line&nbsp;treatment of RCC, head-to-head&nbsp;against pazopanib as a monotherapy. RCC is the most common type of kidney
cancer in adults (Source:&nbsp;<I>Robert J. Motzer, Sam Bhayani, et al. (2017) Kidney Cancer, Version 2.2017. Journal of the National
Comprehensive Cancer Network. 2017; 15(6): 804-834</I>). This trial will enroll approximately 390 patients globally with locally
advanced or metastatic RCC and will be conducted in the U.S., six European countries, China, and South Korea. Based on discussion
of trial design with the FDA prior to study initiation in an EOP2/Pre-Phase&nbsp;3 Meeting held on March&nbsp;16, 2018, Xynomic
believes the trial has potential to support approval in the U.S. In March 2019 the U.S. FDA granted Fast Track designation to abexinostat,
in combination with pazopanib, as a first- or second-line treatment of RCC. For further detail, see below in the section entitled
&ldquo;&mdash; Abexinostat &mdash; Ongoing Clinical Studies.&rdquo;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Abexinostat as a monotherapy in Follicular Lymphoma
(XYN-601)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic is
conducting a Phase 2 trial to test abexinostat as a single agent, in patients with relapsed or refractory
(&ldquo;<I>R/R</I>&rdquo;) FL, the second most common form of lymphoma in the U.S. and Europe
(Source:&nbsp;<I>https://www.cancer.net/cancer-types/lymphoma-non-hodgkin/subtypes</I>). Designed as a single arm trial, this
trial will enroll approximately 120 patients in the U.S. and Europe who have undergone at least three lines of
therapy to test abexinostat as a fourth line monotherapy. Based on discussion of trial design with the FDA in a
pre-IND&nbsp;meeting held on April&nbsp;18, 2018, we believe the trial has potential to support accelerated approval in the
U.S. For further detail, see below in the section entitled &ldquo;&mdash; Abexinostat &mdash; Ongoing Clinical
Studies.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Abexinostat,
in combination with Imbruvica<SUP>&reg; </SUP>(ibrutinib), in Relapsed/Refractory Mantle Cell Lymphoma (&ldquo;r/r MCL&rdquo;)
or Relapsed/Refractory Diffuse Large B-cell Lymphoma (&ldquo;r/r DLBCL&rdquo;)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fourth study is
a Phase 1/2 clinical trial of abexinostat, in combination with Imbruvica<SUP>&reg;</SUP>, in patients with r/r MCL or r/r DLBCL
at Memorial Sloan Kettering Cancer Center (MSK). This trial will enroll approximately 40 patients to assess the safety and efficacy
of the combination in patients with r/r MCL or r/r DLBCL. This trial will also explore the biologic predictors of response and
resistance to dual B-cell receptor (BCR) and histone deacetylase (HDAC) inhibition. Janssen Biotech, Inc. (&ldquo;Janssen&rdquo;)
is providing ibrutinib as part of the study, with Xynomic providing abexinostat and funding support for the trial being conducted
at MSK. Researchers at MSK are testing whether abexinostat/ibrutinib combo could potentially improve response rates and duration
of responses in r/r MCL patients, subject to the assessment upon the completion of the trial. For further detail, see below in
the section entitled &ldquo;&mdash; Abexinostat &mdash; Ongoing Clinical Studies.&rdquo;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Abexinostat, in combination with Keytruda<SUP>&reg;</SUP>,
in Multiple Solid Tumors (XYN-604)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The third study is a
Phase 1b trial of abexinostat, in combination with Keytruda<SUP>&reg;</SUP>, in patients with multiple solid tumors with prior
progression on Keytruda<SUP>&reg;</SUP>&nbsp;or other checkpoint inhibitor (&ldquo;<I>CPI</I>&rdquo;) treatments. In this trial,
Xynomic will explore dose escalation/expansion of abexinostat in combination with Keytruda<SUP>&reg;</SUP>. Xynomic plans to enroll
approximately 42 patients in the U.S in this Phase 1b trial and expects to complete this trial in approximately 2 years. For further
detail, see below in the section entitled &ldquo;&mdash; Abexinostat &mdash; Ongoing Clinical Studies.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Planned Clinical Trials with Abexinostat and
XP-105</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Planned Clinical
Trials with Abexinostat</U><I>.</I>&nbsp;Xynomic plans to initiate the following four clinical trials of abexinostat in the third quarter of 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">a Phase 1/2 clinical trial of abexinostat, in combination
with a marketed CDK4/6 inhibitor, in patients with certain subtypes of breast cancer. This trial will enroll approximately 50
patients in the U.S.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">a Phase 2 clinical trial of abexinostat, as a single
agent, in patients with R/R FL in China. This trial will enroll approximately 81 patients in China and is independent from the
ongoing trial in the U.S., Europe and China. Designed as a single arm trial, Xynomic&rsquo;s Phase 2 trial will enroll patients
who have undergone at least two lines of therapy to test abexinostat as a third line monotherapy. Based on written communications
Xynomic had with the Center of Drug Evaluation (the &ldquo;<I>CDE</I>&rdquo;) of the China National Medical Products Administration
in September 2018, Xynomic believes that the data from this planned Phase 2 trial has potential to support approval in China.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">a Phase 2 clinical trial of abexinostat, as a single
agent, in patients with R/R DLBCL in China. This trial will enroll approximately 144 patients in China and is independent from
the planned abexinostat/Imbruvica trial in the U.S. Designed as a single arm trial, Xynomic&rsquo;s Phase 2 trial will enroll
patients who have undergone at least two lines of therapy to test abexinostat as a third line monotherapy. Based on written communications
Xynomic had with the CDE of the China National Medical Products Administration in September 2018, Xynomic believes that the data
from this planned Phase 2 trial has potential to support approval in China.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Planned Clinical
Trials with XP-105</U><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>.</I>&nbsp;Xynomic is only
two years behind competiting drug candidates being developed by major multinational pharmaceuticals companies and plans to initiate
a phase clinical trial soon. One will be a single arm Phase 2 trial, combining XP-105&nbsp;with paclitaxel against breast cancer
which we expect to initiate in the third quarter of 2019. This trial will be conducted primarily in China. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Pre-Clinical Programs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, Xynomic
has several pre-clinical&nbsp;oncology drug candidates in its pipeline. Among these drug candidates, XP-102&nbsp;(also known as
BI 882370), a selective pan-RAF inhibitor to which Xynomic obtained a worldwide exclusive license from BII, is the closest to clinical
testing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 1 &mdash; Xynomic&rsquo;s Pipeline</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_22.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has not completed
any clinical trials since its inception. With respect to the pipeline programs referenced in the above figure, all of the completed
clinical trials of abexinostat were conducted by or on behalf of either Pharmacyclics or Servier Laboratories and the one completed
clinical trial of XP-105&nbsp;was conducted by or on behalf of BII.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Consummation of the Business Combination </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As disclosed on a current
report on <A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019008879/f8k051519_xynomicpharma.htm">Form 8-K</A> filed with the SEC on May 15, 2019, on May 15, 2019 (the &ldquo;<B><I>Closing Date</I></B>&rdquo;), Bison Capital
Acquisition Corp., our predecessor at that time (&ldquo;<B><I>Bison</I></B>&rdquo;), consummated the previously announced business
combination (the &ldquo;<B><I>Business Combination</I></B>&rdquo;) following a special meeting of shareholders held on May 14,
2019 (the &ldquo;<B><I>Special Meeting</I></B>&rdquo;) where the shareholders of Bison, which, prior to the consummation of the
Business Combination, domesticated as a Delaware corporation and, immediately thereafter known as &ldquo;Xynomic Pharmaceuticals
Holdings, Inc.&rdquo;, considered and approved, among other matters, a proposal to adopt that certain Agreement and Plan of Merger
(as amended, the &ldquo;<B><I>Merger Agreement</I></B>&rdquo;), dated as of September 12, 2018, entered into by and among by and
among (i) Bison; (ii) Bison Capital Merger Sub Inc., a Delaware corporation (&ldquo;<B><I>Merger Sub</I></B>&rdquo;) (iii) Xynomic
Pharmaceuticals, Inc., a Delaware corporation (&ldquo;<B><I>Xynomic</I></B>&rdquo;); and (iv) Yinglin Mark Xu (&ldquo;<B><I>Stockholder
Representative</I></B>&rdquo;), solely in his capacity as the Stockholder Representative thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Merger
Agreement, among other things, Merger Sub merged with and into Xynomic, with Xynomic continuing as the surviving entity
and a wholly-owned subsidiary of the Company (the &ldquo;<B><I>Merger</I></B>&rdquo; and the &ldquo;<B><I>Surviving Company</I></B>&rdquo;).
The merger became effective on May 15, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 14, 2019, prior
to the consummation of the Business Combination, Bison continued out of the British Virgin Islands and domesticated as a Delaware
corporation (the &ldquo;<B><I>Domestication</I></B>&rdquo;). As a result, Bison is no longer a company incorporated in the British
Virgin Islands.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Closing Date,
pursuant to the Backstop Agreement&nbsp;dated May 1, 2019 entered into by and between Bison and Yinglin Mark Xu, Mr. Xu togher
with his assignee Bison Capital Holding Company Limited, purchased from the Company 755,873 shares of common stock at a price of
$10.15 per share for a total consideration of $7,672,112 (the &ldquo;<B><I>Backstop Shares</I></B>&rdquo; and &ldquo;<B><I>Backstop
Subscription</I></B>&rdquo;). As a result of Backstop Subscription, Bison had at least $7,500,001 of net tangible assets remaining
at the Closing after giving effect to the redemption of any Ordinary Shares by the public shareholders in connection with the Business
Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Closing Date,
each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective Time was automatically converted
into the right to receive, on a pro rata basis, the Closing Consideration Shares (as defined below) and the Earnout Shares (as
defined below), and each option to purchase Xynomic stock that was outstanding immediately prior to the Effective Time was assumed
by the Company and automatically converted into an option to purchase shares of common stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the closing, pursuant
to the Merger Agreement, all Xynomic stockholders received a number of newly issued shares of Company common stock equal to the
Closing Merger Consideration divided by $10.15 per share (the &ldquo;<B><I>Closing Consideration Shares</I></B>&rdquo;). The Closing
Merger Consideration equals to (a) $350,000,000, minus (i) the amount of Xynomic&rsquo;s closing indebtedness, plus (ii) the amount
of Xynomic&rsquo;s closing cash, minus (iii) the amount of Xynomic&rsquo;s transaction expenses, plus (iv) certain closing tax
assets, plus (v) the amount, if any, by which Xynomic&rsquo;s closing working capital exceeds an agreed upon target amount of working
capital, minus (vi) the amount, if any, by which such target amount of working capital exceeds Xynomic&rsquo;s closing working
capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the
Closing Consideration Shares, Xynomic stockholders received an additional 9,852,216 shares of common stock in aggregate (the &ldquo;<B><I>Earnout
Shares</I></B>&rdquo; and, together with the Closing Consideration Shares, the &ldquo;<B><I>Merger Consideration Shares</I></B>&rdquo;).
As a result, the Company issued 42,860,772 common shares as in aggregate Merger Consideration Shares to shareholders of Xynomic
immediately prior to the closing (the &ldquo;<B><I>Sellers</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Merger
Agreement, 1,285,822 shares were deposited into an escrow account (the &ldquo;<B><I>Escrow Account</I></B>&rdquo;) to serve as
security for, and the exclusive source of payment of, the Company&rsquo;s indemnity rights under the Merger Agreement and any excess
of the estimated Closing Merger Consideration over the final Closing Merger Consideration amount determined post-Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a result of the
Business Combination, the Sellers, as the former shareholders of Xynomic, became the controlling shareholders of the Company and
Xynomic became a subsidiary of the Company. The Business Combination was accounted for as a reverse merger, wherein Xynomic is
considered the acquirer for accounting and financial reporting purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to the Business
Combination, we were a &ldquo;shell company&rdquo; (as such term is defined in Rule 12b-2 under the Securities Exchange Act of
1934, as amended). As a result of the Business Combination, we have ceased to be a &ldquo;shell company&rdquo; and will continue
the existing business operations of Xynomic as a publicly traded company under the name &ldquo;Xynomic Pharmaceuticals Holdings,
Inc.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Nasdaq Listing Compliance</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 15, 2019, we
received written notice from the staff of The NASDAQ Stock Market LLC (&ldquo;<B><I>Nasdaq</I></B>&rdquo;) indicating that the
Staff had determined to delist the Company&rsquo;s securities from Nasdaq based upon the Company&rsquo;s non-compliance with Nasdaq
Listing Rules 5505(a)(3) and 5515(a)(4), which require a minimum of 300 round lot holders of common stock and 400 round lot holders
of common stock purchase warrants for initial listing on The Nasdaq Capital Market. The Staff&rsquo;s determination also cited
the Company&rsquo;s non-compliance with the minimum $5 million in stockholders&rsquo; equity requirement, as set forth in Nasdaq
Listing Rule 5505(b)(1)(A).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon request, a hearing
before the Panel was scheduled on July 11, 2019 and our request for hearing has stayed any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to the Company by
the Panel. We intend to pursue certain actions including this Offering to increase the number of round lot holders of its common
stock as well as increase its stockholders&rsquo; equity as soon as practicable to meet the applicable listing requirements; however,
there can be no assurances that the Company will be able to do so within the period of time that may be granted by the Panel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Unit Offering</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
or about July 10, 2019, we entered into certain Securities Purchase Agreement (the &ldquo;Unit SPA&rdquo;) with certain &ldquo;accredited
investors&rdquo; as defined in Rule 501(a) of Regulation D as promulgated under the Securities Act (the &ldquo;Unit Purchasers&rdquo;),
pursuant to which we agreed to sell to such Unit Purchasers an aggregate of approximate USD$10 million of units (the &ldquo;Units&rdquo;)
of the Company, at a purchase price of USD$3.80 per Unit (subject to adjustment) (the &ldquo;Unit Offering&rdquo;). Each Unit consists
of one share of Common Stock and one-half warrant (the &ldquo;Unit Warrant&rdquo;). Each whole Unit Warrant can be exercised to
purchase one share of Common Stock at $7.00 per share and shall expire in three (3) years of the issuance, and have the rights
and preference set forth in certain warrant agreement. Furthermore, the Unit SPA provides, among other terms, a maximum offering
in an aggregate of $15 million with the first closing of a minimum of $5 million upon delivery of the closing conditions set forth
in the Unit SPA, provided that no closing shall occur after September 30, 2019 subject to certain exception.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Units, the shares of Common Stock underlying the Units (the &ldquo;Unit Shares&rdquo;), the Unit Warrants issued in the Offering,
and shares of Common Stock issuable upon exercise of the Unit Warrants (the &ldquo;Unit Warrant Shares&rdquo;), are exempt from
the registration requirements of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
proceeds of this Unit Offering will be used for working capital and general corporate purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Unit SPA also contains customary representation and warranties of the Company and the Unit Purchasers, indemnification obligations
of the Company, termination provisions, and other obligations and rights of the parties. Additionally, we anticipate that the Unit
Purchasers will enter into a lock-up agreement at the closing pursuant to which that they would agree not to sell or otherwise
transfer or dispose the Units, Unit Shares, Unit Warrants, or Unit Warrant Shares during the six-month period commencing on the
earlier of the effective date of a registration statement in connection with the first follow-on public offering after the date
of the Unit SPA or the issuance date of the Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The Form of the Unit SPA and the Form of the Unit Warrants are filed as Exhibits 10.22 and 10.23 to this
prospectus, respectively; and such documents are incorporated herein by reference. The foregoing is only a brief description of
the material terms of the Unit SPA and the Unit Warrants, and does not purport to be a complete description of the rights and obligations
of the parties thereunder and is qualified in its entirety by reference to such exhibits.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Business Strategy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic&rsquo;s business
strategy has been designed to enable Xynomic to achieve its mission of developing and commercializing innovative drug products
in the field of oncology. The key tenets of our strategy include the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Build an oncology
franchise to maximize value.&nbsp;&nbsp;&nbsp;&nbsp;</I></B>Oncology is Xynomic&rsquo;s therapeutic focus. According to data published
by EvaluatePharma<SUP>&reg;</SUP>, oncology was the top therapy area in the global pharmaceutical market with sales of $93.7&nbsp;billion
in 2016, or 11.7% of the market (Source:<I>http://info.evaluategroup.com/rs/607-YGS-364/images/wp16.pdf</I>). This number is projected
to grow to $192.2&nbsp;billion in 2022, highlighting the rapid growth in this market. The strong and sustainable growth of the
oncology market is mainly driven by three factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">cancer remains one of the leading causes of natural
deaths worldwide;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">there are a high degree of unmet medical needs in
oncology; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">oncology drugs that have obtained regulatory approval have
demonstrated commercial success for numerous pharma companies.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Capitalize on
our expertise to develop a pipeline of small molecule, oral, targeted drug candidates.</I></B>&nbsp;Xynomic&rsquo;s
core scientific team has many years of experience in research, development and manufacturing of small molecule, oral, targeted
drug candidates against cancer and other diseases. This expertise as Xynomic&rsquo;s core strength will continue to be leveraged
as Xynomic expands its pipeline. According to a 2015 IMS study, targeted therapies make up approximately 87% of the late-phase&nbsp;oncology
pipelines under development worldwide. Thus, Xynomic&rsquo;s focus on targeted drug candidates aligns with this global trend in
oncology treatments. Oral dosage represents another recent trend in oncology medication as oral dosage has been shown to significantly
improve patient compliance and quality of life.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Strategically
in-license&nbsp;global rights to late stage drug candidates.</I></B>&nbsp;Xynomic&rsquo;s lead drug candidate abexinostat was
licensed from Pharmacyclics. Prior to Xynomic&rsquo;s acquisition of the global exclusive license, Pharmacyclics had tested abexinostat
on approximately 600 patients globally and had assembled a large amount of potentially valuable clinical data on safety and efficacy,
which, subject to the outcome of further clinical trials, potentially could enable Xynomic to launch the product in the U.S.,
China, EU and other key markets. Xynomic&rsquo;s ability to obtain global licenses on assets from multinational pharmaceutical
companies such as AbbVie and BII is a result of our management&rsquo;s extensive network within the global biopharmaceutical industry
and deal making and deal execution expertise. Xynomic will continue to leverage this competitive advantage to access top-quality&nbsp;drug
candidates for in-licensing&nbsp;and co-development&nbsp;opportunities, and potential future co-marketing&nbsp;partnerships.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Build a strong
internal research and development team to enrich the pipeline.</I></B>&nbsp;In addition to its in-licensing&nbsp;strategy,
Xynomic has built a team of researchers with expertise in epigenetics and kinase inhibition, which could enable Xynomic to potentially
discover new mechanisms of action (&ldquo;<I>MOA</I>&rdquo;), potentially design innovative molecules around these MOAs, and potentially
move promising molecules to clinical testing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Utilize
global resources to lower cost and improve efficiency.</I></B>&nbsp;With its presence in both the U.S. and China, Xynomic can
potentially leverage high-quality, low-cost&nbsp;global resources to efficiently develop our pipeline. Xynomic keeps core
competencies such as research, clinical development management and business development in house, while outsourcing
commoditized activities such as small-molecule&nbsp;manufacturing and clinical study management to reputable vendors. This
hybrid model potentially allows Xynomic to access efficient resources globally, manage investment in redundant
infrastructure, and secure a more favorable return on investment. Xynomic has established a vigorous vendor selection process
to ensure that it receives the highest quality and compliance level at a reasonable cost. For instance, abexinostat&rsquo;s
active pharmaceutical ingredient (&ldquo;<I>API</I>&rdquo;) and finished dosage formulation are manufactured in Europe,
whereas its pivotal clinical trials are managed by top multinational contract research organizations, or CROs such as PPD
Development, LP (&ldquo;<I>PPD</I>&rdquo;) and Parexel International (IRL) Ltd. (&ldquo;<I>Parexel</I>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Capture potential
lower research and development costs, better access to patient pool and growing market in China.&nbsp;</I></B>In
addition to their years of professional training and industry experience in the U.S., the Xynomic founders have significant personal
and professional experience in China, the second largest pharmaceutical market in the world. Building on this, Xynomic is well
positioned to capitalize on China, both as a potential market for Xynomic&rsquo;s oncology drugs and a location for lower research
and development costs and better access to patient pools. Pursuant to recent regulatory reform in China, China&rsquo;s drug approval
process has been enhanced to make it more similar to those of other developed countries. This will further allow Xynomic to potentially
leverage our resources in China to develop products for the U.S. and the rest of the world.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Market Opportunity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The American Cancer
Society estimates that approximately 1,735,350&nbsp;million new cancer cases will be diagnosed in the U.S. in 2018, and there will
be approximately 609,640 cancer deaths. According to a report published by Allied Market Research, the global market for cancer
therapeutics was valued at $81.2&nbsp;billion in 2016 and is projected to reach $178.9&nbsp;billion by 2023, at a CAGR of 11.9%
from 2017-2023. This growth will be driven by factors such as development of novel cancer therapeutics and an increase in cancer
awareness and availability of oncology drugs in developing markets. Specifically, the global market size for FL is expected to
reach $4.1&nbsp;billion by 2023, for RCC, $4.7&nbsp;billion, for certain solid tumors treated by Keytruda<SUP>&reg;</SUP>, $8.0&nbsp;billion,
for breast cancer, $20.0&nbsp;billion and for DLBCL, $14.4&nbsp;billion. According to a September 2018 report by WHO&rsquo;s International
Agency for Research on Cancer, among females, breast cancer is the most commonly diagnosed cancer, whereas colorectal cancer is
the 2<SUP>nd</SUP>&nbsp;among females and the 3<SUP>rd</SUP>&nbsp;among males. According to IMS and iHealthcareanalyst, drugs treating
breast cancers and rectal cancers are expected to generate annual revenue of approximately $25.4&nbsp;billion by 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Abexinostat</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Abexinostat is an innovative,
orally dosed, broad spectrum, hydroxamic acid-based small molecule HDAC inhibitor. Studies published in medical journals have documented
promising anti-tumor activity in vitro and in vivo. Clinical development of abexinostat began in July 2005. It has been evaluated
by Pharmacyclics and its partners in a total of 18 Phase 1/2 clinical trials for lymphoma and solid tumors. Pursuant to a February
2017 license agreement with Pharmacyclics, Xynomic has obtained the exclusive worldwide rights to develop and commercialize abexinostat
for all human and non-human diagnostic, prophylactic, and therapeutic uses. As a result of the license, Xynomic has obtained exclusive
rights to use all the data generated in the previously completed clinical trials listed below in Figure 2.&nbsp;The data from many
of these trials have also been published by the investigators in scientific journals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 2 &ndash; Summary of Completed
Clinical Trials on Abexinostat</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_07.jpg" ALT="" STYLE="width: 600px; height: 330px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on the results
from these early studies, Xynomic believes that abexinostat may offer a more active and potentially less toxic treatment option
for cancer with a wider therapeutic index. When used in combination with other cancer therapeutics, abexinostat may also have synergistic
anti-tumor activity in tumor cells.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Currently Xynomic
is conducting three clinical trials of abexinostat: (1) as a single agent in patients with FL (XYN-601), (2) in combination
with pazopanib in patients with RCC (XYN-602),  (3) in combination with Keytruda<SUP>&reg;</SUP> in patients with multiple
solid tumors (XYN-604), and (4) combination with Imbruvica<SUP>&reg;</SUP>, in patients with r/r MCL or r/r DLBCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Background of
HDAC Inhibitors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Abexinostat is an oral
inhibitor of HDAC enzymes, which are well-validated drug targets in various disease areas including cancer. These enzymes control
several vital cellular processes, such as transcription, cell cycle progression, protein transport and degradation, and their activity
is often dysregulated (namely, impaired) in cancer. Typically the major function of these enzymes is controlling gene expression,
namely, whether genes are turned &ldquo;on&rdquo; or &ldquo;off&rdquo; via epigenetic mechanisms. In cancer, HDACs are often differentially
expressed from normal cells, resulting in gene expression changes that favor a tumor&rsquo;s ability to multiply, to avoid apoptosis
(namely, programmed cell death) or to become resistant to chemotherapy. Treatment with HDAC inhibitors has been show to reverse
these changes, resulting in cancer cell death in vitro (namely, in cultured cells) and tumor growth inhibition in vivo (namely,
in animals) at non-toxic concentrations. The following diagram illustrates HDAC inhibitors&rsquo; mechanism of action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 3 &ndash; HDAC Inhibitors&rsquo;
Mechanism of Action</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_08.jpg" ALT="" STYLE="width: 500px; height: 335px">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Multiple inhibitors
of HDACs have been approved by the U.S. FDA for treatment of hematologic malignancies. It is believed that HDAC inhibitors induce
histone hyperacetylation and can cause cell death. The first drug in this class to gain approval from FDA was Vorinostat (Zolinza<SUP>&reg;</SUP>,
Merck), which is approved to treat cutaneous T-cell lymphoma (&ldquo;<I>CTCL</I>&rdquo;) in patients that have failed two previous
therapies. Another HDAC inhibitor, Romidepsin (Istodax<SUP>&reg;</SUP>, Celgene) is approved to treat CTCL and peripheral T-cell
lymphoma (&ldquo;<I>PTCL</I>&rdquo;). Additionally, belinostat (Beleodaq<SUP>&reg;</SUP>, Spectrum) was approved in 2014 for the
treatment of patients with R/R T-cell lymphoma and panobinostat (Farydak<SUP>&reg;</SUP>, Novartis) was approved in 2015 for the
treatment of multiple myeloma.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to overt
anti-tumor activities described above, HDAC inhibitors are known to have the ability to reverse resistance to some cancer therapies
such as vascular endothelial growth factor (&ldquo;<I>VEGF</I>&rdquo;) inhibitors and CPIs via epigenetic modification. Resistance
to approved cancer therapies is a major problem in cancer treatment. Tumors can find ways to modify their genes to become resistant.
One such process is called &ldquo;epigenetics&rdquo;, where genes are turned on and off, but the sequence of DNA is not altered.
For certain cancers, a group of investigators at University of California San Francisco (&ldquo;UCSF&rdquo;) reported that adding
an HDAC inhibitor to an approved cancer therapy can prevent or reverse such resistance. See &ldquo;<I>Information about Xynomic
&mdash; Abexinostat &mdash; On Going Clinical Studies of Abexinostat &mdash; Abexinostat, in combination with Pazopanib, in Renal
Cell Carcinoma (XYN-602) &mdash; Preliminary Results of Combining Abexinostat and Pazopanib in RCC.</I> The underlying mechanism
is complex and not fully understood, and it often varies depending on the cancer type. For example, when RCC and certain other
solid tumors are treated with VEGF inhibitors such as pazopanib, resistance can be caused by, among other factors, hypoxia-driven,
HDAC-mediated overexpression and post-translational stabilization of hypoxia-inducible factor (&ldquo;<I>HIF</I>&rdquo;)-1&alpha;.
HDAC inhibitors can potentially downregulate HIF-1&alpha; and VEGF expression via epigenetic mechanism, thus recapturing response
to pazopanib. When combined with CPIs, HDAC inhibitors have been shown to counteract the mechanisms of resistance to CPIs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Key Findings
of Prior Trials on Abexinostat</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Unique Pharmacokinetic
Profile</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In a Phase 1 trial
sponsored by Servier (CL1-78454-001), abexinostat was rapidly absorbed following oral administration, and a maximal plasma concentration
was achieved within 0.5 to 1 hour. The terminal elimination half-life, which is the time required for the body to eliminate half
of the administered dose, was calculated to be approximately 4 hours. In other orally administered HDAC inhibitors, it takes similar
or relatively longer time to achieve the maximal plasma concentration: about two hours for Vorinostat (Volinza<SUP>&reg;</SUP>,
Merck) and Panobinostat (Farydac<SUP>&reg;</SUP>, Novartis) and about four hours for Chidamide (Epidaza<SUP>&reg;</SUP>, Chipscreen).
At the same time, the terminal elimination half-life was estimated to be approximately 37 hours for Panobinostat and approximately
17 hours for Chidamide, significantly longer than abexinostat&rsquo;s approximately 4 hours of terminal elimination half-life
(Vorinostat showed a shorter terminal elimination half-life of approximately 2 hours). Pharmacokinetic modeling suggested that
optimal oral dosing schedule for abexinostat may be twice daily four hours apart. Based on these data, Xynomic plans to leverage
pharmacokinetics profile of abexinostat, combined with its potential dosage regimen, and explore abexinostat&rsquo;s potential
as a less toxic treatment option for cancer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">CL1-78454-001 was an
open-label, non-randomized, dose-escalation, Phase 1 portion of a Phase 1/2 study. The Phase 2 portion of this Phase 1/2 study
is known as PCYC-1401. The primary objective of the Phase 1 was to assess safety and tolerability, and determine the recommended
Phase 2 dose and optimal administration schedule of abexinostat in patients with R/R B-cell lymphoma or chronic lymphocytic leukemia
(&ldquo;CLL&rdquo;). Secondary objectives included pharmacokinetics, pharmacodynamics, and tumor response. Between February 2010
and June 2011, oral abexinostat 30, 45, or 60 mg/m2 was administered twice daily on 35 patients with R/R Hodgkin&rsquo;s Lymphoma
(&ldquo;HL&rdquo;) or Non-Hodgkin Lymphoma (&ldquo;NHL&rdquo;) (including FL and DLBCL) and CLL. Two dose-limiting toxicities occurred
at 60 mg/m2 twice daily in each of the three dosing schedules (one Grade 3 febrile neutropenia; five Grade 4 thrombocytopenia).
Grade 3 or above adverse events (&ldquo;AEs&rdquo;) included thrombocytopenia (31% Grade 3, and 26% Grade 4), which was found reversible
after stop dosing. Grade 3 or above AEs are generally serious adverse events (&ldquo;SAEs&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Preliminary Safety
Data</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Safety of a drug candidate
is measured in terms of the frequency and severity of the occurrences of AEs in a clinical study. The number of treatment-emergent
adverse events (&ldquo;TEAEs&rdquo;), includes all events emerging during the treatment that were either absent before the treatment
or worsen relative to the state before the treatment. TEAEs may or may not related to the study drug.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Depending on the severity
of AEs, they are categorized into Grade 1 through 5. Grade 1 AEs are AEs with mild symptoms that do not need medical intervention.
Grade 2 AEs are moderate AEs that require minimal, local or non-invasive intervention. Grade 3 AEs are severe or medically significant
but not immediately life-threatening AEs either that require hospitalization or prolong existing hospitalization, or that are disabling,
or that limit self care abilities. Grade 4 AEs are AEs that result in life-threatening consequences and involve urgent intervention.
Grade 5 AEs are deaths related to adverse events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Safety of a drug candidate
is also characterized by occurrences of SAE (Serious Adverse Event), which is defined as any AE that results in death; is life-threatening;
requires hospitalization or prolongation of existing hospitalization; results in permanent or significant disability/dysfunction;
results in congenital anomaly/birth defect, or leads to other important medical events. Grade 3 and above AEs are generally SAEs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Preliminary safety
data from clinical trials PCYC-0403 and PCYC-1401 (measured in Grade 3 &amp; 4 AE occurrence percentage among the trial subjects)
are listed in the figure below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">PCYC-0403 was a Phase
1/2 multicenter, open-label, dose-escalation study of abexinostat sponsored by Pharmacyclics. The study enrolled 55 total patients,
of which 25 patients with any lymphoma subtype participated in the Phase 1 portion of the study. The Phase 2 study included 16
patients with FL and 14 patients with MCL. Patients received abexinostat capsules orally twice daily (approximately 4&ndash;6 hours
apart) at 30, 45, and 60 mg/m2. Two four-week dosing cycle schedules were used: 5 days per week for the first 3 weeks [Days 1&ndash;5,
8&ndash;12, 15&ndash;19]) and an alternative dosing schedule, 7 days every other week [Days 1&ndash;7, 15&ndash;21]). Treatment
was continued until progressive disease or unacceptable toxicity. Serious AEs or SAEs were reported in 11 subjects (36.7%) overall,
in 6 subjects with FL and in 5 subjects with MCL. The TEAEs, which include AEs related to the study drug as well as other AEs emerging
during the treatment, were nausea (60%), fatigue (60%), diarrhea (50%), thrombocytopenia (47%), cough (43%), vomiting (33%), constipation
(33%), anemia (26.70%), headache (27%), edema peripheral (23%), neutropenia (23%), sinusitis (23%), decreased appetite (23%) and
dyspepsia (23%). Grade 3 and above AEs include thrombocytopenia (20%), neutropenia (13%), anemia (3%), arthralgia (7%), fatigue
(17%) and diarrhea (3%).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">PCYC-1401 was the Phase
2 portion of a Phase 1/2 study originally sponsored by Servier and later by Pharmacyclics. This Phase 2 study enrolled 100 patients
with R/R NHL or CLL, including 18 FL patients, 17 DLBCL patients, 16 MCL patients, 18 T-CL patients, 15 MZL and other subtypes
patients and 16 CLL/LL patients. Patients were given oral abexinostat at 80 mg twice a day four hours apart for 14 days of a 3-week
cycle, and treatment was continued until progressive disease or unacceptable toxicity. TEAEs were reported in 98% of patients,
which were thrombocytopenia (88%), diarrhea (47%), anemia (38%), nausea (36%), neutropenia (35%), asthenia (35%), decreased appetite
(33%), vomiting (20%), constipation (14%), pyrexia (14%), fatigue (13%), muscle spasms (11%) and weight decreased (10%). It was
reported that 88% patients experienced Grade 3 or above AEs, which were thrombocytopenia (80%), neutropenia (28%), anemia (22%),
asthenia (6%), pneumonia (6%), hypokalemia (5%), febrile neutropenia (3%), abdominal pain (3%), diarrhea (3%) and renal failure
chronic (3%).&nbsp;&nbsp;There were 5 deaths in the study, but the investigators did not find any of them to be related to treatment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 4 &ndash; Abexinostat and Approved
HDACs<SUP>&dagger;</SUP> Grade 3 and 4 AE % </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_09.jpg" ALT="" STYLE="width: 600px; height: 330px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investigators in the
PCYC-1401 Phase 2 study attributed the difference in the toxicity profiles of abexinostat between PCYC-0403 and PCYC-1401 to the
differences in dosing schedules used. Abexinostat, when administered on a 2-weeks-on/1-week-off schedule in PCYC-1401, was associated
with higher rates of grade 3 or over hematologic events. In contrast, the 1-week-on / 1-week-off schedule used in PCYC-0403 was
associated with lower rates of high-grade hematologic toxicities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Preliminary Efficacy
Data. </I>Preliminary efficacy of abexinostat were evaluated in the PCYC-1401 Phase 2 study and the PCYC-0403 Phase 2 study. The&nbsp;
primary endpoint of the PCYC-0403 Phase 2 study and the primary endpoint of the PCYC-1401 Phase 2 study were both objective response
rate (&ldquo;<I>ORR</I>&rdquo;), which is the proportion of patients in whom a complete response or a partial response, as defined
by standard disease-specific criteria for the applicable disease category, is observed. In both trials, patients with NHL (including
FL) were evaluated for clinical response with the International Working Group Revised Response Criteria for Malignant Lymphoma.
Under such response criteria, &ldquo;complete response&rdquo; is defined as complete disappearance of all detectable clinical evidence
of disease and disease-related symptoms and &ldquo;partial response&rdquo; is defined as regression (i.e. reduction) of measurable
disease and no new sites, which includes requirements such as at least a 50% decrease in sum of the product of the diameters of
up to six of the largest dominant nodes or nodal masses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the same response
criteria, the PCYC-0403 Phase 2 trial showed 64% ORR in FL with a week-on-week-off dosing schedule (among 14 FL patients, 1 complete
response (7%) and 8 partial responses (57%)). The PCYC-1401 Phase 2 trial showed a 56% ORR in FL with a 2-weeks-on-1-week-off dosing
schedule (among 16 FL patients, 1 complete response (6%) and 8 partial responses (50%)). The PCYC-1401 Phase 2 study also showed
31% ORR in DLBCL (among 16 DLBCL patients, 1 complete response (6%) and 4 partial responses (25%)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Ongoing Clinical
Studies of Abexinostat</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic is conducting
four ongoing clinical trials and plans to start several additional trials in 2019. Xynomic pays for all the trials and supplies
abexinostat free of charge. Janssen will supply Imbruvica to be used in the combination trial free of charge. The pazopanib supply
agreement with Novartis is under negotiation. For all potentially pivotal trials, Xynomic retains qualified CROs such as PPD and
Parexel to manage the operational details, including managing and interacting with hospitals and physicians. For non-pivotal trials,
Xynomic manages the operational details and works directly with hospitals such as University of California at San Francisco and
Memorial Sloan Kettering Cancer Center and the physicians.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><U>Abexinostat, in combination
with Pazopanib, in Renal Cell Carcinoma (XYN-602)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Xynomic is also investigating
the use of abexinostat, in combination with pazopanib, to treat patients with RCC, which is the most common type of kidney cancer
in adults. While pazopanib and other VEGF-targeting agents have shown significant clinical activity in multiple tumor types, resistance
to pazopanib almost universally results. A team of investigators at UCSF conducted a Phase 1b open-label trial of abexinostat in
combination with pazopanib in heavily pre-treated patients with RCC. In the trial, this combination therapy resulted in 10.5 months
of median DOR, or duration of response, in patients who experienced pazopanib-refractory RCC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>Pazopanib and Treatment
Resistance</I>. Pazopanib is a molecular targeted therapy for treating RCC, one of the standards of care currently available. Pazopanib
belongs to a class of drugs known as VEGF tyrosine kinase inhibitor. It works by decreasing the blood supply to the cancer tumor
to slow tumor growth. However, it is found that proangiogenic, VEGF-driven tumors adapt to the presence of angiogenesis inhibitors,
thus functionally evading the therapeutic effect and leading to treatment resistance. Resistance to pazopanib after treatment is
common.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>HDAC Inhibitors&rsquo;
Synergistic Effect and Potential to Reverse Treatment Resistance. </I>It has been found that combining pazopanib and HDAC inhibitors
could have synergistic effect in inhibiting activities of a variety of VEGF-driven tumors. The addition of HDAC inhibitors to pazopanib-resistant
cancer cell lines in cell biology studies and mouse models also showed effect in reversing resistance. One of the implicated mechanisms
is that the overexpression is driven by hypoxia and mediated by HDAC. HIF-1&alpha;, a potent proangiogenic factor, could directly
regulate VEGF expression and perform post-translational stabilization function. As a result, HDAC inhibition significantly downregulates
HIF-1&alpha; protein expression in hypoxic conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>Rationale for Combining
Abexinostat with Pazopanib.</I> It has been hypothesized that HDAC inhibitors could enhance pazopanib&rsquo;s activities and reversing
pazopanib&rsquo;s treatment resistance. In addition, abexinostat is a pan-HDAC inhibitor with favorable pharmacokinetic profile
and no drug-drug interactions are expected when abexinostat is combined with pazopanib because abexinostat and pazopanib have different
metabolic pathways (pazopanib predominantly via CYP3A4 and abexinostat via glucuronidation). A combination of the general observation
in HDAC inhibitors and certain properties demonstrated by abexinostat led to the initiation of a Phase 1b trial of abexinostat
plus pazopanib in patients with advanced solid tumor malignancies, with an expansion cohort in RCC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>Preliminary Results
of Combining Abexinostat and Pazopanib in RCC</I>. The initial trial conducted by UCSF was designed as a Phase 1b, open-label,
dose-escalation/expansion trial of abexinostat in combination with pazopanib. 51 patients with RCC were enrolled, including 30
with one or more lines of prior VEGF-targeting therapy. A key objective was to test the hypothesis that epigenetic modification
with HDAC inhibition may provide the means to recapture response and reverse resistance to pazopanib in RCC and other solid tumor
malignancies.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">In this study, patient
treatment responses and disease progressions were evaluated in accordance with the Response Evaluation Criteria in Solid Tumors,
Version 1.1 (the &ldquo;RECIST&rdquo;). Under the RECIST guideline:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Complete Response, or CR, is defined as disappearance of all target lesions and any pathological lymph nodes (whether target or non-target) must have reduction in short axis to &lt;10 mm. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Partial Response, or PR, means at least a 30% decrease in the sum of diameters of target lesions, taking as reference the baseline sum diameters. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Objective Response Rate, or ORR, is the proportion of patients with confirmed CR or confirmed PR. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Progressive Disease (PD), or disease progression, means at least a 20% increase in the sum of diameters of target lesions, taking as reference the smallest sum on study (this includes the baseline sum if that is the smallest on study) as well as an absolute increase of at least 5 mm or the appearance of one or more new lesions.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stable Disease (SD), or disease stabilization, means neither sufficient shrinkage to qualify for PR nor sufficient increase to qualify for disease progression. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Objective Response means confirmed CR or confirmed PR. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Progression Free Survival, or PFS, is defined as the time from first study drug intake date to the earlier of the first date of radiological PD or death date (due to any reason)). </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Overall Survival (OS) is defined as the time from the date of first study drug intake to the date of death (due to any reason)). </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Duration of Response (DOR) is defined as the time from the first date of objective response to first date of radiological PD.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Of the 51 patients investigated,
43 had measurable diseases and were evaluable for response, five patients withdrew their consent for reasons other than progression
before first tumor assessment, and three patients were removed as a result of dose-limiting toxicity in cycle one. Nine patients
(21%) achieved objective tumor response: RCC (n = 6), thyroid cancer (n = 2), and mesothelioma (n = 1). Among the 10 patients who
had experienced disease progression on prior pazopanib monotherapy, seven (70%) had tumor regressions while participating in the
trial. Of 28 patients who were evaluable for response with prior progression on one or more VEGF-targeting therapies, 19 (68%)
experienced tumor regressions on combination study treatment, including six patients (21%) with an objective tumor response. Patients
had a median DOR of 9.1 months (range, 1.2 to &ge; 44 months) and clinical benefit rate, which is defined as the percentage of
patients showed complete response and partial response plus stable disease over a six-month period over all patients was observed
in 16 of 43 patients, or 37%. Overall, eight patients experienced disease stabilization or tumor response for &gt;12 months, including
five patients who remain on study treatment. The majority of patients with a response greater than six months had experienced disease
progression on prior VEGF-targeting therapy. The figure below summarizes the ORR, clinical benefit rate, tumor regression rate
(which is calculated as the percentage of patients whose tumors shrunk on treatments over all patients), and median DOR.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 5 &ndash; Preliminary Efficacy
Data of Abexinostat-Pazopanib Combination</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;against VEGFi-Refractory Solid
Tumors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<IMG SRC="image_11.jpg" ALT=""></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The preliminary results
from the trial conducted by the UCSF investigators demonstrated a 27% ORR in the heavily pre-treated patients with RCC, compared
to the 10% ORR reported for pazopanib (as a monotherapy), in treating treatment naive RCC patients (i.e. patients who have never
received RCC treatment before). Note that this comparison is not based on a head-to-head trial, therefore the data derived from
these separate clinical studies may not be comparable and would not form a basis for claiming superiority of abexinostat in marketing.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Overall, 524 TEAEs were
reported in 49 patients (96.1%). Fatigue was the most common AE reported (76.5% patients), followed by diarrhea (49% patients),
anorexia (49% patients), and nausea (45.1% patients).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Grade 3 and above AEs
were fatigue (16%), thrombocytopenia (16%), neutropenia (10%), anemia (10%), diarrhea (10%), and elevated AST/ALT (4%) and hypertension
(2%). There were no episodes of febrile neutropenia or clinically significant bleeding. There were no treatment-related Grade 5
AEs. There were five deaths, all of which were attributed to disease progression.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>Possible Mechanistic
Explanation. </I>Mechanistically speaking, the putative mechanism of action via epigenetically mediated downregulation of HIF-1&alpha;
and VEGF expression is supported by pharmacodynamic analyses. Downregulation of plasma VEGF levels&mdash;a direct transcriptional
target of HIF-1&alpha;&mdash;was significantly correlated with induction of peripheral blood mononuclear cells histone acetylation,
a validated biomarker of HDAC inhibition. HDAC2 is the central HDAC enzyme that directly regulates VEGF expression via binding
to its promoter; inhibition of HDAC2 suppresses VEGF expression and angiogenesis. The differential mechanism of cellular localization
and function may explain why expression of HDAC2, and not HDAC6, was strongly associated with durable treatment responses in this
Phase 1b trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>Current Development
Activities and Plan</I>. In July 2018, Xynomic began enrolling patients in a Phase 3 trial to test abexinostat in combination with
pazopanib as the first-line or second-line treatments of RCC, head-to-head against pazopanib as a monotherapy. Patients will receive
pazopanib by mouth daily on Days 1 to 28 of each treatment cycle and will receive 80 mg of abexinostat or placebo by mouth twice
daily (BID), 4 hours apart, on Days 1 to 4, 8 to 11, and 15 to 18 of every 28-day cycle. This Phase 3 trial, initiated on September
5, 2018, is designed as a global trial and will be conducted in the U.S., six European countries, China and South Korea. This trial
will enroll approximately 390 patients globally with locally advanced or metastatic RCC. The trial objectives include measurements
of PFS, as the primary endpoint, ORR, DOR and OS, and incidence and severity of AEs and other safety parameters. This Phase 3 trial
is being managed by Parexel. The first patient was dosed on October 10, 2018 and Xynomic expects to complete this trial in approximately
4 years. Based on discussion of trial design with the FDA prior to study initiation in an EOP2/Pre-Phase 3 Meeting held on March
16, 2018, Xynomic believes the trial has potential to support approval in the U.S. In addition, Xynomic has been granted the Fast
Track designation for RCC by the US FDA in March 2019.&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The following is a summary
of major potentially pivotals trials, including abexinostat and its combination with pazopanib:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 36pt"><B>Figure 6 &ndash;Potentially
Pivotal Trials</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;<IMG SRC="image_12.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Abexinostat as a
monotherapy in FL (XYN-601) </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FL is the second most
common subtype of non-Hodgkin&rsquo;s lymphoma. HDAC plays important roles in tumor initiation, promotion, and progression. It
has been shown that HDACs are significantly over-expressed in the tumor cells of FL. As an HDAC inhibitor, Xynomic believes that
abexinostat has the ability to remodel the chromatin, thus enabling certain silenced genes (tumor suppressor genes, such as p53,
p21, Bak) to become re-activated while simultaneously silencing certain oncogenes (such as HER2, Raf-1, VEGF, Telomerase). In this
process, normal cells are generally not being affected. For this reason, Xynomic is testing whether abexinostat could be a suitable
therapeutic agent against FL by inhibiting the over-expression of HDACs in the tumor cells of FL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the PCYC-0403 Phase
2 study, a total of 30 patients were enrolled, 16 of which are patients with FL. The primary objective of this Phase 2 trial was
ORR. Data from this trial involving showed durable complete and partial responses. Overall, ORR was 64% (9/14) for the 14 evaluable
FL patients (or 56% (9/16) for intent-to-treat FL patients). These responses appear to be durable, with a 20.5 months median PFS.
PFS, or progression free survival, means the time period from first study drug intake to tumor progression or death from any cause,
as measured under the applicable response criteria, in this case, the International Working Group Revised Response Criteria for
Malignant Lymphoma. Abexinostat was given orally twice daily at 45mg/m2 on a 4-week cycle for 7 days/week every other week, i.e.
week-on-week-off.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Figure 7 &ndash;
Significantly Improved Progression-Free Survival</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_10.jpg" ALT="" STYLE="width: 600px; height: 343px">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The PCYC-1401 Phase
2 trial used 2-weeks-on-1-week-off dosing. In this study, 16 patients with FL showed an ORR of 56%, measured under the same response
criteria as used in the PCYC-0403 Phase 2 trial. The overall observed safety profile of all patients in the PCYC 1401 Phase 2 trial
(2-weeks-on-1-week-off dosing) was not as good as the week-on-week-off trial in PCYC-0403 Phase 2 study. See &ldquo;<I>Information
about Xynomic &mdash; Abexinostat&mdash; Key Findings of Prior Trials on Abexinostat&mdash; Preliminary Safety Data.</I>&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on the clinical
results from the two independent studies described above, in July 2018, Xynomic started enrolling patients in a Phase 2 trial to
test abexinostat as a fourth-line monotherapy of FL. Designed as a single arm trial, this trial will enroll approximately 120 patients
in the U.S., Europe and China with R/R FL who have undergone at least three lines of therapy. Patients will receive 80 mg (4 &times;
20 mg tablets) abexinostat twice daily, orally, 4 hours apart for 7 days in a &ldquo;one week on, one week off&rdquo; schedule
(on Days 1 to 7 and Days 15 to 21 of each 28-day cycle). Trial objectives include measurement of ORR, as the primary endpoint,
<I>DOR</I>, PFS, <I>OS</I>, and incidence and severity of AEs and other safety parameters. Based on discussion of trial design
with the FDA in a pre-IND meeting held on April 18, 2018, Xynomic believes the trial has potential to support accelerated approval
in the U.S. This Phase 2 trial is being managed by PPD Development, LP (&ldquo;PPD&rdquo;) and is expected to be completed in approximately 3 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Abexinostat, in
combination with Imbruvica<SUP>&reg;</SUP>, in R/R DLBCL or R/R MCL</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Mantle Cell Lymphoma
(MCL). </I>MCL has an annual incidence of approximately 6,500 in G7 countries, according to DR/Decision&nbsp;Resources,&nbsp;LLC.
Ibrutinib has been approved by the FDA for relapsed MCL and has response rates of
60-70% and median duration of response of 18 months. Abexinostat as a mono therapy has been shown to have response rate of 15.4%
(7.7% complete response and 7.7% partial response) in r/r MCL patients. Researchers at MSK are testing whether abexinostat/ibrutinib
combo could potentially improve response rates and duration of responses in r/r MCL patients, subject to the assessment upon the
completion of the trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Diffuse Large B-Cell
Lymphoma (DLBCL). </I>DLBCL is the most common aggressive non-Hodgkin&rsquo;s lymphoma (NHL) subtype according to the Leukemia
&amp; Lymphoma Society (LLS). Researchers at MSK have shown preclinical data&nbsp;demonstrating that dual targeting of Bruton&rsquo;s
tyrosine kinase (BTK) in the BCR pathway with ibrutinib and inhibition of MyD88-driven NF-kB activation with a HDAC inhibitor lead
to synergistic anti-lymphoma activity in MyD88 mutated, ABC-subtype DLBCL both in vitro and in vivo.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Rationale for Combining
Abexinostat with Imbruvica<SUP>&reg;</SUP>.</I>Imbruvica<SUP>&reg;</SUP> is an innovative BTK inhibitor. When Imbruvica<SUP>&reg;
</SUP>is used in combination with abexinostat, pre-clinical data have demonstrated that dual targeting of BTK in the BCR pathway
with Imbruvica<SUP>&reg;</SUP> and inhibition of MyD88-driven NF-kB activation with a HDAC inhibitor results in synergistic anti-lymphoma
activity in MyD88 mutated, ABC-subtype DLBCL, both in vitro and in vivo.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It is suggested that
mechanistically, when Imbruvica<SUP>&reg;</SUP> inhibits BTK in the BCR pathway, it leads to decreased NF-kB activation and, when
the HDAC inhibitor inhibits STAT3, it leads to down-regulation of MyD88 expression, thereby decreasing TLR signaling and NF-kB
activation, as illustrated in Figure 8 below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Figure 8
&ndash; Illustration of Mechanism of Action of the BTKi-HDACi Combo</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><IMG SRC="image_13.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Source: Zhijian Liu
et al., J Immunol 184: 244-54, 2010</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Current Development
Activities and Plan</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has dosed the
first patient in a Phase 1/2 trial that combines abexinostat with Imbruvica in patients with R/R DLBCL or R/R MCL in partnership
with Janssen and Memorial Sloan Kettering Cancer Center (&ldquo;<I>MSKCC</I>&rdquo;). This trial will enroll approximately 40 patients
to assess the safety and efficacy of the combination in patients with r/r MCL or r/r DLBCL. The primary purposes of this trial
are to determine dose limiting toxicities associated with this combination therapy, evaluate adverse and serious adverse drug reactions
associated with this combination therapy, and obtain preliminary efficacy measures including ORR, DOR, PFS, and OS. This trial
will also explore the biologic predictors of response and resistance to dual BCR and HDAC inhibition. Janssen is providing Imbruvica<SUP>&reg;</SUP>
as part of the collaboration, with Xynomic providing abexinostat and financial support for the trial. The trial will be conducted
by investigators at MSKCC.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><U>Abexinostat, in combination
with Keytruda<SUP>&reg;</SUP>, in Multiple Solid Tumors (XYN-604)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Xynomic is also investigating
abexinostat in combination with Keytruda<SUP>&reg;</SUP>, a humanized antibody used in cancer immunotherapy, for the treatment
of multiple solid tumors. Keytruda<SUP>&reg;</SUP> is an IgG4 isotype antibody that blocks a protective mechanism of cancer cells,
and allows the immune system to destroy those cancer cells.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>Immunotherapy</I>.
Immunotherapy is a type of cancer treatment that boosts the body&rsquo;s immune system function to fight cancer. It uses substances
made by the body or in a laboratory to improve or restore immune system function. Immunotherapy may work by stopping or slowing
the growth of cancer cells or stopping cancer from spreading to other parts of the body or helping the immune system work better
at destroying cancer cells. Normally, the immune system is capable of recognizing and eliminating tumor cells; tumors, however,
are sometimes able to evade the immune response through alteration of regulatory checkpoint pathways. One of these pathways is
driven by programmed cell death protein 1, or PD-1, a receptor that is expressed on immune T-cells. The immune system responds
to the cancer by blocking these pathways with specific antibodies called immune CPIs. Once the immune system is able to find and
respond to the cancer, it can stop or slow cancer growth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>Rationale for Combining
Abexinostat with Keytruda<SUP>&reg;</SUP></I>. Keytruda<SUP>&reg;</SUP> is a CPI, which blocks the PD-1 receptor signaling axis
in patients with advanced solid tumors. Keytruda<SUP>&reg;</SUP>, while effective, has significant limitations including low ORR
(~20%) and drug resistance issues. Epigenetic modifying agents such as HDAC inhibitors have been reported to have the potential
to counteract some of the mechanisms of resistance to CPI treatment. Among various changes observed in the microenvironment include
up-regulation of PD-L1 expression, down-regulation of forehead box P3 regulatory T cells, induction of effector T cells expressing
interferon-gamma, among other mechanisms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><I>Current Development
Activities and Plan</I>. On July 25, 2018, Xynomic initiated a Phase 1b clinical trial of abexinostat, in combination with Keytruda&reg;,
in patients with multiple solid tumors. In this Phase 1b trial, dose escalation/expansion of abexinostat in combination with Keytruda&reg;
will be explored in patients with prior progression on Keytruda&reg; or other CPI treatments. In dose escalation, two dose levels
of abexinostat will be evaluated in combination with Keytruda&reg;. Following determination of the maximally tolerated and recommended
Phase 2 dose of abexinostat, dose expansion will proceed in two parallel cohorts (n = 15 patients each): (A) patients with primary
resistance to prior anti-PD-1/PD-L1 treatment, defined as disease progression within six months of starting prior CPI treatment
without an objective response, and (B) patients with acquired resistance, defined as treatment duration on prior CPI treatment
for greater than six months with evidence of clinical benefit (tumor regression or disease stabilization) with subsequent disease
progression. Standardized review of scans obtained before and during prior treatment with CPI will be used to assign cohort. Enrollment
in the two patient cohorts will proceed in parallel. Xynomic plans to enroll approximately 42 patients in the U.S.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Planned Clinical
Trials of Abexinostat</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the
three ongoing clinical trials discussed above, Xynomic intends to initiate the following three clinical trials in the next six
months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Abexinostat, in
combination with a marketed cyclin-dependent kinase (&ldquo;CDK&rdquo;) 4/6 inhibitor, in certain subtypes of breast cancer</I>.
Xynomic is also planning to combine abexinostat with a marketed CDK4/6 inhibitor against certain subtypes of breast cancer (Phase
1/2). Studies of genes and pathways affected by HDAC inhibitor treatment suggest a deregulation of CDK inhibitors, leading to the
hypothesis that combinational therapeutic treatment of HDAC inhibitors with inhibitors of specific CDK may represent a new therapeutic
approach to the treatment of breast cancer. This Phase 1/2 trial, estimated to be completed in approximately 3 years, will enroll
approximately 50 patients to explore potential clinical benefits for breast cancer of synergistic relationships between HDAC and
CDK inhibitors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Abexinostat as a
monotherapy against R/R FL in China</I>. Xynomic plans to conduct a clinical trial using abexinostat as a monotherapy against R/R
FL in China. Xynomic will test abexinostat in China using a slightly different approach since very few FL patients in China have
been through three or more lines of treatment. Instead of testing patients who have been through three or more lines of treatment,
Xynomic will conduct a trial on patients in China who have been through two or more lines of treatment. This trial will enroll
approximately 81 patients and patient enrollment is expected to be completed in approximately 1.5 years. Based on written communication
Xynomic had with the CDE in September 2018, Xynomic believes that the data from this planned Phase 2 trial has potential to support
approval in China. On December 21, 2018, Xynomic submitted investigational new drug application to the CDE. CDE will review this
application within 60 business days and if Xynomic does not receive negative feedback from the CDE within such 60 business days,
Xynomic can proceed to start this trial, per CDE guideline. In addition to and before the planned data analysis upon completion
of this trial, upon collecting data from the first 37 patients, Xynomic will conduct an interim data analysis. Should the interim
data demonstrate superior therapeutic effect over pre-determined benchmark, such analysis could potentially lead to an earlier
submission of a New Drug Application to the CDE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>&nbsp;Abexinostat
as a monotherapy against R/R DLBCL in China</I>. Xynomic plans to conduct a clinical trial using abexinostat as a monotherapy against
R/R DLBCL in China. A Phase 2 trial conducted by Dr. Vincent Ribrag and others showed a 31% ORR when abexinostat was used as a
single agent against DLBCL. Based on these data and the fact that DLBCL has a much higher prevalence in China than in the west,
Xynomic decides to test abexinostat as a single agent against DLBCL in China. Xynomic plans to enroll approximately 144 patients
who have been through two or more lines of treatment. This trial will have a single arm and will use ORR as the primary end point.
Based on written communication Xynomic had with the CDE in September 2018, Xynomic believes that the data from this planned Phase
2 trial has potential to support approval in China. On December 21, 2018, Xynomic submitted investigational new drug application
to the CDE. CDE will review the application within 60 business days and if Xynomic does not receive negative feedback from the
CDE within such 60 business days, Xynomic can proceed to start this trial, per CDE guideline. In addition to and before the planned
data analysis upon completion of this trial, upon collecting data from the first 85 patients, Xynomic will conduct an interim data
analysis. Should the interim data demonstrate superior therapeutic effect over pre-determined benchmark, such analysis could potentially
lead to an earlier submission of a New Drug Application to the CDE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 9 &ndash; Abexinostat as a monotherapy
against R/R DLBCL in China</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><IMG SRC="image_14.jpg" ALT="" STYLE="width: 600px; height: 338px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>XP-105 and Development Strategies for XP-105</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Background of mTOR Inhibitors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">mTOR, or mammalian
target of rapamycin, is a&nbsp;serine/threonine-specific protein kinase. mTOR acts as a &ldquo;master regulator&rdquo; of human
protein synthesis by integrating a number of signaling pathways. It helps normal cells sense nutrients and control cell proliferation
and metabolism. However, in many forms of cancer, mTOR also reprograms cells to aberrantly divide, invade and metastasize.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">mTOR regulates cellular
metabolism, growth, and proliferation by forming and signaling through two&nbsp;protein complexes,&nbsp;mTORC1&nbsp;and&nbsp;mTORC2.
The following figure illustrates different mTOR inhibitors&rsquo; mechanism of action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 10 &ndash; mTOR Inhibitors&rsquo;
Mechanism of Action</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_15.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Mechanism of action of mTOR inhibitors.
Abbreviations: IRS-1, insulin receptor substrate 1; PI3K, phosphatidylinositol-3-kinase; AKT, protein kinase B; mTOR, mammalian
target of rapamycin; PTEN, phosphatase and tensin homologue; S6K1, S6 kinase 1; 4E-BP1, eIF4E-binding protein 1.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The most established,
first generation mTOR inhibitors are so-called&nbsp;&ldquo;rapalogs&rdquo;&nbsp;(rapamycin and its analogs), including temsirolimus
(Torisel<SUP>&reg;</SUP>, Pfizer) and everolimus (Afinitor<SUP>&reg;</SUP>, Novartis), which have shown tumor responses and approved
as treatments against certain tumor types. However, rapalogs only showed modest clinical activity against various tumors, which
has been attributed to their partial inhibition of mTORC1 signaling, the lack of mTORC2 inhibition and/or rapid re-activation of
pathway signaling (pAKT) via release of negative feedback.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The second generation
of mTOR inhibitors inhibit both mTORC1 and PI3K. The PI3K and mTORC1 dual inhibitors inhibit both upstream and downstream of Protein
kinase B (PKB) (also known as AKT), thus avoiding the negative feedback loops that occur with rapalogs. This class of inhibitors
displays generally more potent apoptotic activity than rapalogs, but safety and toxicity might be a potential drawback as off-target
effects might occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The third generation
mTOR inhibitors, such as XP-105 (BI 860585), are those mTOR inhibitors that block the activities of both mTOR complexes (i.e. mTORC1
and mTORC2). In preclinical studies, these inhibitors displayed higher anti-proliferative and pro-apoptotic activity as well as
more complete inhibition of mTORC1 outputs compared with rapalogs. The toxicity and safety is expected to be better than those
of the 2nd generation of mTOR inhibitors. Compounds with dual inhibiting characteristics, such as&nbsp;XP-105, sapanisertib (codenamed
INK128) and AZD-2014 have entered&nbsp;clinical trials as potential anti-tumor therapies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Key Findings of Prior Trial</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Phase 1 Clinical
Trial of XP-105</U><I>. </I>In September 2013, BII initiated a Phase 1 trial on XP-105 (the &ldquo;<I>NCT01938846 Trial</I>&rdquo;),
aiming to determine the maximum tolerated dose (&ldquo;MTD&rdquo;) of XP-105 as a single agent or combined with exemestane or paclitaxel
in patients with advanced solid tumors.&nbsp;This study had three treatment arms, all in 28-day cycles. In Arm A, XP-105 was tested
as a single-agent on 41 patients at dosing levels from 5 to 300 mg/day. In Arm B, XP-105 in combination with fixed-dose exemestane
at 25 mg/day was tested on 25 patients at dosing levels from 40 to 220 mg/day. In Arm C, XP-105 in combination with paclitaxel
at 60 or 80 mg/m2/week was tested on 24 patients at dosing levels from 80 to 160 mg/day. MTD was defined as the highest dose at
which less than one out of six patients experience a dose-limiting toxicity (DLT) during cycle 1. Platelet-rich plasma was used
as a surrogate tissue for target engagement; lysates were analyzed via ELISA. Treatment was continued unless progressive disease
or unacceptable toxicity. The disease control rate, including complete response, partial response plus stable disease, in phase
1 are 58% in combination with paclitaxel, 28% in combination with exemestane, and 20% as monotherapy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Preliminary Safety
Data</U><I>.</I> Preliminary safety data from the NCT01938846 Trial (measured in Grade and AE occurrence percentage among the trial
subjects) for each of the three arms is listed in the figures below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 11 &ndash; Arm A XP-105 as a Single
Agent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Treatment Related AEs Summary
(n = 41 patients)*</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_16.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* No treatment related Grade 5 AE was reported in Arm A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 12 &ndash; Arm B XP-105 in
Combination with Exemestane </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Treatment Related AEs Summary (n = 25
patients)*</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_17.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="width: 97%; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No treatment related Grade 4 or 5 AEs were reported in Arm B.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 13 &ndash; Arm C XP-105 in Combination
with Paclitaxel </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Treatment Related AEs Summary
(n = 24 patients)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_18.jpg" ALT="" STYLE="width: 616px; height: 386px">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In Arm A, 5 patients
(12.2%) had an AE leading to death, with none of the events considered related to the study treatment. 22 patients (53.7%) were
reported with an SAE, the most frequent of which comprised malignant neoplasm progression (4 patients, 9.8%), central nervous system
metastases (2 patients, 4.9%) and general physical health deterioration (2 patients, 4.9%). 13 patients (31.7%) were reported with
AEs leading to treatment discontinuation. In Arm B, 4 patients (16.0%) had an AE leading to death, with none considered related
to the study treatment. 10 patients (40.0%) were reported with an SAE, the most frequent of which comprised malignant neoplasm
progression (2 patients, 8.0%). 9 patients (36.0%) were reported with AEs leading to treatment discontinuation. In Arm C, no patient
had an AE leading to death. 13 patients (54.2%) were reported with an SAE, the most frequent of which comprised decreased appetite,
dehydration and pulmonary embolism (each 2 patients, 8.3%). 13 patients (54.2%) were reported with AEs leading to treatment discontinuation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In this Phase 1 study,
MTD was determined to be 220 mg/day for XP-105 monotherapy. At MTD, AEs were mostly mild or moderate and reversible, and consistent
with the mode of action of the compound. MTD was also determined for the combination with exemestane or with paclitaxel. Preliminary
PK analysis showed a dose proportional PK profile up to 220 mg, with no food effect or drug interaction with exemestane or paclitaxel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Preliminary Efficacy
Data</U><I>. </I>In the NCT01938846 Trial, preliminary efficacy studies were conducted in varied tumor types with XP-105 as the
single agent and in combination with other therapies in patients heavily pre-treated or progressing on rapalogs, using the Response
Evaluation Criteria In Solid Tumors criteria, or RECIST, version 1.1. Complete or partial responses, as defined under the RECIST,
were observed with the combinations in ER<SUP>+ </SUP>breast cancer (including a patient who progressed on mTORC1 inhibitor with
IGF1-R mAb <SUP>+ </SUP>exemestane), uterine carcinoma, and bladder cancer. In Arm A (X-105 as a single agent), disease control
rate (i.e. the percentage of patients showed objective (complete or partial) response or disease stabilization) was 19.5% (no objective
response, 8 stable diseases). In Arm B (X-105 combined with exemestane), disease control rate was 28.0% (4 partial responses, or
16.0%; 3 stable diseases, or 12.0%). In patients treated with XP-105 and paclitaxel (Arm C), objective response was reported for
5 patients (20.8%; 1 complete response&nbsp;and 4 partial responses); stable disease&nbsp;was reported for 9 patients (37.5%).
In Arm C the median duration of&nbsp;objective response was 5.29 months (25th percentile 3.65 months, 75th&nbsp;percentile 9.30
months) and the median duration of disease control (objective response plus stable disease) was&nbsp;7.46 months (25th percentile
7.10 months, 75th percentile 11.14 months).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Preliminary biomarker
analysis (for target engagement) in platelet-rich plasma collected in the NCT01938846 Trial provided evidence that tolerable doses
(i.e. 120-220 mg) of XP-105 may lead to inhibition of both mTORC1 and mTORC2 signaling. In the high dose group (120-220 mg) in
Arm A, reduced pAKT/AKT and p4E-BP1/4E-BP1 ratios (up to ~50%) within 3 hours after dosing were observed and such reduced ratios
lasted up to 24 hours; for the low dose group (5-80 mg), no strong trend for inhibition of pAKT and p4E-BP1 was observed. Patients
in Arm B were given oral XP-105 combined with exemestane. Patients in Arm C were given oral XP-105 combined with paclitaxel. In
both Arm B and C, a trend consistent with what was observed in Arm A for pAKT/AKT was observed in all analyzed dose groups; no
similar trend for inhibition of p4E-BP1/4E-BP1 was observed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>XP-105 Development Strategies</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>XP-105 in Combination
with Chemotherapy</U><I>.</I> Preclinical data generated by BII in tumor xenograft models showed that the combination of XP-105
with standard-of-care chemotherapeutic agents such as pegylated liposomal doxorubicin, paclitaxel, cisplatin, etoposide, topotecan
and docetaxel could enhance tumor growth inhibition and induction of tumor regressions. In ovarian cancer, pre-clinical studies
have shown that XP-105, together with pegylated liposomal doxorubicin, resulted in tumor regressions and prolongs growth control.
Similarly, in small cell lung cancer, pre-clinical studies have shown that XP-105, combined with cisplatin/etoposide (first-line
standard-of-care) or paclitaxel (second-line standard-of-care), resulted in tumor regressions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In Arm C of the NCT01938846
Trial where patients were treated with XP-105 and paclitaxel, a chemotherapy agent, objective response was reported for 5 patients
(20.8%; 1 complete response&nbsp;and 4 partial responses); disease&nbsp;control was reported for 14 patients (58.3%). The median
duration of&nbsp;objective response was 5.29 months (25th percentile 3.65 months, 75th&nbsp;percentile 9.30 months) and the median
duration of disease control was&nbsp;7.46 months (25th percentile 7.10 months, 75th percentile 11.14 months).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on the pre-clinical
studies and clinical trial data generated by BII, Xynomic plans to design and conduct a Phase 2 clinical trial of XP-105 in combination
with paclitaxel to test the safety and efficacy of such combination in metastatic breast cancer patients. This trial will apply
a dosage regimen based on the data from the NCT01938846 Trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>XP-105 in Combination
with Targeted Agents</U><I>.</I> Pre-clinical studies conducted by BII demonstrated the combination potential of XP-105 with novel
agents targeting endocrine signaling, cell cycle, integrin signaling, growth factor receptor signaling and angiogenesis. Certain
combinations have shown enhanced effect in vitro and/or tumor growth inhibition and induction of tumor regressions in vivo. &nbsp;In
a colorectal cancer model, pre-clinical studies have shown that XP-105, combined with XP-102 (formerly known as BI 882370), resulted
in enhanced tumor growth control. In an HR<SUP>+ </SUP>breast cancer model, pre-clinical studies have shown that XP-105 together
with letrozole (Aromatase inhibitor) or palbociclib (CDK4/6 inhibitor) resulted in tumor regressions and prolonged growth control.
Similar pre-clinical studies have shown that XP-105, combined with BI 853520 (FAK inhibitor), resulted in enhanced tumor growth
control in an ovarian cancer model.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on the pre-clinical
data generated by BII, Xynomic plans to design and conduct a Phase 1b clinical trial to assess the efficacy, safety, and tolerability
of combination of XP-105/ XP-102 (formerly known as BI 882370) in advanced cancer patients harboring BRAF V<SUP>600E</SUP> mutation.
This study will enroll patients with metastatic colorectal cancer with BRAF V<SUP>600E</SUP> mutation. If the results demonstrate
that such combination is feasible, Xynomic will further test the efficacy, safety, and tolerability of triplet regimen of XP-105/XP-102/cetuximab
in this patient population.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Xynomic will actively seek additional therapeutic
opportunities for XP-105 in areas with unmet medical needs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Pre-Clinical Drug Candidates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic&rsquo;s development
pipeline also includes pre-clinical drug candidates: XP-102 (also known as BI 882370), XP-103 and XP-104.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>XP-102 (BI 882370)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">XP-102 is a second
generation potent and selective pan-RAF inhibitor that binds to the DFG-out (inactive) conformation of the BRAF kinase. It is an
oral small molecule drug candidate that Xynomic is developing for the potential treatment of colorectal cancer, melanoma, non-small
cell lung cancer, hairy cell leukemia, and potentially other cancer types. Xynomic obtained patent ownership and worldwide exclusive
licenses to XP-102 for all human and non-human diagnostic, prophylactic, and therapeutic uses, including therapeutic uses targeting
hematological and solid tumors, from Boehringer Ingelheim.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Background of BRAF
Inhibitor. </U>Hyperactivation of the MAPK signaling pathway due to increased transducer expression (based on focal gene amplification)
or higher intrinsic activity (due to gain-of-function point mutations, deletions, or chromosomal rearrangements) contributes to
the pathogenesis of a wide range of solid tumors as well as hematologic malignancies. Nevertheless, marketed first generation BRAF
inhibitors such as vemurafenib and dabrafenib often lead to progression of skin lesions. Furthermore, majority of patients treated
with combination therapy of RAF-MEK inhibitors still develop secondary resistance over the course of a few months of treatment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In contrast to dabrafenib,
a marketed first generation BRAF inhibitor, X-ray crystallography has shown that XP-102 binds to the ATP binding site of the kinase
positioned in the &ldquo;DFG-out&rdquo; conformation, enabling an aromatic T-stacking interaction that may contribute to the high
cellular activity of XP-102. In addition, XP-102 was tested in multiple mouse models of BRAF-mutant colorectal cancer (&ldquo;<I>CRC</I>&rdquo;)
and melanomas and at 25 mg/kg twice daily showed superior anti-tumor activity compared with dabrafenib, trametinib, or vemurafenib,
a marketed BRAF inhibitor in both the Colo-205<SUP>V600V/E </SUP>model and HT-29<SUP>V600V/E </SUP>model. In a drug resistance
model, XP-102 in combination with trametinib resulted in more pronounced regressions, and resistance was not observed during five
weeks of second-line therapy. In terms of preliminary safety data, a pilot study in rats (up to 60 mg/kg daily for two weeks) did
not uncover significant toxicity in terms of clinical chemistry, hematology, pathology, and toxicogenomics. These pre-clinical
data indicate the potential feasibility of developing novel compounds that provide an improved therapeutic window compared with
first-generation BRAF inhibitors, resulting in more pronounced and long-lasting pathway suppression and thus improved anti-tumor
activity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Recent Pre-Investigaional
New Drug (&ldquo;IND&rdquo;) Meeting with U.S. FDA for XP-102. </U>On June 12, 2019, Xynomic held a pre-IND meeting with the U.S.
FDA for the XP-102. The FDA addressed Xynomic&rsquo;s questions related to chemistry, manufacturing, and controls (&ldquo;CMC&rdquo;),
nonclinical and clinical protocol, and provided valuable advice on overall clinical development plan to advance XP-102. The FDA
also provides advice on regulatory strategies that will support the XP-102 clinical development. Xynomic is on track to file this
IND application in the second half of 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>XP-103</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Internally discovered by Xynomic, XP-103 is a dual inhibitor of tropomyosin receptor kinases, or TRK,
and Fra-1 enzymes currently in lead optimization stage. The global patent of XP-103 has been filed in December 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>XP-104</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Internally discovered by Xynomic, XP-104 is a rearranged during transcription, or RET, inhibitor being
investigated for use against multiple tumors, especially tumors that have developed resistance against other targeted therapies.
Xynomic is in preparation to initiate animal studies.The global patent of XP-104 has been filed in September 2018. The animal studies
of XP-104 is under preparation and in discussion with contract research organizations. Xynomic plans to launch the animal studies
of XP-104 in the second half of 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Intellectual Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Exclusive License
Agreement with Pharmacyclics Relating to Abexinostat</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On February 23, 2017,
Xynomic entered into a license agreement with Pharmacyclics LLC (&ldquo;<I>Pharmacyclics</I>&rdquo;), a subsidiary of AbbVie Inc.
(&ldquo;<I>AbbVie</I>&rdquo;). Under this license agreement, Xynomic obtained an exclusive worldwide license or sublicense under
certain patents and know-how to exploit, make, import, use, sell, research, develop, commercialize, register, manufacture, and
export abexinostat. This worldwide exclusive license covers all human and non-human diagnostic, prophylactic, and therapeutic uses
of abexinostat, including therapeutic uses targeting hematological and solid tumors. Xynomic also obtained the right to grant sublicenses
to its affiliates and other third parties subject to Pharmacyclics&rsquo; prior written consent. In connection with the license,
Pharmacyclics also assigned to Xynomic certain of its clinical supply agreements, which obligates Xynomic to supply abexinostat
to patients who are continuing on previously started trials. Pursuant to the license agreement with Pharmacyclics, Xynomic has
obtained the full worldwide decisional power with respect to development of the licensed products, while Pharmacyclics agreed to
wind up and close all clinical trials it sponsored prior to the effective time of the license agreement. Xynomic is obligated to
use commercially reasonable efforts to develop, obtain and maintain regulatory approvals for, and commercialize at least one licensed
product for use in the United States and certain other major market countries. Pharmacyclics initially obtained the intellectual
property rights to abexinostat per an assignment agreement dated April 7, 2006 by and between Pharmacyclics and Celera Genomics,
a business unit of Applera Corporation (the &ldquo;<I>Celera Assignment Agreement</I>&rdquo;). Xynomic agrees to meet obligations
of Pharmacyclics under the Celera Assignment Agreement relating to the development, manufacture and commercialization of abexinostat
(including reporting obligations) and prosecution, maintenance and enforcement of the Applera intellectual property covering abexinostat.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the terms of
the agreement with Pharmacyclics, Xynomic made an upfront payment of $3,500,000 to Pharmacyclics, in two installments: (i) first
an amount equal to $2,000,000 within 10 business days after the effective date, and (ii) second, an amount equal to $1,500,000
within 60 business days of the effective date. Xynomic may be required to make milestone payments of up to $14,000,000 to Pharmacyclics
for the achievement of certain development and regulatory milestone events. In addition, Xynomic will pay Pharmacyclics royalties
at a percentage rate in the&nbsp;high-teens on the net sales of the licensed products in the licensed territory (namely, worldwide)
during each calendar year during the royalty term. The royalty term commences from the first commercial sale and lasts until the
expiration of the last-to-expire Pharmacyclics patent covering the licensed product or the exploitation thereof, on a product-by-product
and country-by-country basis. The abexinostat tosylate composition of matter patent is expected to expire on March 3, 2034 in the
United States, Europe, China, and Japan.The license agreement with Pharmacyclics will remain in effect until the expiration of
the royalty term and may be early terminated by either party for the other party&rsquo;s uncured material breach, bankruptcy, insolvency,
or similar event. Pharmacyclics has the right to terminate the agreement if Xynomic challenges Pharmacyclics&rsquo; patents or
fails its diligent obligations to develop or commercialize the licensed product pursuant to the license agreement with Pharmacyclics.
In addition, Xynomic may terminate this agreement for convenience with advance written notice to Pharmacyclics. In the event this
license agreement is terminated for any reason other than Pharmacyclics&rsquo; material breach, Xynomic will be responsible for continuing,
at its cost for up to six months, to conduct clinical studies it conducts at the termination and transfer the control of the clinical
studies to Pharmacyclics. If such transfer is expressly prohibited by a regulatory authority, Xynomic will continue to conduct
such clinical studies to completion, at Xynomic&rsquo;s cost.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Exclusive License
Agreement with BII Relating to XP-105 (BI 860585)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On December 20, 2018,
Xynomic entered into a licensing agreement with Boehringer Ingelheim International GmbH (&ldquo;<I>Boehringer Ingelheim</I>&rdquo;
or &ldquo;<I>BII&rdquo;</I>). Pursuant to the agreement with BII, BII (i) granted Xynomic a worldwide, exclusive, royalty-bearing,
and non-transferrable license to certain licensed patents and the related know-how controlled by BII or its affiliates to develop,
manufacture, use and commercialize the compound known as BI 860585, a phase 2 ready mTORC1/2 inhibitor, and the products containing
XP-105; and (ii) agreed to assign to Xynomic the licensed patents after BII receives certain milestone payment from Xynomic. The
worldwide exclusive license covers the use of XP-105 in diagnosis, prevention or treatment of any and all diseases or conditions
in human or animals. Xynomic is entitled to sublicense its rights to any of its affiliates or third parties upon prior notice to
BII, except that sublicense to any third party with respect to the United States and China shall obtain prior written consent of
BII (which shall not be unreasonably withheld). Under the agreement, BII retains an exclusive, cost-free, perpetual, worldwide,
transferrable and sublicenseable (in multiple tiers) right to use the licensed patents and licensed know-how to the extent those
are also necessary to exploit other compounds and products and not only specifically related to XP-105 and/or the licensed product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the agreement,
Xynomic is obligated to use commercially reasonable efforts to achieve or cause its sublicensees to achieve certain development
milestones and to commercialize the licensed products. BII committed not to develop (not including pre-clinical research activities)
or commercialize any chemical entities covered under the licensed patents for any oncology indications worldwide during the term
of the agreement without prior written consent of Xynomic. In the event that Xynomic commences clinical trials or commercializes
any product that modulates the same target (mTOR) as its primary mechanism of action and is developed for the same indication as
XP-105 or licensed product under the agreement, BII shall be entitled to take certain actions with respect to amending the license
it has granted to Xynomic under the agreement with BII.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the terms of
the agreement with BII, Xynomic will make an upfront payment of $1,000,000 to BII. In addition, Xynomic may be required to make
milestone payments up to $17,000,000 to BII for the achievement of certain development milestone events. Xynomic will pay to BII
tiered royalties at percentage rates in high-teens up to 20%, subject to certain royalty reductions, on the global annual net sales
of licensed products on a product-by-product and country-by-country basis during the royalty term. Royalty term commences from
the first commercial sale of such licensed product in such country until the later of (i) the date on which such licensed product
is no longer covered by a valid claim of the licensed patents, (ii) the expiration of regulatory exclusivity of the licensed product
in such country in the indication, or (iii) the tenth anniversary of the first launch of the respective licensed product in the
country in the indication (provided the licensed know-how is still proprietary, or such licensed know-how is no longer proprietary
owing to a breach of Xynomic&rsquo;s confidentiality obligations). The composition-of-matter patent is expected to expire on August
6, 2031 in the United States and on January 25, 2031 in China, Japan, Germany, France, United and certain other European countries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The agreement with
BII will remain in effect until the expiration of the royalty term on a product-by-product and country-by-country basis and may
be earlier terminated by either party for the other party&rsquo;s uncured material breach. Xynomic has the right to terminate the
agreement for convenience with prior written notice to BII. BII also has the right to terminate the agreement if Xynomic directly
or indirectly challenges the validity of the licensed patents in the legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Exclusive License
Agreement with BII Relating to BI 882370 </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 16, 2017,
Xynomic entered into a patent assignment and licensing agreement with BII. Pursuant to the agreement with BII, BII (i) assigned
to Xynomic its patents/patent applications covering XP-102, known as BI 882370, a 2nd-generation pan-RAF inhibitor; and (ii) granted
Xynomic a worldwide, exclusive, royalty-bearing, and non-transferable license to all know-how controlled by BII or its affiliates
necessary for, or specifically related to, the discovery, development, manufacture, commercialization, or use of XP-102 and any
family compound. The worldwide exclusive license covers the use of XP-102 in diagnosis, prevention, or treatment of any and all
diseases or condition in human or animals. Xynomic is entitled to sublicense its rights to any of its affiliates upon prior notice
to BII and to sublicense its rights to any third party in the United States and China with prior written consent of BII (which
shall not be unreasonably withheld). Under the agreement, BII retains an exclusive, cost-free, perpetual, worldwide, transferrable
and sublicenseable (in multiple tiers) right to use the assigned patents and assigned invention solely for BII&rsquo;s and its
affiliates&rsquo; internal pre-clinical research purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic is obligated
to use commercially reasonable efforts to achieve or cause its sublicensees to achieve certain pre-clinical and clinical development
milestones and to commercialize the licensed products in the licensed field. In the event that Xynomic commences clinical trials
or commercializes any product that modulates the same target (B-raf) as its primary mechanism of action and is developed for the
same indication as the licensed product under the agreement, BII will be entitled to take certain actions with respect to amending
the license it has granted to Xynomic under the agreement with BII.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the terms of
the patent assignment and licensing agreement with BII, Xynomic made an upfront payment of $300,000 to BII. In addition, Xynomic
may be required to make milestone payments up to $17,700,000 to BII for the achievement of certain development milestone events.
Xynomic will pay to BII tiered royalties in the high-teens up to 20%, subject to certain royalty reductions, on net sales of licensed
products on a product-by-product and country-by-country basis, during the royalty term. Royalty term commences from the first commercial
sale of such licensed product in such country until the later of (i) the date on which such licensed product is no longer covered
by a valid claim of the assigned patents and assigned invention, (ii) the expiration of regulatory exclusivity of the licensed
product in such country, or (iii) the tenth anniversary of the first launch of the respective licensed product in the country,
provided the licensed know-how is still proprietary, or such licensed know-how is no longer proprietary owing to a breach of its
confidentiality obligations. The abexinostat tosylate composition of matter patent is expected to expire on March 3, 2034 in the
United States, Europe, China, and Japan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The patent assignment
and licensing agreement with BII will remain in effect until the expiration of the royalty term on a product-by-product and country-by-country
basis and may be earlier terminated by either party for the other party&rsquo;s uncured material breach. Xynomic has the right
to terminate the agreement for convenience with prior written notice to BII. BII also has the right to terminate the agreement
if Xynomic directly or indirectly challenges the validity of the assigned patents in any legal proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Patents
and Other Intellectual Property</I></B></FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic actively seeks
to aggressively protect the proprietary technology that is important to its business, including pursuing patents that cover its
product candidates and compositions, their methods of use, and the processes for their manufacture, as well as any other relevant
inventions and improvements that are commercially important to the development of its business. Xynomic also relies on trade secrets
and other know-how that may be important to the development of its business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic&rsquo;s patent
portfolio is composed of issued patents and patent applications in the major territories, including the U.S., Europe, Brazil, Japan,
China, Canada, India, and Australia, and includes patents and patent applications that Xynomic owns as well as licenses from other
parties. These patents and patent applications cover various aspects of Xynomic&rsquo;s product candidate pipeline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For abexinostat, as
of the date of this prospectus, Xynomic has an exclusive license to 19 issued U.S. patents, three pending U.S. patent applications,
122 issued foreign patents, and 71 pending foreign patent applications. The Pharmacyclics license agreement related to abexinostat
grants Xynomic exclusive, worldwide licenses under a portfolio of patents covering four broad areas: (1) directed to abexinostat,
related compounds and processes for making compounds&#894; pharmaceutical compositions and methods of treating diseases characterized
by inhibition of hydroxamic acid-based small molecule histone deacetylase (&ldquo;<I>HDAC</I>&rdquo;) activities&#894; (2) directed
to salts, crystalline form of the salts and pharmaceutical compositions of abexinostat&#894; methods of treating mammals in need
of HDAC inhibition&#894; (3) combination treatment of using HDAC inhibitors and other therapies; and (4) biomarkers for the identification
of chemosensitivity. Two core families of patents covering abexinostat and crystalline form of abexinostat salts, respectively,
have been granted in the U.S., China, Australia, Europe, Canada, Mexico, Japan, South Korea, New Zealand, Singapore, South Africa,
Taiwan, Ukraine, India, and some other countries or areas. The duration of these patents is through 2024 (2025 in the U.S.) and
2034, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For XP-105, as of the
date of this prospectus, Xynomic has an exclusive license to two issued U.S. patents and 91 issued foreign patents. The BII license
agreement related to XP-105 grants Xynomic exclusive, worldwide licenses under a portfolio of patents covering XP-105, related
compounds and pharmaceutical compositions. The patents covering XP-105 (BI 860585) have been granted in the United States, China,
Japan, Germany, France, United Kingdom and certain other European countries, and the duration of the patents are through January
25, 2031 (August 6, 2031 in the United States).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For XP-102, as of the
date of this prospectus, Xynomic owns one issued U.S. patent, one pending U.S. patent application, and 4 issued foreign patents. The
BII license agreement related to XP-102 grants Xynomic exclusive, worldwide licenses under a portfolio of patents covering XP-102,
related compounds and pharmaceutical compositions. The patents covering XP-102 (BI 882370) have been granted in the U.S., France,
Germany, Japan, and the United Kingdom, and the duration of the patent is through 2032. In addition, a provisional patent application
directed at the crystalline form of salt of XP-102 has been filed in the U.S., on the basis of which a U.S. non-provisional application
and a Patent Cooperation Treaty (&ldquo;<I>PCT</I>&rdquo;) application will be filed by the end of 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has filed a
basic compound patent application for XP-104 with China National Intellectual Property Administration, on the basis of which Xynomic
plans to initiate a PCT application by September 2019.&nbsp;Xynomic has filed a basic compound patent application for XP-103 with
China National Intellectual Property Administration, on the basis of which Xynomic plans to initiate a PCT application by December
2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Wherever possible,
Xynomic seeks to protect its inventions by filing U.S. patents as well as foreign counterpart applications in select other countries.
Because patent applications in the U.S. are maintained in secrecy for at least 18 months after the applications are filed, and
since publication of discoveries in the scientific or patent literature often lags behind actual discoveries, it cannot be certain
that Xynomic were the first to make the inventions covered by each of its issued or pending patent applications, or that Xynomic
were the first to file for protection of inventions set forth in such patent applications. Xynomic&rsquo;s planned or potential
products may be covered by third-party patents or other intellectual property rights, in which case continued development and marketing
of its products would require a license. Required licenses may not be available to Xynomic on commercially acceptable terms, if
at all. If Xynomic does not obtain these licenses, it could encounter delays in product introductions while it attempts to design
around the patents, or it could find that the development, manufacture, or sale of products requiring such licenses are not possible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to patent
protection, Xynomic also relies on know-how, trade secrets, and the careful monitoring of proprietary information, all of which
can be difficult to protect. Xynomic seeks to protect some of its proprietary technology and processes by entering into confidentiality
agreements with its employees, consultants, and contractors. These agreements may be breached, Xynomic may not have adequate remedies
for any breach and its trade secrets may otherwise become known or be independently discovered by competitors. To the extent that
its employees or its consultants or contractors use intellectual property owned by others in their work for Xynomic, disputes may
also arise as to the rights in related or resulting know-how and inventions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Manufacturing
and Supply</I></B>: Xynomic does not own or operate, and currently has no plans to establish, any manufacturing facilities. It
currently relies, and expects to continue to rely, on third parties for the manufacture of its drug candidates for pre-clinical
and clinical testing, as well as for the commercial manufacture of any drugs that it may commercialize. To date, Xynomic has obtained
API and drug substance for abexinostat for its clinical testing from one third-party manufacturer and drug product from another
third party manufacturer. These supply agreements have standard terms and Xynomic is typically invoiced based on time and material
used. For XP-102, Xynomic sources the API, drug substance, and drug product from the same third party manufacturer. Xynomic obtains
its supplies from these manufacturers on a purchase order basis and has long-term supply arrangements in place. Xynomic does not
currently have arrangements in place for redundant supply for API, drug substance, or drug product. For all of its drug candidates,
it intends to identify and qualify additional manufacturers to provide API, drug substance, and drug product prior to submission
of a new drug application to the FDA, a marketing authorization application or <I>&ldquo;MMA&rdquo;</I> to the European Medicines
Agency, and similar applications to regulatory agencies in other territories.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All drug candidates
in Xynomic&rsquo;s current pipeline are compounds of low molecular weight, generally called small molecules. They can be manufactured
in reliable and reproducible synthetic processes from readily available starting materials. The chemistry is amenable to scale-up
and does not require unusual equipment in the manufacturing process. Xynomic plans to continue to develop drug candidates that
can be produced cost-effectively at high quality contract manufacturing facilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Equipment:</I></B>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Xynomic&rsquo;s equipment mainly consists of office
equipment such as personal computers and lab equipment listed as follows. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 16%; text-align: justify; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Serial number</FONT></TD>
    <TD STYLE="width: 2%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 44%; text-align: justify; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Instrument Name</FONT></TD>
    <TD STYLE="width: 2%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 25%; text-align: justify; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Model</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">High Performance Liquid Chromatography; (HPLC)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Waters: e2695</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Rotary Evaporator</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">R-1001VN</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cooling Circulating Pump</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">DLSB-5/20</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Vacuum Drying Chamber</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">DZF-6050</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Water Circulating Multi-purpose Vacuum Pump</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">SHZ-95B</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Rotary-vane Vacuum Pump</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">2XZ-4</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Constant Temperature Magnetic Stirrer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">MS-H-Pro</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ultrasonic Cleaning Machines</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">KQ5200B</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Laboratory Wastewater Treatment Equipment</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">XSYF-500L-D</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">High Purity Nitrogen Generator</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">TJ30-97</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">11</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Laboratory Glassware</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Safety and Risk
Management: </I></B>Xynomic&rsquo;s research and development center adopts the highest standard of safety to protect its staff.
As to outsourced research and development, manufacturing, and clinical trials, Xynomic only works with reputable and pre-qualified
contract research organizations (&ldquo;<I>CROs</I>&rdquo;) and contract manufacture organizations (&ldquo;CMOs&rdquo;) to ensure
the safety of all personnel involved. Furthermore, to manage uncertainty and potential risk in clinical trials, Xynomic has carried
all the required insurance for clinical trials, in addition to customary general corporate liability insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Competition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic&rsquo;s industry
is highly competitive and subject to rapid and significant technological change, with over 500 companies worldwide developing late-phase
oncology drugs, according to a 2015 IMS study. Its potential competitors include large pharmaceutical and biotechnology companies
and specialty pharmaceutical companies, academic institutions, government agencies, and research institutions. The market for oncology
therapeutics is becoming increasingly competitive. Xynomic&rsquo;s products, however, upon approval, will be focused, at least
initially, on specific oncology indications with high unmet medical need. Key competitive factors affecting the commercial success
of Xynomic&rsquo;s product candidates are likely to be efficacy, safety and tolerability profile, reliability and durability of
response, convenience of dosing, and price and reimbursement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If abexinostat is approved to treat relapsed or refractory (&ldquo;R/R&rdquo;) follicular lymphoma (&ldquo;FL&rdquo;),
abexinostat will compete with approved therapies including Gilead&rsquo;s Zydelig<SUP>&reg;&nbsp;</SUP>(a PI3 inhibitor), Bayer&rsquo;s
Aliqopa&trade;, and Roche&rsquo;s Gazyva<SUP>&reg;</SUP>&nbsp;(an antibody). If abexinostat is approved to treat R/R diffuse large
B-cell lymphoma (&ldquo;DLBCL&rdquo;),
abexinostat will compete with Gilead&rsquo;s Yescarta (a CAR-T therapy) and Novartis&rsquo; Kymriah<SUP>&reg; </SUP>(a CAR-T therapy).
If it is approved in first-line or second-line RCC, abexinostat, used in combination with pazopanib, will compete with Bristol-Myers
Squibb&rsquo;s Opdivo&trade;/Yervoy<SUP>&reg;</SUP> (a PD-1 inhibitor and a monoclonal antibody), Pfizer&rsquo;s Sutent<SUP>&reg;</SUP>,
Novartis&rsquo; Afinitor<SUP>&reg;</SUP> (a mTORC inhibitor), Roche&rsquo;s Avastin<SUP>&reg; </SUP>(a monoclonal antibody) in
combination with interferon alfa, and Novartis&rsquo; Votrient<SUP>&reg;</SUP> (generic name pazopanib, a VEGF inhibitor) as a
single agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;If XP-105, combined
with paclitaxel, is approved to treat breast cancer, it will compete with approved therapies including standard-of-care chemo therapies
such as paclitaxel and targeted agents such as Novartis&rsquo; Afinitor<SUP>&reg;</SUP> (a mTORC inhibitor) plus exemestane, Novartis&rsquo;
Kisqali<SUP>&reg;</SUP> (a CDK4/6 inhibitor), Roche&rsquo;s Herceptin<SUP>&reg;</SUP> (a monoclonal antibody), AstraZeneca&rsquo;s
Faslodex<SUP>&reg;</SUP> (a selective estrogen receptor degrader), and Pfizer&rsquo;s Ibrance<SUP>&reg;</SUP> (a CDK4/6 inhibitor).
The combination of XP-105 and paclitaxel is superior to our competitors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 14</B> &ndash; <B>XP-105 Advantages</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><IMG SRC="image_19.jpg" ALT="" STYLE="width: 600px; height: 337px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic will develop
XP-102, in combination with a marketed MEK inhibitor, to treat colorectal cancer (&ldquo;CRC&rdquo;) and melanoma, and if it is approved, it will compete with marketed
combination RAF/MEK targeted therapy such as Daiichi-Sankyo and Roche&rsquo;s Zelboraf<SUP>&reg;</SUP> + Cotellic<SUP>&reg;</SUP>,
Novartis&rsquo; Tafinlar<SUP>&reg;</SUP> + Mekinist<SUP>&reg;</SUP>, and Array BioPharma&rsquo;s Braftovi<SUP>&trade;</SUP> + Mektovi<SUP>&reg;</SUP>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Properties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic does not own
any real estate. As of July 10, 2019, Xynomic has leased facilities for its Shanghai headquarters, regional offices, and research
and development center, summarized in the table below. <FONT STYLE="background-color: white">Xynomic believes that its existing
facilities and other available properties will be sufficient for its needs for the foreseeable future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Figure 15</B> &ndash; <B>Leased Facilities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid">Site</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Type of Facility</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Size, Square Feet</TD><TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1.5pt solid">Lease Expiration Date</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font: 10pt Times New Roman, Times, Serif; text-align: left">Headquarters &ndash; Shanghai, China</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: center">Office</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; font: 10pt Times New Roman, Times, Serif; text-align: right">2,612</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: center">3/31/2022</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Raleigh, North Carolina, USA</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">Office</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">438</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">8/31/2019</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Research and Development Center, Shanghai, China</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">Lab/Office</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,597</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">(1)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">7/26/2021</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Beijing, China</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">Office</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">646</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">7/31/2019</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Nanjing, China</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">Office</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,076</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">11/15/2020</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Zhongshan, China</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">Office</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">108</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">4/30/2020</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
of 3,983 square feet of lab and 1,614 square feet of office.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Employees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
of the date of this prospectus, we had 24 full-time and 10 part-time employees and consultants. Among the full-time
staff, 8  are based in the U.S. and the rest are based in China. Xynomic&rsquo;s employees are not represented by labor
unions or covered by collective bargaining agreements. We consider our relationship with our employees to be good. All
Xynomic&rsquo;s executive officers listed above other than Yong Cui have entered into an employment agreement or offer letter
with Xynomic or its subsidiary. Yong Cui provides services to Xynomic under a consulting agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Employment Agreements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic
Pharmaceuticals Holdings, Inc., or XYN, our holding company, has  not entered into an employment agreement with our executive
officer including Yinglin Mark Xu, its Chief Executive Officer, Interim Chief Financial Executive Officer and President,
James Jiayuan Tong, its Chief Strategy Officer and Executive Vice President and Jinwei Coco Kou, its Interim Chief Accounting
Officer. It has also entered into indemnification agreements with each of its executive officers, a form of which is attached
as Exhibit 10.20 to this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">XYN has entered into
a signed offer letter with James Jiayuan Tong, effective on May 15, 2019. Under the terms of the offer letter, Dr. Tong is employed
as the Chief Strategy Officer and Executive Vice President of XYN, reporting to the Chief Executive Officer. Dr. Tong will receive
an annual salary of $0 and is eligible to receive an annual discretional bonus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has entered
into an employment agreement with Yinglin Mark Xu, effective on April 22, 2019. Under the terms of the employment agreement, Mr.
Xu is employed as the Chairman, Chief Executive Officer and President of Xynomic. Mr. Xu will receive an annual salary of $0 and
is eligible to receive an annual discretional bonus. Xynomic or Mr. Xu may terminate the employment at any time for any or no reason
upon giving written notice thirty (30) days in advance to the other party. Upon termination of the employment, Mr. Xu will be entitled
only to payment of his regular salary pro-rated through the termination date. Under the employment agreement, Mr. Xu will be subject
to non-competition and non-solicitation restrictions during his employment and for a period of twelve (12) months thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has entered
into an employment agreement with Wentao Jason Wu, effective on January 1, 2019. Under the terms of the employment agreement, Dr.
Wu is employed as the Chief Operating Officer of Xynomic, reporting to the Chief Executive Officer or such other person as Xynomic
may designate. Dr. Wu will receive an annual salary of $160,008 and is eligible to receive an annual discretional bonus. Xynomic
or Dr. Wu may terminate the employment at any time for any or no reason upon giving written notice thirty (30) days in advance
to the other party. Upon termination of the employment, Dr. Wu will be entitled only to payment of his regular salary pro-rated
through the termination date. Under the employment agreement, Dr. Wu will be subject to non-competition and non-solicitation restrictions
during his employment and for a period of twelve (12) months thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has
entered into an employment agreement with Sophia Paspal, effective on January 16, 2019 and amended on July 1, 2019. Under the
terms of the amended employment agreement, Dr. Paspal is employed as the Chief Development Officer of Xynomic, reporting to
the Chief Operation Officer or such other person as Xynomic may designate. Dr. Paspal will receive an annual salary of
$280,002, with a one-time signing on bonus of $25,000, subject to certain forfeitures as set forth in the employment
agreement. During her employment, Dr. Paspal is eligible to receive an annual discretional bonus targeted at 30% of her base
salary. Xynomic or Dr. Paspal may terminate the employment at any time for any or no reason upon giving written notice thirty
(30) days in advance to the other party. Upon termination of the employment, Dr. Paspal will be entitled only to payment of
her regular salary pro-rated through the termination date. In the event that Xynomic stops operations or is acquired by
another company, Dr. Paspals is entitled to 6-month pay plus health insurance coverage. Under the employment agreement, Dr.
Paspal will be subject to non-competition and non-solicitation restrictions during her employment and for a period of twelve
(12) months thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has entered
into an offer letter with Jinwei Coco Kou, effective on March 19, 2019. Under the terms of the offer letter, Ms. Kou is employed
as the Interim Chief Accounting Officer of Xynomic. During her employment, Ms. Kou is eligible to receive an annual salary of $72,000
plus standard fringe benefits and paid vacation. Ms. Kou is also eligible to receive a performance based year-end bonus.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Dr. Niefang Yu is engaged
by Xynomic Nanjing under the terms of a Cooperative Development Agreement for New Drugs, effective as of May 1, 2018. Under the
terms of the agreement, Dr. Yu is employed on a part-time basis as a senior manager in charge of Xynomic&rsquo;s research and development
center&nbsp;located in Shanghai. Dr. Yu receives a monthly salary of RMB35,000. The agreement also provides for the future grant
of an option to purchase shares of common stock from Xynomic, which has not yet been granted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic Zhongshan has
entered into a&nbsp;labor contract with Bing Zhao, effective on March 1, 2019. Under the terms of the labor contract, Bing Zhao
is employed as the Vice President of Xynomic Zhongshan in charge of Greater China Clinical and Regulatory Affairs for a term of
three (3) years. Dr. Zhao will receive a monthly salary of RMB30,000. Prior to the expiration of the term, Dr. Zhao may terminate
the employment for convenience upon thirty (30) days&rsquo; prior written notice and Xynomic Zhongshan may terminate Dr. Zhao&rsquo;s
employment under certain circumstances, as provided in applicable PRC labor laws. Under a non-competition agreement dated March
1, 2019, Dr. Zhao is subject to non-competition and non-solicitation restrictions during his employment and for a period of twenty-four
(24) months thereafter; provided that he will receive reasonable compensations for the post-employment non-competition and non-solicitation
restrictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Named Executive
Officer is also subject to general confidentiality obligations and obligations to assign proprietary property to Xynomic or a subsidiary
of Xynomic in his or her respective confidentiality agreement, consulting agreement or employment agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Merger
Agreement, certain officers of Xynomic entered into a non-competition and non-solicitation agreement with Xynomic Pharmaceuticals Holdings, Inc. on May 15, 2019,
a form of which is attached as Exhibit 10.19 to this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Legal Proceedings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no material
litigation, arbitration or governmental proceeding currently pending against us. From time to time we may become involved in legal
proceedings or be subject to claims arising in the ordinary course of its business. Regardless of the outcome, litigation can have
an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Government Regulation and Product Approvals </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Government authorities
in the United States, at the federal, state, and local level, and in other countries and jurisdictions, including China and the
European Union, extensively regulate, among other things, the research, development, testing, manufacture, quality control, approval,
labeling, packaging, storage, recordkeeping, labeling, advertising, promotion, distribution, marketing, post-marketing monitoring
and reporting, and import and export of drug products. The processes for obtaining regulatory approvals in the United States and
in foreign countries and jurisdictions, along with subsequent compliance with applicable statutes and regulations and other regulatory
authorities, require the expenditure of substantial time and financial resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Failure to comply with
the applicable regulatory requirements at any time during the product development process, approval process or after approval,
may subject an applicant to administrative or judicial sanctions. These sanctions could include, among other actions, the regulatory
authority&rsquo;s refusal to approve pending applications, withdrawal of an approval, clinical holds, untitled or warning letters,
voluntary product recalls or withdrawals from the market, product seizures, total or partial suspension of production or distribution,
injunctions, disbarment, fines, refusals of government contracts, restitution, disgorgement, or civil or criminal penalties. Any
such administrative or judicial enforcement action could have a material adverse effect on us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>United States Regulation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>FDA Approval Process</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the United States,
the FDA regulates drugs under the FFDCA and implementing regulations. These laws and other federal and state statutes and regulations,
govern, among other things, the research, development, testing, manufacture, storage, recordkeeping, approval, labeling, promotion
and marketing, distribution, post-marketing monitoring and reporting, sampling, and import and export of drug products. The process
of obtaining regulatory approvals and the subsequent compliance with applicable federal, state, local, and foreign statutes and
regulations require the expenditure of substantial time and financial resources. Failure to comply with applicable U.S. requirements
may subject a company to a variety of administrative or judicial sanctions, such as clinical holds, FDA refusals to approve pending
regulatory applications, warning or untitled letters, product recalls, product seizures, total or partial suspension of production
or distribution, injunctions, fines, civil penalties, and criminal prosecution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The process required
by the FDA before a drug may be marketed in the United States generally includes the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">completion
of nonclinical laboratory tests, animal studies, and formulation studies according to GLP or other applicable regulations;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">submission
to the FDA of an investigational new drug application, or &ldquo;<I>IND</I>,&rdquo; which must become effective before human clinical
trials may begin in the United States;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">performance
of adequate and well-controlled human clinical trials according to GCP to establish the safety and efficacy of the product candidate
for its intended use;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">submission
to the FDA of an NDA for a new product;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">satisfactory
completion of an FDA inspection, if conducted, of the facility or facilities where the product candidate is manufactured to assess
compliance with the FDA&rsquo;s cGMP to assure that the facilities, methods, and controls are adequate to preserve the drug product
candidate&rsquo;s identity, strength, quality, purity, and potency;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential
FDA inspection of the nonclinical and clinical trial sites;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential
FDA inspection of clinical trial sponsors and vendors involved in the generation of the data in support of the NDA; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FDA
review and approval of the NDA.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Satisfaction of FDA
pre-market approval requirements typically takes many years and the actual time required may vary substantially based upon the
type, complexity, and novelty of the product candidate or disease. A clinical hold may occur at any time during the life of an
IND and may affect one or more specific trials or all trials conducted under the IND.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Nonclinical tests include
laboratory evaluation of the product candidate&rsquo;s chemistry, formulation, and toxicity, as well as animal studies to assess
the characteristics and potential safety and efficacy of the product candidate. The conduct of the nonclinical tests must comply
with federal regulations and requirements, including GLP. The results of nonclinical testing are submitted to the FDA as part of
an IND along with other information, including information about product candidate&rsquo;s chemistry, manufacturing and controls,
and a proposed clinical trial protocol. Long-term nonclinical tests, such as animal tests of reproductive toxicity and carcinogenicity,
may continue after the IND is submitted. A 30-day waiting period after the submission of each IND is required prior to the commencement
of clinical testing in humans. If the FDA has neither commented on nor questioned the IND within this 30-day period, the clinical
trial proposed in the IND may begin. Clinical trials involve the administration of the investigational product to healthy volunteers
or subjects under the supervision of a qualified investigator. Clinical trials must be conducted: (i) in compliance with federal
regulations; (ii) in compliance with GCP, an international standard meant to protect the rights and health of subjects and to define
the roles of clinical trial sponsors, administrators, and monitors; and (iii) under protocols detailing the objectives of the trial,
the parameters to be used in monitoring safety, and the effectiveness criteria to be evaluated. Each protocol involving testing
on U.S. subjects and subsequent protocol amendments must be submitted to the FDA as part of the IND.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FDA may order the
temporary or permanent discontinuation of a clinical trial at any time, or impose other sanctions if it believes that the clinical
trial either is not being conducted in accordance with FDA requirements or presents an unacceptable risk to the clinical trial
subjects. The trial protocol and informed consent information for subjects in clinical trials must also be submitted to an ethics
committee/IRB for approval. An ethics committee/IRB may also require the clinical trial at the site to be halted, either temporarily
or permanently, for failure to comply with the ethics committee/IRB&rsquo;s requirements, or may impose other conditions. An IRB
is responsible for protecting the rights of clinical trial subjects and considers, among other things, whether the risks to individuals
participating in the clinical trial are minimized and are reasonable in relation to anticipated benefits. The IRB also approves
the information regarding the clinical trial and the consent form that must be provided to each clinical trial subject or his or
her legal representative and must monitor the clinical trial until completed. Each new clinical protocol and any amendments to
the protocol must be submitted to the FDA for review, and to the IRBs for approval. Protocol detail, among other things, includes
the objectives of the clinical trial, testing procedures, sublease selection and exclusion criteria, and the parameters to be used
to monitor subject safety. The study sponsor may also suspend a clinical trial at any time on various grounds, including a determination
that the subjects are being exposed to an unacceptable health risk.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Clinical trials to
support NDAs for marketing approval are typically conducted in three sequential phases, but the phases may overlap:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
Phase 1, the initial introduction of the product candidate is usually into healthy human subjects, and the product candidate is
tested to assess metabolism, pharmacokinetics, pharmacological actions, side effects associated with increasing doses, and, if
possible, early evidence on effectiveness.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Phase
2 usually involves trials in a limited patient population to determine the effectiveness of the product candidate for a particular
indication, dosage tolerance, and optimal dosage, and to identify common adverse effects and safety risks.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
a product candidate demonstrates evidence of effectiveness and an acceptable safety profile in Phase 2 evaluations, Phase 3 trials
are undertaken to obtain additional information about clinical efficacy and safety in a larger number of subjects, typically at
geographically dispersed clinical trial sites, to permit the FDA to evaluate the overall benefit-risk relationship of the product
candidate and to provide adequate information for the labeling of the product candidate. In most cases, the FDA requires two adequate
and well-controlled Phase 3 clinical trials to demonstrate the efficacy of the product candidate. A single Phase 3 trial may be
sufficient in certain circumstances.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A drug candidate being
studied in clinical trials may be made available for treatment of individual patients, in certain circumstances. Pursuant to the
21st Century Cures Act, or &ldquo;<I>Cures Act</I>,&rdquo; which was signed into law in December 2016, the manufacturer of an investigational
product for a serious disease or condition is required to make available, such as by posting on its website, its policy on evaluating
and responding to requests for individual patient access to such investigational product. In May 2018, the Right to Try Act was
signed into law to establish a new pathway that does not require FDA approval for access to unapproved, investigational treatments
for patients diagnosed with life-threatening diseases or conditions who have exhausted approved treatment options and who are unable
to participate in a clinical trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the development
of a new product candidate, sponsors are given opportunities to meet with the FDA at certain points; specifically, prior to the
submission of an IND, at the end of Phase 2 and before an NDA is submitted. Meetings at other times may be requested. These meetings
can provide an opportunity for the sponsor to share information about the data gathered to date and for the FDA to provide advice
on the next phase of development. Sponsors typically use the meeting at the end of Phase 2 to discuss their Phase 2 clinical results
and present their plans for the pivotal Phase 3 clinical trials that they believe will support the approval of the new product
candidate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Concurrent with clinical
trials, sponsors usually complete additional animal safety studies and also develop additional information about the chemistry
and physical characteristics of the product candidate and finalize a process for manufacturing commercial quantities of the product
candidate in accordance with cGMP requirements. The manufacturing process must be capable of consistently producing quality batches
of the product candidate and the manufacturer must develop methods for testing the quality, purity, and potency of the product
candidate. Additionally, appropriate packaging must be selected and tested and stability studies must be conducted to demonstrate
that the product candidate does not undergo unacceptable deterioration over its proposed shelf life. After completion of the required
clinical testing, an NDA is prepared and submitted to the FDA. FDA approval of the NDA is required before marketing of the product
may begin in the United States. The NDA must include the results of all nonclinical, clinical, and other testing and a compilation
of data relating to the product candidate&rsquo;s pharmacology, chemistry, manufacture, and controls. The cost of preparing and
submitting an NDA is substantial. The submission of most NDAs is additionally subject to a substantial application user fee, and
the applicant under an approved NDA is also subject to annual product and establishment user fees. These fees are typically increased
annually. On August 3, 2017, Congress passed the FDA Reauthorization Act of 2017, which reauthorizes the various user fees to facilitate
the FDA&rsquo;s product review and oversight.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FDA has 60 days
from its receipt of an NDA to determine whether the application will be accepted for filing based on the agency&rsquo;s threshold
determination that it is sufficiently complete to permit substantive review. The FDA may refuse to file any NDA that it deems incomplete
or not properly reviewable at the time of submission and may request additional information. In this event, the NDA must be resubmitted
with the additional information and the resubmitted application also is subject to review before the FDA accepts it for filing.
Once the submission is accepted for filing, the FDA begins an in-depth review. The FDA has agreed to certain performance goals
in the review of NDAs. Most such applications for standard review product candidates are reviewed within 10 months of the date
the FDA files the NDA; most applications for priority review product candidates are reviewed within six months of the date the
FDA files the NDA. Priority review can be applied to a product candidate that the FDA determines has the potential to treat a serious
or life-threatening condition and, if approved, would be a significant improvement in safety or effectiveness compared to available
therapies. The review process for both standard and priority review may be extended by the FDA for three additional months to consider
certain late-submitted information, or information intended to clarify information already provided in the submission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Among other things,
the FDA reviews an NDA to determine whether the product is safe and effective for its intended use and whether the product candidate
is being manufactured in accordance with cGMP. The FDA may also refer applications for novel product candidates, or product candidates
that present difficult questions of safety or efficacy, to an advisory committee&mdash;typically a panel that includes clinicians
and other experts&mdash;for review, evaluation, and a recommendation as to whether the application should be approved. The FDA
is not bound by the recommendation of an advisory committee, but it generally follows such recommendations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Before approving an
NDA, the FDA will typically inspect one or more clinical sites to assure compliance with GCP. Additionally, the FDA may inspect
the facility or the facilities at which the product candidate is manufactured. The FDA will not approve the product candidate unless
it determines that the manufacturing processes and facilities are in compliance with cGMP requirements and adequate to assure consistent
production of the product within required specifications. To assure GCP and cGMP compliance, an applicant must incur significant
expenditures of time, money and effort in the areas of training, record keeping, production, and quality control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Notwithstanding the
submission of relevant data and information, the FDA may ultimately decide that the NDA does not satisfy the criteria for approval
and deny approval. Data obtained from clinical trials are not always conclusive. The FDA may disagree with Xynomic&rsquo;s trial
design or interpret data from nonclinical studies and clinical trials differently than Xynomic interprets the same data. If the
agency decides not to approve the NDA in its present form, the FDA will issue a complete response letter that describes all of
the specific deficiencies in the application identified by the FDA. The deficiencies identified may be minor, for example, requiring
labeling changes, or major, for example, requiring additional clinical trials. If a complete response letter is issued, the applicant
may either resubmit the NDA, addressing the deficiencies identified in the letter, or withdraw the application. If, or when, those
deficiencies have been addressed to the FDA&rsquo;s satisfaction in a resubmission of the NDA, the FDA will issue an approval letter.
The FDA has committed to reviewing such resubmissions in two or six months depending on the type of information included. An approval
letter authorizes commercial marketing of the drug in the United States with specific prescribing information for specific indications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even if a product candidate
receives regulatory approval, the approval may be significantly limited to specific indications and dosages or the indications
for use may otherwise be limited, which could restrict the commercial value of the product. Further, the FDA may require that certain
contraindications, warnings or precautions be included in the product labeling. The FDA may impose restrictions and conditions
on product distribution, prescribing, or dispensing in the form of a risk evaluation and mitigation strategy, or &ldquo;<I>REMS</I>,&rdquo;
or otherwise limit the scope of any approval. REMS can include medication guides, communication plans for healthcare professionals,
and elements to assure safe use, or &ldquo;<I>ETASU</I>.&rdquo; ETASU can include, but are not limited to, special training or
certification for prescribing or dispensing, dispensing only under certain circumstances, special monitoring, and the use of patient
registries. The requirement for REMS can materially affect the potential market and profitability of the product. In addition,
the FDA may require confirmatory post-marketing trials, sometimes referred to as &ldquo;Phase 4&rdquo; clinical trials, designed
to further assess a product&rsquo;s safety and effectiveness, and testing and surveillance programs to monitor the safety of approved
products that have been commercialized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FDA may withdraw
a product approval if compliance with regulatory requirements is not maintained or if problems occur after the product reaches
the market. Later discovery of previously unknown problems with a product may result in restrictions on the product&rsquo;s marketing
or even complete withdrawal of the product from the market. Further, the failure to maintain compliance with regulatory requirements
may result in administrative or judicial actions, such as fines, untitled or warning letters, holds on clinical trials, product
seizures, product detention or refusal to permit the import or export of products, refusal to approve pending applications or supplements,
restrictions on marketing or manufacturing, injunctions or consent decrees, or civil or criminal penalties, or may lead to voluntary
product recalls.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Foreign Clinical Studies to Support
an IND or NDA</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FDA will accept
as support for an IND or NDA a well-designed, well-conducted, non-IND foreign clinical trial if it was conducted in accordance
with GCP and the FDA is able to validate the data from the trial through an on-site inspection, if necessary. A sponsor or applicant
who wishes to rely on a non-IND foreign clinical trial must submit supporting information to the FDA to demonstrate that the trial
conformed to GCP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Regulatory applications
based solely on foreign clinical data meeting these criteria may be approved if the foreign data are applicable to the U.S. population
and U.S. medical practice, the trials have been performed by clinical investigators of recognized competence, and the data may
be considered valid without the need for an on-site inspection by FDA or, if FDA considers such an inspection to be necessary,
FDA is able to validate the data through an on-site inspection or other appropriate means. Failure of an application to meet any
of these criteria may result in the application not being approvable based on the foreign data alone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Disclosure of Clinical Trial Information</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Sponsors of clinical
trials of FDA-regulated products are required to register and disclose certain clinical trial information. Information related
to the product, patient population, phase of investigation, trial sites and investigators, and other aspects of the clinical trial
is then made public as part of the registration. Sponsors are also obligated to disclose the results of their clinical trials after
completion. Disclosure of the results of these trials can be delayed in certain circumstances for up to two years after the date
of completion of the trial. Competitors may use this publicly available information to gain knowledge regarding the progress of
development programs. In addition, failure to submit required clinical trial registration and/or results information may result
in FDA regulatory actions, including the issuance of a Notice of Noncompliance, civil money penalties, injunction, and/or criminal
prosecution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Expedited Development and Review Programs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FDA has various
programs, including Fast Track Designation, Priority Review Designation, Accelerated Approval Program and Breakthrough Therapy
Designation, which are intended to expedite or simplify the process for reviewing product candidates. Even if a product candidate
qualifies for one or more of these programs, the FDA may later decide that the product candidate no longer meets the conditions
for qualification or that the time period for FDA review or approval will be lengthened. Generally, product candidates that are
eligible for these programs are those for serious or life-threatening conditions, those with the potential to address unmet medical
needs and those that offer meaningful benefits over existing treatments. For example, Fast Track Designation is a process designed
to facilitate the development and expedite the review of product candidates to treat serious or life-threatening diseases or conditions
and fill unmet medical needs. Priority Review Designation is designed to give a product candidate that treats a serious condition
and, if approved, would provide a significant improvement in safety or effectiveness, an initial review within eight months as
compared to a standard review time of within 10 months of the date the FDA files the NDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although Fast Track
Designation and Priority Review Designation do not affect the standards for approval, the FDA will attempt to facilitate early
and frequent meetings with a sponsor of a Fast Track Designation product candidate and expedite review of the application for a
Priority Review Designation product candidate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the Food and Drug
Administration Safety and Innovation Act, or &ldquo;<I>FDASIA</I>,&rdquo; which was signed into law in July 2012, the U.S. Congress
encouraged the FDA to utilize innovative and flexible approaches to the assessment of product candidates under the Accelerated
Approval Program. The law required the FDA to issue related guidance and also promulgate confirming regulatory changes. In May
2014, the FDA published a final Guidance for Industry titled &ldquo;Expedited Programs for Serious Conditions&mdash;Drugs and Biologics,&rdquo;
which provides guidance on the FDA programs that are intended to facilitate and expedite development and review of new product
candidates as well as threshold criteria generally applicable to concluding that a product candidate is a candidate for these expedited
development and review programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FDA may grant accelerated
approval to a product for a serious or life-threatening disease or condition that provides meaningful therapeutic advantage to
patients over existing treatments based upon a determination that the product has an effect on a surrogate endpoint that is reasonably
likely to predict clinical benefit. Products approved under the Accelerated Approval Program must meet the same statutory standards
for safety and effectiveness as those granted traditional approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the
Fast Track Designation, Priority Review Designation, and Accelerated Approval Programs discussed above, the FDA also provided guidance
on a new program for Breakthrough Therapy Designation, established by FDASIA to subject a new category of product candidates to
expedited approval. A sponsor may seek Breakthrough Therapy Designation of a product candidate if the product candidate is intended,
alone or in combination with one or more other therapeutics, to treat a serious or life-threatening disease or condition, and preliminary
clinical evidence indicates that the product candidate may demonstrate substantial improvement over existing therapies on one or
more clinically significant endpoints, such as substantial treatment effects observed early in clinical development. A request
for Breakthrough Therapy Designation should be submitted concurrently with, or as an amendment to, an IND, but ideally no later
than the end of Phase 2 meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Accelerated Approval
Program </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the accelerated
approval provisions of the FFDCA and the FDA&rsquo;s implementing regulations, the FDA may grant accelerated approval to a product
for a serious or life-threatening disease or condition that provides meaningful therapeutic advantage to patients over existing
treatments based upon a determination that the product has an effect on a surrogate endpoint that is reasonably likely to predict
clinical benefit. Products approved under the Accelerated Approval Program must meet the same statutory standards for safety and
effectiveness as those granted traditional approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Accelerated Approval
Program is most often used in settings in which the course of a disease is long and an extended period of time is required to measure
the intended clinical benefit of a product, while the effect on the surrogate endpoint occurs more rapidly. The FDA will not grant
approval under the Accelerated Approval Program to products that meet standards for traditional approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The evidence to support
the determination that an endpoint is reasonably likely to predict clinical benefit may include epidemiological, pathophysiological,
therapeutic, pharmacologic, or other evidence developed using biomarkers, for example, or other scientific methods or tools. The
FDA considers all relevant evidence and may consult external experts, as needed. Important factors for the agency&rsquo;s consideration
include the disease process and the relationship between the drug&rsquo;s effect and the disease process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As part of the Accelerated
Approval Program, the FDA may require one or more confirmatory post-marketing trials to verify and describe the anticipated effect
or clinical benefit of Xynomic&rsquo;s products. Typically, clinical benefit is verified when post-marketing clinical trials show
that the drug provides a clinically meaningful positive therapeutic effect, that is, an effect on how a patient feels, functions,
or survives. The FDA may require that any confirmatory post-marketing trial be initiated or substantially underway prior to the
submission of an application under the Accelerated Approval Program. And, if such confirmatory post-marketing trial fails to confirm
the drug&rsquo;s clinical profile or risks and benefits, the FDA may withdraw its approval of the drug. The FDA may also withdraw
the approval if other evidence demonstrates that the product is not safe or effective. All promotional materials for product candidates
approved under the Accelerated Approval Program are subject to prior review by the FDA. The FDA has issued labeling instructions
specific to the program. For example, if a drug is approved based on a surrogate endpoint under the program, its labeling should
include a succinct description of the limitations of usefulness of the drug and any uncertainty about anticipated clinical benefits.
False or misleading promotional materials may also lead to expedited withdrawal of approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Patent Term Restoration
and Marketing Exclusivity</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After approval, owners
of relevant drug patents may apply for up to a five-year patent extension under the Drug Price Competition and Patent Term Restoration
Act of 1984, referred to as the Hatch-Waxman Act. The allowable patent term extension is calculated as half of the product&rsquo;s
testing phase&mdash;the time between IND and NDA submission&mdash;and all of the review phase&mdash;the time between NDA submission
and approval, up to a maximum of five years. The time can be shortened if the FDA determines that the applicant did not pursue
approval with due diligence. The total patent term after the extension may not exceed 14 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For patents that might
expire during the application phase, the patent owner may request an interim patent extension. An interim patent extension increases
the patent term by one year and may be renewed up to four times. In no event will the interim patent extensions be longer than
the extension that would be obtained under the normal patent term extension provisions. The director of the U.S. Patent and Trademark
Office must determine that approval of the product candidate covered by the patent for which a patent extension is being sought
is likely. Interim patent extensions are not available for a product candidate for which an NDA has not been submitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Market exclusivity
provisions under the FFDCA also can delay the submission or the approval of certain applications. The FFDCA provides a five-year
period of non-patent marketing exclusivity within the United States to the first applicant to gain approval of an NDA for a new
chemical entity. A product candidate is a new chemical entity if the FDA has not previously approved any other new product candidate
containing the same active moiety, which is the molecule or ion responsible for the action of the product candidate substance.
During the exclusivity period, the FDA may not accept for review an abbreviated new drug application, or &ldquo;<I>ANDA</I>,&rdquo;
or a 505(b)(2) NDA submitted by another company for another version of such product candidate where the applicant does not own
or have a legal right of reference to all the data required for approval. An application, however, may be submitted after four
years if it contains a certification of patent invalidity or non-infringement. The FFDCA also provides three years of marketing
exclusivity for an NDA, 505(b)(2) NDA or supplement to an approved NDA if new clinical investigations, other than bioavailability
studies, that were conducted or sponsored by the applicant are deemed by the FDA to be essential to the approval of the application,
for example, for new indications, dosages, or strengths of an existing product candidate. This three-year exclusivity covers only
the conditions associated with the new clinical investigations and does not prohibit the FDA from approving ANDAs for product candidates
containing the original active agent. Five-year and three-year exclusivity will not delay the submission or approval of a full
NDA. An applicant submitting a full NDA, however, would be required to conduct or obtain a right of reference to all of the nonclinical
studies and adequate and well-controlled clinical trials necessary to demonstrate safety and effectiveness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Post-marketing
Requirements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Once an approval is
granted, the FDA may withdraw the approval if compliance with regulatory requirements is not maintained or if problems occur after
the product reaches the market. Later discovery of previously unknown problems with a product may result in restrictions on the
product or even complete withdrawal of the product from the market. After approval, some types of changes to the approved product,
such as adding new indications, manufacturing changes, and additional labeling claims, are subject to further FDA review and approval.
In addition, the FDA may under some circumstances require testing and surveillance programs to monitor the effect of approved products
that have been commercialized, and the FDA under some circumstances has the power to prevent or limit further marketing of a product
based on the results of these post marketing programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic&rsquo;s drugs,
pursuant to FDA approvals, are subject to continuing regulation by the FDA, including, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">record-keeping
requirements;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reporting
of adverse experiences associated with the product;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">providing
the FDA with updated safety and efficacy information;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">therapeutic
sampling and distribution requirements;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">notifying
the FDA and gaining its approval of specified manufacturing or labeling changes;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">registration
and listing requirements; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">complying
with FDA promotion and advertising requirements, which include, among other things, standards for direct-to-consumer advertising,
restrictions on promoting products for uses or in patient populations that are not described in the product&rsquo;s approved labeling,
limitations on industry-sponsored scientific and educational activities, and requirements for promotional activities involving
the internet.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Manufacturers, their subcontractors, and
other entities involved in the manufacture and distribution of Xynomic&rsquo;s drugs, if approved, are required to register their
establishments with the FDA and certain state agencies and are subject to periodic unannounced inspections by the FDA and some
state agencies for compliance with cGMP, including data integrity requirements, and other laws. The FDA periodically inspects manufacturing
facilities to assess compliance with ongoing regulatory requirements, including cGMP, which impose extensive procedural, substantive,
and record-keeping requirements upon Xynomic and third-party manufacturers engaged by it if its drugs are approved. In addition,
changes to the manufacturing process are strictly regulated, and, depending on the significance of the change, may require FDA
approval before being implemented. FDA regulations would also require investigation and correction of any deviations from cGMP
and impose reporting and documentation requirements upon Xynomic and its third-party manufacturers. Accordingly, manufacturers
must continue to expend time, money, and effort in the area of production and quality control to maintain compliance with cGMP
and other aspects of regulatory compliance. Failure to comply with the statutory and regulatory requirements can subject a manufacturer
to possible legal or regulatory actions, such as warning letters, suspension of manufacturing, seizures of products, injunctive
actions, or other civil penalties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, drug manufacturers
in the United States must comply with applicable provisions of the Drug Supply Chain Security Act and provide and receive product
tracing information, maintain appropriate licenses, ensure they only work with other properly licensed entities, and have procedures
in place to identify and properly handle suspect and illegitimate products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>New Legislation
and Regulations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time,
legislation is drafted, introduced, and passed in Congress that could significantly change the statutory provisions governing the
testing, approval, manufacturing, and marketing of products regulated by the FDA. In addition to new legislation, FDA regulations
and policies are often revised or interpreted by the agency in ways that may significantly affect Xynomic&rsquo;s business and
its drugs. It is impossible to predict whether further legislative changes will be enacted or whether FDA regulations, guidance,
policies, or interpretations will be changed or what the effect of such changes, if any, may be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Other U.S. Healthcare
Laws and Compliance Requirements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the United States,
Xynomic&rsquo;s activities are potentially subject to regulation by various federal, state, and local authorities in addition to
the FDA, including but not limited to, the Centers for Medicare and Medicaid Services, or &ldquo;<I>CMS</I>,&rdquo; other divisions
of the U.S. Department of Health and Human Services (such as the Office of Inspector General and the Health Resources and Service
Administration), the U.S. Department of Justice, or the &ldquo;<I>DOJ</I>,&rdquo; and individual U.S. Attorney offices within the
DOJ, and state and local governments. For example, sales, marketing, and scientific/educational grant programs may have to comply
with the anti-fraud and abuse provisions of the Social Security Act, the false claims laws, the privacy and security provisions
of the HIPAA, and similar state laws, each as amended, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The federal Anti-Kickback
Statute prohibits, among other things, any person or entity, from knowingly and willfully offering, paying, soliciting, or receiving
any remuneration, directly or indirectly, overtly or covertly, in cash or in kind, to induce or in return for purchasing, leasing,
ordering, or arranging for the purchase, lease, or order of any item or service reimbursable, in whole or in part, under Medicare,
Medicaid, or other federal healthcare programs. The term remuneration has been interpreted broadly to include anything of value.
The Anti- Kickback Statute has been interpreted to apply to arrangements between therapeutic product manufacturers on one hand
and prescribers, purchasers, and formulary managers on the other. There are a number of statutory exceptions and regulatory safe
harbors protecting some common activities from prosecution. The exceptions and safe harbors are drawn narrowly and practices that
involve remuneration that may be alleged to be intended to induce prescribing, purchasing, or recommending may be subject to scrutiny
if they do not qualify for an exception or safe harbor. Failure to meet all of the requirements of a particular applicable statutory
exception or regulatory safe harbor does not make the conduct per se illegal under the Anti-Kickback Statute. Instead, the legality
of the arrangement will be evaluated on a case-by-case basis based on a cumulative review of all of its facts and circumstances.
There has also been some discussion of potential changes to the regulatory safe harbor involving discounts, but such proposals
have not yet been released. Xynomic&rsquo;s practices may not in all cases meet all of the criteria for protection under a statutory
exception or regulatory safe harbor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, the intent
standard under the Anti-Kickback Statute was amended by the PPACA, as amended by the Health Care and Education Reconciliation Act
of 2010, to a stricter standard such that a person or entity no longer needs to have actual knowledge of the statute or specific
intent to violate it in order to have committed a violation. In addition, the PPACA codified case law that a claim including items
or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes
of the federal FCA (discussed below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The federal false claims
and civil monetary penalty laws, including the FCA, which imposes significant penalties and can be enforced by private citizens
through civil qui tam actions, prohibit any person or entity from, among other things, knowingly presenting, or causing to be presented,
a false or fraudulent claim for payment to, or approval by, the federal healthcare programs, including Medicare and Medicaid, or
knowingly making, using, or causing to be made or used a false record or statement material to a false or fraudulent claim to the
federal government. A claim includes &ldquo;any request or demand&rdquo; for money or property presented to the U.S. government.
For instance, historically, pharmaceutical and other healthcare companies have been prosecuted under these laws for allegedly providing
free product to customers with the expectation that the customers would bill federal programs for the product. Other companies
have been prosecuted for causing false claims to be submitted because of the companies&rsquo; marketing of the product for unapproved,
off-label, and thus generally non-reimbursable, uses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">HIPAA created additional
federal criminal statutes that prohibit, among other things, knowingly and willfully executing, or attempting to execute, a scheme
to defraud or to obtain, by means of false or fraudulent pretenses, representations, or promises, any money or property owned by,
or under the control or custody of, any healthcare benefit program, including private third-party payors, willfully obstructing
a criminal investigation of a healthcare offense, and knowingly and willfully falsifying, concealing, or covering up by trick,
scheme, or device, a material fact or making any materially false, fictitious, or fraudulent statement in connection with the delivery
of or payment for healthcare benefits, items, or services. Like the Anti-Kickback Statute, the PPACA amended the intent standard
for certain healthcare fraud statutes under HIPAA such that a person or entity no longer needs to have actual knowledge of the
statute or specific intent to violate it in order to have committed a violation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Also, many states have
similar, and typically more prohibitive, fraud and abuse statutes or regulations that apply to items and services reimbursed under
Medicaid and other state programs, or, in several states, apply regardless of the payor. Additionally, to the extent that its drugs
may in the future be sold in a foreign country, Xynomic may be subject to similar foreign laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic may be subject
to data privacy and security regulations by both the federal government and the states in which it conducts its business. HIPAA,
as amended by the HITECH and its implementing regulations, imposes requirements relating to the privacy, security, and transmission
of individually identifiable health information. Among other things, HITECH makes HIPAA&rsquo;s privacy and security standards
directly applicable to business associates, independent contractors, or agents of covered entities that receive or obtain protected
health information in connection with providing a service on behalf of a covered entity. HITECH also created four new tiers of
civil monetary penalties, amended HIPAA to make civil and criminal penalties directly applicable to business associates, and gave
state attorneys general new authority to file civil actions for damages or injunctions in federal courts to enforce HIPAA and seek
attorneys&rsquo; fees and costs associated with pursuing federal civil actions. In addition, many state laws govern the privacy
and security of health information in specified circumstances, many of which differ from each other in significant ways, are often
not pre-empted by HIPAA, and may have a more prohibitive effect than HIPAA, thus complicating compliance efforts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic expects that
its drugs, if approved, may be eligible for coverage under Medicare, the federal health care program that provides health care
benefits to the aged and disabled and that, in part, covers certain pharmaceutical products that are medically necessary to treat
a beneficiary&rsquo;s health condition. In addition, Xynomic&rsquo;s drugs, if approved, may be covered and reimbursed under other
government programs, such as Medicaid, and subject to certain pricing requirements, such as under the 340B Drug Pricing Program.
The Medicaid Drug Rebate Program requires pharmaceutical manufacturers to enter into and have in effect a national rebate agreement
with the Secretary of the Department of Health and Human Services as a condition for states to receive federal matching funds for
the manufacturer&rsquo;s outpatient drugs furnished to Medicaid patients. Under the 340B Drug Pricing Program, the manufacturer
must extend discounts to entities that participate in the program. As part of the requirements to participate in these government
programs, many pharmaceutical manufacturers must calculate and report certain price reporting metrics to the government, such as
average manufacturer price, or &ldquo;<I>AMP</I>,&rdquo; and best price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, the federal
Physician Payments Sunshine Act, or the &ldquo;<I>Sunshine Act</I>,&rdquo; within the PPACA, and its implementing regulations,
require that certain manufacturers of drugs, devices, and biological and medical supplies for which payment is available under
Medicare, Medicaid, or the Children&rsquo;s Health Insurance Program (with certain exceptions) report annually to CMS information
related to certain payments or other transfers of value made or distributed to physicians and teaching hospitals, or to entities
or individuals at the request of, or designated on behalf of, the physicians and teaching hospitals and to report annually certain
ownership and investment interests held by physicians and their immediate family members. In addition, many states also govern
the reporting of payments or other transfers of value, many of which differ from each other in significant ways, are often not
pre-empted, and may have a more prohibitive effect than the Sunshine Act, thus further complicating compliance efforts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to distribute
products commercially, Xynomic must comply with state laws that require the registration of manufacturers and wholesale distributors
of drug and biological products in a state, including, in certain states, manufacturers and distributors who ship products into
the state even if such manufacturers or distributors have no place of business within the state. Some states also impose requirements
on manufacturers and distributors to establish the pedigree of product in the chain of distribution, including some states that
require manufacturers and others to adopt new technology capable of tracking and tracing product as it moves through the distribution
chain. Several states have enacted legislation requiring pharmaceutical and biotechnology companies to establish marketing compliance
programs, file periodic reports with the state, make periodic public disclosures on sales, marketing, pricing, clinical trials,
and other activities, and/or register their sales representatives, as well as to prohibit pharmacies and other healthcare entities
from providing certain physician prescribing data to pharmaceutical and biotechnology companies for use in sales and marketing,
and to prohibit certain other sales and marketing practices. All of Xynomic&rsquo;s activities are potentially subject to federal
and state consumer protection and unfair competition laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Ensuring business arrangements
with third parties to comply with applicable healthcare laws and regulations is a costly endeavor. If Xynomic&rsquo;s operations
are found to be in violation of any of the federal and state healthcare laws described above or any other current or future governmental
regulations that apply to it, Xynomic may be subject to penalties, including without limitation, civil, criminal, and/or administrative
penalties, damages, fines, disgorgement, individual imprisonment, exclusion from participation in government programs, such as
Medicare and Medicaid, injunctions, private &ldquo;qui tam&rdquo; actions brought by individual whistleblowers in the name of the
government, refusal to allow Xynomic to enter into government contracts, contractual damages, reputational harm, administrative
burdens, diminished profits and future earnings, additional reporting obligations and oversight if Xynomic becomes subject to a
corporate integrity agreement or other agreement to resolve allegations of non-compliance with these laws, and the curtailment
or restructuring of Xynomic&rsquo;s operations, any of which could adversely affect Xynomic&rsquo;s ability to operate its business
and its results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Coverage, Pricing,
and Reimbursement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Significant uncertainty
exists as to the coverage and reimbursement status of Xynomic&rsquo;s drugs, if approved. In the United States and in foreign markets,
sales of Xynomic&rsquo;s drugs, if and when it receives regulatory approval for commercial sale, will depend, in part, on the extent
to which third-party payors provide coverage and establish adequate reimbursement levels for such products. In the United States,
third-party payors include federal and state healthcare programs, private managed care providers, health insurers, and other organizations.
Adequate coverage and reimbursement from governmental healthcare programs, such as Medicare and Medicaid in the United States,
and commercial payors are critical to new product acceptance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic&rsquo;s ability
to commercialize its drugs successfully also will depend in part on the extent to which coverage and reimbursement for these products
and related treatments will be available from government health administration authorities, private health insurers and other organizations.
Government authorities and third-party payors, such as private health insurers and health maintenance organizations, decide which
therapeutics they will pay for and establish reimbursement levels. Coverage and reimbursement by a third-party payor may depend
upon a number of factors, including the third-party payor&rsquo;s determination that use of a therapeutic is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
covered benefit under its health plan;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">safe,
effective, and medically necessary;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">appropriate
for the specific patient;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">cost-effective;
and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">neither
experimental nor investigational.</FONT></TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">We cannot be sure that reimbursement
will be available for its drugs and, if coverage and reimbursement are available, what the level of reimbursement will be. Coverage
may also be more limited than the indications for which the product is approved by the FDA or comparable foreign regulatory authorities.
Reimbursement may impact the demand for, or the price of, its drugs, if approved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Third-party payors
are increasingly challenging the price, examining the medical necessity, and reviewing the cost-effectiveness of medical products,
therapies, and services, in addition to questioning their safety and efficacy. Obtaining reimbursement for Xynomic&rsquo;s drugs
may be particularly difficult because of the higher prices often associated with branded drugs and drugs administered under the
supervision of a physician. Xynomic may need to conduct expensive pharmacoeconomic studies in order to demonstrate the medical
necessity and cost-effectiveness of its drugs, in addition to the costs required to obtain FDA approvals. Its drugs may not be
considered medically necessary or cost-effective. Obtaining coverage and reimbursement approval of a product from a government
or other third-party payor is a time-consuming and costly process that could require Xynomic to provide to each payor supporting
scientific, clinical, and cost effectiveness data for the use of its drugs on a payor-by-payor basis, with no assurance that coverage
and adequate reimbursement will be obtained. A payor&rsquo;s decision to provide coverage for a product does not imply that an
adequate reimbursement rate will be approved. Further, one payor&rsquo;s determination to provide coverage for a product does not
assure that other payors will also provide coverage for the product. Adequate third-party reimbursement may not be available to
enable Xynomic to maintain price levels sufficient to realize an appropriate return on Xynomic&rsquo;s investment in product development.
In addition, prices for drugs may be reduced by mandatory discounts or rebates required by government healthcare programs or private
payors and by any future relaxation of laws that presently restrict imports of drugs from countries where they may be sold at lower
prices than in the United States. It is difficult to predict how Medicare coverage and reimbursement policies will be applied to
Xynomic&rsquo;s drugs in the future and coverage and reimbursement under different federal healthcare programs are not always consistent.
If reimbursement is not available or is available only at limited levels, Xynomic may not be able to successfully commercialize
its drugs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Different pricing and
reimbursement schemes exist in other countries. In the European Union, governments influence the price of pharmaceutical products
through their pricing and reimbursement rules and control of national health care systems that fund a large part of the cost of
those products to consumers. Some jurisdictions operate positive and negative list systems under which products may only be marketed
once a reimbursement price has been agreed. To obtain reimbursement or pricing approval, some of these countries may require the
completion of clinical trials that compare the cost effectiveness of a particular product candidate to currently available therapies.
Other member states allow companies to fix their own prices for medicines, but monitor and control company profits. The downward
pressure on health care costs has become intense. As a result, increasingly high barriers are being erected to the entry of new
products. In addition, in some countries, cross- border imports from low-priced markets exert a commercial pressure on pricing
within a country.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The marketability of
Xynomic&rsquo;s drugs, if approved, for commercial sale may suffer if the government and third-party payors fail to provide adequate
coverage and reimbursement. In addition, emphasis on managed care, the increasing influence of health maintenance organizations,
and additional legislative changes in the United States has increased, and Xynomic expects will continue to increase, the pressure
on healthcare pricing. The downward pressure on the rise in healthcare costs in general, particularly prescription medicines, medical
devices and surgical procedures and other treatments, has become very intense. Coverage policies and third-party reimbursement
rates may change at any time. Even if favorable coverage and reimbursement status is attained for one or more products for which
Xynomic receives regulatory approval, less favorable coverage policies and reimbursement rates may be implemented in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Healthcare Reform</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the United States
and some foreign jurisdictions, there have been, and continue to be, several legislative and regulatory changes and proposed changes
regarding the healthcare system that could prevent or delay marketing approval of product candidates, restrict or regulate post-approval
activities, and affect the ability to profitably sell product candidates for which marketing approval is obtained. Among policy
makers and payors in the United States and elsewhere, there is significant interest in promoting changes in healthcare systems
with the stated goals of containing healthcare costs, improving quality, and/or expanding access. In the United States, the pharmaceutical
industry has been a particular focus of these efforts and has been significantly affected by major legislative initiatives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For example, the PPACA
has substantially changed healthcare financing and delivery by both governmental and private insurers. Among the PPACA provisions
of importance to the pharmaceutical and biotechnology industries, in addition to those otherwise described above, are the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
annual, nondeductible fee on any entity that manufactures or imports certain specified branded prescription drugs and biologic
agents apportioned among these entities according to their market share in some government healthcare programs that began in 2011;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
increase in the statutory minimum rebates a manufacturer must pay under the Medicaid Drug Rebate Program, retroactive to January
1, 2010, to 23.1% and 13% of the average manufacturer price for most branded and generic drugs, respectively, and capped the total
rebate amount for innovator drugs at 100% of AMP;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
new Medicare Part D coverage gap discount program, in which manufacturers must currently agree to offer 50%, which will change
to 70% starting in 2019 due to subsequent legislation, point-of-sale discounts off negotiated prices of applicable brand drugs
to eligible beneficiaries during their coverage gap period, as a condition for the manufacturers&rsquo; outpatient drugs to be
covered under Medicare Part D;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
extension of manufacturers&rsquo; Medicaid rebate liability to covered drugs dispensed to individuals who are enrolled in Medicaid
managed care organizations;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
expansion of eligibility criteria for Medicaid programs by, among other things, allowing states to offer Medicaid coverage to
additional individuals beginning in 2014 and by adding new mandatory eligibility categories for individuals with income at or
below 133% of the federal poverty level, thereby potentially increasing manufacturers&rsquo; Medicaid rebate liability;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
expansion of the entities eligible for discounts under the 340B Drug Discount Program;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
new Patient-Centered Outcomes Research Institute to oversee, identify priorities in, and conduct comparative clinical effectiveness
research, along with funding for such research;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
expansion of healthcare fraud and abuse laws, including the FCA and the Anti-Kickback Statute, new government investigative powers,
and enhanced penalties for noncompliance;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
new methodology by which rebates owed by manufacturers under the Medicaid Drug Rebate Program are calculated for drugs that are
inhaled, infused, instilled, implanted, or injected;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">requirements
to report certain financial arrangements with physicians and teaching hospitals;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
requirement to annually report certain information regarding drug samples that manufacturers and distributors provide to physicians;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
establishment of a Center for Medicare Innovation at CMS to test innovative payment and service delivery models to lower Medicare
and Medicaid spending, potentially including prescription drug spending, that began on January 1, 2011; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
licensure framework for follow on biologic products.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There have been legal
and judicial, Congressional, and political challenges to certain aspects of the PPACA, as well as recent efforts by the Trump administration
to repeal and replace certain aspects of the PPACA. Since January 2017, President Trump has signed executive orders and other directives
designed to delay, circumvent, or loosen certain requirements mandated by the PPACA. Furthermore, each chamber of Congress has
put forth multiple bills designed to repeal or repeal and replace portions of the PPACA. The federal income tax law includes a
provision repealing, effective January 1, 2019, the tax-based shared responsibility payment imposed by the PPACA on certain individuals
who fail to maintain qualifying health coverage for all or part of a year that is commonly referred to as the &ldquo;individual
mandate.&rdquo; Additionally, on January 22, 2018, President Trump signed a continuing resolution on appropriations for fiscal
year 2018 that delayed the implementation of certain PPACA-mandated fees, including the so called &ldquo;Cadillac&rdquo; tax on
certain high cost employer-sponsored insurance plans, the annual fee imposed on certain health insurance providers based on market
share, and the medical device excise tax on nonexempt medical devices. Further, the Bipartisan Budget Act of 2018 among other things,
amends the PPACA, effective January 1, 2019, to close the coverage gap in most Medicare drug plans, commonly referred to as the
&ldquo;donut hole.&rdquo; Congress may consider other legislation that would alter other aspects of the PPACA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic anticipates
that the PPACA, if substantially maintained in its current form, will continue to result in additional downward pressure on coverage
and the reimbursement that it receives for its drugs, and could seriously harm Xynomic&rsquo;s business. Any reduction in reimbursement
from Medicare and other government programs may result in a similar reduction in payments from private payors. The implementation
of cost containment measures or other healthcare reforms may prevent Xynomic from being able to generate revenue, attain profitability,
or commercialize its drugs. Such reforms could have an adverse effect on anticipated revenues from product candidates that Xynomic
may successfully develop and for which it may obtain regulatory approval and may affect its overall financial condition and ability
to develop product candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Further legislation
or regulation could be passed that could harm Xynomic&rsquo;s business, financial condition, and results of operations. Other legislative
changes have been proposed and adopted since the PPACA was enacted. For example, in August 2011, President Obama signed into law
the Budget Control Act of 2011, which, among other things, created the Joint Select Committee on Deficit Reduction to recommend
to Congress proposals in spending reductions. The Joint Select Committee on Deficit Reduction did not achieve a targeted deficit
reduction of at least $1.2 trillion for fiscal years 2012 through 2021, triggering the legislation&rsquo;s automatic reduction
to several government programs. This includes aggregate reductions to Medicare payments to providers of up to 2% per fiscal year,
which went into effect beginning on April 1, 2013, and will stay in effect through 2027 unless additional Congressional action
is taken.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, there
has been increasing legislative, regulatory, and enforcement interest in the United States with respect to specialty drug pricing
practices. Specifically, there have been several recent U.S. Congressional inquiries and proposed federal legislation and regulations
designed to, among other things, bring more transparency to drug pricing, reduce the cost of prescription drugs under Medicare,
review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies
for drugs. At the federal level, the Trump administration&rsquo;s budget proposal for fiscal year 2019 contains further drug price
control measures that could be enacted during the 2019 budget process or in other future legislation, including, for example, measures
to permit Medicare Part D plans to negotiate the price of certain drugs under Medicare Part B, to allow some states to negotiate
drug prices under Medicaid, and to eliminate cost sharing for generic drugs for low-income patients. In addition, for example,
in October 2018, HHS released a proposed rule that would require manufacturers to disclose the price of their drugs in direct-to-consumer
advertising. It is not yet clear whether this proposal will be changed or finalized. While any proposed measures may require authorization
through additional legislation to become effective, Congress and the Trump administration have each indicated that it will continue
to seek new legislative and/or administrative measures to control drug costs. At the state level, individual states in the United
States are increasingly passing legislation and implementing regulations designed to control pharmaceutical and biological product
pricing, including price or patient reimbursement constraints, discounts, restrictions on certain product access and marketing
cost disclosure and transparency measures. For example, in September 2017, the California State Assembly approved SB17, which requires
pharmaceutical companies to notify health insurers and government health plans at least 60 days before any scheduled increases
in the prices of their products if they exceed certain thresholds over a two-year period, and further requiring pharmaceutical
companies to explain the reasons for such increase. Effective in 2016, Vermont passed a law requiring certain manufacturer identified
by the state to justify their price increases. These transparency laws may affect Xynomic&rsquo;s business and ability to profit
from its drugs, if approved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Foreign Corrupt
Practices Act</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Foreign Corrupt
Practices Act, or the &ldquo;<I>FCPA</I>,&rdquo; prohibits any U.S. individual or business from paying, offering, or authorizing
payment or offering of anything of value, directly or indirectly, to any foreign official, political party, or candidate for the
purpose of influencing any act or decision of the foreign entity in order to assist the individual or business in obtaining or
retaining business. The FCPA also obligates companies whose securities are listed in the United States to comply with accounting
provisions requiring Xynomic to maintain books and records that accurately and fairly reflect all transactions of the corporation,
including international subsidiaries, and to devise and maintain an adequate system of internal accounting controls for international
operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Additional Regulations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the
foregoing, state and federal laws regarding environmental protection and hazardous substances, including the Occupational Safety
and Health Act, the Resource Conservancy and Recovery Act, and the Toxic Substances Control Act, affect Xynomic&rsquo;s business.
These and other laws govern Xynomic&rsquo;s use, handling, and disposal of various biological, chemical, and radioactive substances
used in, and wastes generated by, Xynomic&rsquo;s operations. If Xynomic&rsquo;s operations result in contamination of the environment
or expose individuals to hazardous substances, Xynomic could be liable for damages and governmental fines. Xynomic believes that
it is in material compliance with applicable environmental laws and that continued compliance therewith will not have a material
adverse effect on Xynomic&rsquo;s business. Xynomic cannot predict, however, how changes in these laws may affect Xynomic&rsquo;s
future operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic is also subject
to numerous federal, state and local laws relating to such matters as safe working conditions, manufacturing practices, environmental
protection, and fire hazard control. Xynomic may incur significant costs to comply with such laws and regulations now or in the
future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Chinese Regulation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Regulatory Authorities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">In
China, the National </FONT>Medical <FONT STYLE="background-color: white">Products Administration of China (the &ldquo;<I>NMPA</I>,&rdquo;
formerly known as CFDA) </FONT>is the agency under the State Council that monitors and supervises the administration of pharmaceutical
products, medical appliances and equipment, food (including food additives and health food), and cosmetics. The primary responsibilities
of the NMPA include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">monitoring
and supervising the administration of pharmaceutical products, medical appliances, and equipment as well as food, health food,
and cosmetics in the PRC;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">formulating
administrative rules and policies concerning the supervision and administration of the food, health food, cosmetics, and pharmaceutical
industry;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">evaluating,
registering and approving of new drugs, generic drugs, imported drugs, and traditional Chinese medicine;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">approving
and issuing permits for the manufacture and export/import of pharmaceutical products and medical appliances and equipment and
approving the establishment of enterprises to be engaged in the manufacture and distribution of pharmaceutical products; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">examining
and evaluating the safety of food, health food, pharmaceutical products, and cosmetics and handling significant accidents involving
these products.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The National Health
Commission is an authority at the ministerial level under the State Council and is primarily responsible for national public health.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Drug Administration
Laws and Regulations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The PRC Drug Administration
Law as promulgated in 1984 and the Implementing Measures of the PRC Drug Administration Law as promulgated in 1989 have laid down
the legal framework for the establishment of pharmaceutical manufacturing enterprises and pharmaceutical trading enterprises and
for the administration of pharmaceutical products. The PRC Drug Administration Law also regulates the packaging, trademarks, and
advertisements of pharmaceutical products in the PRC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to the current
PRC Drug Administration Law, no pharmaceutical products may be produced in China without a pharmaceutical production license. A
local manufacturer of pharmaceutical products must obtain a pharmaceutical production license from one of NMPA&rsquo;s provincial
level branches in order to commence production of pharmaceuticals. Prior to granting such license, the relevant government authority
will inspect the manufacturer&rsquo;s production facilities, and decide whether the sanitary conditions, quality assurance system,
management structure, and equipment within the facilities have met the required standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Examination and Approval of NDA</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to the current
Administrative Measures for Drug Registration, the approval of a new drug in China requires the following steps:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pre-clinical
testing including in vitro laboratory evaluation, as well as in vivo animal studies, of the drug candidate conducted to assess
the potential safety and efficacy of the drug candidate. Pre-clinical testing must be conducted in compliance with applicable
regulations relating to non-clinical tests;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
completion of pre-clinical testing of the drug candidate, application for registration and clinical trials of the new drug candidate
should be submitted to the Center of Drug Evaluation (the &ldquo;<I>CDE</I>&rdquo;) of the NMPA, which will arrange for pharmaceutical,
clinical, or other professionals to conduct a technical review on the application materials and request for supplemental materials
and explanations, if necessary. After completion of the technical review, the CDE will issue an opinion and submit such opinion
to the NMPA, along with the applicant&rsquo;s application materials;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
receiving the technical opinion from the CDE, the NMPA will assess whether to grant the approval for conducting clinical trial
on the new drug candidate.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of May 1, 2017, the clinical trial approval can be directly issued by the CDE on behalf of the NMPA according to The Decision
on Adjusting the Examination and Approval procedures for Some Administrative Examination and Approval Items on Drug promulgated
by the NMPA. This delegation of authority can shorten the approval timeline for the approval of a clinical trial application.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
obtaining the approval for conducting clinical trial, the applicant may proceed with the relevant clinical trial, which is generally
conducted in three phases for a new drug candidate under the Registration Measures, at institutions with appropriate qualification:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Phase
1 is the first stage of testing in human subjects and is designed to test the safety, side effects, optimal dose, and formulation
method of the drug candidate. The primary objective is to determine toxicity and maximum tolerated dose and/or recommended Phase
2 dose;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Phase
2 refers to the clinical trial stage to continue the safety assessments started in Phase 1 trial of the drug candidate. The main
purpose, however, is to determine the preliminary efficacy and/or whether its effect on the human subjects is significant enough
to warrant further study; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Phase
3 refers to the clinical trial stage to verify clinical effectiveness, and the purpose is to test and determine the clinical effectiveness
and safety of the drug candidate used on patients with targeted indication, to evaluate its benefits and risks and, eventually,
to provide sufficient basis for review of the drug candidate&rsquo;s registration application.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
the completion of the relevant clinical trials, the applicant will submit its application for registration and manufacturing of
the new drug, clinical study report, and the relevant supporting documents to the CDE;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
receiving the application materials, the CDE will arrange for pharmaceutical, clinical, or other professionals to conduct a technical
review on the application materials and request for supplemental materials and explanations, if necessary. After completion of
the technical review and if all the requirements are complied with, the CDE will report so to the Certification Center of the
NMPA and notify the applicant that it may apply to the Certification Center of the NMPA for a manufacturing site inspection;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
applicant should apply to the Certificate Center of the NMPA for a manufacturing site inspection within six months after receiving
the notice from the CDE;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Certification Center will arrange an on-site inspection of the facilities for the mass production of the new drug within 30 days
after the application from the applicant to confirm the feasibility of the manufacturing process. The Certification Center will
prepare an inspection report within 10 days after the production site inspection and submit the report to the CDE;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
medicine examination institute will examine the sample(s) under the reviewed medicine standards, prepare a report after completing
the examination, and submit the report to the CDE. A copy of the report will be available to the applicant; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
CDE will form a comprehensive opinion based on the technical opinion previously received, the report on manufacturing site inspection
and the result of sample examination, and submit the comprehensive opinion and the application materials to the NMPA. If all the
regulatory requirements are satisfied, the NMPA will grant a New Drug Certificate and a drug registration number. All pharmaceutical
products that are produced in China must bear drug registration numbers issued by the NMPA.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In July 2016, the NMPA
released the revised Administrative Measures for Drug Registration (Draft for Comments) to seek comments from the public, which
as compared to the current Administrative Measures for Drug Registration, includes the following key highlights:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Encourage
innovation in new drug development;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Broaden
the definition of applicants for marketing authorization from &ldquo;domestic institutions&rdquo; to &ldquo;domestic entities&rdquo;
to cover both drug research and development institutions and academic research institutions;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On-site
inspections and sample taking are not compulsory prerequisites for NMPA approval, and the NMPA may determine whether to take such
steps based on the results of regulatory review of drug registration applications;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clinical
trials can be conducted in the sequence of Phase 1, 2, and 3, or in flexible manners based on the characteristics and applicability
of drugs and existing information; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
NMPA should establish a priority review system.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although there is no
definitive timeline for the official enactment of the revised Administrative Measures for Drug Registration (Draft for Comments),
it embodies a regulatory trend of promoting drug innovation, accelerating the drug registration process and setting forth higher
quality and technical requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Special Examination and Approval for
Domestic Category 1 Drugs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to the Administrative
Measures for Drug Registration, drug registration applications are divided into three different types, namely: (i) Domestic New
Drug Application, (ii) Domestic Generic Drug Application, and (iii) Imported Drug Application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Drugs fall into one
of three general types divided by working mechanism, namely chemical medicine, biological product, or traditional Chinese or natural
medicine. Under the Administrative Measures for Drug Registration, a Category 1 drug refers to a new drug that has never been marketed
in any country, and is eligible for special review or fast track approval by the NMPA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In March 2016, the
NMPA issued the Reform Plan for Registration Category of Chemical Medicine, or the &ldquo;<I>Reform Plan</I>,&rdquo; which would
reclassify drug applications. Under the Reform Plan, Category 1 drugs refer to new drugs that have not been marketed anywhere in
the world. Improved new drugs that are not marketed anywhere in the world fall into Category 2. Generic drugs, that have equivalent
quality and efficacy to the originator&rsquo;s drugs have been marketed abroad but not yet in China, fall into Category 3. Generic
drugs, which have equivalent quality and efficacy to the originator&rsquo;s drugs and have been marketed in China, fall into Category
4. Category 5 drugs are drugs which have already been marketed abroad, but are not yet approved in China. Category 1 drugs and
Category 5 drugs can be registered through the Domestic New Drug Application and the Imported Drug Application procedures under
the Administrative Measures for Drug Registration, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to the Special
Examination and Approval Provisions, the NMPA conducts special examination and approval for new drug registration applications
when:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
effective constituent of drug extracted from plants, animals, minerals, among other things, as well as the preparations thereof
have never been marketed in China, and the material medicines and the preparations thereof are newly discovered;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
chemical raw material medicines as well as the preparations thereof and the biological product have not been approved for marketing
home and abroad;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
new drugs are for treating AIDS, malignant tumors, and rare diseases, among other things, and have obvious advantages in clinic
treatment; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
new drugs are for treating diseases with no effective methods of treatment.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Special Examination
and Approval Provisions provide that the applicant may file for special examination and approval at the clinical trial application
stage if the drug candidate falls within items (1) or (2). The provisions provide that, for drug candidates that fall within items
(3) or (4), the application for special examination and approval cannot be made until filing for production. Xynomic believes that
its current drug candidates fall within items (2) (3) and (4) above. Therefore, Xynomic may file an application for special examination
and approval at the CTA stage, which may enable it to pursue a more expedited path to approval in China and bring therapies to
patients more quickly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Fast Track Approval for Clinical Trial
and Registration of Domestic Category 1 Drugs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In February 2016, the
NMPA released the Opinions on Priority Review and Approval for Resolving Drug Registration Applications Backlog, or the &ldquo;<I>Priority
Review Opinions</I>,&rdquo; which further clarified that a fast track clinical trial approval or drug registration pathway will
be available to the following drugs:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
following drugs with distinctive clinical benefits:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">registration
of innovative drugs not sold within or outside China;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">registration
of innovative drug transferred to be manufactured locally in China;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">registration
of drugs using advanced technology, innovative treatment methods, or having distinctive treatment advantages;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CTAs
for drugs with patent expiry within three years, and manufacturing authorization applications for drugs with patent expiry within
one year;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">concurrent
applications for new drug clinical trials which are already approved in the United States or European Union, or concurrent drug
registration applications for drugs which have applied to the competent drug approval authorities for marketing authorization
and passed such authorities&rsquo; onsite inspections in the United States or European Union and are manufactured using the same
production line in China;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">traditional
Chinese medicines (including ethnic medicines) with clear position in prevention and treatment of serious diseases; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">registration
of new drugs listed in national major science and technology projects or national key research and development plans;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">drugs
with distinctive clinical benefits for the prevention and treatment of the following diseases: HIV, phthisis, viral hepatitis,
orphan diseases, cancer, children&rsquo;s diseases, and generic and prevalent diseases in elders.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All of Xynomic&rsquo;s
drug candidates are expected to be classified as Category 1. Xynomic also believes that all of its current clinical stage drug
candidates would be drugs with distinctive clinical benefits for the prevention and treatment of cancer. Therefore, Xynomic believes
that it could potentially be entitled to the fast track clinical trial approval or drug registration pathway under the Priority
Review Opinions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Other China Drug
Development, Review, and Approval Regulations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Good laboratories
practice certification for nonclinical research</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">PRC&rsquo;s Good Laboratories
Practice of Preclinical Laboratory was promulgated in 2003 and the Administrative Measures for Certification of Good Laboratory
Practice of Preclinical Laboratory was adopted in 2007. According to the Administrative Measures for Certification of Good Laboratory
Practice of Preclinical Laboratory, the NMPA decides whether an institution is qualified for undertaking pharmaceutical nonclinical
research upon the evaluation of the institution&rsquo;s organizational administration, personnel, laboratory equipment and facilities,
and its operation and management of nonclinical pharmaceutical projects. If all requirements are met, a GLP Certification will
be issued by the NMPA and published on the NMPA&rsquo;s website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Animal testing permits</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Regulations
for the Administration of Affairs Concerning Experimental Animals, performing experimentation on animals requires a Certificate
for Use of Laboratory Animals. Applicants must satisfy the following conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">laboratory
animals must be qualified and sourced from institutions that have Certificates for Production of Laboratory Animals;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
environment and facilities for the animals&rsquo; living and propagating must meet state requirements;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
animals&rsquo; feed and water must meet state requirements;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
animals&rsquo; feeding and experimentation must be conducted by professionals, specialized and skilled workers, or other trained
personnel;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
management systems must be effective and efficient; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
applicable entity must follow other requirements as stipulated by Chinese laws and regulations.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Drug clinical practice
certification and compliance with GCP</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Circular
on Measures for Certification of Drug Clinical Practice (Trial), the NMPA and the National Health Commission of the PRC decide
whether an institution is qualified for undertaking pharmaceutical clinical trials upon the evaluation of the institution&rsquo;s
organizational administration, its research personnel, its equipment and facilities, its management system, and its standard operational
rules. If all requirements are met, a GCP Certification will be issued by the NMPA and the result will be published on the NMPA&rsquo;s
website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The conduct of clinical
trials must adhere to the GCP and the protocols approved by the ethics committees of each study site. Since 2015, the NMPA has
strengthened the enforcement against widespread data integrity issues associated with clinical trials in China. To ensure authenticity
and reliability of the clinical data, the NMPA mandates applicants of the pending drug registration submissions to conduct self-inspection
and verification of their clinical trial data. Based on the submitted self-inspection results, the NMPA also regularly launches
onsite clinical trial audits over selected applications and reject those found with data forgery.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Pilot plan for the
marketing authorization holder system</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The State Council issued
the Pilot Plan for the Drug Marketing Authorization Holder Mechanism on May 26, 2016, which provides a detailed pilot plan for
the marketing authorization holder system, or the &ldquo;<I>MAH System</I>,&rdquo; for drugs in 10 provinces in China. Under the
MAH System, domestic drug research and development institutions and individuals in the piloted regions are eligible to be holders
of drug registrations without having to become drug manufacturers. The marketing authorization holders may engage contract manufacturers
for manufacturing, provided that the contract manufacturers are licensed and GMP-certified, and are also located within the piloted
regions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Drugs qualified for
the MAH System are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">new
drugs (including Category 1 and 2 drugs under the Reform Plan) approved after the implementation of the MAH System;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">generic
drugs approved as Category 3 or 4 drugs under the Reform Plan;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">previously
approved generics that have passed the equivalence assessments against originator drugs; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">previously
approved drugs whose licenses were held by drug manufacturers originally located within the piloted regions, but have been moved
out of the piloted regions due to corporate mergers or other reasons.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Administrative
Protection and Monitoring Periods for New Drugs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to the Administrative
Measures for Drug Registration, the Implementing Regulations of the Drug Administration Law and the Reform Plan, the NMPA may,
for the purpose of protecting public health, provide for an administrative monitoring period of five years for Category 1 new drugs
approved to be manufactured, commencing from the date of approval, to continually monitor the safety of those new drugs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the monitoring
period of a new drug, the NMPA will not accept other applications for new drugs containing the same active ingredient. This renders
an actual five-year exclusivity protection for Category 1 new drugs. The only exception is that the NMPA will continue to handle
any application if, prior to the commencement of the monitoring period, the NMPA has already approved the applicant&rsquo;s clinical
trial for a similar new drug. If such application conforms to the relevant provisions, the NMPA may approve such applicant to manufacture
or import the similar new drug during the remainder of the monitoring period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Drug Technology
Transfer Regulations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">PRC&rsquo;s Administrative
Regulations for Technology Transfer Registration of Drugs regulate the registration process of drug technology transfer, which
includes application for, and evaluation, examination, approval, and monitoring of, drug technology transfer. Drug technology transfer
refers to the transfer of drug production technology by the owner to a drug manufacturer and the application for drug registration
by the transferee according to the provisions in the new regulations. Drug technology transfer includes new drug technology transfer
and drug production technology transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Conditions for the
application for new drug technology transfer </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Applications for new
drug technology transfer may be submitted prior to the expiration date of the monitoring period of the new drugs with respect to
drugs with new drug certificates only or drugs with new drug certificates and drug approval numbers. For drugs with new drug certificates
only and not yet in the monitoring period, or drug substances with new drug certificates, applications for new drug technology
transfer should be submitted prior to the respective expiration date of the monitoring periods for each drug registration category
set forth in the new regulations and after the issue date of the new drug certificates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Conditions for the
application of drug production technology transfer</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Applications for drug
production technology transfer may be submitted if the transferor holds new drug certificates or both new drug certificates and
drug approval numbers, and the monitoring period has expired or there is no monitoring period; or with respect to drugs without
new drug certificates, both the transferor and the transferee are legally qualified drug manufacturing enterprises, one of which
holds over 50% of the equity interests in the other, or both of which are majority-owned subsidiaries of the same drug manufacturing
enterprise. With respect to imported drugs with imported drug licenses, the original applicants for the imported drug registration
may transfer these drugs to domestic drug manufacturing enterprises.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The provincial food
and drug administration where the transferee is located is responsible for examining application materials for technology transfer
and organizing inspections on the production facilities of the transferee. Food and drug control institutes are responsible for
testing three batches of drug samples. The CDE should further review the application materials, provide technical evaluation opinions
and form a comprehensive evaluation opinion based on the site inspection reports and the testing results of the samples. The NMPA
should determine whether to approve the application according to the comprehensive evaluation opinion of the CDE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Permits and Licenses
for Manufacturing of Drugs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In China, a pharmaceutical
manufacturing enterprise must first obtain a Pharmaceutical Manufacturing Permit issued by the relevant pharmaceutical administrative
authorities at the provincial level where the enterprise is located. Each Pharmaceutical Manufacturing Permit is effective for
a period of five years. Any enterprise holding a Pharmaceutical Manufacturing Permit is subject to review by the relevant regulatory
authorities on an annual basis. The enterprise is required to apply for renewal of such permit within six months prior to its expiry
and will be subject to reassessment by the issuing authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to a Pharmaceutical
Manufacturing permit, the manufacturing enterprise must also obtain a business license from the administrative bureau of industry
and commerce at the local level after it has obtained the requisite Pharmaceutical Manufacturing Permit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">China has adopted the
Guidelines on GMP, which set forth detailed requirements for the manufacture of sterile drugs, drug/substances/APIs, biologics,
blood products, and traditional Chinese medicines. The Notice on the Overall Implementation and Supervision of Accreditation of
Good Manufacturing Practices Certificates of Pharmaceuticals requires all manufacturers of pharmaceuticals to apply for GMP certificates.
The GMP certificate is valid for a term of five years and an application for renewal must be submitted six months prior to its
expiration date. The NMPA and its provincial branches are authorized to monitor the continued compliance of pharmaceutical manufacturers,
for example, by a follow-up inspection of implementation of the GMP requirements. Failure to continuously comply with the statutory
requirements may lead to rectification orders imposed on the manufacturers. Penalties for breach of GMP compliance can vary depending
on the degree of seriousness. Administrative sanctions range from a rectification notice to monetary fines, suspension of production
and business operation, and revocation of the pharmaceutical manufacturing permit and the Pharmaceutical GMP Certificate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Coverage and Reimbursement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Historically, most
Chinese healthcare costs have been borne by patients out-of-pocket, which has limited the growth of more expensive pharmaceutical
products. In recent years, however, the number of people covered by government and private insurance has increased. The PRC government
has announced a plan to give every person in China access to basic healthcare by year 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><I>Reimbursement under the
National Medical Insurance Program</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the PRC&rsquo;s
national medical insurance program, all employers in urban cities are required to enroll their employees in the basic medical insurance
program and the insurance premium is jointly contributed by the employers and employees. The State Council promulgated Guiding
Opinions of the State Council about the Pilot Urban Resident Basic Medical Insurance on July 10, 2007, under which urban residents
of the pilot district, rather than urban employees, may voluntarily join Urban Resident Basic Medical Insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Notice Regarding
the Tentative Measures for the Administration of the Scope of Medical Insurance Coverage for Pharmaceutical Products for Urban
Employee provides that a pharmaceutical product listed in the Medical Insurance Catalogue must be clinically needed, safe, effective,
reasonably priced, easy to use, available in sufficient quantity, and must meet the following requirements: (i) it is set forth
in the Pharmacopoeia of the PRC; (ii) it meets the standards promulgated by the NMPA; and (iii) if imported, it is approved by
the NMPA for import.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Factors that affect
the inclusion of a pharmaceutical product in the Medical Insurance Catalogue include whether the product is consumed in large volumes
and commonly prescribed for clinical use in the PRC and whether it is considered to be important in meeting the basic healthcare
needs of the general public.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The PRC Ministry of
Human Resources and Social Security, together with other government authorities, has the power to determine the medicines included
in the National Reimbursement Drug List (the &ldquo;<I>NRDL</I>&rdquo;). In February 2017, the PRC Ministry of Human Resources
and Social Security released the 2017 NRDL. The 2017 NRDL expands its scope and covers 2,535 drugs in total, including 339 drugs
that are newly added. The 2017 NRDL reflects an emphasis on innovative drugs and drugs that treat cancer and other serious diseases.
For instance, most of the innovative chemical drugs and biological products approved in China between 2008 and the first half of
2016 have been included in the 2017 NRDL or its candidate list.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Medicines included
in the NRDL are divided into two parts, Part A and Part B. Provincial governments are required to include all Part A medicines
listed on the NRDL in their provincial Medical Insurance Catalogue, but have the discretion to adjust upwards or downwards by no
more than 15% from the number of Part B medicines listed in the NRDL. As a result, the contents of Part B of the provincial Medical
Insurance Catalogues may differ from region to region in the PRC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Patients purchasing
medicines included in Part A of the NRDL are entitled to reimbursement of the entire amount of the purchase price. Patients purchasing
medicines included in Part B of the NRDL are required to pay a certain percentage of the purchase price and obtain reimbursement
for the remainder of the purchase price. The percentage of reimbursement for Part B medicines differs from region to region in
the PRC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The total amount of
reimbursement for the cost of medicines, in addition to other medical expenses, for an individual participant under the national
medical insurance program in a calendar year is capped at the amounts in such participant&rsquo;s individual account under such
program. The amount in a participant&rsquo;s account varies, depending on the amount of contributions from the participant and
his or her employer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>National List
of Essential Drugs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the current PRC
regulations, county-level hospitals, county-level Chinese medicine hospitals, rural clinics, and community clinics, shall store
up and use drugs listed in National List of Essential Drugs. The drugs listed in National List of Essential Drugs shall be purchased
by centralized tender process and shall be subject to the price control by NDRC. Remedial drugs in the National List of Essential
Drugs are all listed in the Medical Insurance Catalogue and the entire amount of the purchase price of such drugs is entitled to
reimbursement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Commercial Insurance</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 25, 2016,
the State Council and the Communist Party of China jointly issued the Plan for Healthy China 2030 (the &ldquo;<I>Plan</I>&rdquo;).
According to the Plan, the country will establish a multi-level medical security system built around basic medical insurance, with
other forms of insurance supplementing the basic medical insurance, including serious illness insurance for urban and rural residents,
commercial health insurance, and medical assistance. Furthermore, the Plan encourages enterprises and individuals to participate
in commercial health insurance and various forms of supplementary insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Price Controls</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Instead of direct price
controls which were historically used in China but abolished in June 2016, the government regulates prices mainly by establishing
a consolidated procurement mechanism, revising medical insurance reimbursement standards, and strengthening regulation of medical
and pricing practices as discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Centralized Procurement
and Tenders</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the PRC current
healthcare regulations, medical institutions established by county or higher level government or state-owned enterprises (including
state-controlled enterprises) are required to implement centralized tender procurement of drugs. The Centralized Tender Regulations
and the Centralized Tender Sample Document provide rules for the tender process and negotiations of the prices of drugs, operational
procedures, a code of conduct, and standards or measures of evaluating bids and negotiating prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except for drugs in
the National List of Essential Drugs (the procurement of which shall comply with the relevant rules on National List of Essential
Drugs), certain pharmaceutical products which are under the national government&rsquo;s special control, such as toxic, radioactive
and narcotic drugs, and traditional Chinese medicines, in principle, all drugs used by public medical institutions shall be covered
by the catalogue of drugs subject to centralized procurement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The centralized tender
process takes the form of public tender operated and organized by provincial or municipal government agencies. The centralized
tender process is in principle conducted once every year in the relevant province or city in China. The bids are assessed by a
committee composed of pharmaceutical and medical experts who will be randomly selected from a database of experts approved by the
relevant government authorities. The committee members assess the bids based on a number of factors, including but not limited
to, bid price, product quality, clinical effectiveness, product safety, qualifications and reputation of the manufacturer, after-sale
services, and innovation. Only pharmaceuticals that have won in the centralized tender process may be purchased by public medical
institutions funded by the governmental or state-owned enterprise (including state-controlled enterprises) in the relevant region.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Other PRC Healthcare
Laws</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Advertising of pharmaceutical
products</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Provisions
for Drug Advertisement Examination, which were promulgated on March 13, 2007, and came into effect on May 1, 2007, an enterprise
seeking to advertise its drugs must apply for an advertising approval code. The validity term of an advertisement approval number
for pharmaceutical drugs is one year. The content of an approved advertisement may not be altered without prior approval. Where
any alteration to the advertisement is needed, a new advertisement approval number shall be obtained by submitting a reapplication.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Insert sheet and
labels of pharmaceutical products</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to the Measures
for the Administration of the Insert Sheets and Labels of Drugs effective on June 1, 2006, the insert sheets and labels of drugs
should be reviewed and approved by the NMPA. A drug insert sheet should include the scientific data, conclusions, and information
concerning drug safety and efficacy in order to direct the safe and rational use if drugs. The inner label of a drug should bear
such information as the drug&rsquo;s name, indication or function, strength, dose and usage, production date, batch number, expiry
date and drug manufacturer, and the outer label of a drug should indicate such information as the drug&rsquo;s name, ingredients,
description, indication or function, strength, dose and usage, and adverse reaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Packaging of pharmaceutical
products</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to the Measures
for The Administration of Pharmaceutical Packaging effective on September 1, 1988, pharmaceutical packaging must comply with the
national and professional standards. If no national or professional standards are available, the enterprise can formulate its own
standards and put into implementation after obtaining the approval of the food and drug administration or bureau of standards at
provincial level. The enterprise shall reapply with the relevant authorities if it needs to change its own packaging standard.
Drugs that have not developed and received approval for packing standards must not be sold or traded in PRC (except for drugs for
the military).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Other Significant
PRC Regulation Affecting Xynomic&rsquo;s Business Activities in China</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><I>PRC Regulation of Foreign
Investment</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the current
Guidance Catalogue of Industries for Foreign Investment, or the Catalogue, industries listed therein are divided into two categories:
encouraged industries and the industries within the catalogue of special management measures, or the &ldquo;<I>Negative List</I>.&rdquo;
The Negative List is further divided into two subcategories: restricted industries and prohibited industries. Establishment of
wholly foreign-owned enterprises is generally allowed in industries outside of the Negative List. Under the current Catalogue,
the manufacture of pharmaceutical products falls in the encouraged industries for foreign investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under PRC law, the
establishment of a wholly foreign-owned enterprise is subject to the approval of, or the requirement for record filing with, the
Ministry of Commerce of the People&rsquo;s Republic of China (the &ldquo;<I>MOFCOM</I>&rdquo;) or its local counterparts and the
wholly foreign owned enterprise must register with the competent administrative bureau of industry and commerce. Xynomic has duly
obtained the approvals from the MOFCOM or its local counterparts for its interest in its wholly-owned PRC subsidiaries and completed
the registration of these PRC subsidiaries with the competent administrative bureau of industry and commerce.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>PRC Regulation
of Commercial Bribery</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pharmaceutical companies
involved in a criminal investigation or administrative proceedings related to bribery are listed in the Adverse Records of Commercial
Briberies by its provincial health and family planning administrative department. Pursuant to the Provisions on the Establishment
of Adverse Records of Commercial Briberies in the Medicine Purchase and Sales Industry which became effective on March 1, 2014,
provincial health and family planning administrative departments formulate the implementing measures for establishment of Adverse
Records of Commercial Briberies. If a pharmaceutical company is listed in the Adverse Records of Commercial Briberies for the first
time, their production is not required to be purchased by public medical institutions. A pharmaceutical company will not be penalized
by the relevant PRC government authorities merely by virtue of having contractual relationships with distributors or third-party
promoters who are engaged in bribery activities, so long as such pharmaceutical company and its employees are not utilizing the
distributors or third party promoters for the implementation of, or acting in conjunction with them in, the prohibited bribery
activities. In addition, a pharmaceutical company is under no legal obligation to monitor the operating activities of its distributors
and third-party promoters, and will not be subject to penalties or sanctions by relevant PRC government authorities as a result
of failure to monitor their operating activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>PRC Regulation
of Product Liability</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under current PRC law,
manufacturers and vendors of defective products in the PRC may incur liability for loss and injury caused by such products. Pursuant
to the General Principles of the Civil Law of the PRC, a defective product which causes property damage or physical injury to any
person may subject the manufacturer or vendor of such product to civil liability for such damage or injury. Pursuant to the Product
Quality Law, manufacturers who produce defective products may be subject to civil or criminal liability and have their business
licenses revoked. Under the Law of the PRC on the Protection of the Rights and Interests of Consumers, all business operators must
comply with this law when they manufacture or sell goods and/or provide services to customers and shall pay high attention to protect
the customers&rsquo; privacy and strictly keep it confidential any consumer information they obtain during the business operation.
In addition, in extreme situations, pharmaceutical product manufacturers and operators may be subject to criminal liability if
their goods or services lead to the death or injuries of customers or other third parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>PRC Tort Law</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Tort Law
of the PRC, if damages to other persons are caused by defective products due to the fault of a third party, such as the parties
providing transportation or warehousing, the producers and the sellers of the products have the right to recover their respective
losses from such third parties. If defective products are identified after they have been put into circulation, the producers or
the sellers shall take remedial measures such as issuance of a warning, recall of products, among other things, in a timely manner.
The producers or the sellers shall be liable under tort if they fail to take remedial measures in a timely manner or have not made
efforts to take remedial measures, thus causing damages. If the products are produced or sold with known defects, causing deaths
or severe adverse health issues, the infringed party has the right to claim punitive damages in addition to compensatory damages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>PRC Regulation
of Intellectual Property Rights</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">China has made substantial
efforts to adopt comprehensive legislation governing intellectual property rights, including patents, trademarks, copyrights, and
domain names.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Patents</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the PRC Patent
Law, patents in China fall into three categories: invention, utility model, and design. An invention patent is granted to a new
technical solution proposed in respect of a product or method or an improvement of a product or method. A utility model is granted
to a new technical solution that is practicable for application and proposed in respect of the shape, structure, or a combination
of both of a product. A design patent is granted to the new design of a certain product in shape, pattern, or a combination of
both and in color, shape, and pattern combinations aesthetically suitable for industrial application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the PRC Patent
Law, the term of patent protection starts from the date of application. Patents relating to invention are effective for 20 years,
and utility models and designs are effective for 10 years from the date of application. The PRC Patent Law adopts the principle
of &ldquo;first-to-file&rdquo; system, which provides that where more than one person files a patent application for the same invention,
a patent will be granted to the person who files the application first.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Existing patents can
become narrowed, invalid, or unenforceable due to a variety of grounds, including lack of novelty, creativity, and deficiencies
in patent application. In China, a patent must have novelty, creativity, and practical applicability. Under the PRC Patent Law,
novelty means that before a patent application is filed, no identical invention or utility model has been publicly disclosed in
any publication in China or overseas or has been publicly used or made known to the public by any other means, whether in or outside
of China, nor has any other person filed with the patent authority an application that describes an identical invention or utility
model and is recorded in patent application documents or patent documents published after the filing date. Creativity means that,
compared with existing technology, an invention has prominent substantial features and represents notable progress, and a utility
model has substantial features and represents any progress. Practical applicability means an invention or utility model can be
manufactured or used and may produce positive results. Patents in China are filed with the State Intellectual Property Office,
or &ldquo;<I>SIPO</I>.&rdquo; Normally, the SIPO publishes an application for an invention patent within 18 months after the filing
date, which may be shortened at the request of applicant. The applicant must apply to the SIPO for a substantive examination within
three years from the date of application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The PRC Patent Law
provides that, for an invention or utility model completed in China, any applicant (not just Chinese companies and individuals),
before filing a patent application outside of China, must first submit it to the SIPO for a confidential examination. Failure to
comply with this requirement will result in the denial of any Chinese patent for the relevant invention. This added requirement
of confidential examination by the SIPO has raised concerns by foreign companies who conduct research and development activities
in China or outsource research and development activities to service providers in China.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="margin: 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Patent
enforcement</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Infringement
liability will be imposed on any person who use patented technology without permission from owners of patents, forges other person&rsquo;s
patents, or engages in other patent infringement acts. Serious offences such as forgery of patents may be subject to criminal
penalties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">When
a dispute arises out of infringement of the patent owner&rsquo;s patent right, Chinese law requires that the parties first attempt
to settle the dispute through mutual consultation. If the dispute, however, cannot be settled through mutual consultation, the
patent owner, or an interested party who believes the patent is being infringed, may either file a civil legal suit or file an
administrative complaint with the relevant patent administration authority. A Chinese court may issue a preliminary injunction
upon the patent owner&rsquo;s or an interested party&rsquo;s request before instituting any legal proceedings or during the proceedings.
Damages for infringement are calculated as the loss suffered by the patent holder arising from the infringement, and if the loss
cannot be determined, the damages for infringement shall be calculated as the benefit gained by the infringer from the infringement.
If it is difficult to ascertain damages in this manner, damages may be determined by using a reasonable multiple of the license
fee under a contractual license. Statutory damages may be awarded in the circumstances where the damages cannot be determined
by the above mentioned calculation standards. The damage calculation methods shall be applied in the aforementioned order. Generally,
the patent owner has the burden of proving that the patent is being infringed. If the owner of an invention patent for manufacturing
process of a new product, however, alleges infringement of its patent, the alleged infringer has the burden of proof.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Medical
patent compulsory license; Exempted Unlicensed Activities</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">According
to the PRC Patent Law, for the purpose of public health, the SIPO may grant a compulsory license for manufacturing patented drugs
and exporting them to countries or regions covered under relevant international treaties to which PRC has acceded.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the PRC Patent Law, none of following circumstances would be deemed an infringement of the patent rights:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
    person who uses, promises to sell, sells, or imports any patented product or product directly obtained in accordance with
    the patented methods after such product is sold by the patent owner or by its licensed entity or individual;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
    person who has manufactured an identical product, has used an identical method, or has made necessary preparations for manufacture
    or use prior to the date of patent application and continues to manufacture such product or use such method only within the
    original scope;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
    foreign transportation facility that temporarily passes through the territory, territorial waters, or territorial airspace
    of China and uses the relevant patents in its devices and installations for its own needs in accordance with any agreement
    concluded between China and that country to which the foreign transportation facility belongs, or any international treaty
    to which both countries are party, or on the basis of the principle of reciprocity;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
    person who uses the relevant patents solely for the purposes of scientific research and experimentation; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
    person who manufactures, uses, or imports patented drug or patented medical equipment for the purpose of providing information
    required for administrative approval, or manufactures, uses or imports patented drugs or patented medical equipment for the
    abovementioned person.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
patented drugs, however, are utilized on the ground of exemptions for unauthorized manufacture, use, sale or import of patented
drugs prescribed in PRC Patent Law, such patented drugs cannot be manufactured, used, sold, or imported for any commercial purposes
without authorization granted by the patent owner.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Trade
secrets</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the PRC Anti-Unfair Competition Law, business persons are prohibited from infringing others&rsquo; trade secrets by: (1) obtaining
the trade secrets from the legal owners or holders by any unfair methods such as theft, solicitation or coercion; (2) disclosing,
using, or permitting others to use the trade secrets obtained illegally under item (1) above; or (3) disclosing, using, or permitting
others to use the trade secrets, in violation of any contractual agreements or any requirements of the legal owners or holders
to keep such trade secrets in confidence. The term &ldquo;trade secrets&rdquo; means technical and business information that is
unknown to the public that has utility and may create business interests or profits for its legal owners or holders, and is maintained
as a secret by its legal owners or holders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
a third party knows or should have known of the above-mentioned illegal conduct but nevertheless obtains, uses, or discloses trade
secrets of others, the third party may be deemed to have committed a misappropriation of the others&rsquo; trade secrets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Trademarks
and domain names</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
PRC Trademark Law and its implementation rules protect registered trademarks. The PRC Trademark Office of State Administration
of Industry and Commerce is responsible for the registration and administration of trademarks throughout the PRC. The Trademark
Law has adopted a &ldquo;first-to-file&rdquo; principle with respect to trademark registration.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Domain
names are protected under the Administrative Measures on the Internet Domain Names. The Ministry of Industry and Information Technology
is the main regulatory body responsible for the administration of PRC internet domain names. Xynomic has registered the domain
name xynomicpharma.com.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>PRC
Regulation of Labor Protection</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Labor Law of the PRC, the PRC Employment Contract Law, and the Implementing Regulations of the Employment Contract Law, employers
must establish a comprehensive management system to protect the rights of their employees, including a system governing occupational
health and safety to provide employees with occupational training to prevent occupational injury, and employers are required to
truthfully inform prospective employees of the job description, working conditions, location, occupational hazards, and status
of safe production as well as remuneration and other conditions as requested by the Labor Contract Law of the PRC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Law of Manufacturing Safety of the PRC, manufacturers must establish a comprehensive management system to ensure manufacturing
safety in accordance with applicable laws, regulations, national standards, and industrial standards. Manufacturers not meeting
relevant legal requirements are not permitted to commence their manufacturing activities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Administrative Measures Governing the Production Quality of Pharmaceutical Products, manufacturers of pharmaceutical products
are required to establish production safety and labor protection measures in connection with the operation of their manufacturing
equipment and manufacturing process.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to applicable PRC laws, rules, and regulations, employers are required to contribute, on behalf of their employees, to a number
of social security funds, including funds for basic pension insurance, unemployment insurance, basic medical insurance, work-related
injury insurance, and maternity insurance. If an employer fails to make social insurance contributions timely and in full, the
social insurance collecting authority will order the employer to make up outstanding contributions within the prescribed time
period and impose a late payment fee at the rate of 0.05% per day from the date on which the contribution becomes due. If such
employer fails to make the overdue contributions within such time limit, the relevant administrative department may impose a fine
equivalent to one to three times the overdue amount.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Regulations
Relating to Foreign Exchange Registration of Offshore Investment by PRC Residents</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to SAFE Circular 37 and its implementation guidelines, PRC residents (including PRC institutions and individuals) must register
with local branches of SAFE in connection with their direct or indirect offshore investment in an overseas special purpose vehicle,
or &ldquo;<I>SPV</I>,&rdquo; directly established or indirectly controlled by PRC residents for the purposes of offshore investment
and financing with their legally owned assets or interests in domestic enterprises, or their legally owned offshore assets or
interests.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Such
PRC residents are also required to amend their registrations with SAFE when there is a change to the basic information of the
SPV, such as changes of a PRC resident individual shareholder, the name or operating period of the SPV, or when there is a significant
change to the SPV, such as changes of the PRC individual resident&rsquo;s increase or decrease of its capital contribution in
the SPV, or any share transfer or exchange, merger, or division of the SPV. Failure to comply with the registration procedures
set forth in the Circular 37 may result in restrictions being imposed on the foreign exchange activities of the relevant onshore
company, including the payment of dividends and other distributions to its offshore parent or affiliate, the capital inflow from
the offshore entities and settlement of foreign exchange capital, and may also subject relevant onshore company or PRC residents
to penalties under PRC foreign exchange administration regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Regulations
Relating to Employee Stock Incentive Plan</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with the Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in
Stock Incentive Plans of Overseas Publicly Listed Companies, and relevant rules and regulations, PRC citizens or non-PRC citizens
residing in China for a continuous period of not less than one year, who participate in any stock incentive plan of an overseas
publicly listed company, subject to a few exceptions, are required to register with SAFE through a domestic qualified agent, which
could be a PRC subsidiary of such overseas listed company, and complete certain procedures. Xynomic&rsquo;s employees who are
PRC citizens or who reside in China for a continuous period of not less than one year and who participate in its stock incentive
plan will be subject to such regulation. In addition, the State Administration of Taxation, or referred as SAT, has issued circulars
concerning employee share options or restricted shares. Under these circulars, employees working in the PRC who exercise share
options, or whose restricted shares vest, will be subject to PRC individual income tax, or the &ldquo;<I>IIT</I>.&rdquo; The PRC
subsidiaries of an overseas listed company have obligations to file documents related to employee share options or restricted
shares with relevant tax authorities and to withhold IIT of those employees related to their share options or restricted shares.
If the employees fail to pay, or the PRC subsidiaries fail to withhold, their IIT according to relevant laws, rules and regulations,
the PRC subsidiaries may face sanctions imposed by the tax authorities or other PRC government authorities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Regulations
Relating to Dividend Distribution</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
principal regulations governing distribution of dividends paid by wholly foreign-owned enterprises include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Company
    Law of the PRC (1993), as amended in 1999, 2004, 2005, 2013, and 2018;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Foreign
    Investment Enterprise Law of the PRC (1986), as amended in 2000 and 2016; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Administrative
    Rules under the Foreign Investment Enterprise Law (1990), as amended in 2001 and 2014.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
these laws and regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if
any, determined in accordance with PRC accounting standards and regulations. In addition, a wholly foreign-owned enterprise in
China is required to set aside at least 10.0% of its after-tax profit based on PRC accounting standards each year to its general
reserves until the accumulative amount of such reserves reach 50% of its registered capital. These reserves are not distributable
as cash dividends. The foreign-invested enterprise has the discretion to allocate a portion of its after-tax profits to staff
welfare and bonus funds. A PRC company is not permitted to distribute any profits until any losses from prior fiscal years have
been offset. Profits retained from prior fiscal years may be distributed together with distributable profits from the current
fiscal year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Regulations
Relating to Foreign Exchange</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Foreign Exchange Administration Regulations, payments of current account items, such as profit distributions and trade and
service-related foreign exchange transactions can be made in foreign currencies without prior approval from SAFE by complying
with certain procedural requirements. However, approval from or registration with appropriate government authorities is required
where RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of
foreign currency-denominated loans.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;&nbsp;</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Other
PRC National and Provincial Laws and Regulations</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
PRC legal and regulatory systems are constantly evolving at the national, provincial, and municipal levels. Xynomic and its business
may become subject to changing regulations under many other laws and regulations administered by governmental authorities. For
example, regulations control the confidentiality of patients&rsquo; medical information and the circumstances under which patient
medical information may be released for inclusion in Xynomic&rsquo;s databases, or released by Xynomic to third parties. These
laws and regulations governing both the disclosure and the use of confidential patient medical information may become more restrictive
in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>European
Union / Rest of World Government Regulation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to regulations in the United States and China, Xynomic will be subject to a variety of regulations in other jurisdictions
governing, among other things, clinical trials and any future commercial sales and distribution of its drugs. Whether or not Xynomic
obtains FDA approval to market its drugs, it must obtain the requisite approvals from regulatory authorities in foreign jurisdictions
prior to the commencement of clinical trials or marketing of the products in those countries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Even
if a product obtains FDA marketing approval, most foreign jurisdictions require that the investigational product undergo national
requirements related to clinical trials and authorization processes, similar to those in the United States. With respect to clinical
trials, certain countries outside of the United States have a similar process that requires the submission of a clinical trial
application, much like the IND, prior to the commencement of human clinical trials. In the European Union, for example, before
starting a clinical trial, a valid request for authorization must be submitted by the sponsor to the competent authority of the
EU Member State(s) in which the sponsor plans to conduct the clinical trial, as well as to independent national Ethics Committee(s).
A clinical trial may commence only once the relevant Ethics Committee(s) has (have) issued a favorable opinion and the competent
authority of the EU Member State(s) concerned has (have) not informed the sponsor of any grounds for non-acceptance. Failure to
comply with the EU requirements may subject a company to the rejection of the request and the prohibition to start a clinical
trial. Clinical trials conducted in the European Union (or used for MMA in the European Union) must be conducted in accordance
with applicable laws, GCP and GMP rules, International Conference on Harmonization of Technical Requirements for Registration
of Pharmaceuticals for Human Use guidelines and be consistent with ethical principles. EU Member State inspections are regularly
conducted to verify the sponsor&rsquo;s compliance with applicable rules. The sponsor is required to record and report to the
relevant national competent authorities (and to the Ethics Committee) information about suspected serious unexpected adverse reactions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
authorization of a clinical trial may be suspended or revoked by EU Member States in their territory if the conditions in the
request for an authorization are no longer met, or if an EU Member State has information raising doubts about the safety or scientific
validity of the clinical trial. Various penalties exist in EU Member States for non-compliance with the clinical trial rules and
related requirements, for example with respect to data protection and privacy. If Xynomic or its potential collaborators fail
to comply with applicable EU regulatory requirements, Xynomic may also be subject to damage compensation and civil and criminal
liability. The way clinical trials are conducted in the European Union will undergo a major change when the new EU Clinical Trial
Regulation (Regulation 536/2014) comes into application in 2019. It will overhaul the current system of approvals for clinical
trials in the EU. Specifically, the new regulation, which will be directly applicable in all EU member states, aims at simplifying
and streamlining the approval of clinical trials in the EU. For instance, the new Clinical Trials Regulation provides for a streamlined
application procedure using a single entry point and strictly defined deadlines for the assessment of clinical trial applications.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
in the United States, no medicinal product may be placed on the EU market unless a marketing authorization has been issued. Medicinal
products may be authorized in different ways in the EU, depending on certain criteria: the national authorization procedure (namely,
via the EU Member States&rsquo; national authorization procedure, which later allows for application via the mutual-recognition
procedure), the centralized authorization procedure (namely, at EU level), or the decentralized authorization procedure (i.e.,
authorization of a product that is not yet authorized in the EU, which can simultaneously be authorized in several EU Member States).
Products submitted for approval via the national procedure must follow the national authorization procedures, which vary from
Member State to Member State. Products submitted for approval via the centralized procedure (only available for certain products
and indications) are assessed by the Committee for Medicinal Products for Human Use, or &ldquo;<I>CHMP</I>,&rdquo; a committee
within the European Medicines Agency. The CHMP assesses, inter alia, whether a medicine meets the necessary quality, safety, and
efficacy requirements and whether it has a positive risk-benefit balance. Under the centralized procedure, the maximum timeframe
for the evaluation of an <I>MMA</I> is 210 days, excluding clock stops when additional information or written or oral explanation
is to be provided by the applicant in response to questions of the CHMP. Accelerated evaluation may be granted by the CHMP in
exceptional cases, when a medicinal product is of major interest from the point of view of public health and, in particular, from
the viewpoint of therapeutic innovation. If the CHMP accepts such a request, the time limit of 210 days will be reduced to 150
days, but it is possible that the CHMP may revert to the standard time limit for the centralized procedure if it determines that
it is no longer appropriate to conduct an accelerated assessment. Products submitted for approval via the decentralized procedure,
as for the mutual-recognition procedure, must first undergo an assessment performed by one Member State, or reference Member State,
which another Member State may approve.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Various
penalties and sanctions exist in different EU Member States for non-compliance with the EU marketing authorization procedure.
In addition, for centrally authorized products the European Commission may also impose financial penalties on the holders of marketing
authorizations if they fail to comply with certain obligations in connection with the authorizations as well as pharmacovigilance
rules. If Xynomic or its potential collaborators fail to comply with applicable EU or other foreign regulatory requirements, Xynomic
may be subject to, among other things, fines, suspension or withdrawal of regulatory approvals, product recalls, seizure of products,
operating restrictions and criminal prosecution.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Coverage
and reimbursement status of its drugs, if approved, are provided for by the national laws of EU Member States. The requirements
may differ across the EU Member States. Also at EU Member State level, actions have been taken to enact transparency laws regarding
payments between pharmaceutical companies and health care professionals.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
EU General Data Protection Regulation and Member State implementing legislation may also apply to health-related and other personal
information obtained outside of the United States. Xynomic may be required to put in place additional mechanisms to ensure compliance
with the new EU data protection rules.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
other countries outside of the European Union, such as countries in Eastern Europe, Latin America, or Asia, the requirements governing
the conduct of clinical trials, product licensing, pricing, and reimbursement vary from country to country. In all cases, again,
the clinical trials must be conducted in accordance with GCP and the applicable regulatory requirements. The requirements and
process governing the conduct of clinical trials, product licensing, pricing, and reimbursement also vary from country to country.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="a_018"></A><B>MANAGEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table lists the names, ages and positions as of the date of the prospectus of the individuals who serve as executive
officers and directors of the Company after the consummation of the Business Combination:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 23%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 6%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age</B></FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 69%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yinglin
    Mark Xu</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">48</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman,
    Chief Executive Officer, Interim Chief Financial Officer and President</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wentao
    Jason Wu</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">52</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Operating Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tingzhi
    Qian</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive
    Director</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jiayuan
    James Tong</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">45</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Strategy Officer, Executive Vice President, and Executive Director</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Sophia Paspal</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">48</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">Chief Development Officer</TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jinwei
    Coco Kou</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">38</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interim
    Chief Accounting Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Charles
    Vincent Prizzi</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">44</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Independent
    Director</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Thomas
    Folinsbee</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">51</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Independent
    Director</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Richard
    Peidong Wu</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">54</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Independent
    Director</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adam
    Inglis</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Independent
    Director</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Set
forth below is certain biographical information regarding each of our directors and executive officers as of the date of this
prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mr.
Y. Mark Xu </B>is Chairman, Chief Executive Officer, Interim Chief Financail Officer and Preseident of XYN and the co-Founder,
Chairman, Chief Executive Officer and President of Xynomic. From 2009-2016, Mr. Xu served as the Greater China General Manager
of Trout Group, a leading global investor relations and strategic advisory firm servicing the life sciences industry. From 2005-2007,
Mr. Xu co-founded Bridge Labs, which was later acquired by Pharmaron Holdings. From 2007-2009, Mr. Xu co-founded Pacific Biopharma
Group, which merged with Pharmacyclics, Inc., structured as a strategic investment, in 2009. Through these two ventures, Mr. Xu
helped generate significant return on investment for co-founders and investors. Prior to 2005, Mr. Xu held various positions in
the U.S. at leading multinational corporations, including Berlex Laboratories (a Schering AG company), McKesson Corporation, Stanford
Research Institute International, BAS, and UL. Mr. Xu holds a MBA from Stanford University, a MS in Chemistry from Purdue University
and a BA in Chemistry (<I>Magna Cum Laude</I>) from Hanover College.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Dr.
W. Jason Wu</B> is Chief Operating Officer of XYN and Xynomic. From 2009-2015, Dr. Wu served as a Senior Consultant for Humphris
Industrials Group, a leading CRO company based in China and US servicing mainly the China pharmaceutical and biotech industries.
From 2004-2009, Dr. Wu was the Head of Research &amp; Development Center of American Oriental Bioengineering, a public company
listed on NYSE. From 2002-2004, Dr. Wu worked as Business Development Director at Hutchison Medpharma, an early stage pharmaceutical
development company based in Hong Kong and Shanghai. Prior to 2002, Dr. Wu held various positions in the U.S at leading multinational
pharmaceutical companies including Eli Lilly and Merck. Dr. Wu holds a PhD from Purdue University and a MBA from Indiana University.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mr.
Tingzhi Qian </B>is a director of XYN. He is also the CEO and Founding Partner of Prosperico Ventures, a private equity fund specialized
in the healthcare and biopharmaceutical industries. Since the founding of Prosperico Ventures in 2014, Mr. Qin has led and completed
more than 40 investments, including equity investment in Xynomic Pharmaceuticals, Inc. From 2008-2013, Mr. Qian served as Director
of Global Investments &amp; Strategies of Fosun Group and played a leading role in the leverage buyout of Alma Lasers (2013) as
well as in the investment and restructuring of United Family Hospitals and Chindex (2010). From 2004 to 2008, Mr. Qian worked
as a strategy consultant at Accenture and ADL in China, after serving in managerial functions at GSK Bio and Nestle in Europe.
Mr. Qian holds a Master in Management from HEC Paris, a MS in Biochemical Engineering from Ecole Polytech Clermont-Ferrand and
a BS in Genetics from Fudan University.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Dr.
James Jiayuan Tong</B>&nbsp;is Chief Strategy Officer, Executive Vice President and a director of XYN and a director of Xynomic.
He was the Chief Executive Officer and a director of Bison until the consummation of the Business Combination. Since October 2015,
Dr. Tong has served as a Partner of our sponsor. Dr. Tong has served as a Venture Partner at Delta Capital, a venture capital
and early growth investment firm, since September 2015. From December 2014 until September 2015, Dr. Tong worked as an advisor
to Delta Capital. From 2010 to November 2014, he worked as Chief Financial Officer at Tianyin Pharmaceutical Co., Inc., a U.S.
public company that manufactures and sells biopharmaceutical herbal medicines, branded generics and other pharmaceuticals in Asia.
From 2008 to 2010, Dr. Tong worked as Vice President in the investment banking department at Roth Capital, an investment banking
firm headquartered in Newport Beach, CA. In 2007, Dr. Tong was a biotech equity research analyst for Rodman &amp; Renshaw. In
2006, Dr. Tong was principal investigator at the Grass Foundation Laboratory at the Marine Biological Laboratory, Woods Hole,
MA. From 2002 to 2005, Dr. Tong was a Postdoctoral Research Fellow at Center for Molecular Medicine and Mitochondrial Genetics
at the University of California, Irvine focusing on Neurofibromatosis, cognitive disorders and longevity research. Dr. Tong graduated
from Peking University Healthcare Center with a Medical Degree in 1996 and from Stony Brook University and Cold Spring Harbor
Laboratory with a Doctor of Philosophy degree majored in Neurobiology and Behavior in 2002.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Dr. Sophia Paspal
</B>is the Chief Development Officer of Xynomic Pharmaceuticals, Inc. From 2017 to January 2019, Dr. Paspal worked at Capricor
Therapeutics, Inc. and Cellics Therapeutics, Inc., holding the same title. From 2015 to 2017 Dr. Paspal worked as the Director
of Regulatory Affairs, Oncology, at Halozyme Therapeutics Inc. From 2014 to 2015 Dr. Paspal worked as Associate Director of Regulatory
Affairs, Neurology, for Dart NeuroScience LLC. Prior to 2014, Dr. Paspal worked for companies such as Shire PLC, Allergan, Inc.,
and Pfizer in developing and implementing regulatory strategies and obtaining and maintaining regulatory approvals. Dr. Paspal
holds Regulatory Affairs Certification (RAC) and Drug Development Certification from Temple University RA and QA Program. Dr. Paspal
holds a Bachelor of Science in Chemistry and Ph.D. in Pharmaceutics from the University of Minnesota, Twin Cities in Minnesota.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Ms. Jinwei Coco
Kou </B>is the Interim Chief Accounting Officer, overseeing all accounting functions such as ledger accounts, financial statements,
and cost control systems. Ms. Kou has extensive experience in internal controls, multinational operations and corporate finance
of high-tech companies. From 2017-2018, Ms. Kou was the Chief Financial Officer at Salion Food Condiment Company Limited, a company
listed on Hong Kong Stock Exchange. From 2008-2016, she was a Managing Director at Marcum Bernstein &amp; Pinchuk LLP (&ldquo;Marcum
Bernstein&rdquo;). Prior to joining Marcum Bernstein, from 2005-2008, Ms. Kou worked for Deloitte Touche Tohmatsu. Ms. Kou is a
CPA in both the U.S. and China. Ms. Kou holds a Bachelor&rsquo;s and a Master&rsquo;s degree in Economics, both from Peking University,
majoring in Finance and Risk Management and Insurance, respectively. Ms. Kou obtained an Executive MBA degree jointly awarded by
Columbia Business School, London Business School and Hong Kong University Business School.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mr.
Charles Vincent Prizzi</B>&nbsp;is one of our independent directors. Mr. Prizzi has been the Vice President for Development and
Community Relations and a member of the senior administrative team at Cold Spring Harbor Laboratory, a world-renowned cancer and
neuroscience research institution based in New York since February 2000. Mr. Prizzi has also served as one of Cold Spring Harbor&rsquo;s
liaisons to Accelerate Long Island, an organization composed of leading research institutions to strengthen Long Island&rsquo;s
regional biotechnology cluster since May 2012. Mr. Prizzi has also served on the charity boards of Save the Children &ndash; Long
Island Chapter, the Cold Spring Harbor Education Foundation, the Long Island University Alumni Board, the Thomas Hartman Foundation
for Parkinson&rsquo;s Research, and the Don Monti Memorial Cancer Research Foundation. Mr. Prizzi received both his Master of
Business Administration and Bachelor of Science from Long Island University, where he was honored with the Outstanding Alumni
Award. He received the Special Humanitarian Award from the Sons of Italy in America Grand Lodge of New York in 2007 and the &ldquo;<I>40
Under 40</I>&rdquo; Award by Long Island Business News in 2013.<FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Mr.
Thomas Folinsbee, CFA</B>, is one of our independent directors. Mr. Folinsbee is Director of Corporate Development of 3SBio Inc.&rsquo;s
strategic investment division with a focus on sourcing business development opportunities in Canada, Australia, and Japan, including
licensing, distribution, and M&amp;A. Mr. Folinsbee joined 3SBio, a biotechnology company, in 2009 to manage 3SBio&rsquo;s investor
relations activities and was a member of the management group which delisted 3SBio from Nasdaq in May 2013 and relisted it on the
Hong Kong Stock Exchange in June 2016. In addition, since 2011, Mr. Folinsbee has worked with the board of directors of Hisanaga
Seisakusho Co. Ltd., a Japanese company, where he helped launch Hisanaga&rsquo;s sales platform in India and designed a business
intelligence system to support a corporate turnaround. Mr. Folinsbee has over 25 years of experience as a financial and securities
professional. In 2001, Mr. Folinsbee established Optivest Systems Ltd., and developed proprietary research databases to support
institutional investment strategies. In 2006, Mr. Folinsbee joined BNP Paribas&rsquo; Asian Execution Services desk where he helped
institutional investors implement statistical arbitrage strategies and post-trade analytics. In 2008, he rejoined Macquarie Equities
(Hong Kong) Limited in its Alternative Strategies Division where he packaged long-short trading strategies in collaboration with
the equity research platform. Mr. Folinsbee had previously been at Macquarie from 1998 to 2001. Mr. Folinsbee graduated in 1990
from McGill University with a Bachelor of Commerce degree with concentrations in finance and international business (with distinction).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mr.
Richard Peidong Wu</B> is one of our independent directors and Chairman of the Audit Committee (as defined below). Mr. Wu has
been Chief Financial Officer of Airmedia Group Inc., a Nasdaq-listed outdoor media group (stock ticker: AMCN) with multiple operating
units and more than 600 employees since May 2014. Mr. Wu is responsible for the accounting, finance, and operational decisions
for Airmedia Group Inc. He has lead strategies, investment, budgeting, reporting, auditing, regulatory filing, and board meetings.
Prior to joining Airmedia Group Inc., Mr. Wu served as the lead of legal and compliance at Nokia Siemens Networks (China) Limited,
from April 2012 until April of 2014, where he oversaw the legal and compliance operations consisting of 12 legal entities and
20,000 employees. From January 2010 to March 2012, Mr. Wu served as a Senior Vice President and Chief Financial Officer for Vimicro
International Corporation, (Nasdaq: VIMC) that designs, develops, and markets mixed-signal semiconductor products and system-level
solutions. When at VIMC, Mr. Wu was responsible for finance, control, legal, and investor relations. From January 20 to December
2009, Mr. Wu was President of Dragon Bay Capital, LLC, a China-focused financial advisory and management consulting firm specializing
in IPO preparation, fund raise, M&amp;A, restructuring, turnaround, pre-auditing, compliance, and corporate governance. From May
1996 to December 1999, Mr. Wu was a Senior Finance Management for Motorola, Inc. Mr. Wu received his MBA in Finance and Accounting
from the University of Pennsylvania, the Wharton School, in May of 1995. He received his Master of Justice Administration from
Indiana University in May 1994. He earned his Master of Law from China University of Political Science and Law in July 1987 and
his Bachelor of Arts from Zhengzhou University in July 1985. Mr. Wu is also a licensed lawyer of China.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mr.
Adam Inglis</B> is one of our independent directors. serves as Associate Vice President of corporate strategy at Beacon Health
Options, Inc.,&nbsp;effective November 2018, where he is responsible for growth, new ventures and product development. From September
2013 to November 2018, Mr. Inglis served as the Vice President of client management at Provant Health&nbsp;focusing on revenue
retention and growth. From July 2010 to September 2013, he served as a health and benefits consultant to corporate clients for
Mercer Consulting&nbsp;providing guidance on health and benefit strategies.&nbsp;Mr. Inglis graduated in 2001 with&nbsp;a BA&nbsp;from
Hobart College with a double major in&nbsp;Public Policy and Psychology.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Family
Relationships</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are no family relationships among the executive officers and directors&nbsp;of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Legal
Proceedings</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Involvement
in Certain Legal Proceedings</I></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the past ten years, none of our current directors, executive officers, promoters, control persons, or nominees has been:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
subject of any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer
either at the time of the bankruptcy or within two years prior to that time;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">convicted
in a criminal proceeding or is subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">subject
to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or
any Federal or State authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement
in any type of business, securities or banking activities;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">found
by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated
a federal or state securities or commodities law.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently
reversed, suspended or vacated, relating to an alleged violation of (a) any Federal or State securities or commodities law or
regulation; (b) any law or regulation respecting financial institutions or insurance companies including, but not limited to,
a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist
order, or removal or prohibition order; or (c) any law or regulation prohibiting mail or wire fraud or fraud in connection with
any business entity; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization
(as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29)
of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary
authority over its members or persons associated with a member.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Board
of Directors</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently have three executive directors Yinglin Mark Xu, Tingzhi Qian, James Jiayuan Tong and four independent directors: Charles
Prizzi, Thomas Folinsbee, and Richard Wu, and Adam Inglis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Director
Independence</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nasdaq
listing standards require that a majority of our board of directors be independent as long as we are not a controlled company.
We anticipate that a majority of our board of directors will be independent as of the Closing. An &ldquo;<I>independent director</I>&rdquo;
is defined under the Nasdaq rules generally as a person other than an officer or employee of the company or its subsidiaries or
any other individual having a relationship which in the opinion of the company&rsquo;s board of directors, would interfere with
the director&rsquo;s exercise of independent judgment in carrying out the responsibilities of a director. Our board of directors
has determined that Messrs. Charles Prizzi, Thomas Folinsbee, Richard Wu, and Adam Inglis are &ldquo;<I>independent directors</I>&rdquo;
as defined in the Nasdaq listing standards and applicable SEC rules. Our independent directors will have regularly scheduled meetings
at which only independent directors are present.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Leadership
Structure and Risk Oversight</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Committees
of the Board of Directors</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
standing committees of our board of directors currently consists of an Audit Committee and a Compensation Committee, and after
the Business Combination will also consist of a Nominating and Corporate Governance Committee. Each of the committees will report
to the board of directors as they deem appropriate and as the board may request.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Audit
Committee</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
the Closing, assuming the approval of the Director Election Proposal, we will have an audit committee of the board of directors.
Messrs. Charles Prizzi, Thomas Folinsbee, and Richard Wu serve as members of our audit committee. Mr. Richard Wu serves as chairman
of the audit committee. Under the Nasdaq listing standards and applicable SEC rules, we are required to have three members of
the audit committee all of whom must be independent. Messrs. Charles Prizzi, Thomas Folinsbee, and Richard Wu are independent.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
member of the audit committee is financially literate and our board of directors has determined that Mr. Wu qualifies as an &ldquo;<I>audit
committee financial expert</I>&rdquo; as defined in applicable SEC rules.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Compensation
Committee</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
the Closing, assuming the approval of the Director Election Proposal, we will have a compensation committee of the board of directors.
The members of our Compensation Committee are Messrs. Charles Prizzi, Thomas Folinsbee, and Richard Wu. Mr. Prizzi serves as chairman
of the Compensation Committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Corporate
Governance and Nominating Committee</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the Closing, assuming the approval of the Director Election Proposal, our Corporate Governance and Nominating Committee will consist
of Messrs. Charles Prizzi, Thomas Folinsbee, and Richard Wu, with Richard Wu serving as the chairman of the Corporate Governance
and Nominating Committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Corporate Governance and Nominating Committee will be responsible for, among other matters: (1) identifying individuals qualified
to become members of our board of directors, consistent with criteria approved by our board of directors; (2) overseeing the organization
of our board of directors to discharge the board&rsquo;s duties and responsibilities properly and efficiently; (3) identifying
best practices and recommending corporate governance principles; and (4) developing and recommending to our board of directors
a set of corporate governance guidelines and principles applicable to us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
anticipate that each of the members of our Corporate Governance and Nominating Committee will be independent under the applicable
Nasdaq listing standards. Prior to the Meeting, our board of directors will adopt a written charter for the Corporate Governance
and Nominating Committee, which is attached hereto as <U>Annex G</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Code
of Ethics</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have adopted a code of conduct and ethics applicable to our directors, officers, and employees in accordance with applicable federal
securities laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Director
Compensation</I></B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Compensation Committee
will determine the annual compensation to be paid to the members of our board of directors by July 31, 2019.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_019"></A>EXECUTIVE
COMPENSATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Executive
and Director Compensation Of Xynomic</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Summary
Compensation Table</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below sets forth the annual compensation paid by Xynomic during the fiscal years ended December 31, 2018, December 31, 2017,
and December 31, 2016, to the principal executive officer and the next two most highly-compensated executive officers (the &ldquo;<I>Named
Executive Officers</I>&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name
    and Principal Position</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fiscal<BR>
    Year</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Salary<BR>
    ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bonus<BR>
    ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stock
    <BR> awards<BR> ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Option
    <BR> awards<BR> ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-equity
    <BR> incentive&nbsp;plan <BR> compensation<BR> ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nonqualified
    <BR> Deferred <BR> compensation <BR> earnings<BR> ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
    Other<BR> Compensation<BR> ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total<BR>
    ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 10%; text-align: left; text-indent: -5pt; padding-left: 5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yinglin&nbsp;Mark&nbsp;Xu,</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2018</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman,
    CEO </FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2017</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&amp;
    President</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2016</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ying
    Zhang, </FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2018</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">192,826.91</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">16,600.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">209,426.91</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">VP
    of Global </FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2017</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">125,346.68</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">125,346.68</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Strategic
    Sourcing</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2016</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wentao
    Jason Wu, </FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2018</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">137,546.17</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,735.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">147,281.17</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Operating </FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2017</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,135.90</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,135.90</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Officer</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2016</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yong Cui,</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2018</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">246,092.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">246,092.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">VP&nbsp;of&nbsp;Chemistry,
    </FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2017</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">69,960.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">69,960.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Manufacturing, and&nbsp;Controls
    (CMC)&nbsp;and&nbsp;Director</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2016</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT>&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Narrative
Disclosure to Summary Compensation Table</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
2016, no compensation was provided to the Named Executive Officers by Xynomic.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
2017, the only compensation provided to the Named Executive Officers were base salaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
2018, the compensation provided to the Named Executive Officers were base salaries and bonuses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Base
Salary and Bonus</I></B><I>.</I> Base salaries and bonuses are generally set at levels deemed necessary to attract and retain
individuals with superior talent commensurate with their relative expertise and experience.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Employment
Agreements</I></B>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">XYN has entered into
a signed offer letter with James Jiayuan Tong, effective on May 15, 2019. Under the terms of the offer letter, Dr. Tong is employed
as the Chief Strategy Officer and Executive Vice President of XYN, reporting to the Chief Executive Officer. Dr. Tong will receive
an annual salary of $0 and is eligible to receive an annual discretional bonus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has entered
into an employment agreement with Yinglin Mark Xu, effective on April 22, 2019. Under the terms of the employment agreement, Mr.
Xu is employed as the Chairman, Chief Executive Officer and President of Xynomic. Mr. Xu will receive an annual salary of $0 and
is eligible to receive an annual discretional bonus. Xynomic or Mr. Xu may terminate the employment at any time for any or no reason
upon giving written notice thirty (30) days in advance to the other party. Upon termination of the employment, Mr. Xu will be entitled
only to payment of his regular salary pro-rated through the termination date. Under the employment agreement, Mr. Xu will be subject
to non-competition and non-solicitation restrictions during his employment and for a period of twelve (12) months thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has entered
into an employment agreement with Wentao Jason Wu, effective on January 1, 2019. Under the terms of the employment agreement, Dr.
Wu is employed as the Chief Operating Officer of Xynomic, reporting to the Chief Executive Officer or such other person as Xynomic
may designate. Dr. Wu will receive an annual salary of $160,008 and is eligible to receive an annual discretional bonus. Xynomic
or Dr. Wu may terminate the employment at any time for any or no reason upon giving written notice thirty (30) days in advance
to the other party. Upon termination of the employment, Dr. Wu will be entitled only to payment of his regular salary pro-rated
through the termination date. Under the employment agreement, Dr. Wu will be subject to non-competition and non-solicitation restrictions
during his employment and for a period of twelve (12) months thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has
entered into an employment agreement with Sophia Paspal, effective on January 16, 2019 and updated on July 1, 2019. Under the
terms of the updated employment agreement, Dr. Paspal is employed as the Chief Development Officer of Xynomic, reporting to
the Chief Operation Officer or such other person as Xynomic may designate. She is responsible for such duties as Xynomic may
from time-to-time assign. Dr. Paspal will receive an annual salary of $280,002, with a one-time signing on bonus of $25,000,
subject to certain forfeitures as set forth in the employment agreement. During her employment, Dr. Paspal is eligible to
receive an annual discretional bonus targeted at 30% of her base salary. Xynomic or Dr. Paspal may terminate the employment
at any time for any or no reason upon giving written notice thirty (30) days in advance to the other party. Upon termination
of the employment, Dr. Paspal will be entitled only to payment of her regular salary pro-rated through the termination date.
In the event that Xynomic stops operations or is acquired by another company, Dr. Paspals is entitled to 6-month pay plus
health insurance coverage. Under the employment agreement, Dr. Paspal will be subject to non-competition and non-solicitation
restrictions during her employment and for a period of twelve (12) months thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic has entered
into an offer letter with Jinwei Coco Kou, effective on March 19, 2019. Under the terms of the offer letter, Ms. Kou is employed
as the Interim Chief Accounting Officer of Xynomic. During her employment, Ms. Kou is eligible to receive an annual salary of $72,000
plus standard fringe benefits and paid vacation. Ms. Kou is also eligible to receive a performance based year-end bonus.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dr.
Niefang Yu is engaged by Xynomic Nanjing under the terms of a Cooperative Development Agreement for New Drugs, effective as of
May 1, 2018. Under the terms of the agreement, Dr. Yu is employed on a part-time basis as a senior manager in charge of Xynomic&rsquo;s
research and development center located in Shanghai. Dr. Yu receives a monthly salary of RMB35,000. The agreement also provides
for the future grant of an option to purchase shares of common stock from Xynomic, which has not yet been granted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Xynomic
Zhongshan has entered into a labor contract with Bing Zhao, effective on March 1, 2019. Under the terms of the labor contract,
Bing Zhao is employed as the Vice President of Xynomic Zhongshan in charge of Greater China Clinical and Regulatory Affairs for
a term of three (3) years. Dr. Zhao will receive a monthly salary of RMB30,000. Prior to the expiration of the term, Dr. Zhao
may terminate the employment for convenience upon thirty (30) days&rsquo; prior written notice and Xynomic Zhongshan may terminate
Dr. Zhao&rsquo;s employment under certain circumstances, as provided in applicable PRC labor laws. Under a non-competition agreement
dated March 1, 2019, Dr. Zhao is subject to non-competition and non-solicitation restrictions during his employment and for a
period of twenty-four (24) months thereafter; provided that he will receive reasonable compensations for the post-employment non-competition
and non-solicitation restrictions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
Named Executive Officer is also subject to general confidentiality obligations and obligations to assign proprietary property
to Xynomic or a subsidiary of Xynomic in his or her respective confidentiality agreement, consulting agreement or employment agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Merger Agreement, certain officers of Xynomic will enter into a non-competition and non-solicitation agreement with the
combined entity upon the Closing of the Business Combination, a form of which is attached as Exhibit 10.11 to Amendment No.5 to
Form S-4 filed on May 1, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Long
Term Incentives.</I></B> As of December 31, 2018, none of the Named Executive Officers held equity compensation awards. Xynomic
has, however, obtained shareholder approval of the Xynomic 2018 Equity Incentive Plan in August 2018. At the Closing of the Merger,
the combined entity following the Merger will assume and adopt the Xynomic 2018 Equity Incentive Plan. Each outstanding Xynomic
option as of the Closing shall be assumed by the combined entity and automatically converted into an option to purchase common
shares of the combined entity, subject to the terms and conditions as set forth in the Xynomic Stock Incentive Plan. Please refer
to disclosure regarding &ldquo;Incentive Plan Proposal&rdquo; for the terms of the Xynomic 2018 Equity Incentive Plan and additional
information. On January 21, 2019, Xynomic awarded Ying Zhang an option to purchase 100,000 shares of common stock from Xynomic
at the exercise price of $1.00 per share and subject to customary vesting terms pursuant to the Xynomic 2018 Equity Incentive
Plan.<B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Outstanding Equity Awards at 2017
and 2018 Fiscal Year-End</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
of December 31, 2017 and 2018, none of the Named Executive Officers held equity compensation awards.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Potential Payments upon Termination
or Change in Control</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31,
2018, no Named Executive Officer had a contractual or other entitlement to severance or other payments upon termination or a change
in control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Compensation of Directors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic did not have
non-employee directors in 2018 and 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; margin-left: 0; text-indent: 0.5in; text-align: justify">Individuals who served as
directors during 2018 and 2017 and who were also employed by Xynomic did not receive any additional compensation for their service
as a director during 2018 and 2017, but did receive compensation in their capacity as employees in 2017. For additional discussion
of this compensation, see &ldquo;<I>Certain Relationships and Related Party Transactions &mdash; Xynomic Related Person Transactions</I>.&rdquo;</P>

<P STYLE="margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Executive
Compensation of Bison</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Until
May 15, 2019, Bison paid its sponsor a total of $5,000 per month for office space, utilities, and secretarial and administrative
services. We believe that such fees are at least as favorable as we could have obtained from an unaffiliated third party for such
services. Except as set forth above, no compensation was paid or will be paid to our executive officers, directors, or any of
their respective affiliates, prior to or in connection with the consummation of our Business Combination. Additionally, these
individuals were reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying
potential target businesses and performing due diligence on the Business Combination. Our independent directors reviewed on a
quarterly basis all payments that were made to our officers, directors, or our or their affiliates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Grants
of Plan-Based Awards and Outstanding Equity Awards at Fiscal Year-End</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
plan-based awards or equity awards are granted by the end of fiscal year 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Employment
Agreements</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bison
did not have any written employment agreements with any of our directors and officers except certain indemnification agreements
with certain directors as of December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Retirement/Resignation
Plans</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bison
did not have any plans or arrangements in place regarding the payment to any of our executive officers following such person&rsquo;s
retirement or resignation as of December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Director
Compensation</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bison
paid its independent directors an annual retainer in an aggregate amount of $38,400 (to be prorated for a partial term), payable
in arrears commencing on the first anniversary of the IPO and ending on May 15, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
inception to December 31, 2018, the Company has paid $38,400 in director&rsquo;s fees. We reimburse each director for reasonable
travel expenses related to such director&rsquo;s attendance at board of directors and committee meetings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Executive
Compensation Following Consummation of the Business Combination</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Overview</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to develop an executive compensation program that is consistent with its existing compensation policies and philosophies,
which is designed to align compensation with our business objectives and the creation of shareholder value, while enabling us
to attract, motivate, and retain individuals who contribute to the long-term success of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Decisions
on the executive compensation program will be made by the Compensation Committee following the Closing. The following discussion
is based on the present expectations as to the executive compensation program to be adopted by the Compensation Committee. The
executive compensation program actually adopted will depend on the judgment of the members of the Compensation Committee and may
differ from that set forth in the following discussion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
anticipate that decisions regarding executive compensation will reflect our belief that the executive compensation program must
be competitive in order to attract and retain our executive officers. We anticipate that the Compensation Committee will seek
to implement our compensation policies and philosophies by linking a significant portion of our executive officers&rsquo; cash
compensation to performance objectives and by providing a portion of their compensation as long-term incentive compensation in
the form of equity awards.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
anticipate that compensation for our executive officers will have three primary components: base salary, an annual cash incentive
bonus, and long-term incentive compensation in the form of stock-based awards.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Base
Salary</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">It
has been our historical practice to assure that base salary is fair to the executive officers, competitive within the industry,
and reasonable in light of our cost structure. Following the completion of the Business Combination, our Compensation Committee
will determine base salaries and manage the base salary review process, subject to existing employment agreements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Annual
Bonuses</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company intends to use annual cash incentive bonuses for the executive officers to tie a portion of their compensation to financial
and operational objectives achievable within the applicable fiscal year. The Company expects that, near the beginning of each
year, the Compensation Committee will select the performance targets, target amounts, target award opportunities, and other term
and conditions of annual cash bonuses for the executive officers, subject to the terms of any employment agreement. Following
the end of each year, the Compensation Committee will determine the extent to which the performance targets were achieved and
the amount of the award that is payable to the executive officers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Stock-Based
Awards</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Immediately
prior to the consummation of the Busienss Combiantion, Bison did not have any stock-based awards in place, while Xynomic has an
Employee Stock Option Plan (&ldquo;<I>ESOP</I>&rdquo;), which grants select executives, employees, and advisors options to acquire
Xynomic&rsquo;s stock at significant discount to its fair market value. These options typically have a four-year vesting schedule,
with 25% shares vested on the first anniversary day of the grant date, and 1/48 shares vested every month thereafter. No shares
were issued under the ESOP before December 31, 2018. On May 15, 2019, XYN assumed and adopted the 2018 Incentive Plan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Other
Compensation</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company expects to continue to offer country-specific employee benefit plans that are customary in the countries where the employee
are based, including medical, dental, 401(k) plans, unemployment benefits, and house funding, in which the executive officers
will participate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="a_020"></A><B>SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth information regarding the beneficial ownership of our ordinary shares as of the Closing (taking in
account of the redemption in connection with the Business Combination and automatic exchange of rights into common shares at the
Closing), based on information obtained from the persons named below, with respect to the beneficial ownership of our common shares,
by:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each
    person known by us to be the beneficial owner of more than 5% of our outstanding common shares;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each
    of our executive officers and directors that beneficially owns our common shares; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">all
    our executive officers and directors as a group.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all
common shares beneficially owned by them.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid"><B>Name and Address of Beneficial Owners (1)</B></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number&nbsp;of<BR> Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 77%; text-align: left">Peixin Xu (2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,574,600</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3.40</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">James Jiayuan Tong (3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">391,650</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.85</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Yinglin Mark Xu (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,009,055</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45.40</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Tingzhi Qian (5) (14) (15)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,517,707</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16.25</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Wentao Jason Wu (6) (12)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,612,618</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.13</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Jinwei Coco Kou (7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Adam Inglis (8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Charles Vincent Prizzi (9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Thomas Folinsbee (10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Richard Peidong Wu (11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Bison Capital Holding Company Limited (2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,574,600</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.40</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Grand Ascent Group Limited (12)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,612,618</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.13</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Bridge Pharm International Inc. (13)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,547,146</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.50</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Prosperico Gate I Limited (14)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,547,138</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.50</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Dande Lion Limited&nbsp;(15)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,970,569</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.74</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Ascender Prosperity Capital Co., Ltd. (16)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,796,078</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.04</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Zhongshan Bison Healthcare Investment Limited (Limited Partnership) (17)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,318,793</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.85</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">All 5% or more beneficial owners, directors and executive officers as a group (nine individuals)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,874,254</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86.17</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less
    than one percent</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;
&nbsp; &nbsp; &nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
    otherwise indicated, the business address of each of the individuals is Suite 3306, K. Wah Centre, 1010 Middle Huaihai Road,
    Shanghai 200031, China.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fengyun
    Jiang, who has 100% ownership interest in Bison Capital Holding Company Limited and is Peixin Xu&rsquo;s spouse, has voting
    and dispositive power over the shares held by such entity. This amount includes 1,117,725 shares held by Bison Capital Holding
    Company Limited, which is beneficially owned by Fengyun Jiang (100%); Fengyun Jiang has voting and dispositive control over
    the securities held by Bison and disclaims beneficial ownership of the Ordinary Shares owned by Bison Capital Holding Company
    Limited, except to the extent of his pecuniary interest in such company. Mr. Xu was the Chairman of Bison but resigned at
    the Closing.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dr.
    Tong is Chief Strategy Officer and a director.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.&nbsp;Yinglin
    Mark Xu is the Chairman, Chief Executive Officer, President, and Interim Chief Financial Officer.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Tingzhi Qian is a director of Xynomic. Mr. Qian holds the shares through his control of Prosperico Gate I Limited and Dande
    Lion Limited.</FONT></TD></TR>
</TABLE>
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<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Wentao Jason Wu is the Chief Operating Officer.</FONT></TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ms.
    Kou is the Interim Chief Accounting Officer.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Adam Inglis is an independent director.</FONT></TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(9)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Charles Prizzi is an independent director and Chairman of the Compensation Committee.</FONT></TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(10)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Thomas Folinsbee is an independent director of Xynomic.</FONT></TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(11)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Richard Peidong Wu is an independent director and Chairman of the Audit Committee and the Corporate Governance and Nominating
    Committee.</FONT></TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(12)</FONT>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Grand
    Ascent Group Limited is a healthcare focused advisory company&nbsp;incorporated under the laws of Hong Kong. The address of
    its business office is Unit 826, Ocean Centre, Harbour City, 5 Canton Road, TST, KLN, Hong Kong. The person having voting,
    dispositive or investment powers over&nbsp;Grand Ascent Group Limited is Ms. Yimei Zhang<B>.&nbsp;</B>Ms. Zhang is the close
    family member of Dr. Wentao Jason Wu and due do this relationship, we deem that Dr. Wu controls and/or has substantial influence
    on the disposition rights and voting rights of shares included herein</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(13)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bridge
    Pharm International Inc. is a healthcare focused advisory company&nbsp;incorporated under the laws of The British Virgin Islands.
    The address of its business office is Suite 1-301, Banxia Road, Pudong New District, Shanghai, China. The person having voting,
    dispositive or investment powers over&nbsp;Bridge Pharm International Inc. is Ms. Yanli Luo.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 21.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(14)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prosperico
    Gate I Limited is an exempted company 100% and directly owned by Prosperico Healthcare Fund I, LP, which is a healthcare focused
    investment fund in the form of exempted limited partnership with no US-investors incorporated under the laws of the Cayman
    Islands. The address of the company is P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205,
    Cayman Islands. The person having voting, dispositive or investment powers over&nbsp;Prosperico Gate I Limited is Mr. Tingzhi
    Qian.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 21.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(15)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DandeLion
    Limited is an exempted company 100% and ultimately owned by Mr. Tingzhi Qian incorporated under the laws of The Cayman Islands.
    The address of the company is P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205, Cayman
    Islands. The person having voting, dispositive or investment powers over&nbsp;Dande Lion Limited is Mr. Tingzhi Qian.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 21.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(16)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ascender
    Prosperity Capital Co., Ltd. is a healthcare focused investment company incorporated under the laws of The Cayman Islands.
    The address of the company is P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205, Cayman
    Islands. The person having voting, dispositive or investment powers over&nbsp;Ascender Prosperity Capital Co., Ltd. is Mr.
    Qi Jun Chen<B>.</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 21.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.3in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(17)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Zhongshan
    Bison Healthcare Investment Limited (Limited Partnership) is a healthcare focused venture capital and private equity investment
    company incorporated under the laws of Zhongshan, Guangdong Province, China. The address of its business office is B609-610,
    21st Century Tower, No. 40 Liangmaqiao Road, Chaoyang District, Beijing 100016, China. The people having voting, dispositive
    or investment powers over&nbsp;Zhongshan Bison Healthcare Investment Limited are 5 members of its investment committee.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B><A NAME="a_021"></A>Certain
Relationships and Related Party Transactions</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Xynomic Related Person Transactions</I></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
the consummation of the Business Combination, on May 15, 2019, Xynomic Pharmaceuticals Holdings, Inc. issued 55,000 shares of
Common Stock and 25,000 private warrants to Bison&rsquo;s Sponsor, Bison Capital Holding Company Limited, upon conversion of $500,000
working capital loan owed to the sponsor.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the closing of the Business Combination, pursuant to the Backstop Agreement dated May 1, 2019 entered into by and between Bison
and Yinglin Mark Xu, together with his assignee Bison Capital Holding Company Limited, has purchased from the Company 755,873
shares of common stock at a price of $10.15 per share for a total consideration of $7,672,112 (the &ldquo;<B><I>Backstop Shares</I></B>&rdquo;
and &ldquo;<B><I>Backstop Subscription</I></B>&rdquo;). As a result of Backstop Subscription, Bison had at least $7,500,001 of
net tangible assets remaining at the Closing after giving effect to the redemption of any Ordinary Shares by the public shareholders
in connection with the Business Combination.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Yinglin Mark Xu Bridge Loan</U></I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 15, 2017,
Xynomic entered into a Bridge Loan Agreement with Yinglin Mark Xu, its Chairman, Chief Executive Officer, and President, and an
Amended Bridge Loan Agreement dated August 31, 2017. Under the agreement, Yinglin Mark Xu agreed to periodically provide loans
to fund Xynomic&rsquo;s daily operation. No security is required in connection with provision of the loan. As of December 31, 2018
and March 31, 2019, Yinglin Mark Xu has provided multiple loans to Xynomic in the aggregate amount of $2,008,936 and US$2,441,776,
respectively. No principal or interest has been paid under the Bridge Loan Agreement and the Amended Bridge Loan Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Eigenbridge Consulting Agreement</U></I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic entered into
a contractor agreement with Eigenbridge, Inc., or &ldquo;Contractor,&rdquo; a company affiliated with Yong Cui, on February 26,
2017, pursuant to which Contractor agrees to provide specialized advisory services to Xynomic. The initial term of this agreement
is from February 27, 2017, to December 31, 2017. The term shall be automatically extended on a month-to-month basis unless and
until the work is completed or Contractor provides 30 days&rsquo; prior written notice to Xynomic, provided that Xynomic may terminate
this agreement at any time for any reason. The contractor agreement provides for an hourly rate of $240 for the service provided
by Contactor and reimbursements for travel, living, entertainment, or other costs of Contractor if these activities were pre-approved
by Xynomic. This Agreement is governed by the laws of the State of California.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Advances from and interest payable
to a shareholder</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May&nbsp;2, 2018,
as one of the potential investors of Series B financing, Zhongshan Bison Healthcare Investment Limited (Limited Partnership) (&ldquo;Zhongshan
Bison&rdquo;) entered into a loan agreement with Xynomic Pharmaceuticals (Nanjing) Co., Ltd. (&ldquo;Xynomic Nanjing&rdquo;). On
May13, 2018, Zhongshan Bison made an advance of RMB9,435,000 (equivalent to US$1,425,959) to fund the operations and business development
of Xynomic Nanjing. Zhongshan Bison is entitled to withdraw the advance within 5 business days after Zhongshan Bison paid the first
investment of Series B financing, or if current shareholders and investors fail to subscribe shares of the Series B financing within
6&nbsp;months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August&nbsp;16,
2018, Zhongshan Bison became one of the Series B Preferred Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August&nbsp;23,
2018, Xynomic Nanjing entered into a termination agreement for the advance from Zhongshan Bison. Xynomic Nanjing is required to
a) repay RMB1,800,000 of the advance from Zhongshan Bison within 2 days after signing the agreement; and b) repay the remaining
RMB7,635,000 of the advance from Zhongshan Bison and interest accrued at annual interest rate of 8% from signing the agreement
within six months from the date of the termination agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August&nbsp;23,
2018, Xynomic Nanjing repaid RMB1,800,000 (equivalent to US$262,743) of the advance from Zhongshan Bison. As of December&nbsp;31,
2017 and 2018, the advance from Zhongshan Bison was nil and US$1,112,455, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 21, 2019,
Xynomic Nanjing repaid RMB5,064,000 (equivalent to US$747,189) of the advance from Zhongshan Bison. On February 20, 2019, Zhongshan
Bison agreed to extend the due date of the remaining advance of RMB2,571,000 (US$383,097) and all accrued interest to April 15,
2019. On April 12, 2019, Zhongshan Bison agreed to further extend the due date of the remaining advance of RMB2,571,000 (US$383,097)
and all accrued interest to June 30, 2019. On June 30, 2019, the due date was further extended to September 15, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic Nanjing accrued
interest expense of US$32,874 and US$15,088 for the advance from Zhongshan Bison for the year ended December 31, 2018 and for
the three months ended March 31, 2019, respectively. The interest payable to Zhongshan Bison was US$31,697 and US$47,583 as of
December 31, 2018 and as of March 31, 2019, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Shanghai Jingshu Loan</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 10, 2018,
Xynomic Pharmaceuticals (Nanjing) Co., Ltd. borrowed RMB 6.0 million from Shanghai Jingshu Venture Capital Center, or &ldquo;Shanghai
Jingshu,&rdquo; one
of the Company&rsquo;s shareholders, for its research and operation. The loan bears no interest and has a term of the shorter of
(i) 183 days after the date of the loan agreement, or (ii) 20 business days after Xynomic receives in full the investment amount
from Shanghai Jingshu in connection with the Series B financing, at which time all principal shall be due. All the outstanding
amount under the loan was paid in full on August 2, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Bridge Pharm Services</U></I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bridge Pharm International
Inc., or &ldquo;Bridge Pharm,&rdquo; a shareholder of Xynomic, provided consulting service including business development, screening
and selection of contract research organizations (&ldquo;CROs&rdquo;) and contract manufacturing organizations, and scouting and
reference of key scientific and managerial talents to Xynomic group companies. Xynomic group companies paid a total contract amount
of $295,021 to Bridge Pharm in June 2017 for a 20-month service. Xynomic recognized expense of $178,777 in 2017 and $116,244 in
2018. In 2017, Xynomic issued 3,000,010 ordinary shares for a cash consideration of $300 to Bridge Pharm, for the financial advisory
services in connection with Series A-1 Preferred Shares issuance. Xynomic has accounted the difference between the consideration
received and the fair value of these ordinary shares as redeemable preferred share issuance cost, which was recorded as a reduction
of the carrying amount of the redeemable preferred share.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Bison
Related Person Transactions</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
December 2016, we issued an aggregate of 1,437,500 Founder Shares to our Initial Shareholders for an aggregate purchase price
of $25,000 in cash, or approximately $0.017 per share. On June 19, 2017, the number of Founder Shares issued under the original
subscription agreement was increased by way of the sub-division of each of the then existing Founder Shares on a 1.05 for 1 basis,
resulting in the total number of Founder Shares becoming 1,509,375. The Founder Shares are identical to the shares sold in the
IPO, except that (1) the Founder Shares are subject to certain transfer restrictions as set forth in a certain share escrow agreement,
(2) the Founder Shares were purchased pursuant to an exemption from the registration requirements of the Securities Act and will
become tradable only after certain conditions are met or the resale of the Founder Shares is registered under the Securities Act,
in addition to in accordance with the terms of the share escrow agreement, and (3) the Initial Shareholders have agreed (i) to
waive their redemption rights with respect to any shares in connection with the consummation of Business Combination and (ii)
to waive their liquidation rights with respect to their Founder Shares and private shares if the Company fails to complete a Business
Combination within June 24, 2019 or such earlier date as determined by Bison&rsquo;s board of directors (the &ldquo;Combination
Period&rdquo;). All of the Founder Shares were placed in escrow with Continental Stock Transfer &amp; Trust Company, as escrow
agent, at the time of our IPO.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
subject to certain limited exceptions, the Initial Shareholders have agreed not to transfer, assign, or sell any of the Founder
Shares (except to certain permitted transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) one year
after the date of the consummation of a Business Combination or (ii) the date on which the closing price of the Company&rsquo;s
ordinary shares equals or exceeds $12.50 per share (as adjusted for stock splits, stock dividends, reorganizations, and recapitalizations)
for any 20 trading days within any 30-trading day period commencing after a Business Combination, and with respect to the remaining
50% of the Founder Shares, upon one year after the date of the consummation of a Business Combination, or earlier, in each case,
if, subsequent to a Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange, or other similar
transaction which results in all of the Company&rsquo;s shareholders having the right to exchange their ordinary shares for cash,
securities, or other property.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Simultaneously
with the consummation of the IPO, our Sponsor, Bison Capital Holding Company Limited, and EarlyBirdCapital purchased an aggregate
of 388,750 private units (or an aggregate purchase price of $3,887,500), of which 362,500 private units were purchased by Bison
Capital Holding Company Limited and 26,250 private units were purchased by EarlyBirdCapital. In addition, on June 28, 2017, the
Company consummated the sale of an additional 43,312 Placement Units at a price of $10.00 per Unit, of which 39,375 private units
were purchased by Bison Capital Holding Company Limited and 3,937 private units were purchased by EarlyBirdCapital, generating
gross proceeds of $433,125. The proceeds from the sale of the private units were added to the net proceeds from the IPO held in
the Trust Account.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
private units are identical to the Units sold in the IPO, except that (i) Bison Capital Holding Company Limited and EarlyBirdCapital
have agreed not to transfer, assign, or sell any of the private units until after the completion of a Business Combination, subject
to certain exceptions, (ii) the private units (including underlying securities) were purchased pursuant to an exemption from the
registration requirements of the Securities Act and will become tradable only after certain conditions are met or the resale of
the private units is registered under the Securities Act, and (iii) the warrants included in the private units (the &ldquo;Private
Warrants&rdquo;) are non-redeemable and may be exercised on a cashless basis, in each case so long as they continue to be held
by our Sponsor or EarlyBirdCapital or their permitted transferees. However, the holders have agreed (a) to vote their private
shares (representing the ordinary shares underlying the private units) and any public shares in favor of a Business Combination,
(b) not to propose or vote in favor of an amendment to the Previous Charter, prior to and unrelated to a Business Combination,
to affect the substance or timing of the Company&rsquo;s obligation to redeem all public shares if it cannot complete a Business
Combination within the Combination Period, unless the Company provides public shareholders an opportunity to redeem their public
shares, (c) not to redeem any shares included in the private units (the &ldquo;Private Shares&rdquo;) into the right to receive
cash from the Trust Account in connection with a shareholder vote to approve a Business Combination, and (d) not to participate
in any liquidating distribution upon winding up if a Business Combination is not consummated.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have agreed to pay our Sponsor $5,000 per month for office space, utilities, and secretarial and administrative services, as we
may require from time to time. We believe, based on rents and fees for similar services in the Beijing area, that the fee charged
by our Sponsor is at least as favorable as we could have obtained from an unaffiliated person.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
than the $5,000 per-month administrative fee as described above, the $38,400 annual retainer payments to our independent directors
as described below and reimbursement of any out-of-pocket expenses incurred in connection with activities on our behalf such as
identifying potential target businesses and performing due diligence on suitable business combinations, no compensation or fees
of any kind, including finder&rsquo;s fees, consulting fees, or other similar compensation, will be paid to our Sponsor, officers,
directors, or to any of their respective affiliates, prior to or with respect to our initial business combination (regardless
of the type of transaction that it is). Our independent directors review on a quarterly basis all payments that were made to our
Sponsor, officers, directors, or our or their affiliates and are responsible for reviewing and approving all related party transactions
as defined under Item 404 of Regulation S-K, after reviewing each such transaction for potential conflicts of interests and other
improprieties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
pay each of our independent directors an annual retainer of $38,400 (to be prorated for a partial term), payable in arrears commencing
on the first anniversary of the closing of the IPO and ending on the earlier of the consummation of our initial business combination
and our liquidation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior
to our IPO, our Sponsor advanced to us an aggregate of $159,304 and loaned to us $300,000 to cover expenses related to such offering.
We repaid these advances and loan from the proceeds of our IPO not placed in the trust account.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, in order
to finance transaction costs in connection with an intended initial business combination, our Sponsor or an affiliate of our Sponsor
or our officers and directors may, but are not obligated to, loan us funds as may be required. If we consummate our initial business
combination, we would repay such loaned amounts. In the event that the initial business combination does not close, we may use
a portion of the offering proceeds held outside the trust account to repay such loaned amounts but no proceeds from our trust
account would be used for such repayment. Such loans would be evidenced by promissory notes. The notes of $500,000 of loans have
been converted upon consummation of our business combination into additional private units at a price of $10.00 per unit at the
lender&rsquo;s discretion (which, for example, would result in the holders being issued 55,000 private shares if $500,000 of notes
were so converted since the 50,000 private rights included in the private units would result in the issuance of an additional
5,000 private shares upon the Closing, as well as 50,000 warrants to purchase 25,000 Company common shares).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
our initial business combination, members of our management team who remain with us may be paid consulting, management, or other
fees from the combined company with any and all amounts being fully disclosed to our shareholders, to the extent then known, in
the proxy solicitation materials, as applicable, furnished to our shareholders. It is unlikely the amount of such compensation
will be known at the time of a shareholder meeting held to consider our initial business combination, as applicable, as it will
be up to the directors of the post-combination business to determine executive and director compensation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
ongoing and future transactions between us and any member of our management team or his or her respective affiliates will be on
terms believed by us at that time, based upon other similar arrangements known to us, to be no less favorable to us than are available
from unaffiliated third parties. It is our intention to obtain estimates from unaffiliated third parties for similar goods or
services to ascertain whether such transactions with affiliates are on terms that are no less favorable to us than are otherwise
available from such unaffiliated third parties. If a transaction with an affiliated third party were found to be on terms less
favorable to us than with an unaffiliated third party, we would not engage in such transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to a registration rights agreement we entered into on June 19, 2017, our Initial Shareholders and EarlyBirdCapital and their permitted
transferees can demand that we register the Founder Shares, the private units and underlying securities, and any securities issued
upon conversion of working capital loans. The holders of the majority of the Founder Shares are entitled to demand that we register
these shares at any time commencing three months prior to the first anniversary of the consummation of our initial business combination.
The holders of the private units (or underlying securities) are entitled to demand that we register these securities at any time
after we consummate our initial business combination. In addition, the holders have certain &ldquo;<I>piggy-back</I>&rdquo; registration
rights on registration statements filed after the consummation of our initial business combination.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 2, 2018, as one of the potential investors of Series B financing, Zhongshan Bison Healthcare Investment Limited (Limited Partnership)
(&ldquo;<I>Zhongshan Bison</I>&rdquo;) entered into an agreement with Xynomic Nanjing. On May 13, 2018, Zhongshan Bison made an
advance of RMB9,435,000 (equivalent to US$1,425,959) to fund the operations and business development of Xynomic Nanjing. Zhongshan
Bison is entitled to withdraw the advance within 5 business days after Zhongshan Bison paid the first investment of Series B financing,
or if current shareholders and investors fail to subscribe shares of the Series B financing within 6 months.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 4, 2018, Xynomic entered into a share purchase agreement with certain investors (including Zhongshan Bison), pursuant to
which a total of 5,281,101 Convertible Series B Preferred Shares (&ldquo;<I>Series B Preferred Shares</I>&rdquo;) were to be issued
for an aggregated cash consideration of US$17,000,000. On August 16, 2018, the Series B Preferred Shares were issued and the US$17,000,000
were received.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 16, 2018, Zhongshan Bison became one of the Series B Preferred Shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 23, 2018, Xynomic Nanjing entered into a termination agreement for the advance from Zhongshan Bison. Xynomic Nanjing is
required to a) repay RMB1,800,000 of the advance from Zhongshan Bison within 2 days after signing the termination agreement; and
b) repay the remaining RMB7,635,000 of the advance from Zhongshan Bison and interest accrued at annual interest rate of 8% from
signing the engagement agreement within six months from the date of the termination agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 23, 2018, Xynomic Nanjing repaid RMB1,800,000 (equivalent to US$262,743) of the advance from Zhongshan Bison. As of December
31, 2017 and 2018, the advance from Zhongshan Bison was nil and US$1,112,455, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Zhongshan
Bison is holding 1,553,265 shares of Series B preferred stock of Xynomic representing approximately 2.96% equity interest in Xynomic
immediately prior to the Closing. Mr. Peixin Xu, the Chairman of Bison, is the beneficial owner of 21% of Zhongshan Bison and
his wife owns 100% of Sponsor<B>.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 21, 2019, Xynomic Nanjing repaid RMB 5,064,000 (equivalent to US$747,189) of the advance from Zhongshan Bison. On February
20, 2019, Zhongshan Bison agreed to extend the repayment date of the remaining advance of RMB2,571,000 (US$380,562) and all accrued
interest to April 15, 2019. On June 30, 2019, the due date was further extended to September 15, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of March 31, 2019,
an aggregate of $600,000 were owed by the Company to the Sponsor as working capital loan, among which, $500,000 were evidenced
notes to the Sponsor which have been converted into private units at the Sponsor&rsquo;s discretion at the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Policies
and Procedures for Related Person Transactions</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
upon the Closing, our board of directors will adopt a written related person transaction policy that will set forth the policies
and procedures for the review and approval or ratification of related person transactions. Our policy will require that a &ldquo;<I>related
person</I>&rdquo; (as defined in paragraph (a) of Item 404 of Regulation S-K) must promptly disclose to our general counsel any
&ldquo;<I>related person transaction</I>&rdquo; (defined as any transaction that is reportable by us under Item 404(a) of Regulation
S-K in which we are or will be a participant and the amount involved exceeds $120,000 and in which any related person has or will
have a direct or indirect material interest) and all material facts with respect thereto. The general counsel will promptly communicate
such information to our Audit Committee or another independent body of our board of directors. No related person transaction will
be entered into without the approval or ratification of our Audit Committee or another independent body of our board of directors.
It is our policy that directors interested in a related person transaction will recuse themselves from any such vote. Our policy
does not specify the standards to be applied by our Audit Committee or another independent body of our board of directors in determining
whether to approve or ratify a related person transaction, although such determinations will be made in accordance with Delaware
law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_022"></A>DESCRIPTION
OF SECURITIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Authorized
and Outstanding Stock</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to our Current Charter, we are authorized to issue up to 200 million common shares, par value $0.0001 per share and up to 50 million
preferred shares, par value $0.0001 per share. As of the date of this prospectus, we have 46,274,846 shares of Common Stock issued and
outstanding.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Common
Stock </I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Charter provides that the common stock has identical rights, powers, preferences, and privileges.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Voting
Power</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Except
as otherwise required by law or as otherwise provided in any certificate of designation for any series of preferred stock, the
holders of Company common stock possess all voting power for the election of our directors and all other matters requiring shareholder
action. Holders of Company common stock are entitled to one vote per share on matters to be voted on by shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Dividends</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have not paid any cash dividends on our common stock to date and do not intend to pay cash dividends following the closing of
this Offering. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if any, capital requirements,
and general financial condition. The payment of any cash dividends is within the discretion of our board of directors at such
time. In addition, our board of directors is not currently contemplating and does not anticipate declaring any stock dividends
in the foreseeable future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Liquidation,
Dissolution, and Winding Up</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event of our voluntary or involuntary liquidation, dissolution, distribution of assets, or winding-up, the holders of the
Company common stock will be entitled to receive an equal amount per share of all of our assets of whatever kind available for
distribution to shareholders, after the rights of the holders of the preferred stock have been satisfied.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Founder
Shares</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Founder Shares are identical to the public shares sold in the IPO, except that (1) the Founder Shares are subject to certain transfer
restrictions as set forth in certain share escrow agreement, (2) the Founder Shares were purchased pursuant to an exemption from
the registration requirements of the Securities Act and will become tradable only after certain conditions are met or the resale
of the Founder Shares is registered under the Securities Act, in addition to in accordance with the terms of the share escrow
agreement, and (3) the Initial Shareholders have agreed (i) to waive their redemption rights with respect to any shares in connection
with the consummation of business combination and (ii) to waive their liquidation rights with respect to their Founder Shares
and private shares if the Company fails to complete a Business Combination within June 24, 2019 or such earlier date as determined
by Bison&rsquo;s board of directors (the &ldquo;Combination Period&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
subject to certain limited exceptions, the Initial Shareholders have agreed not to transfer, assign, or sell any of the Founder
Shares (except to certain permitted transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) May 15,
2020, or (ii) the date on which the closing price of the Company&rsquo;s ordinary shares equals or exceeds $12.50 per share (as
adjusted for stock splits, stock dividends, reorganizations, and recapitalizations) for any 20 trading days within any 30-trading
day period commencing after a business combination, and with respect to the remaining 50% of the Founder Shares, until May 15,
2020, or earlier, in each case, if, subsequent to a Business Combination, the Company consummates a subsequent liquidation, merger,
stock exchange, or other similar transaction which results in all of the Company&rsquo;s shareholders having the right to exchange
their common shares for cash, securities, or other property.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Warrants</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are currently 3,018,750 public warrants outstanding which were originally sold as part of units in Bison&rsquo;s IPO, 216,031
private warrants outstanding where were originally sold as part of private units in a private place in conjunction with the IPO
and 25,000 private warrants issued in connection of the convertion of $500,000 working capital loan. Each whole warrant entitles
the registered holder to purchase one Company common share at a price of $11.50 per share, subject to adjustment as discussed
below, at any time commencing on the consummation of the Business Combination. However, no public warrants will be exercisable
for cash unless we have an effective and current registration statement covering the Company common shares issuable upon exercise
of the warrants and a current prospectus relating to such common shares. Notwithstanding the foregoing, if a registration statement
covering the Company common shares issuable upon exercise of the public warrants is not effective within 120 days from the closing
of the Business Combination, warrant holders may, until such time as there is an effective registration statement and during any
period when we shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis pursuant
to an available exemption from registration under the Securities Act. If an exemption from registration is not available, holders
will not be able to exercise their warrants on a cashless basis. The warrants will expire five years from the closing of the Business
Combination at 5:00 p.m., New York City time.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
private warrants are identical to the public warrants except that such private warrants will be exercisable for cash (even if
a registration statement covering the ordinary shares issuable upon exercise of such warrants is not effective) or on a cashless
basis, at the holder&rsquo;s option, and will not be redeemable by us, in each case so long as they are still held by the initial
purchasers or their affiliates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may call the outstanding warrants for redemption (excluding the private warrants but including any warrants already issued upon
exercise of the unit purchase option), in whole and not in part, at a price of $.01 per warrant:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">at
any time while the warrants are exercisable,</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">upon
not less than 30 days&rsquo; prior written notice of redemption to each warrant holder,</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if,
and only if, the reported last sale price of the ordinary shares equals or exceeds $24.00 per share, for any 20 trading days within
a 30 trading day period ending on the third business day prior to the notice of redemption to warrant holders, and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if,
and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants
at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until
the date of redemption.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
right to exercise will be forfeited unless the warrants are exercised prior to the date specified in the notice of redemption.
On and after the redemption date, a record holder of a warrant will have no further rights except to receive the redemption price
for such holder&rsquo;s warrant upon surrender of such warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
redemption criteria for our warrants have been established at a price which is intended to provide warrant holders a reasonable
premium to the initial exercise price and provide a sufficient differential between the then-prevailing share price and the warrant
exercise price so that if the share price declines as a result of our redemption call, the redemption will not cause the share
price to drop below the exercise price of the warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we call the warrants for redemption as described above, our management will have the option to require all holders that wish to
exercise warrants to do so on a &ldquo;cashless basis.&rdquo; In such event, each holder would pay the exercise price by surrendering
the warrants for that number of ordinary shares equal to the quotient obtained by dividing (x) the product of the number of ordinary
shares underlying the warrants, multiplied by the difference between the exercise price of the warrants and the &ldquo;fair market
value&rdquo; (as defined below) by (y) the fair market value. The &ldquo;fair market value&rdquo; shall mean the average reported
last sale price of the ordinary shares for the 10 trading days ending on the third trading day prior to the date on which the
notice of redemption is sent to the holders of warrants. Whether we will exercise our option to require all holders to exercise
their warrants on a &ldquo;cashless basis&rdquo; will depend on a variety of factors including the price of our ordinary shares
at the time the warrants are called for redemption, our cash needs at such time and concerns regarding dilutive share issuances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
warrants were issued in registered form under a warrant agreement between Continental Stock Transfer &amp; Trust Company, as warrant
agent, and us. The warrant agreement provides that the terms of the warrants may be amended without the consent of any holder
to cure any ambiguity or correct any defective provision, but requires the approval, by written consent or vote, of the holders
of a majority of the then outstanding warrants in order to make any change that adversely affects the interests of the registered
holders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
exercise price and number of ordinary shares issuable on exercise of the warrants may be adjusted in certain circumstances including
in the event of a share dividend, extraordinary dividend or our recapitalization, reorganization, merger or consolidation. However,
the warrants will not be adjusted for issuances of ordinary shares at a price below their respective exercise prices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant
agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied
by full payment of the exercise price, by certified or official bank check payable to us, for the number of warrants being exercised.
The warrant holders do not have the rights or privileges of holders of ordinary shares and any voting rights until they exercise
their warrants and receive ordinary shares. After the issuance of ordinary shares upon exercise of the warrants, each holder will
be entitled to one vote for each share held of record on all matters to be voted on by shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Except
as described above, no public warrants will be exercisable for cash and we will not be obligated to issue common shares unless
at the time a holder seeks to exercise such warrant, a prospectus relating to the common shares issuable upon exercise of the
warrants is current and the common shares have been registered or qualified or deemed to be exempt under the securities laws of
the state of residence of the holder of the warrants. Under the terms of the warrant agreement, we have agreed to use our best
efforts to meet these conditions and to maintain a current prospectus relating to the common shares issuable upon exercise of
the warrants until the expiration of the warrants. However, we cannot assure you that we will be able to do so and, if we do not
maintain a current prospectus relating to the common shares issuable upon exercise of the warrants, holders will be unable to
exercise their warrants and we will not be required to settle any such warrant exercise. If the prospectus relating to the common
shares issuable upon the exercise of the warrants is not current or if the common shares is not qualified or exempt from qualification
in the jurisdictions in which the holders of the warrants reside, we will not be required to net cash settle or cash settle the
warrant exercise, the warrants may have no value, the market for the warrants may be limited and the warrants may expire worthless.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrant
holders may elect to be subject to a restriction on the exercise of their warrants such that an electing warrant holder would
not be able to exercise their warrants to the extent that, after giving effect to such exercise, such holder would beneficially
own in excess of 9.8% of the ordinary shares outstanding.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled
to receive a fractional interest in a share, we will, upon exercise, round up or down to the nearest whole number the number of
ordinary shares to be issued to the warrant holder.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Purchase
Option</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
sold EarlyBirdCapital (and/or its designees) an option to purchase up to 157,500 units at $10.00 per unit. The units issuable
upon exercise of this option are identical to units, if the purchase option is exercised, will be purchased pursuant to an exemption
from the registration requirements of the Securities Act and will become tradable only after certain conditions are met or the
resale of the units is registered under the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT>&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
Transfer Agent and Warrant Agent</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
transfer agent for our ordinary shares, Company common shares, and right and warrant agent for our rights warrants is Continental
Stock Transfer &amp; Trust Company. We have agreed to indemnify Continental Stock Transfer &amp; Trust Company in its roles as
transfer agent and warrant agent, its agents and each of its shareholders, directors, officers, and employees against all claims
and losses that may arise out of acts performed or omitted in that capacity, except for any liability due to any gross negligence
or intentional misconduct of the indemnified person or entity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Rule
144</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Rule 144, a person who has beneficially owned restricted Company common shares or warrants for at least six months would be
entitled to sell their securities provided that (i) such person is not deemed to have been one of our affiliates at the time of,
or at any time during the three months preceding, a sale and (ii) we are subject to the Exchange Act periodic reporting requirements
for at least three months before the sale and have filed all required reports under Section 13 or 15(d) of the Exchange Act during
the 12 months (or such shorter period as we were required to file reports) preceding the sale.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Persons
who have beneficially owned restricted Company common shares or warrants for at least six months but who are our affiliates at
the time of, or at any time during the three months preceding, a sale, would be subject to additional restrictions, by which such
person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1%
of the total number of Company common shares then outstanding; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
average weekly reported trading volume of the Company common shares during the four calendar weeks preceding the filing of a notice
on Form 144 with respect to the sale.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
by our affiliates under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability
of current public information about us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
purposes of the six-month holding period requirement of Rule 144, a person who beneficially owns restricted Company common shares
issued pursuant to a cashless exercise of a warrant shall be deemed to have acquired such shares, and the holding period for such
shares shall be deemed to have commenced on the date the warrant was originally issued.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Restrictions
on the Use of Rule 144 by Shell Companies or Former Shell Companies</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rule
144 is not available for the resale of securities initially issued by shell companies (other than business combination related
shell companies) or issuers that have been at any time previously a shell company. However, Rule 144 also includes an important
exception to this prohibition if the following conditions are met:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
issuer of the securities that was formerly a shell company has ceased to be a shell company;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding
12 months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports;
and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">at
least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status
as an entity that is not a shell company (which, in our case, is likely to occur one year after the filing of the definitive proxy
statement/prospectus relating to the Business Combination).</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the date of this prospectus, we had 46,273,846&nbsp;shares of Common Stock outstanding. Of these shares, there are currently
617,560 shares sold in our IPO are freely tradable. All of the 1,509,375 Founder Shares owned by our Sponsor and officer; all
of the 42,860,772 Merger Consideration Shares, all of the 755,873 Backstop Shares, all of the 530,266 Working Capital Shares are
restricted securities under Rule 144, since they were issued in private transactions not involving a public offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the date of this prospectus, there are 3,259,781 warrants of Bison outstanding, consisting of 3,018,750 public warrants originally
sold as part of units in Bison&rsquo;s IPO, 216,031 private warrants that were issued to our Sponsor in a private sale concurrently
with the consummation of Bison&rsquo;s IPO and 25,000 private warrnts issued to our Sponsor in connection with the conversion
of a promissory note for working capital in the amount of $500,000. Each warrant is exercisable for one share of our Company common
shares, in accordance with the terms of the warrant agreement governing the warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Registration
Rights</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to an amended and restated registration rights agreement we entered into on May 15, 2019, &nbsp;the shareholders were granted
registration rights that obligate the Company to register for resale under the Securities Act, (1) all or any portion of the 1,509,375
shares of common stock of Bison issued to certain existing investors (the &ldquo;<B><I>Founder Shares</I></B>&rdquo;), (2) 432,063
private units issued by Bison to certain existing investors in conjunction with the consummation of its initial public offering
(the &ldquo;<B><I>Private Units</I></B>&rdquo;), (3) any private units which may be issued by Bison in payment of working capital
loans made to Bison (the &ldquo;<B><I>Working Capital Units</I></B>&rdquo;, together with Founder Shares, Private Units, the &ldquo;<B><I>Existing
Registrable Securities</I></B>&rdquo;), (4) the Backstop Shares, and (5) the Merger Consideration Share (the &ldquo;<B><I>Newly
Issued Shares</I></B>&rdquo;). The Backstop Shares, Newly issued Shares and the Existing Registrable Securities and any securities
of Bison issued as a dividend or distribution with respect thereto or in exchange therefor are referred as the &ldquo;Registrable
Securities&rdquo;. At any time and from time to time on or after (i) the one month anniversary of the Closing with respect to
the Private Units or Working Capital Units, (ii) three months prior to the release of the Founder Shares under the terms of a
certain escrow agreement; (iii) the Closing Date with respect to the Backstop Shares, or (iv) nine months after the Closing with
respect to the Newly Issued Shares, the holders of a majority of (i) all of the Existing Registrable Securities, (ii) all of the
Backstop Shares, or (iii) all of the Newly Issued Shares, calculated on an as-converted basis, may make a written demand for registration
under the Securities Act of all or part of their Registrable Securities, and other holders of the Registrable Securities will
be entitled to join in such demand registration, provided that the Company shall not be obliged to effect more than two demand
registrations in any one year period or more than an aggregate of three demand registrations. In addition, the holders have certain
&ldquo;<I>piggy-back</I>&rdquo; registration rights on registration statements filed after the consummation of our initial business
combination.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to certain exceptions, if at any time on or after the Business Combination, the Company proposes to file a registration statement
under the Securities Act with respect to an offering of equity securities, under the Registration Rights Agreement, the Company
shall give written notice of such proposed filing to the holders of the Registrable Securities and offer them an opportunity to
register the sale of such number of Registrable Securities as such holders may request in writing, subject to customary cut-backs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, subject to certain exceptions, the holders of a majority of (i) all of the Existing Registrable Securities, (ii) all
of the Backstop Shares, or (iii) all of the Newly Issued Shares, calculated on an as-converted basis, are entitled under the Registration
Rights Agreement to request in writing that the Company register the resale of any or all of such Registrable Securities on Form
S-3 or any similar short-form registration that may be available at such time.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company agrees to use commercially reasonable efforts to effect the registration and sale of such Registrable Securities in accordance
with the registration rights described above as expeditiously as practicable. In addition, the Company agrees to use reasonable
best efforts to cause registration with respect to the Backstop Shares to be declared effective no later than one-hundred and
eighty (180) days following the Business Combination.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Registration Rights Agreement, the Company agreed to indemnify the holders of Registrable Securities and certain persons or
entities related to them, such as their officers, employees, affiliates, directors, partners, members, attorneys and agents from
and against any expenses, losses, judgments, claims, damages or liabilities resulting from any untrue statement or omission of
a material fact in any registration statement or prospectus pursuant to which the sale of such Registrable Securities was registered
under the Securities Act, unless such liability arose from a misstatement or omission by such selling holder. Each selling holder
of Registrable Securities, including Registrable Securities in any registration statement or prospectus, agreed to indemnify the
Company and certain persons or entities related to the Company, such as its officers and directors and underwriters, against all
losses caused by their misstatements or omissions in those documents.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Listing
of Securities</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
shares of Common Stock and warrants are currently listed on Nasdaq under the new symbols &ldquo;XYN&rdquo; and &ldquo;XYNPW,&rdquo;
respectively. The CUSIP numbers for Common Stock and warrants are 98421X102 and 98421X110, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_023"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SHARES
ELIGIBLE FOR FUTURE SALE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Future
sales of substantial amounts of our Common Stock, including shares issued upon exercise of outstanding options and warrants, in
the public market after this Offering could adversely affect market prices prevailing from time to time and could impair our ability
to raise capital through the sale of our equity securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the completion of this Offering, based on the number of shares outstanding as of July 10, 2019, we will have <B>[&#9679;]</B>
shares of Common Stock outstanding. Of these outstanding shares, all of the&#8199;<B>[&#9679;]</B>shares sold in this Offering
will be freely tradable, except that any shares purchased by our affiliates, as that term is defined in Rule 144 under the Securities
Act, may only be sold in compliance with the limitations described below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
remaining outstanding shares will be deemed restricted securities as defined under Rule 144. Restricted securities may be sold
in the public market only if registered or if they qualify for an exemption from registration under Rule 144 or Rule 701 promulgated
under the Securities Act, which rules are summarized below. In addition, all of our shareholders have entered into market standoff
agreements with us or lock-up as further described in &ldquo;&mdash; Lock-Up Agreements&rdquo; below, under which they agreed
not to sell their shares until certain time or performance metrics have been met. Subject to the provisions of Rule 144 or Rule
701, shares are or will be available for sale in the public market as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on
the date of this prospectus, &#8199;<B>[&#9679;]</B> shares of Common Stock (including all shares sold in this Offering) are available
for sale in the public market, except for the shares purchased by affiliates which are subject to the volume and other restrictions
of Rule 144 as well as the lock-up agreement restrictions described below;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&#9679;]
</B>shares will be eligible for sale on the earliest of (x) May 15, 2020, one year anniversary of the consummation of the Business
Combination, and (z) the date on which the closing sale price of our ordinary shares equals or exceeds $12.50 per share (as adjusted
for share splits, share dividends, reorganizations and recapitalizations) for any twenty trading days within any 30- trading day
period commencing after the Business Combination;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&#9679;]
</B>additional shares will become eligible for sale on February 15, 2029, nine months following the consummation of the Business
Combination; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
remainder of the shares will be eligible for sale in the public market from time to time thereafter, subject in some cases to
the volume and other restrictions of Rule 144, as described below.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Lock-Up
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Xynomic stockholders
immediately prior to the Business Combination have agreed to lock up their Merger Consideration Shares until February 15, 2020
(subject to certain exceptions) and our Initial Shareholders have agreed to lock up 50% of the Founder Shares until the earlier
of (a) May 15, 2020, or (b) the date on which the closing price of the Company common shares equals or exceeds $12.50 per share
for any 20 trading days within any 30-trading day period after May 15, 2019 and lock up the remaining 50% of the Founder Shares
until May 15, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Rule
144</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
general, under Rule 144 as currently in effect, a person who is not deemed to have been one of our affiliates for purposes of
the Securities Act at any time during the 90 days preceding a sale and who has beneficially owned the shares proposed to be sold
for at least six months, including the holding period of any prior owner other than our affiliates, is entitled to sell those
shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with
the public information requirements of Rule 144. If such a person has beneficially owned the shares proposed to be sold for at
least one year, including the holding period of any prior owner other than our affiliates, then that person is entitled to sell
those shares without complying with any of the requirements of Rule 144.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
general, under Rule 144, as currently in effect, our affiliates or persons selling shares on behalf of our affiliates are entitled
to sell upon expiration of the lock-up agreements described above, within any three-month period beginning 90 days after the date
of this prospectus, a number of shares that does not exceed the greater of:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1%
of the number of shares then outstanding, which will equal approximately&#8199;<B>[&#9679;]</B> shares immediately after this
offering; or</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
average weekly trading volume of the shares during the four calendar weeks preceding the filing of a notice on Form 144 with respect
to that sale.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale
provisions and notice requirements and to the availability of current public information about us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Rule
701</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rule
701 generally allows a shareholder who purchased ordinary shares pursuant to a written compensatory plan or contract and who is
not deemed to have been an affiliate of our company during the immediately preceding 90 days to sell these shares in reliance
upon Rule 144, but without being required to comply with the public information and holding period requirements of Rule 144. Rule
701 also permits affiliates of our company to sell their Rule 701 shares under Rule 144 without complying with the holding period
requirements of Rule 144.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Registration
Rights</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have granted demand registration rights, rights to participate in offerings that we initiate and Form S-3 registration rights
to certain of our shareholders to sell our ordinary shares. For a further description of these rights, see &ldquo;Description
of Securities &mdash; Registration Rights.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_024"></A>UNDERWRITING</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the terms and conditions of the underwriting agreement with [&#9679;] as the sole representative of the underwriters
(&ldquo;[&#9679;]&rdquo; or the &ldquo;Representative&rdquo;), with respect to the shares being offered. [&#9679;] is the sole book running
manager for the Offering, located at 405 Lexington Avenue, New York, NY 10174. Subject to the terms and conditions of an underwriting
agreement between us and the Representative, we have agreed to sell to each underwriter named below, and each underwriter named
below has severally agreed to purchase&nbsp;from the Participating Stockholders, on a firm commitment basis, the following
respective number of shares of common stock at a public offering price less the underwriting discounts and commissions set forth
on the cover page of this prospectus:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Underwriter</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number
    of Shares</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255); font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 87%; font: 10pt Times New Roman, Times, Serif">[&#9679;]</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriting agreement provides that the obligations of the underwriters to purchase all of the shares of common stock being offered
to the public is subject to specific conditions, including the absence of any material adverse change in our business or in the
financial markets and the receipt of certain legal opinions, certificates and letters from us, our counsel and the independent
auditors. Subject to the terms of the underwriting agreement, the underwriters will purchase all of the shares being offered to
the public, other than those covered by the over-allotment option described below, if any of these shares are purchased. The Participating
Stockholders in this offering are <B>[&#9679;].</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Over-Allotment
Option</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Participating Stockholders and the Company have granted to the underwriters an option, exercisable not later than 45 days after
the effective date of the registration statement, to purchase up to <B>[&#9679;]</B> additional shares of common stock (equivalent
to 15% of the total number of shares of Common Stock sold in this Offering) at the public offering price set forth on the cover
of this prospectus, less the underwriting discounts and commissions. The underwriter may exercise this option only to cover over-allotments
made in connection with the sale of the shares of common stock in this offering. To the extent that the underwriter exercise
this option, we will be obligated, pursuant to the option, to sell these additional
shares of common stock to the underwriter to the extent the option is exercised. If any additional shares of common stock are
purchased, the underwriter will offer the additional shares on the same terms as those on which the other shares are being offered
hereunder.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Commission
and Expenses</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriting discounts and commissions are <B>[&#9679;]</B>% of the public offering price. The Participating Stockholders and
the Company have agreed to pay the underwriters the discounts and commissions set forth below, assuming either no exercise or
full exercise of the underwriters&rsquo; over-allotment option. We have been advised by [&#9679;] that the underwriters propose to
offer the shares to the public at the public offering price set forth on the cover of this prospectus and to dealers at a price
that represents a concession not in excess of $<B>[&#9679;] </B>per share under the public offering price of $<B>[&#9679;] </B>per
share. The underwriters may allow, and these dealers may re-allow, a concession of not more than $<B>[&#9679;]</B>&nbsp;per share
to other dealers. After the offering to the public, the offering price and other selling terms may be changed by the Representative
without changing the Company&rsquo;s proceeds from the underwriters&rsquo; purchase of the shares</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table shows the underwriting discounts and commissions payable to the underwriters by us and the Participating Stockholders
in connection with this offering:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Fee Per<BR>
Share<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total Without<BR>
 Exercise of<BR>
 Over-Allotment</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total With<BR>
 Exercise of<BR>
 Over-Allotment</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 64%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Public offering price</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Discount paid by us</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Discount paid by the Participating Stockholders</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expenses payable by us</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expenses payable by the Participating Stockholders</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proceeds, before expenses, to us</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proceeds, before expenses, to the Participating Stockholders</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fees do not include the Representative&rsquo;s Warrants or expense reimbursement as described below.</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, we and the Participating Stockholders have agreed to pay [&#9679;] for reimbursement of its out-of-pocket expenses it incurs
in connection with this offering to a maximum aggregate expenses allowance of $100,000, including, but not limited to, filing
offering materials with the Financial Industry Regulatory Authority, or FINRA, background checks, &ldquo;road show&rdquo; expenses,
costs of book-building, prospectus tracking and compliance software and the fees and disbursements of its counsel, for which we
have paid a $25,000 advance, which will be returned to us to the extent not offset by actual expenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
estimate that expenses payable by the Participating Stockholders and us in connection with the offering of our shares of Common
Stock, including registration, filing and listing fees, printing fees and legal and accounting expenses, but&nbsp;excluding the
underwriting discounts and commissions and the counsel fees and reimbursement provisions referred to above, will
be approximately $<B>[&#9679;]</B>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Representative&rsquo;s
Warrants</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have also agreed to grant to [&#9679;] (or its permitted assignees) warrants to purchase a number of our shares equal to an aggregate
of <B>[&#9679;]</B>% of the total number of shares of Common Stock sold in this offering (&ldquo;Representative&rsquo;s Warrants&rdquo;).
The Representative&rsquo;s Warrants will have an exercise price equal to 120% of the offering price of the shares of common stock
sold in this offering and may be exercised on a cashless basis. The Representative&rsquo;s Warrants are exercisable commencing
180 days after the effective date of the registration statement related to this offering, and will be exercisable for three years
after the effective date. The Representative&rsquo;s Warrants are not redeemable by us. We have agreed to a one time demand registration
of the shares of common stock underlying the Representative&rsquo;s Warrants for a period of three years from the effective date
of the registration statement related to this offering. The Representative&rsquo;s Warrants also provide for unlimited &ldquo;piggyback&rdquo;
registration rights at our expense with respect to the underlying ordinary shares during the three year period commencing
from the effective date of the registration statement related to this offering. The Representative&rsquo;s Warrants and the shares
of common stock underlying the Representative&rsquo;s Warrants have been deemed compensation by FINRA and are therefore subject
to a 180-day lock-up pursuant to Rule 5110(g)(1) of FINRA. The underwriters (or permitted assignees under the Rule) may not sell,
transfer, assign, pledge or hypothecate the Representative&rsquo;s Warrants or the securities underlying the Representative&rsquo;s
Warrants, nor will they engage in any hedging, short sale, derivative, put or call transaction that would result in the effective
economic disposition of the Representative&rsquo;s Warrants or the underlying securities for a period of 12 months from the effective
date of this offering, except to any FINRA member participating in the offering and their bona fide officers or partners. The
Representative&rsquo;s Warrants will provide for adjustment in the number and price of such Representative&rsquo;s Warrants (and
the shares of common stock underlying such Representative&rsquo;s Warrants) in the event of recapitalization, merger or other
structural transaction to prevent mechanical dilution or in the event of a future financing undertaken by us, as permitted by
FINRA Rule 5110(f)(2)(G).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Indemnification</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have agreed to indemnify the underwriter against certain liabilities, including liabilities under the Securities Act and liabilities
arising from breaches of representations and warranties contained in the underwriting agreement, or to contribute to payments
that the underwriter may be required to make in respect of those liabilities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Lock-up
Agreements</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
and each of our directors, executive officers and affiliates, and certain existing&nbsp;shareholders aggregating at leaset 5.0%
of our outstanding shares have agreed that, subject to certain exceptions, not to offer, issue, sell, contract to sell, encumber,
grant any option for the sale of or otherwise dispose of any shares of our common stock or other securities convertible into or
exercisable or exchangeable for shares of our common stock for a period of 90 days after this offering is completed, without the
prior written consent of [&#9679;]. subject to certain limited exceptions, they will not directly or indirectly, without the prior
written consent of the Representative of the underwriters, (1) offer, sell, agree to offer or sell, solicit offers to purchase,
grant any call option or purchase any put option with respect to, pledge, encumber, assign, borrow or otherwise dispose of or
transfer any shares of common stock, warrant to purchase shares of common stock or any other security of the company or any other
entity that is convertible into, or exercisable or exchangeable for, shares of common stock or any other equity security of the
company owned beneficially or otherwise as of the date of this prospectus, which we refer to as relevant securities, or otherwise
publicly disclose the intention to do so, (2) establish or increase any &ldquo;put equivalent position&rdquo; or liquidate or
decrease any &ldquo;call equivalent position&rdquo; (in each case within the meaning of Section 16 of the Exchange Act) with respect
to any relevant security or otherwise enter into any swap, derivative or other transaction or arrangement that transfers to another,
in whole or in part, any economic consequence of ownership of relevant securities, whether or not such transaction is to be settled
by the delivery of relevant securities, other securities, cash or other consideration, or otherwise publicly disclose the intention
to do so, (3) file or participate in the filing with the SEC of any registration statement or circulate or participate in the
circulation of any preliminary or final prospectus or other disclosure document, in each case with respect to any proposed offering
or sale of relevant securities, or (4) exercise any rights to require registration with the SEC of any proposed offering or sale
of relevant securities. &nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Zhengqi,
one of the Participating Stockholders, has agreed to enter into a lock-up agreement for a period of 135 days following the date
of this prospectus with respect to that portion of its shares of common stock that are registered in the resale prospectus included
in this registration statement but are not sold in this offering, which Lock-Up Agreement may be waived by [&#9679;] to the extent
necessary with respect to any private placements taking place following the closing of this offering and as to which [&#9679;] has
been engaged as a placement agent.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Price
Stabilization, Short Positions and Penalty Bids</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the offering the underwriters may engage in stabilizing transactions, over-allotment transactions, syndicate covering
transactions and penalty bids in accordance with Regulation&nbsp;M under the Exchange Act:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 7%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 89%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stabilizing
    transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 7%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 89%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Over-allotment
    involves sales by the underwriters of shares of common stock in excess of the number of shares of common stock the underwriters
    are obligated to purchase, which creates a syndicate short position. The short position may be either a covered short position
    or a naked short position. In a covered short position, the number of shares of common stock over-allotted by the underwriters
    is not greater than the number of shares of common stock &nbsp;that they may purchase in the over-allotment option. In a naked
    short position, the number of shares of common stock involved is greater than the number of shares of common stock in the
    over-allotment option. [&#9679;] may close out any covered short position by either exercising their over-allotment option and/or
    purchasing shares of common stock in the open market.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 7%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 89%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Syndicate
    covering transactions involve purchases of shares of common stock in the open market after the distribution has been completed
    in order to cover syndicate short positions. In determining the source of shares of common stock to close out the short position,
    [&#9679;] will consider, among other things, the price of shares of common stock available for purchase in the open market as
    compared to the price at which they may purchase shares of common stock through the over-allotment option. If the underwriters
    sell more shares of common stock than could be covered by the over-allotment option, a naked short position, the position
    can only be closed out by buying shares of common stock in the open market. A naked short position is more likely to be created
    if the underwriters are concerned that there could be downward pressure on the price of the shares of common stock in the
    open market after pricing that could adversely affect investors who purchase in the offering.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 7%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 89%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Penalty
    bids permit [&#9679;] to reclaim a selling concession from a syndicate member when the shares of common stock originally sold
    by the syndicate member is purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market
price of our shares of common stock or preventing or retarding a decline in the market price of our securities. As a result, the
price of our shares of common stock may be higher than the price that might otherwise exist in the open market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Neither
we nor the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions
described above may have on the price of our shares of common stock. In addition, neither we nor the underwriters make any representation
that the underwriters will engage in these transactions or that any transaction, if commenced, will not be discontinued without
notice.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Electronic
Distribution</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus in electronic format may be made available on websites or through other online services maintained by [&#9679;] or by its
affiliates. The underwriters may agree to allocate a number of shares to underwriters for sale to their online brokerage account
holders. Internet distributions will be allocated by the representatives of the underwriters to underwriters that may make Internet
distributions on the same basis as other allocations. In connection with the offering, the underwriters or syndicate members may
distribute prospectuses electronically. No forms of electronic prospectus other than prospectuses that are printable as Adobe&reg;
PDF will be used in connection with this offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriters have&nbsp;informed us that they do not expect to confirm sales of shares offered by this prospectus to accounts over
which they exercise discretionary authority.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
than this prospectus in electronic format, the information on [&#9679;]&rsquo;s website and any information contained in any other
websites maintained by it is not part of this prospectus or the registration statement of which this prospectus forms a part,
has not been approved and/or endorsed by us or [&#9679;] in its capacity as an underwriter, and should not be relied upon by investors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Right
of First Refusal</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, we have agreed to grant to [&#9679;], upon the consummation of an offering of at least $15 million in gross proceeds,
for a period of nine (9) months from such closing, the right of first refusal to act as a lead managing underwriter and book runner
or minimally as a co-lead manager and co-book runner and/or co-lead placement agent with at least 80% of the economics for
a two handed deal and 50.0% of the economics for a three handed deal, for any and all future public and private equity, equity-linked
or debt (excluding commercial bank debt) offerings of the Company or any successor to or any subsidiary of the Company, for a
period of twelve (12) months after the commencement of sales of this offering. The Participating Stockholders have also
engaged [&#9679;] to act as a placement agent in connection with potential private placements of shares held by them following the
offering.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT>&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_025"></A>TAXATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following discussion of British Virgin Islands, PRC and United States federal income tax consequences of an investment in our
ordinary shares is based upon laws and relevant interpretations thereof in effect as of the date of this prospectus, all of which
are subject to change. This discussion does not deal with all possible tax consequences relating to an investment in our ordinary
shares, such as the tax consequences under state, local and other tax laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>British
Virgin Islands Taxation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company and all dividends, interest, rents, royalties, compensation and other amounts paid by the Company to persons who are not
resident in the BVI and any capital gains realized with respect to any shares, debt obligations, or other securities of the Company
by persons who are not resident in the BVI are exempt from all provisions of the Income Tax Ordinance in the BVI.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable by persons who are not resident in the
BVI with respect to any shares, debt obligation or other securities of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
instruments relating to transfers of property to or by the Company and all instruments relating to transactions in respect of
the shares, debt obligations or other securities of the Company and all instruments relating to other transactions relating to
the business of the Company are exempt from payment of stamp duty in the BVI. This assumes that the Company does not hold an interest
in real estate in the BVI.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are currently no withholding taxes or exchange control regulations in the BVI applicable to the Company or its members.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>People&rsquo;s
Republic of China Taxation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the EIT Law, an enterprise established outside the PRC with &ldquo;de facto management bodies&rdquo; within the PRC is considered
a &ldquo;resident enterprise&rdquo; for PRC enterprise income tax purposes and is generally subject to a uniform 25% enterprise
income tax rate on its worldwide income. Under the implementation rules to the EIT Law, a &ldquo;de facto management body&rdquo;
is defined as a body that has material and substantial management and control over the manufacturing and business operations,
personnel and human resources, finances and properties of an enterprise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
PRC subsidiary and PRC consolidated VIE are companies incorporated under PRC law and, as such, are subject to PRC enterprise income
tax on their taxable income in accordance with the relevant PRC income tax laws. Pursuant to the EIT Law, which became effective
on January 1, 2008 and was amended on February 24, 2017, a uniform 25% enterprise income tax rate is generally applicable to both
foreign-invested enterprises and domestic enterprises, except where a special preferential rate applies. The enterprise income
tax of a PRC resident enterprise is calculated based on the entity&rsquo;s global income as determined under PRC tax laws and
accounting standards. We are subject to VAT at a rate of 6% on the services we provide, less any deductible VAT we have already
paid or borne. We are also subject to surcharges on VAT payments in accordance with PRC law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the Circular 82 issued by the SAT in April 2009 specifies that certain offshore incorporated enterprises controlled
by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or resident
in the PRC: senior management personnel and departments that are responsible for daily production, operation and management; financial
and personnel decision making bodies; key properties, accounting books, company seals, minutes of board meetings and shareholders&rsquo;
meetings; and half or more of the senior management or directors having voting rights. Further to Circular 82, the SAT issued
the Bulletin No. 45, which took effect in September 2011, to provide more guidance on the implementation of Circular 82. Bulletin
No. 45 provides for procedures and administration details of determination on resident status and administration on post-determination
matters. Borqs Technologies, Inc. is a company incorporated outside the PRC. As a holding company, its key assets are its ownership
interests in its subsidiaries, and its key assets are located, and its records (including the resolutions of its board of directors
and the resolutions of its shareholders) are maintained, outside the PRC. As such, we do not believe that Borqs Technologies,
Inc. meet all of the conditions above or are PRC resident enterprises for PRC tax purposes. For the same reasons, we believe our
other entities outside of China are not PRC resident enterprises either. However, the tax resident status of an enterprise is
subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term &ldquo;de
facto management body.&rdquo; There can be no assurance that the PRC government will ultimately take a view that is consistent
with us. If the PRC tax authorities determine that our British Virgin Islands holding company is a PRC resident enterprise for
PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. One example is that a 10% withholding
tax would be imposed on dividends we pay to our non-PRC enterprise shareholders and with respect to gains derived by our non-PRC
enterprise shareholders from transferring our shares and potentially a 20% of withholding tax would be imposed on dividends we
pay to our non-PRC individual shareholders and with respect to gains derived by our non-PRC individual shareholders from transferring
our shares. See &ldquo;Risk Factors&mdash;Risk Related to Doing Business in China&mdash;Under the PRC Enterprise Income Tax Law,
we may be classified as a PRC &ldquo;resident enterprise&rdquo; for PRC enterprise income tax purposes. Such classification would
likely result in unfavorable tax consequences to us and our non-PRC shareholders and has a material adverse effect on our results
of operations and the value of your investment.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a British Virgin Islands holding company, our Hong Kong subsidiary may receive dividends from our PRC subsidiaries. The EIT Law
and its implementing rules provide that dividends paid by a PRC entity to a non-resident enterprise for income tax purposes is
subject to PRC withholding tax at a rate of 10%, subject to reduction by an applicable tax treaty with China. Pursuant to the
Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Prevention
of Fiscal Evasion with respect to Taxes on Income or the Hong Kong Tax Treaty, which became effective on August 21, 2006, a company
incorporated in Hong Kong, such as Borqs Hong Kong, will be subject to withholding income tax at a rate of 5% on dividends it
receives from our PRC subsidiary if it holds a 25.0% or more interest in that particular PRC subsidiary at all times within the
12-month period immediately preceding the distribution of dividends and be a &ldquo;beneficial owner&rdquo; of the dividends.
In February 2018, the SAT issued the <I>Announcement on Issues Relating to Beneficial Owners under Tax Treaties</I>, or the SAT
Announcement 9, pursuant to which, applicants who intend to prove their status of the &ldquo;beneficial owner&rdquo; shall submit
the relevant documents to the relevant tax bureau according to the <I>Announcement on Issuing the Measures for the Administration
of Non-Resident Taxpayers&rsquo; Enjoyment of the Treatment under Tax Agreements</I> and the SAT Announcement 9. &ldquo;Beneficial
Owners&rdquo; are residents who have ownership and the right to dispose of the income or the rights and properties giving rise
to the income. These rules also set forth certain adverse factors against the recognition of a &ldquo;Beneficial Owner&rdquo;,
such as not carrying out substantive business activities. Whether a non-resident enterprise may obtain tax benefits under the
relevant tax treaty will be subject to approval of the relevant PRC tax authority and will be determined by the PRC tax authority
on a case-by-case basis. SAT Announcement 9 further provides that a comprehensive analysis should be made when determining the
beneficial owner status based on various factors that supported by various types of documents including the articles of association,
financial statements, records of cash movements, board meeting minutes, board resolutions, staffing and materials, relevant expenditures,
functions and risk assumption as well as relevant contracts and other information. In August 2015, the SAT promulgated the Administrative
Measures for Non-Resident Taxpayers to Enjoy Treatments under Tax Treaties, or SAT Circular 60, which became effective on November
1, 2015. SAT Circular 60 provides that non-resident enterprises are not required to obtain pre-approval from the relevant tax
authority in order to enjoy the reduced withholding tax rate. Instead, non-resident enterprises may, if they determine by self-assessment
that the prescribed criteria to enjoy the tax treaty benefits are met, directly apply for the reduced withholding tax rate, and
file necessary forms and supporting documents when performing tax filings, which will be subject to post-filing examinations by
the relevant tax authorities. As a result, although our PRC subsidiary, Borqs Beijing, is currently wholly owned by Borqs Hong
Kong, we cannot assure you that we would be entitled to the tax treaty benefits and enjoy the favorable 5.0% rate applicable under
the Hong Kong Tax Treaty on dividends. If Borqs Hong Kong cannot be recognized as the beneficial owner of the dividends to be
paid by our PRC subsidiaries to us, such dividends will be subject to a normal withholding tax of 10% as provided by the EIT Law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 3, 2015, the SAT issued a Public Notice Regarding Certain Enterprise Income Tax Matters on Indirect Transfer of Properties
by Non-Tax Resident Enterprises, or Public Notice 7, where a non-resident enterprise transfers taxable assets, through the offshore
transfer of a foreign intermediate holding company, the non-resident enterprise, being the transferor, maybe subject to PRC enterprise
income tax, if the indirect transfer is considered to be an arrangement which does not have a reasonable commercial purpose to
circumvent enterprise income tax payment obligations. In addition, Public Notice 7 further provides certain criteria on how to
assess reasonable commercial purposes and introduces safe harbor scenarios applicable to internal group restructurings. However,
it also brings challenges to both the foreign transferor and transferee of the indirect transfer as they have to make self-assessment
on whether the transaction should be subject to PRC tax and to file or withhold the PRC tax accordingly. Although it appears that
Public Notice 7 was not intended to apply to share transfers of publicly traded companies if the purchase of the shares and the
sale of the shares both take place in open-market transactions, there is uncertainty as to the application of Public Notice 7.
As a result, we and our non-resident investors may be at risk of being required to file a return and being taxed under Public
Notice 7, and we may be required to expend valuable resources to comply with Public Notice 7 or to establish that we should not
be taxed under Public Notice 7.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 17, 2017, the SAT issued the Announcement on Issues Relating to Withholding at Source of Income Tax of Non-Resident Enterprises,
or Announcement 37, which repealed certain provisions of Public Notice 7. Pursuant to Announcement 37, the income from a property
transfer, as stipulated in the second item under Article 19 of the EIT Law, shall include the income derived from transferring
equity investment assets such as stock equity. The balance of deducting the equity&rsquo;s net value from the total income from
the equity transfer shall be taxable income from the equity transfer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>U.S.
Federal Income Taxation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>General</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following are the material U.S. federal income tax consequences of the acquisition, ownership and disposition of the ordinary
shares and warrants covered by this prospectus. As used in this discussion, references to &ldquo;we,&rdquo; &ldquo;us&rdquo; or
&ldquo;our&rdquo; refer to Borqs Technologies, Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
discussion below of the U.S. federal income tax consequences to &ldquo;U.S. Holders&rdquo; will apply to a beneficial owner of
the ordinary shares and warrants that is for U.S. federal income tax purposes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
individual citizen or resident of the United States;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
corporation (or other entity treated as a corporation) that is created or organized (or treated as created or organized) in or
under the laws of the United States, any state thereof or the District of Columbia;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
estate whose income is includible in gross income for U.S. federal income tax purposes regardless of its source; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
trust if (i) a U.S. court can exercise primary supervision over the trust&rsquo;s administration and one or more U.S. persons
are authorized to control all substantial decisions of the trust, or (ii) it has a valid election in effect under applicable U.S.
Treasury regulations to be treated as a U.S. person.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
beneficial owner of the ordinary shares and warrants that is described above is referred to herein as a &ldquo;U.S. Holder.&rdquo;
If a beneficial owner of the ordinary shares and warrants is not described as a U.S. Holder and is not an entity treated as a
partnership or other pass-through entity for U.S. federal income tax purposes, such owner will be considered a &ldquo;Non-U.S.
Holder.&rdquo; The material U.S. federal income tax consequences applicable specifically to Non-U.S. Holders are described below
under the heading &ldquo;Non-U.S. Holders.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
discussion is based on the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), its legislative history, Treasury
regulations promulgated thereunder, published rulings and court decisions, all as currently in effect. These authorities are subject
to change or differing interpretations, possibly on a retroactive basis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
discussion does not address all aspects of U.S. federal income taxation that may be relevant to any particular holder based on
such holder&rsquo;s individual circumstances. In particular, this discussion considers only holders that purchase ordinary shares
and warrants pursuant to this offering and own and hold the ordinary shares and warrants as capital assets within the meaning
of Section 1221 of the Code, and does not address the potential application of the alternative minimum tax or the U.S. federal
income tax consequences to holders that are subject to special rules, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">financial
institutions or financial services entities;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">broker-dealers;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons
that are subject to the mark-to-market accounting rules under Section 475 of the Code;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">tax-exempt
entities;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">governments
or agencies or instrumentalities thereof;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">insurance
companies;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulated
investment companies;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">real
estate investment trusts;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">certain
expatriates or former long term residents of the United States;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons
that actually or constructively own 5% or more of our voting shares (including as a result of ownership of the ordinary shares);</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons
that acquired the ordinary shares and warrants pursuant to an exercise of employee options, in connection with employee incentive
plans or otherwise as compensation;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons
    that hold the ordinary shares and warrants as part of a straddle, constructive sale, hedging, conversion or other integrated
    transaction; </FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons
    whose functional currency is not the U.S. dollar;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">passive
foreign investment companies; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">controlled
foreign corporations.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
discussion does not address any aspect of U.S. federal non-income tax laws, such as gift or estate tax laws, or state, local or
non-U.S. tax laws or, except as discussed herein, any tax reporting obligations applicable to a holder of the ordinary shares
and warrants. Additionally, this discussion does not consider the tax treatment of partnerships or other pass-through entities
or persons who hold the ordinary shares and warrants through such entities. If a partnership (or other entity classified as a
partnership for U.S. federal income tax purposes) is the beneficial owner of the ordinary shares and warrants, the U.S. federal
income tax treatment of a partner in the partnership generally will depend on the status of the partner and the activities of
the partnership. This discussion also assumes that any distribution made (or deemed made) to a holder in respect of the ordinary
shares and warrants and any consideration received (or deemed received) by a holder in connection with the sale or other disposition
of the ordinary shares and warrants will be in U.S. dollars.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have not sought, and will not seek, a ruling from the Internal Revenue Service, (the &ldquo;IRS&rdquo;), or an opinion of counsel
as to any U.S. federal income tax consequence described herein. The IRS may disagree with the description herein, and its determination
may be upheld by a court. Moreover, there can be no assurance that future legislation, regulations, administrative rulings or
court decisions will not adversely affect the accuracy of the statements in this discussion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EACH
PROSPECTIVE INVESTOR IN OUR ORDINARY SHARES AND WARRANTS IS URGED TO CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE PARTICULAR
TAX CONSEQUENCES TO SUCH INVESTOR OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR ORDINARY SHARES AND WARRANTS, INCLUDING
THE APPLICABILITY AND EFFECT OF ANY STATE, LOCAL, AND NON-U.S. TAX LAWS, AS WELL AS U.S. FEDERAL TAX LAWS AND ANY APPLICABLE TAX
TREATIES.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Allocation
of Purchase Price between Ordinary Shares and Warrants</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
U.S. federal income tax purposes, each investor must allocate the purchase price paid by such investor pursuant to this offering
between the ordinary shares and the warrants acquired by such investor based on the relative fair market values of each at the
time of issuance. For this purpose, the Company has made no determination of the relative fair market values to be assigned to
the ordinary shares and the warrants, and thus each investor must make his or her own determination of such relative fair market
values. Because there are no authorities that directly address the allocation of purchase price upon the issuance of ordinary
shares together with warrants, no assurance can be given that the IRS or the courts will not challenge a holder&rsquo;s allocation
of purchase price as described herein. Accordingly, each investor is urged to consult its own tax advisors regarding the tax consequences
of an investment pursuant to this Offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>U.S.
Holders</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Taxation
of Cash Distributions Paid on Ordinary Shares</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the passive foreign investment company (&ldquo;PFIC&rdquo;) rules discussed below, a U.S. Holder generally will be required
to include in gross income as ordinary income the amount of any cash dividend paid on the ordinary shares. A cash distribution
on the ordinary shares generally will be treated as a dividend for U.S. federal income tax purposes to the extent the distribution
is paid out of our current or accumulated earnings and profits (as determined for U.S. federal income tax purposes). Such dividend
generally will not be eligible for the dividends-received deduction generally allowed to U.S. corporations in respect of dividends
received from other U.S. corporations. The portion of such cash distribution, if any, in excess of such earnings and profits will
be applied against and reduce (but not below zero) the U.S. Holder&rsquo;s adjusted tax basis in the ordinary shares. Any remaining
excess generally will be treated as gain from the sale or other taxable disposition of such ordinary shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">With
respect to non-corporate U.S. Holders, any such cash dividends may be subject to U.S. federal income tax at the lower applicable
regular long term capital gains tax rate (see &ldquo;&mdash;Taxation on the Disposition of Ordinary Shares and Warrants&rdquo;
below) provided that (a) the ordinary shares are readily tradable on an established securities market in the United States or,
in the event we are deemed to be a PRC &ldquo;resident enterprise&rdquo; under the EIT Law, we are eligible for the benefits of
the Agreement between the Government of the United States of America and the Government of the People&rsquo;s Republic of China
for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income (the &ldquo;U.S.-PRC Tax
Treaty&rdquo;), (b) we are not a PFIC, as discussed below, for either the taxable year in which the dividend was paid or the preceding
taxable year, and (c) certain holding period requirements are met. Therefore, if the ordinary shares are not readily tradable
on an established securities market in the United States, and we are not eligible for the benefits of the U.S. &ndash; PRC Tax
Treaty, then cash dividends paid by us to non-corporate U.S. Holders will not be subject to U.S. federal income tax at the lower
regular long term capital gains tax rate. Under published IRS authority, ordinary shares are considered for purposes of clause
(a) above to be readily tradable on an established securities market in the United States only if they are listed on certain exchanges,
which presently include Nasdaq. There can be no assurance that the ordinary shares will continue to be listed and traded on Nasdaq
in future periods subsequent to this offering. U.S. Holders should consult their own tax advisors regarding the availability of
the lower rate for any cash dividends paid with respect to the ordinary shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
a PRC income tax applies to any cash dividends paid to a U.S. Holder on the ordinary shares, such tax may be treated as a foreign
tax eligible for a deduction from such holder&rsquo;s U.S. federal taxable income or a foreign tax credit against such holder&rsquo;s
U.S. federal income tax liability (subject to applicable conditions and limitations). In addition, if such PRC tax applies to
any such dividends, such U.S. Holder may be entitled to certain benefits under the U.S.-PRC Tax Treaty, if such holder is considered
a resident of the United States for purposes of, and otherwise meets the requirements of, the U.S.-PRC Tax Treaty. U.S. Holders
should consult their own tax advisors regarding the deduction or credit for any such PRC tax and their eligibility for the benefits
of the U.S.-PRC Tax Treaty.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Taxation
on the Disposition of Ordinary Shares and Warrants</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
a sale or other taxable disposition of the ordinary shares or warrants, and subject to the PFIC rules discussed below, a U.S.
Holder generally will recognize capital gain or loss in an amount equal to the difference between the amount realized and the
U.S. Holder&rsquo;s adjusted tax basis in such ordinary shares or warrants. U.S. Holder&rsquo;s adjusted tax basis in its ordinary
shares or warrants generally will equal the U.S. Holder&rsquo;s acquisition cost (that is, the portion of the purchase price allocated
to an ordinary share or warrant, as described above under &ldquo;&mdash; Allocation of Purchase Price between Ordinary Shares
and Warrants&rdquo;) reduced by any prior distributions treated as a return of capital. See &ldquo;&mdash; Acquisition of Ordinary
Shares Pursuant to a Warrant&rdquo; below for a discussion regarding a U.S. Holder&rsquo;s basis in an ordinary share acquired
pursuant to a warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
regular U.S. federal income tax rate on capital gains recognized by U.S. Holders generally is the same as the regular U.S. federal
income tax rate on ordinary income, except that long term capital gains recognized by non-corporate U.S. Holders generally are
subject to U.S. federal income tax at a maximum regular rate of 20%. Capital gain or loss will constitute long term capital gain
or loss if the U.S. Holder&rsquo;s holding period for the ordinary shares or warrants exceeds one year. The deductibility of capital
losses is subject to various limitations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
a PRC income tax applies to any gain from the disposition of the ordinary shares or warrants by a U.S. Holder, such tax may be
treated as a foreign tax eligible for a deduction from such holder&rsquo;s U.S. federal taxable income or a foreign tax credit
against such holder&rsquo;s U.S. federal income tax liability (subject to applicable conditions and limitations). In addition,
if such PRC tax applies to any such gain, such U.S. Holder may be entitled to certain benefits under the U.S.-PRC Tax Treaty,
if such holder is considered a resident of the United States for purposes of, and otherwise meets the requirements of, the U.S.-PRC
Tax Treaty. U.S. Holders should consult their own tax advisors regarding the deduction or credit for any such PRC tax and their
eligibility for the benefits of the U.S.-PRC Tax Treaty.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Additional
Taxes </I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S.
Holders that are individuals, estates or trusts and whose income exceeds certain thresholds generally will be subject to a 3.8%
Medicare contribution tax on unearned income, including, without limitation, dividends on, and gains from the sale or other taxable
disposition of, the ordinary shares or warrants, subject to certain limitations and exceptions. Under applicable regulations,
in the absence of a special election, such unearned income generally would not include income inclusions under the qualified electing
fund (&ldquo;QEF&rdquo;), rules discussed below under &ldquo;Passive Foreign Investment Company Rules,&rdquo; but would include
distributions of earnings and profits from a QEF. U.S. Holders should consult their own tax advisors regarding the effect, if
any, of such tax on their ownership and disposition of the ordinary shares and warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Acquisition
of Ordinary Shares Pursuant to a Warrant</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the PFIC rules discussed below, a U.S. Holder generally will not recognize gain or loss upon the exercise of a warrant for
cash. An ordinary share acquired pursuant to the exercise of a warrant for cash generally will have a tax basis equal to the U.S.
Holder&rsquo;s tax basis in the warrant, increased by the amount paid to exercise the warrant. It is unclear whether a U.S. Holder&rsquo;s
holding period for the ordinary share will commence on the date of exercise of the warrant or the day following the date of exercise
of the warrant; in either case, the holding period will not include the period during which the U.S. Holder held the warrant.
If a warrant is allowed to lapse unexercised, a U.S. Holder generally will recognize a capital loss equal to such holder&rsquo;s
tax basis in the warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
tax consequences of a cashless exercise of a warrant are not clear under current tax law. A cashless exercise may be tax-free,
either because the exercise is not a realization event or because the exercise is treated as a recapitalization for U.S. federal
income tax purposes. In either tax-free situation, a U.S. Holder&rsquo;s tax basis in the ordinary shares received generally would
equal the U.S. Holder&rsquo;s tax basis in the warrants. If the cashless exercise was not a realization event, it is unclear whether
a U.S. Holder&rsquo;s holding period for the ordinary shares would be treated as commencing on the date of exercise of the warrant
or the day following the date of exercise of the warrant. If the cashless exercise were treated as a recapitalization, the holding
period of the ordinary shares would include the holding period of the warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT>&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">It
is also possible that a cashless exercise could be treated as a taxable exchange in which gain or loss would be recognized. In
such event, a U.S. Holder could be deemed to have surrendered warrants with an aggregate fair market equal to the exercise price
for the total number of warrants to be exercised. The U.S. Holder would recognize capital gain or loss in an amount equal to the
difference between the fair market value of the warrants deemed surrendered and the U.S. Holder&rsquo;s tax basis in such warrants.
In this case, a U.S. Holder&rsquo;s tax basis in the ordinary shares received would equal the sum of the U.S. Holder&rsquo;s initial
investment in the warrants exercised (i.e., the portion of the U.S. Holder&rsquo;s purchase price allocated to the warrant, as
described above under &ldquo;&mdash; Allocation of Purchase Price between Ordinary Shares and Warrants&rdquo;) and the exercise
price of such warrants. It is unclear whether a U.S. Holder&rsquo;s holding period for the ordinary shares would commence on the
date of exercise of the warrant or the day following the date of exercise of the warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Due
to the absence of authority on the U.S. federal income tax treatment of a cashless exercise, there can be no assurance which,
if any, of the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law.
Accordingly, U.S. Holders should consult their tax advisors regarding the tax consequences of a cashless exercise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Passive
Foreign Investment Company Rules</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
foreign (i.e., non-U.S.) corporation will be a PFIC if either (a) at least 75% of its gross income in a taxable year of the foreign
corporation, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25%
of the shares by value, is passive income, or (b) at least 50% of its assets in a taxable year of the foreign corporation, ordinarily
determined based on fair market value and averaged quarterly over the year, including its pro rata share of the assets of any
corporation in which it is considered to own at least 25% of the shares by value, are held for the production of, or produce,
passive income. Passive income generally includes dividends, interest, rents and royalties (other than certain rents or royalties
derived from the active conduct of a trade or business), and gains from the disposition of passive assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder
of the ordinary shares or warrants, and, in the case of our ordinary shares, the U.S. Holder did not make a timely QEF election
for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) the ordinary shares, a QEF election
along with a purging election, or a mark-to-market election, each as described below, such holder generally will be subject to
special rules for regular U.S. federal income tax purposes with respect to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
gain recognized by the U.S. Holder on the sale or other disposition of its ordinary shares or warrants; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
&ldquo;excess distribution&rdquo; made to the U.S. Holder (generally, any distributions to such U.S. Holder during a taxable year
of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder in respect of the
ordinary shares or warrants during the three preceding taxable years of such U.S. Holder or, if shorter, such U.S. Holder&rsquo;s
holding period for the ordinary shares or warrants).</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
these rules,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
U.S. Holder&rsquo;s gain or excess distribution will be allocated ratably over the U.S. Holder&rsquo;s holding period for the
ordinary shares and warrants;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
amount allocated to the U.S. Holder&rsquo;s taxable year in which the U.S. Holder recognized the gain or received the excess distribution
or to the period in the U.S. Holder&rsquo;s holding period before the first day of our first taxable year in which we qualified
as a PFIC will be taxed as ordinary income;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
amount allocated to other taxable years (or portions thereof) of the U.S. Holder and included in its holding period will be taxed
at the highest tax rate in effect for that year and applicable to the U.S. Holder; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such other
taxable year of the U.S. Holder.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have not made a determination as to whether we would be classified as a &ldquo;passive foreign investment company,&rdquo; or PFIC,
for our preceding taxable year nor can we assure you that we will not be a PFIC for our current taxable year or any future taxable
year. Depending on the amount of cash or cash equivalents we currently hold and the amount of cash we raise in this offering,
which are generally treated as passive assets, and because the calculation of the value of our assets may be based in part on
the value of our ordinary shares, which is likely to fluctuate, we may be a PFIC for any taxable year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
general, if we are determined to be a PFIC, a U.S. Holder may avoid the PFIC tax consequences described above with respect to
the ordinary shares (but likely not our warrants) by making a timely QEF election (or a QEF election along with a purging election).
Pursuant to the QEF election, a U.S. Holder will be required to include in income its pro rata share of our net capital gains
(as long term capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not
distributed, in the taxable year of the U.S. Holder in which or with which our taxable year ends if we are treated as a PFIC for
that taxable year. A U.S. Holder may make a separate election to defer the payment of taxes on undistributed income inclusions
under the QEF rules, but if deferred, any such taxes will be subject to an interest charge.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
U.S. Holder may not make a QEF election with respect to its warrants to acquire our ordinary shares. As a result, if a U.S. Holder
sells or otherwise disposes of such warrants (other than upon exercise of such warrants), any gain recognized generally will be
subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above, if we were
a PFIC at any time during the period the U.S. Holder held the warrants. If a U.S. Holder that exercises such warrants properly
makes a QEF election with respect to the newly acquired ordinary shares (or has previously made a QEF election with respect to
our ordinary shares), the QEF election will apply to the newly acquired ordinary shares, but the adverse tax consequences relating
to PFIC shares, adjusted to take into account the current income inclusions resulting from the QEF election, will continue to
apply with respect to such newly acquired ordinary shares (which generally will be deemed to have a holding period for purposes
of the PFIC rules that includes the period the U.S. Holder held the warrants), unless the U.S. Holder makes a purging election.
The purging election creates a deemed sale of such shares at their fair market value. The gain recognized by the purging election
will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above.
As a result of the purging election, the U.S. Holder will have a new basis and holding period in the ordinary shares acquired
upon the exercise of the warrants for purposes of the PFIC rules.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
QEF election is made on a shareholder-by-shareholder basis and, once made, can be revoked only with the consent of the IRS. A
QEF election may not be made with respect to our warrants. A U.S. Holder generally makes a QEF election by attaching a completed
IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), including
the information provided in a PFIC annual information statement, to a timely filed U.S. federal income tax return for the taxable
year to which the election relates. Retroactive QEF elections generally may be made only by filing a protective statement with
such return and if certain other conditions are met or with the consent of the IRS.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to comply with the requirements of a QEF election, a U.S. Holder must receive certain information from us. Upon request
from a U.S. Holder, we will endeavor to provide to the U.S. Holder no later than 90 days after the request such information as
the IRS may require, including a PFIC annual information statement, in order to enable the U.S. Holder to make and maintain a
QEF election. However, there is no assurance that we will have timely knowledge of our status as a PFIC in the future or of the
required information to be provided.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
a U.S. Holder has made a QEF election with respect to the ordinary shares, and the special tax and interest charge rules do not
apply to such ordinary shares (because of a timely QEF election for our first taxable year as a PFIC in which the U.S. Holder
holds (or is deemed to hold) such ordinary shares or a QEF election, along with a purge of the PFIC taint pursuant to a purging
election, as described below), any gain recognized on the sale or other taxable disposition of such ordinary shares generally
will be taxable as capital gain and no interest charge will be imposed. As discussed above, for regular U.S. federal income tax
purposes, U.S. Holders of a QEF generally are currently taxed on their pro rata shares of the QEF&rsquo;s earnings and profits,
whether or not distributed. In such case, a subsequent distribution of such earnings and profits that were previously included
in income generally should not be taxable as a dividend to such U.S. Holders. The adjusted tax basis of a U.S. Holder&rsquo;s
ordinary shares in a QEF will be increased by amounts that are included in income, and decreased by amounts distributed but not
taxed as dividends, under the above rules. Similar basis adjustments apply to property if by reason of holding such property the
U.S. Holder is treated under the applicable attribution rules as owning ordinary shares in a QEF.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
a determination as to our PFIC status will be made annually, an initial determination that we are a PFIC generally will apply
for subsequent years to a U.S. Holder who held the ordinary shares or warrants while we were a PFIC, whether or not we meet the
test for PFIC status in those subsequent years. A U.S. Holder who makes the QEF election discussed above for our first taxable
year as a PFIC in which the U.S. Holder holds (or is deemed to hold) the ordinary shares, however, will not be subject to the
PFIC tax and interest charge rules discussed above with respect to such ordinary shares. In addition, such U.S. Holder will not
be subject to the QEF inclusion regime with respect to such ordinary shares for any of our taxable years that end within or with
a taxable year of the U.S. Holder and in which we are not a PFIC. On the other hand, if the QEF election is not effective for
each of our taxable years in which we are a PFIC and during which the U.S. Holder holds (or is deemed to hold) the ordinary shares,
the PFIC rules discussed above will continue to apply to such ordinary shares unless the holder files on a timely filed U.S. federal
income tax return (including extensions) a QEF election and a &ldquo;purging election&rdquo; to recognize under the rules of Section
1291 of the Code any gain that it would otherwise recognize if the U.S. Holder sold the ordinary shares for their fair market
value on the &ldquo;qualification&rdquo; date. The qualification date is the first day of our tax year in which we qualify as
a QEF with respect to such U.S. Holder. The purging election can only be made if such U.S. Holder held the ordinary shares on
the qualification date. A purging election generally creates a deemed sale of such ordinary shares at their fair market value.
The gain recognized by the purging election generally will be subject to the special tax and interest charge rules treating the
gain as an excess distribution, as described above. As a result of the purging election, the U.S. Holder generally will increase
the adjusted tax basis in its ordinary shares by the amount of gain recognized and will also have a new holding period in its
ordinary shares for purposes of the PFIC rules.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alternatively,
if a U.S. Holder, at the close of its taxable year, owns ordinary shares in a PFIC that are treated as marketable stock, the U.S.
Holder may make a mark-to-market election with respect to such ordinary shares for such taxable year. If the U.S. Holder makes
a valid mark-to-market election for the first taxable year of the U.S. Holder in which the U.S. Holder holds (or is deemed to
hold) the ordinary shares and for which we are determined to be a PFIC, such holder generally will not be subject to the PFIC
rules described above with respect to its ordinary shares as long as such ordinary shares continue to be treated as marketable
stock. Instead, in general, the U.S. Holder will include as ordinary income each year that we are treated as a PFIC the excess,
if any, of the fair market value of its ordinary shares at the end of its taxable year over the adjusted tax basis in its ordinary
shares. The U.S. Holder also will be allowed to take an ordinary loss in respect of the excess, if any, of the adjusted tax basis
of its ordinary shares over the fair market value of its ordinary shares at the end of its taxable year (but only to the extent
of the net amount of previously included income as a result of the mark-to-market election). The U.S. Holder&rsquo;s adjusted
tax basis in its ordinary shares will be adjusted to reflect any such income or loss amounts, and any further gain recognized
on a sale or other taxable disposition of the ordinary shares in a taxable year in which we are treated as a PFIC will be treated
as ordinary income. Special tax rules may also apply if a U.S. Holder makes a mark-to-market election for a taxable year after
the first taxable year in which the U.S. Holder holds (or is deemed to hold) the ordinary shares and for which we are treated
as a PFIC. Currently, a mark-to-market election likely may not be made with respect to our warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
mark-to-market election is available only for stock that is regularly traded on a national securities exchange that is registered
with the Securities and Exchange Commission, including Nasdaq, or on a foreign exchange or market that the IRS determines has
rules sufficient to ensure that the market price represents a legitimate and sound fair market value. There can be no assurance
that the ordinary shares will continue to be listed and traded on Nasdaq in future periods subsequent to this offering. U.S. Holders
should consult their own tax advisors regarding the availability and tax consequences of a mark-to-market election with respect
to the ordinary shares under their particular circumstances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we are a PFIC and, at any time, have a foreign subsidiary that is classified as a PFIC, a U.S. Holder of the ordinary shares generally
should be deemed to own a portion of the shares of such lower-tier PFIC, and generally could incur liability for the deferred
tax and interest charge described above if we receive a distribution from, or dispose of all or part of our interest in, or the
U.S. Holder were otherwise deemed to have disposed of an interest in, the lower-tier PFIC. Upon request, we will endeavor to cause
any lower-tier PFIC to provide to a U.S. Holder no later than 90 days after the request the information that may be required to
make or maintain a QEF election with respect to the lower-tier PFIC. However, there is no assurance that we will have timely knowledge
of the status of any such lower-tier PFIC or that we will be able to cause the lower-tier PFIC to provide the required information.
A mark-to-market election generally would not be available with respect to such a lower-tier PFIC. U.S. Holders are urged to consult
their own tax advisors regarding the tax issues raised by lower-tier PFICs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
U.S. Holder that owns (or is deemed to own) ordinary shares in a PFIC during any taxable year of the U.S. Holder may have to file
an IRS Form 8621 (whether or not a QEF election or mark-to-market election is or has been made) with such U.S. Holder&rsquo;s
U.S. federal income tax return and provide such other information as may be required by the U.S. Treasury Department.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
rules dealing with PFICs and with the QEF and mark-to-market elections are very complex and are affected by various factors in
addition to those described above. Accordingly, U.S. Holders of the ordinary shares and warrants should consult their own tax
advisors concerning the application of the PFIC rules to the ordinary shares and warrants under their particular circumstances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Non-U.S.
Holders</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
dividends paid or deemed paid to a Non-U.S. Holder with respect to the ordinary shares generally will not be subject to U.S. federal
income tax unless such dividends are effectively connected with the Non-U.S. Holder&rsquo;s conduct of a trade or business within
the United States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed
base that such holder maintains or maintained in the United States).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, a Non-U.S. Holder generally will not be subject to U.S. federal income tax on any gain attributable to a sale or other
taxable disposition of the ordinary shares and warrants unless such gain is effectively connected with its conduct of a trade
or business in the United States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment
or fixed base that such holder maintains or maintained in the United States) or the Non-U.S. Holder is an individual who is present
in the United States for 183 days or more in the taxable year of such sale or other disposition and certain other conditions are
met (in which case, such gain from U.S. sources generally is subject to U.S. federal income tax at a 30% rate or a lower applicable
tax treaty rate).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
dividends and gains that are effectively connected with the Non-U.S. Holder&rsquo;s conduct of a trade or business in the United
States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base that
such holder maintains or maintained in the United States) generally will be subject to regular U.S. federal income tax at the
same regular U.S. federal income tax rates as applicable to a comparable U.S. Holder and, in the case of a Non-U.S. Holder that
is a corporation for U.S. federal income tax purposes, may also be subject to an additional branch profits tax at a 30% rate or
a lower applicable tax treaty rate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
U.S. federal income tax treatment of a Non-U.S. Holder&rsquo;s receipt of an ordinary share upon the exercise or lapse of a warrant
held by a Non-U.S. Holder, generally will correspond to the U.S. federal income tax treatment of the receipt of a share or exercise
of a warrant by a U.S. Holder, as described under &ldquo;U.S. Holders &mdash; Acquisition of Ordinary Shares Pursuant to a Warrant,&rdquo;
above, although to the extent a cashless exercise results in a taxable exchange, the consequences would be similar to those described
in the preceding paragraphs above for a Non-U.S. Holder&rsquo;s gain on the sale or other disposition of our ordinary shares and
warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Backup
Withholding and Information Reporting</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
general, information reporting for U.S. federal income tax purposes should apply to cash distributions made on the ordinary shares
within the United States to a U.S. Holder (other than an exempt recipient) and to the proceeds from sales and other dispositions
of the ordinary shares by a U.S. Holder (other than an exempt recipient) to or through a U.S. office of a broker. Payments made
(and sales and other dispositions effected at an office) outside the United States will be subject to information reporting in
limited circumstances. In addition, certain information concerning a U.S. Holder&rsquo;s adjusted tax basis in its ordinary shares
and adjustments to that tax basis and whether any gain or loss with respect to such ordinary shares is long-term or short-term
also may be required to be reported to the IRS, and certain holders may be required to file an IRS Form 8938 (Statement of Specified
Foreign Financial Assets) to report their interest in the ordinary shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Moreover,
backup withholding of U.S. federal income tax, at a current rate of 24%, generally will apply to cash dividends paid on the ordinary
shares to a U.S. Holder (other than an exempt recipient) and the proceeds from sales and other dispositions of the ordinary shares
by a U.S. Holder (other than an exempt recipient), in each case who:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">fails
to provide an accurate taxpayer identification number;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">is
notified by the IRS that backup withholding is required; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in
certain circumstances, fails to comply with applicable certification requirements.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
Non-U.S. Holder generally may eliminate the requirement for information reporting and backup withholding by providing certification
of its foreign status, under penalties of perjury, on a duly executed applicable IRS Form W-8 or by otherwise establishing an
exemption.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Backup
withholding is not an additional tax. Rather, the amount of any backup withholding will be allowed as a credit against a U.S.
Holder&rsquo;s or a Non-U.S. Holder&rsquo;s U.S. federal income tax liability and may entitle such holder to a refund, provided
that certain required information is timely furnished to the IRS. Holders are urged to consult their own tax advisors regarding
the application of backup withholding and the availability of and procedures for obtaining an exemption from backup withholding
in their particular circumstances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE
PRECEDING DISCUSSION OF U.S. FEDERAL TAX CONSIDERATIONS IS FOR GENERAL INFORMATION PURPOSES ONLY. IT IS NOT TAX ADVICE. EACH PROSPECTIVE
INVESTOR SHOULD CONSULT ITS OWN TAX ADVISOR REGARDING THE PARTICULAR U.S. FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES OF
PURCHASING, HOLDING AND DISPOSING OF OUR ORDINARY SHARES, INCLUDING THE CONSEQUENCES OF ANY PROPOSED CHANGE IN APPLICABLE LAWS.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_025a"></A>LEGAL
MATTERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The validity of the
securities of the Company being offered by this prospectus and certain other legal matters related to this prospectus with respect
to the United States federal securities law and Delaware law are passed upon for us by Hunter Taubman Fischer &amp; Li LLC. Certain
legal matters with respect to the United States federal securities and Delaware law in connection with this Offering will be passed
upon for the underwriters by [&#9679;].</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_025b"></A>EXPERTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
audited consolidated financial statements of Bison Capital Acquisition Corp. as of December 31, 2018&nbsp;and 2017, included in
this prospectus have been so included in reliance on a report of Marcum LLP, an independent registered public accounting firm,
appearing elsewhere herein given on the authority of said firm, as experts in auditing and accounting.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
consolidated financial statements of Xynomic Pharmaceuticals, Inc. (&ldquo;Xynomic&rdquo;) as of December 31, 2017 and 2018, and
for the years then ended, have been included herein in reliance upon the report of KPMG Huazhen LLP, independent registered public
accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
audit report covering Xynomic&rsquo;s December 31, 2018 consolidated financial statements contains an explanatory paragraph that
states, Xynomic has suffered recurring losses from operations, has net current liabilities and accumulated deficit, and has limited
resources available to fund current research and development activities, and will require substantial additional financing to
continue to fund Xynomic&rsquo;s research and development activities that raise substantial doubt about Xynomic&rsquo;s ability
to continue as a going concern. Xynomic&rsquo;s consolidated financial statements do not include any adjustments that might result
from the outcome of this uncertainty.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="a_026"></A><B>WHERE
YOU CAN FIND MORE INFORMATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are a reporting company and file annual, quarterly and special reports, and other information with the SEC. Copies of the reports
and other information may be read and copied at the SEC&rsquo;s Public Reference Room at 100 F Street N.E., Washington, D.C. 20549.
You can request copies of such documents by writing to the SEC and paying a fee for the copying cost. You may obtain information
on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains a web site at <U>http://www.sec.gov
</U>that contains reports, proxy and information statements and other information regarding registrants that file electronically
with the SEC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus is part of a registration statement on Form S-1 that we filed with the SEC. Certain information in the registration
statement has been omitted from this prospectus in accordance with the rules and regulations of the SEC. We have also filed exhibits
and schedules with the registration statement that are excluded from this prospectus. For further information you may:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">read
a copy of the registration statement, including the exhibits and schedules, without charge at the SEC&rsquo;s Public Reference
Room; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain
a copy from the SEC upon payment of the fees prescribed by the SEC.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
file periodic reports, proxy statements, and other information with the SEC. These periodic reports, proxy statements, and other
information will be available for inspection and copying at the SEC&rsquo;s public reference facilities and the website of the
SEC referred to above. After the closing of this offering, you may access our annual reports on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d)
of the Exchange Act with the SEC free of charge as soon as reasonably practicable after such material is electronically filed
with, or furnished to, the SEC. The information contained in, or that can be accessed through, our website is not incorporated
by reference into this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART I &ndash; FINANCIAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1. Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>INDEX TO FINANCIAL
INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>BISON CAPITAL ACQUISITION CORP<FONT STYLE="text-transform: uppercase">.</FONT>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 89%; border-bottom: black 1.5pt solid; padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CONTENTS</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 10%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PAGE(S)</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: -9pt"><A HREF="#f_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: -9pt; text-align: justify"><A HREF="#f_002"><FONT STYLE="font-family: Times New Roman, Times, Serif">FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 AND 2017 AND FOR THE YEAR ENDED DECEMBER 31, 2018 AND 2017</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-2 - F-15</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: -9pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: -9pt"><A HREF="#f_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">UNAUDITED </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">FINANCIAL STATEMENTS AS OF <FONT STYLE="font-size: 10pt">MARCH 31, 2019 AND </FONT>DECEMBER 31<FONT STYLE="font-size: 10pt">, 2018 </FONT>AND FOR THE <FONT STYLE="font-size: 10pt">THREE MONTHS </FONT>ENDED <FONT STYLE="font-size: 10pt">MARCH 31, 2019 AND 2018</FONT></FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-16 - F-24</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-transform: uppercase"><B>XYNOMIC PHARMACEUTICALS,
INC.</B></FONT><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 89%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CONTENTS</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 10%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PAGE(S)</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#f_004"><FONT STYLE="font-family: Times New Roman, Times, Serif">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-25</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: -9pt; text-align: justify"><A HREF="#f_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 AND 2017 AND FOR THE YEAR ENDED DECEMBER 31, 2018 AND 2017</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-26 - F-47</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: -9pt"><A HREF="#f_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2019 AND DECEMBER 31, 2018 AND FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-48 - F-61</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><IMG SRC="image_020.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="f_001"></A>REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the Shareholders and Board of Directors
of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bison Capital Acquisition Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Opinion on the Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">We have audited the
accompanying balance sheets of Bison Capital Acquisition Corp. (the &ldquo;Company&rdquo;) as of December&nbsp;31, 2018 and 2017,
the related statements of operations, shareholders&rsquo; equity and cash flows for each of the two years in the period ended December&nbsp;31,
2018, and the related notes (collectively referred to as the &ldquo;financial statements&rdquo;). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December&nbsp;31, 2018 and 2017,
and the results of its operations and its cash flows for each of the two years in the period ended December&nbsp;31, 2018, in conformity
with accounting principles generally accepted in the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Basis for Opinion</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">These financial statements
are the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on the Company&rsquo;s financial
statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United
States) (&ldquo;PCAOB&rdquo;) and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">We conducted our audits
in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of
our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing
an opinion on the effectiveness of the Company&rsquo;s internal control over financial reporting. Accordingly, we express no such
opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">Our audits included
performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 39%; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Marcum LLP</FONT></TD>
    <TD STYLE="white-space: nowrap; width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 60%; padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Marcum LLP</FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have served as the Company&rsquo;s auditor
since 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">New York, NY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">March&nbsp;5, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_021.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Marcum LLP</B>&nbsp;&#9744;&nbsp;750
Third Avenue&nbsp;&#9744;&nbsp;11<SUP>th</SUP>&nbsp;Floor&nbsp;&#9744;&nbsp;New York, New York 10017&nbsp;&#9744;&nbsp;<B>Phone</B>&nbsp;212.485.5500&nbsp;<BR>
&#9744;&nbsp;<B>Fax</B>&nbsp;212.485.5501&nbsp;&#9744;&nbsp;<B>marcumllp.com&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_002"></A>BISON CAPITAL ACQUISITION CORP. AND
SUBSIDIARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED BALANCE SHEETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">Current Assets</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-left: 10pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">122,615</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">210,088</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">27,299</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">89,530</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Total Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">149,914</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">299,618</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Marketable securities held in Trust Account</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">63,310,884</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">62,208,330</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">TOTAL ASSETS</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">63,460,798</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">62,507,948</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Accounts payable and accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">164,893</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">78,669</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Advances from related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,804</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,804</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Convertible promissory note &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Promissory note - related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">200,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total Current Liabilities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">766,697</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">80,473</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Commitments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Ordinary shares subject to possible redemption, 5,501,868 and 5,573,504 shares at redemption value as of December 31, 2018 and 2017, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,694,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,427,474</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Shareholders&rsquo; Equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Preferred shares, no par value; unlimited shares authorized, none issued and outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 20pt">Ordinary shares, no par value; unlimited shares authorized; 2,477,069 and 2,405,433 shares issued and outstanding (excluding 5,501,868 and 5,573,504 shares subject to possible redemption) as of December 31, 2018 and 2017, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,776,436</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,043,062</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Retained earnings/(Accumulated deficit)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">223,565</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(43,061</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total Shareholders&rsquo; Equity</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,000,001</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,000,001</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">TOTAL LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">63,460,798</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">62,507,948</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of the financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Year
Ended <BR>
December&nbsp;31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-bottom: 1.5pt">Operating costs</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">835,928</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">365,215</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 10pt">Loss from operations</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(835,928</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(365,215</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other income:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,121,740</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">341,224</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Unrealized loss on securities held in Trust Account</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(19,186</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(17,269</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 10pt">Net income/(loss)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">266,626</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(41,260</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted average shares outstanding, basic and diluted <SUP>(1)</SUP></FONT></TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,426,155</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,870,947</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basic and diluted net loss per ordinary share <SUP>(2)</SUP></B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(0.30</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(0.18</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Excludes an aggregate of up to 5,501,868 and 5,573,504 ordinary shares subject to possible redemption at December 31, 2018 and 2017. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss per ordinary share - basic and diluted excludes income attributable to shares subject to possible redemption of $1,004,757 and $299,043 for the year ended December 31, 2018 and 2017, respectively (see Note 2).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of the financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS&rsquo; EQUITY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Ordinary Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1.5pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Retained
<BR>
Earnings/<BR>
(Accumulated)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">Total<BR> Shareholders&rsquo;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Deficit</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Equity</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; font-weight: bold; text-indent: -10pt; padding-left: 10pt">Balance &ndash; January 1, 2017</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,509,375</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">25,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,801</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">23,199</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Sale of 6,037,500 Units, net of underwriters discount and offering costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,037,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,124,811</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,124,811</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Sale of 432,062 Private Units</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">432,062</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,320,625</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,320,625</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Unit purchase option issued to underwriter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Ordinary shares subject to redemption</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,573,504</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(57,427,474</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(57,427,474</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(41,260</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(41,260</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt">Balance &ndash; December 31, 2017</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,405,433</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">5,043,062</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(43,061</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">5,000,001</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Ordinary shares subject to redemption</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,636</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(266,626</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(266,626</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Net income</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">266,626</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">266,626</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Balance &ndash; December 31, 2018</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,477,069</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,776,436</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">223,565</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,000,001</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">The accompanying notes are an integral
part of the financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Years Ended <BR>
December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Cash Flows from Operating Activities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net income (loss)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">266,626</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(41,260</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments to reconcile net income (loss) to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Interest earned on marketable securities held in Trust Account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,121,740</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(341,224</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Unrealized loss on marketable securities held in Trust Account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,186</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,269</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,231</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(89,530</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 20pt">Accounts payable and accrued expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">86,224</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">78,669</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 30pt">Net cash used in operating activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(687,473</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(376,076</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Cash Flows from Investing Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Investment of cash and securities held in Trust Account</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(61,884,375</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 30pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(61,884,375</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Cash Flows from Financing Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Proceeds from issuance of ordinary shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds from sale of Units, net of underwriting discounts paid</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,563,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Proceeds from sale of Private Units</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,320,625</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds from sale of unit purchase option</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Advances from related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,804</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Repayment of advances from related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(157,500</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Proceeds from convertible promissory note &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds from promissory note &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Repayment of promissory note &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(300,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Payment of offering costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(351,439</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 30pt">Net cash provided by financing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">600,000</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">62,172,340</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Net Change in Cash and Cash Equivalents</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(87,473</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(88,111</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Cash and Cash Equivalents - Beginning</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">210,088</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">298,199</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Cash and Cash Equivalents - Ending</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">122,615</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">210,088</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Non-cash investing and financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Offering costs charged to additional paid in capital</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">402,525</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Initial classification of ordinary shares subject to possible redemption</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">57,468,142</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Change in value of ordinary shares subject to possible redemption</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">266,626</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(40,668</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of these financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 1. DESCRIPTION OF ORGANIZATION
AND BUSINESS OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bison Capital Acquisition Corp. (the &ldquo;Company&rdquo;)
is a blank check company incorporated in the British Virgin Islands on October 7, 2016. The Company was formed for the purpose
of acquiring, engaging in a share exchange, share reconstruction and amalgamation, purchasing all or substantially all of the assets
of, entering into contractual arrangements, or engaging in any other similar business combination with one or more businesses or
entities (a &ldquo;Business Combination&rdquo;). Although the Company is not limited to a particular industry or geographic region
for purposes of consummating an initial business combination, the Company focuses on businesses that have their primary operations
located in Asia and North America in media/entertainment, consumer services and healthcare industries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has one subsidiary, Bison Capital
Merger Sub Inc., a wholly-owned subsidiary of the Company incorporated in Delaware on August 20, 2018 solely for the purpose of
completing the business combination with Xynomic (see Note 7).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All activity through December 31, 2018
relates to the Company&rsquo;s formation, its initial public offering (&ldquo;Initial Public Offering&rdquo;) described below,
identifying a target company for a Business Combination and activities in connection with the proposed acquisition of Xynomic Pharmaceuticals,
Inc., a Delaware corporation (&ldquo;Xynomic&rdquo;) (see Note 7).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The registration statements for the Company&rsquo;s
Initial Public Offering were declared effective on June 19, 2017. On June 23, 2017, the Company consummated the Initial Public
Offering of 5,250,000 units (&ldquo;Units&rdquo; and, with respect to the ordinary shares included in the Units being offered,
the &ldquo;Public Shares&rdquo;) at $10.00 per unit, generating gross proceeds of $52,500,000, which is described in Note 3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Simultaneously with the closing of the
Initial Public Offering, the Company consummated the sale of 388,750 units (the &ldquo;Private Units&rdquo;) at a price of $10.00
per Unit in a private placement to the Company&rsquo;s sponsor, Bison Capital Holding Company Limited (&ldquo;Bison Capital&rdquo;)
and EarlyBirdCapital, Inc. (&ldquo;EarlyBirdCapital&rdquo;) and their designees, generating gross proceeds of $3,887,500, which
is described in Note 4.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following the closing of the Initial Public
Offering and the private placement on June 23, 2017, an amount of $53,812,500 ($10.25 per Unit) from the net proceeds of the sale
of the Units in the Initial Public Offering and the Private Units was placed in a trust account (the &ldquo;Trust Account&rdquo;)
and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940,
as amended (the &ldquo;Investment Company Act&rdquo;), with a maturity of 180 days or less or in any open-ended investment company
that holds itself out as a money market fund selected by the Company meeting the conditions of paragraphs (d)(2), (d)(3) and (d)(4)
of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business
Combination and (ii) the distribution of the Trust Account, as described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 28, 2017, in connection with the
underwriters&rsquo; exercise of their over-allotment option in full, the Company consummated the sale of an additional 787,500
Units at $10.00 per Unit, and the sale of an additional 43,312 Private Units at $10.00 per Unit, generating total gross proceeds
of $8,308,125. A total of $8,071,875 of the net proceeds were deposited in the Trust Account, bringing the aggregate proceeds held
in the Trust Account to $61,884,375.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Transaction costs amounted to $2,250,189,
consisting of $1,811,250 of underwriting fees, and $438,939 of other costs. As of December 31, 2018, $122,615 of cash was held
outside of the Trust Account and was available for working capital purposes.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s management has broad
discretion with respect to the specific application of the net proceeds of its Initial Public Offering and Private Units (subject
to the terms and conditions set forth in the certain trust agreement), although substantially all of the net proceeds are intended
to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to successfully
effect a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company, as a foreign private issuer,
must comply with the tender offer rules in connection with its Business Combination, and unless otherwise required by Nasdaq rules
or applicable laws, it does not intend to conduct a shareholder vote. It will, if it remains a foreign private issuer, provide
its shareholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination
by means of a tender offer pursuant to its memorandum and articles of association, conduct the redemptions pursuant to the tender
offer rules of the Securities and Exchange Commission (the &ldquo;SEC&rdquo;), and file tender offer documents containing substantially
the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination. If the
Company is a foreign private issuer and it is required by Nasdaq rules or applicable laws to hold a shareholder vote, it will do
so, but redemptions will still be effectuated pursuant to the tender offer rules described above. To the extent Nasdaq rules or
applicable laws require redemption pursuant to a shareholder vote, even if a tender offer is also conducted, the Company will comply
with such rules or laws. If the Company were to lose its foreign private issuer status, the Company may seek shareholder approval
of a Business Combination at a meeting called for such purpose at which shareholders may seek to redeem their shares, regardless
of whether they vote for or against a Business Combination or may conduct a tender offer. The shareholders will be entitled to
redeem their shares for a pro rata portion of the amount then in the Trust Account ($10.25 per share, plus any pro rata interest
earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). The Company
will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 upon such consummation
of a Business Combination and a majority of the outstanding shares voted are voted in favor of the Business Combination. Notwithstanding
the foregoing, a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder
is acting in concert or as a &ldquo;group&rdquo; (as defined under Section 13 of the Securities Exchange Act of 1934, as amended
(the &ldquo;Exchange Act&rdquo;)), will be restricted from seeking redemption rights with respect to 20% or more of the ordinary
shares sold in the Initial Public Offering without the Company&rsquo;s prior written consent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: -0.5in">F- either circumstance and the pro forma
financial statements are substantially the same in circumstances (A) and (B)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company&rsquo;s
sponsor, officers and directors (the &ldquo;Initial Shareholders&rdquo;) have agreed (a) to vote their Founder Shares (as defined
in Note 5) shares in Private Units and any shares acquired in or after the Initial Public Offering in favor of a Business Combination,
(b) not to propose, or vote in favor of, prior to and unrelated to an initial Business Combination, an amendment to the Company&rsquo;s
memorandum and articles of association that would affect the substance or timing of the Company&rsquo;s redemption obligation to
redeem all Public Shares if the Company cannot complete an initial Business Combination by March 23, 2019 (which, if approved by
the Company&rsquo;s shareholders, will be extended to June 24, 2019 or such earlier date as determined by the Company&rsquo;s board
of directors) (the &ldquo;Combination Period&rdquo;), unless the Company provides public shareholders an opportunity to redeem
their Public Shares in conjunction with any such amendment; (c) not to redeem any shares (including the Founder Shares) into the
right to receive cash from the Trust Account in connection with a shareholder vote to approve a Business Combination (or to sell
any shares in a tender offer in connection with a Business Combination if the Company does not seek shareholder approval in connection
therewith) and (d) that the Founder Shares and Private Units or the securities underlying the Private Units shall not participate
in any liquidating distributions upon winding up if a Business Combination is not consummated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Company is unable to complete a
Business Combination by the Combination Period, the Company will (i) cease all operations except for the purpose of winding up,
(ii) as promptly as reasonably possible but no more than five business days thereafter, redeem 100% of the outstanding Public Shares
(including any public units in the Initial Public Offering or any public units or shares that the Initial Shareholders or their
affiliates purchased in the Initial Public Offering or later acquired in the open market or in private transactions) which redemption
will completely extinguish public shareholders&rsquo; rights as shareholders (including the right to receive further liquidation
distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject
to the approval of the remaining shareholders and the Company&rsquo;s board of directors, proceed to commence a voluntary liquidation
and thereby a formal dissolution of the Company, subject (in each case of (ii) and (iii) above) to its obligations to provide for
claims of creditors and the requirements of applicable law. In connection with the redemption of 100% of the Company&rsquo;s outstanding
Public Shares each holder will receive a full pro rata portion of the amount then in the Trust Account plus any pro rata interest
earned on the funds held in the Trust Account (net of any taxes payable).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Initial Shareholders have agreed to
waive their redemption rights with respect to the Founder Shares and the shares underlying the Private Units (i) in connection
with the consummation of a Business Combination and (ii) if the Company fails to consummate a Business Combination within the Combination
Period. The Initial Shareholders have agreed to waive their redemption rights with respect to any acquired Public Shares in connection
with the consummation of a Business Combination. However, if the Company&rsquo;s Initial Shareholders should acquire Public Shares
in or after the Initial Public Offering, they will be entitled to redemption rights with respect to such Public Shares if the Company
fails to consummate a Business Combination within the Combination Period. In the event of such redemption, it is possible that
the per share value of the assets remaining available for redemption (including Trust Account assets) will be less than the $10.25
per unit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bison Capital has agreed that it will indemnify
the Company to the extent necessary to ensure that the proceeds in the Trust Account are not reduced by the claims of prospective
target businesses with which the Company has discussed entering into a transaction agreement, or claims of vendors or other entities
that are owed money by the Company for services rendered or contracted for or products sold to the Company, but only if such a
vendor or prospective target business does not execute such a waiver. However, Bison Capital may not be able to meet such obligation
as the Company has not required Bison Capital to retain any assets to provide for its indemnification obligations, nor has the
Company taken any further steps to ensure that Bison Capital will be able to satisfy any indemnification obligations that arise.
Moreover, Bison Capital will not be liable to the Company&rsquo;s public shareholders if Bison Capital should fail to satisfy its
obligations under this agreement and instead will only be liable to the Company. The Company will seek to reduce the possibility
that Bison Capital will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service
providers (other than the Company&rsquo;s independent auditors), prospective target businesses or other entities with which the
Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies
held in the Trust Account. Therefore, the distribution from the Trust Account to each holder of ordinary shares may be less than
$10.25 per unit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Liquidity</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has principally financed its
operations from inception using proceeds from the sale of its equity securities to its Initial Shareholders and such amount of
proceeds from the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes.
As of December 31, 2018, the Company had $122,615 of cash held outside of the Trust Account. As of December 31, 2018, the Sponsor
has loaned the Company an aggregate of $600,000. In February 2019, Bison Capital committed to provide an additional $200,000 in
loans to the Company (see Notes 5 and 10). Based on the foregoing, the Company believes it will have sufficient cash to meet its
needs through the earlier of consummation of a Business Combination or March 23, 2019 (which, if approved by the Company&rsquo;s
shareholders, will be extended to June 24, 2019, or such earlier date as determined by the Company&rsquo;s board of directors),
the date that the Company will be required to cease all operations except for the purpose of winding up, if a Business Combination
is not consummated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Basis of presentation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial
statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America
(&ldquo;GAAP&rdquo;) and pursuant to the rules and regulations of the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Principles of Consolidation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial
statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions
have been eliminated in consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Emerging growth company</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is an &ldquo;emerging growth
company,&rdquo; as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012
(the &ldquo;<I>JOBS Act</I>&rdquo;), and it may take advantage of certain exemptions from various reporting requirements that are
applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to
comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding
executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding
advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further, section 102(b)(1) of the JOBS
Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private
companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of
securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The
JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply
to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such
extended transition period which means that when a standard is issued or revised and it has different application dates for public
or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of the Company&rsquo;s financial statements with another public company
which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition
period difficult or impossible because of the potential differences in accounting standards used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Use of estimates</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements
in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Making estimates requires management to
exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or
set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate,
could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from
those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Cash equivalents</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents
as of December 31, 2018 and 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Marketable Securities held in Trust
Account</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At December 31, 2018 and 2017, the substantially
all of the assets held in the Trust Account were held in U.S. Treasury Bills and are classified as trading securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Ordinary shares subject to possible redemption</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for its ordinary
shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (&ldquo;ASC&rdquo;)
Topic 480 &ldquo;Distinguishing Liabilities from Equity.&rdquo; Ordinary shares subject to mandatory redemption are classified
as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares
that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of
uncertain events not solely within the Company&rsquo;s control) are classified as temporary equity. At all other times, ordinary
shares are classified as shareholders&rsquo; equity. The Company&rsquo;s ordinary shares feature certain redemption rights that
are considered to be outside of the Company&rsquo;s control and subject to occurrence of uncertain future events. Accordingly,
at December 31, 2018 and 2017, ordinary shares subject to possible redemption are presented at redemption value as temporary equity,
outside of the shareholders&rsquo; equity section of the Company&rsquo;s consolidated balance sheets.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Offering costs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Offering costs consist of legal, accounting,
underwriting fees and other costs incurred through the balance sheet date that are directly related to the Initial Public Offering.
Offering costs amounting to $2,250,189 were charged to shareholders&rsquo; equity upon the completion of the Initial Public Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Income taxes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company complies with the accounting
and reporting requirements of ASC Topic 740, &ldquo;Income Taxes,&rdquo; which requires an asset and liability approach to financial
accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the
financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on
enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation
allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ASC Topic 740 prescribes a recognition
threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected
to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon
examination by taxing authorities. The Company&rsquo;s management determined that the British Virgin Islands is the Company&rsquo;s
only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any,
as income tax expense. There were no unrecognized tax benefits as of December 31, 2018 and 2017 and no amounts accrued for interest
and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals
or material deviation from its position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s tax provision is zero
because the Company is organized in the British Virgin Islands with no connection to any other taxable jurisdiction. As such, the
Company has no deferred tax assets or liabilities. The Company is considered to be an exempted British Virgin Islands Company,
and is presently not subject to income taxes or income tax filing requirements in the British Virgin Islands or the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Net loss per share</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net loss per share is computed by dividing
net loss by the weighted average number of ordinary shares outstanding during the period. The Company applies the two-class method
in calculating earnings per share. Ordinary shares subject to possible redemption at December 31, 2018 and 2017, which are not
currently redeemable and are not redeemable at fair value, have been excluded from the calculation of basic loss per share since
such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company has not considered
the effect of (1) warrants sold in the Initial Public Offering and private placement to purchase 3,234,781 ordinary shares, (2)
rights sold in the Initial Public Offering and private placement that convert into 646,957 ordinary shares, and (3) 157,500 ordinary
shares, warrants to purchase 78,750 ordinary shares and rights that convert into 15,750 ordinary shares in the unit purchase option
sold to the underwriter, in the calculation of diluted loss per share, since the exercise of the warrants and the conversion of
the rights into ordinary shares is contingent upon the occurrence of future events. As a result, diluted loss per share is the
same as basic loss per share for the periods presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Reconciliation of Net Loss per Ordinary
Share</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s net income (loss) is
adjusted for the portion of income that is attributable to ordinary shares subject to redemption, as these shares only participate
in the earnings of the Trust Account and not the income or losses of the Company. Accordingly, basic and diluted loss per ordinary
share is calculated as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended<BR> December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net income (loss)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">266,626</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(41,260</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: Income attributable to ordinary shares subject to redemption</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,004,757</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(299,043</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Adjusted net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(738,131</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(340,303</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Weighted average shares outstanding, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,426,155</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,870,947</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Basic and diluted net loss per ordinary share</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.30</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.18</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Concentration of credit risk</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially
subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed
the amount covered by government-provided insurance, if any, and in the event of non-performance by financial institutions may
expose the Company to a loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Fair value of financial instruments</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the Company&rsquo;s assets
and liabilities, which qualify as financial instruments under ASC Topic 820, &ldquo;Fair Value Measurements and Disclosures,&rdquo;
approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Recent accounting pronouncements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management does not believe that any recently
issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company&rsquo;s
consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 3. INITIAL PUBLIC OFFERING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Initial Public Offering,
the Company sold 6,037,500 Units at a purchase price of $10.00 per unit, inclusive of 787,500 Units sold to the underwriter on
June 28, 2017 upon the underwriters&rsquo; election to fully exercise their over-allotment option. Each Unit consists of one ordinary
share, no par value, one right (&ldquo;Public Right&rdquo;) and one-half of one redeemable warrant (each whole warrant, a &ldquo;Public
Warrant&rdquo;). Each Public Right will convert into one-tenth (1/10) of one ordinary share upon consummation of a Business Combination
(see Note 8). Each whole Public Warrant entitles the holder to purchase one ordinary share at an exercise price of $11.50 per share
(subject to certain adjustments) (see Note 8).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 4. PRIVATE PLACEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Simultaneously with the consummation of
the Initial Public Offering, Bison Capital and EarlyBirdCapital purchased an aggregate of 388,750 Private Units (or an aggregate
purchase price of $3,887,500), of which 362,500 Private Units were purchased by Bison Capital and 26,250 Private Units were purchased
by EarlyBirdCapital. In addition, on June 28, 2017, due to the exercise of the over-allotment option by the underwriter, the Company
consummated the sale of an additional 43,312 Placement Units at a price of $10.00 per Unit, of which 39,375 Private Units were
purchased by Bison Capital and 3,937 Private Units were purchased by EarlyBirdCapital, generating gross proceeds of $433,125. The
proceeds from the sale of the Private Units were added to the net proceeds from the Initial Public Offering held in the Trust Account.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Private Units are identical to the
Units sold in the Initial Public Offering, except that (i) Bison Capital and EarlyBirdCapital have agreed not to transfer, assign
or sell any of the Private Units until after the completion of a Business Combination, subject to certain exceptions, (ii) the
Private Units (including underlying securities) were purchased pursuant to an exemption from the registration requirements of the
Securities Act and will become tradable only after certain conditions are met or the resale of the Private Units is registered
under the Securities Act, and (iii) the warrants included in the Private Units (the &ldquo;Private Warrants&rdquo;), as described
in Note 8, are non-redeemable and may be exercised on a cashless basis, in each case so long as they continue to be held by Bison
Capital or EarlyBirdCapital or their permitted transferees. However, the holders have agreed (a) to vote their private shares (representing
the ordinary shares underlying the Private Units) and any Public Shares in favor of a Business Combination, (b) not to propose,
or vote in favor of, an amendment to the memorandum and articles of association, prior to and unrelated to a Business Combination,
to affect the substance or timing of the Company&rsquo;s obligation to redeem all Public Shares if it cannot complete a Business
Combination within the Combination Period, unless the Company provides public shareholders an opportunity to redeem their Public
Shares, (c) not to redeem any shares included in the Private Units (the &ldquo;Private Shares&rdquo;) into the right to receive
cash from the Trust Account in connection with a shareholder vote to approve a Business Combination or sell their shares to the
Company in a tender offer in connection with a Business Combination, and (d) that the Private Shares shall not participate in any
liquidating distribution upon winding up if a Business Combination is not consummated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 5. RELATED PARTY TRANSACTIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Founder Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2016, the Company issued 1,437,500
ordinary shares to some of its Initial Shareholders (the &ldquo;Founder Shares&rdquo;) for an aggregate purchase price of $25,000.
The Company received payment for the Founder Shares in January and February 2017. On June 19, 2017, the number of Founder Shares
issued under the original subscription agreement was increased by way of the sub-division of each of the then existing Founder
Shares on a 1.05 for 1 basis, resulting in the total number of Founder Shares becoming 1,509,375, with 196,875 of such shares
being subject to forfeiture to the extent that the underwriters&rsquo; over-allotment option was not exercised in full or in part.
The Founder Shares are identical to the Public Shares sold in the Initial Public Offering, except that (1) the Founder Shares
are subject to certain transfer restrictions as set forth in certain share escrow agreement, (2) the Founder Shares were purchased
pursuant to an exemption from the registration requirements of the Securities Act and will become tradable only after certain
conditions are met or the resale of the Founder Shares is registered under the Securities Act, in addition to in accordance with
the terms of the share escrow agreement, and (3) the Initial Shareholders have agreed (i) to waive their redemption rights with
respect to any shares in connection with the consummation of Business Combination and (ii) to waive their liquidation rights with
respect to their Founder Shares and private shares if the Company fails to complete a Business Combination within the Combination
Period.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 1,509,375 Founder Shares included an
aggregate of up to 196,875 shares subject to forfeiture by the Initial Shareholders to the extent that the underwriters&rsquo;
over-allotment was not exercised in full or in part, so that the Initial Shareholders would collectively own 20% of the Company&rsquo;s
issued and outstanding shares after the Initial Public Offering (excluding the sale of the Private Units). As a result of the underwriters&rsquo;
election to exercise their over-allotment option in full on June 28, 2017, 196,875 Founder Shares are no longer subject to forfeiture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, subject to certain limited
exceptions, the Initial Shareholders have agreed not to transfer, assign or sell any of the Founder Shares (except to certain permitted
transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) one year after the date of the consummation of
a Business Combination, or (ii) the date on which the closing price of the Company&rsquo;s ordinary shares equals or exceeds $12.50
per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any 20 trading days within
any 30-trading day period commencing after a Business Combination, and with respect to the remaining 50% of the Founder Shares,
upon one year after the date of the consummation of a Business Combination, or earlier, in each case, if, subsequent to a Business
Combination, the Company consummates a subsequent liquidation, merger, stock exchange or other similar transaction which results
in all of the Company&rsquo;s shareholders having the right to exchange their ordinary shares for cash, securities or other property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Related Party Advances</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the closing of the Initial Public
Offering, Bison Capital advanced the Company an aggregate of $159,304 to be used for the payment of costs related to the Initial
Public Offering. The advances are non-interest bearing, unsecured and due on demand. Advances in the amount of $157,500 was repaid
shortly after the closing of the Initial Public Offering. As of December 31, 2018 and 2017, advances outstanding amounted to $1,804.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Administrative Services Arrangement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bison Capital entered into an agreement
whereby, commencing on June 19, 2017 through the earlier of the Company&rsquo;s consummation of a Business Combination and its
liquidation, to make available to the Company certain general and administrative services, including office space, utilities and
administrative services, as the Company may require from time to time. The Company will pay Bison Capital $5,000 per month for
these services. For the year ended December 31, 2018 and 2017, the Company incurred $55,000 and $35,000, respectively, in fees
for these services. At December 31, 2018 and 2017, $90,000 and $35,000 in administrative fees, respectively, are included in accounts
payable and accrued expenses in the accompanying consolidated balance sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Related Party Loans and Promissory Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the closing of the Initial Public
Offering, Bison Capital loaned the Company $300,000, a portion of which was used for the payment of costs associated with the Initial
Public Offering. The loan was non-interest bearing, unsecured and due on the earlier of December 31, 2017 or the closing of the
Initial Public Offering. The loan was repaid shortly after the closing of the Initial Public Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In order to finance transaction costs in
connection with a Business Combination, Bison Capital or the Company&rsquo;s officers and directors or their respective affiliates
may, but are not obligated to, loan the Company funds as may be required (the &ldquo;Working Capital Loans&rdquo;). If the Company
completes a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does
not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds
held in the Trust Account would be used to repay the Working Capital Loans. Such Working Capital Loans would be evidenced by promissory
notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender&rsquo;s
discretion, up to $500,000 of notes may be converted upon consummation of a Business Combination into additional Private Units
at a price of $10.00 per unit (the &ldquo;Working Capital Units&rdquo;). Bison Capital in August 2018, has loaned the Company an
aggregate of $400,000, which is evidenced by a promissory note, non-interest bearing, unsecured and payable in cash or convertible
in Private Units at $10.00 per unit, at the Bison Capital&rsquo;s discretion, on the consummation of a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In November 2018, Bison Capital loaned
the Company an additional aggregate amount of $200,000 in order to finance transaction costs in connection with a Business Combination.
The loan is non-interest bearing, unsecured and due to be paid on the consummation of a Business Combination. In February 2019,
$100,000 of such loans were converted into Working Capital Loans (see Note 10).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2019, Bison Capital committed
to provide $200,000 in loans to the Company in order to finance transaction costs in connection with a Business Combination. The
loans will be evidenced by a promissory note, will be non-interest bearing, unsecured and will only be repaid upon the completion
of a Business Combination (see Note 10).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At December 31, 2018, an aggregate of
$600,000 is owed by the Company to Bison Capital pursuant to the above loans.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 6. COMMITMENTS AND CONTINGENCIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Director Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will pay its independent directors
an annual retainer in an aggregate amount of $38,400 (to be prorated for a partial term), payable in arrears commencing on the
first anniversary of the Initial Public Offering and ending on the earlier of a Business Combination and the Company&rsquo;s liquidation.
For the year ended December 31, 2018 and 2017, the Company recorded $-0- and $38,400 in director&rsquo;s fees, of which $-0- and
$19,200 is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets at December 31, 2018
and 2017, respectively. During the year ended December 31, 2018 and 2017, the Company has paid $19,200 and $19,200 in director&rsquo;s
fees, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Registration Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to a registration rights agreement
entered into on June 19, 2017, the holders of the ordinary shares issued to the Initial shareholders (the &ldquo;Founder Shares&rdquo;),
Private Units (and underlying securities) and working capital units (and underlying securities) are entitled to registration rights.
The holders of a majority-in-interest of these securities are entitled to make up to three demands, excluding short form demands,
that the Company register such securities. In addition, the holders have certain &ldquo;piggy-back&rdquo; registration rights with
respect to registration statements filed subsequent to the consummation of a Business Combination. Notwithstanding anything to
the contrary, EarlyBirdCapital may participate in a &ldquo;piggy-back&rdquo; registration only during the seven year period beginning
on the effective date of the registration statement. However, the registration rights agreement provides that the Company will
not permit any registration statement filed under the Securities Act of 1993, as amended, to become effective until termination
of the applicable lock-up period. The Company will bear the expenses incurred in connection with the filing of any such registration
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Business Combination Marketing Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 19, 2017, the Company entered into
a Business Combination Marketing Agreement with EarlyBirdCapital wherein EarlyBirdCapital would act as an advisor in connection
with a Business Combination to assist the Company in holding meetings with its shareholders to discuss the potential Business Combination
and the target business&rsquo; attributes, introduce the Company to potential investors that are interested in purchasing the Company&rsquo;s
securities, assist the Company in obtaining shareholder approval for the Business Combination and assist the Company with its press
releases and public filings in connection with the Business Combination. The Company will pay EarlyBirdCapital a cash fee for such
services upon the consummation of a Business Combination in an amount equal to $1,811,250 (exclusive of any applicable finders&rsquo;
fees which might become payable). Notwithstanding the foregoing, the fee will be reduced by an amount equal to 2% of the dollar
amount of purchases of the Company&rsquo;s ordinary shares by investors introduced to the Company by Bison Capital or the Company&rsquo;s
officers, directors or their respective affiliates following announcement by the Company of a proposed vote on such Business Combination
and do not seek conversion of their shares in connection with such proposed Business Combination; provided, however, that the fee
will not be reduced by more than $500,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Finders Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 16, 2017, the Company entered
into a finder agreement (the &ldquo;Finder Agreement&rdquo;) with EarlyBirdCapital pursuant to which EarlyBirdCapital will introduce
potential targets (the &ldquo;Targets&rdquo;) to the Company on a nonexclusive basis in connection with a Business Combination.
The Company shall pay EarlyBirdCapital for its services, upon the closing (or closings) of a Business Combination with a Target,
a cash fee equal to 1.0% of the Total Consideration (as defined in the Finder Agreement) deducting any finder fee, advisor fee
or any other type of service fee or compensation that Target has paid or has agreed to pay to EarlyBirdCapital in connection with
such Business Combination. The Company shall also reimburse EarlyBirdCapital for all out-of-pocket expenses incurred and such expenses
shall not exceed $10,000 in the aggregate through the termination of the Finder Agreement unless otherwise consented to in writing
by the Company in advance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 7. MERGER AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 12, 2018, the Company entered
into an Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;) with Xynomic, Bison Capital Merger Sub Inc., a Delaware
corporation (&ldquo;Merger Sub&rdquo;), and Yinglin Mark Xu (&ldquo;Stockholder Representative&rdquo;), solely in his capacity
as the Stockholder Representative thereunder. Pursuant to the Merger Agreement, among other things, Merger Sub will merge with
and into Xynomic, with Xynomic continuing as the surviving entity and a wholly-owned subsidiary of the Company (the &ldquo;Merger&rdquo;
and the &ldquo;Surviving Company&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the effective date of the closing (the
&ldquo;Effective Time&rdquo;), each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective
Time (excluding dissenting shares, if any) will be automatically converted into the right to receive, on a pro rata basis, the
Closing Consideration Shares (as defined below) and the Earnout Shares (as defined below), and each option to purchase Xynomic
stock that is outstanding immediately prior to the Effective Time will be assumed by the Company and automatically converted into
an option to purchase shares of common stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Merger Agreement, the aggregate
merger consideration payable upon the Closing (the &ldquo;Aggregate Merger Consideration&rdquo;) consists of the Closing Merger
Consideration (as defined below) and the Earnout Consideration (as defined below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The &ldquo;Closing Merger Consideration&rdquo;
means (a) $350,000,000, <U>minus</U> (i) the amount of Xynomic&rsquo;s closing indebtedness, <U>plus</U> (ii) the amount of Xynomic&rsquo;s
closing cash, <U>minus</U> (iii) the amount of Xynomic&rsquo;s transaction expenses, <U>plus</U> (iv) certain closing tax assets,
<U>plus</U> (v) the amount, if any, by which Xynomic&rsquo;s closing working capital exceeds an agreed upon target amount of working
capital, minus (vi) the amount, if any, by which such target amount of working capital exceeds Xynomic&rsquo;s closing working
capital. The Closing Merger Consideration is payable in newly issued shares (the &ldquo;Closing Consideration Shares&rdquo;) of
the Company&rsquo;s common stock at a value of $10.15 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Merger Agreement provides that, in
addition to the Closing Merger Consideration, Xynomic stockholders will receive additional consideration of an additional 9,852,216
shares of Company common stock (representing $100,000,000 based on a $10.15 per share value of the Company&rsquo;s common stock).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Consummation of the transactions contemplated
by the Merger Agreement is subject to the satisfaction or waiver by the respective parties of a number of conditions, including
the approval of the Merger Agreement and the transactions contemplated thereby by Xynomic&rsquo;s and the Company&rsquo;s respective
stockholders. Other closing conditions include, among others: (i) the respective representations of the parties to each other being
true and correct; (ii) performance and compliance with in all material respects of the respective covenants and agreements of each
party; (iii) the applicable waiting periods, if any, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 having expired
or terminated; (iv) the Company having at least $7,500,000 of net tangible assets remaining after the closing of the contemplated
transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Merger also calls for additional agreements,
including, among others, the Escrow Agreement, the Non-competition Agreements, the Lock-Up Agreements, the Voting and Support Agreement,
and the Registration Rights Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 8. SHAREHOLDERS&rsquo; EQUITY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Preferred Shares</I></B> &mdash;
The Company is authorized to issue an unlimited number of no par value preferred shares, divided into five classes, Class A through
Class E, each with such designation, rights and preferences as may be determined by a resolution of the Company&rsquo;s board of
directors to amend the memorandum and articles of association to create such designations, rights and preferences. The Company
has five classes of preferred shares to give the Company flexibility as to the terms on which each Class is issued. All shares
of a single class must be issued with the same rights and obligations. Accordingly, starting with five classes of preferred shares
will allow the Company to issue shares at different times on different terms. At December 31, 2018 and 2017, there are no preferred
shares designated, issued or outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Ordinary Shares</I></B> &mdash; The
Company is authorized to issue an unlimited number of no par value ordinary shares. Holders of the Company&rsquo;s ordinary shares
are entitled to one vote for each share. At December 31, 2018 and 2017, there were 2,477,069 and 2,405,433 ordinary shares issued
and outstanding, respectively (excluding 5,501,868 and 5,573,504 ordinary shares subject to possible redemption).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Rights </I></B>&mdash; Each holder
of a right will receive one-tenth (1/10) of one ordinary share upon consummation of a Business Combination, even if a holder of
such right converted all ordinary shares held by it in connection with a Business Combination. No fractional shares will be issued
upon exchange of the rights. No additional consideration will be required to be paid by a holder of rights in order to receive
its additional shares upon consummation of a Business Combination as the consideration related thereto has been included in the
Unit purchase price paid for by investors in the Initial Public Offering. If the Company enters into a definitive agreement for
a Business Combination in which the Company will not be the surviving entity, the definitive agreement will provide for the holders
of rights to receive the same per share consideration the holders of the ordinary shares will receive in the transaction on an
as-converted into ordinary shares basis and each holder of rights will be required to affirmatively covert its rights in order
to receive 1/10 of a share underlying each right (without paying additional consideration). The shares issuable upon exchange of
the rights will be freely tradable (except to the extent held by affiliates of the Company).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Company is unable to complete a
Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of rights
will not receive any of such funds with respect to their rights, nor will they receive any distribution from the Company&rsquo;s
assets held outside of the Trust Account with respect to such rights, and the rights will expire worthless. Further, there are
no contractual penalties for failure to deliver securities to the holders of the rights upon consummation of a Business Combination.
Additionally, in no event will the Company be required to net cash settle the rights. Accordingly, the rights may expire worthless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The rights included in the Private Units
sold in the Private Placement are identical to the rights included in the Units sold in the Initial Public Offering, except that,
among others, the rights including the shares issuable upon exchange of such rights, are being purchased pursuant to an exemption
from the registration requirements of the Securities Act and will become tradable only after certain conditions are met or the
resale of such rights (including underlying securities) is registered under the Securities Act.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Warrants </I></B>&mdash; Public Warrants
may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The
Public Warrants will become exercisable upon the consummation of a Business Combination. No Public Warrants will be exercisable
for cash unless the Company has an effective and current registration statement covering the ordinary shares issuable upon exercise
of the Public Warrants and a current prospectus relating to such ordinary shares. Notwithstanding the foregoing, if a registration
statement covering the ordinary shares issuable upon the exercise of the Public Warrants is not effective within 120 days from
the consummation of a Business Combination, the holders may, until such time as there is an effective registration statement and
during any period when the Company shall have failed to maintain an effective registration statement, exercise the Public Warrants
on a cashless basis pursuant to an available exemption from registration under the Securities Act. If an exemption from registration
is not available, holders will not be able to exercise their Public Warrants on a cashless basis. The Public Warrants will expire
five years from the consummation of a Business Combination or earlier upon redemption or liquidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Private Warrants are identical to the
Public Warrants underlying the Units sold in the Initial Public Offering, except the Private Warrants are exercisable for cash
(even if a registration statement covering the ordinary shares issuable upon exercise of such Private Warrants is not effective)
or on a cashless basis, at the holder&rsquo;s option, and are not be redeemable by the Company, in each case so long as they are
still held by the Initial Shareholders or their affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company may call the warrants for redemption
(excluding the Private Warrants, but including any outstanding warrants issued upon exercise of the unit purchase option issued
to EarlyBirdCapital), in whole and not in part, at a price of $0.01 per warrant:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">at
any time while the Public Warrants are exercisable,</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">upon
not less than 30 days&rsquo; prior written notice of redemption to each Public Warrant holder,</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if,
and only if, the reported last sale price of the ordinary shares equals or exceeds $24.00 per share, for any 20 trading days within
a 30 trading day period ending on the third business day prior to the notice of redemption to Public Warrant holders, and</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if,
and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants
at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until
the date of redemption.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Company calls the Public Warrants
for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a
&ldquo;cashless basis,&rdquo; as described in the warrant agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exercise price and number of ordinary
shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend,
extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted
for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to
net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period and the
Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to
their warrants, nor will they receive any distribution from the Company&rsquo;s assets held outside of the Trust Account with respect
to such warrants. Accordingly, the warrants may expire worthless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Unit Purchase Option</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company sold to the underwriter and
its designees, for $100, an option to purchase up to 157,500 units exercisable at $10.00 per unit (or an aggregate exercise price
of $1,575,000) commencing on the later of the first anniversary of the effective date of the registration statement related to
the Initial Public Offering and the consummation of a Business Combination. The unit purchase option may be exercised for cash
or on a cashless basis, at the holder&rsquo;s option, and expires five years from the effective date of the registration statement
related to the Initial Public Offering. The units issuable upon exercise of this option are identical to the Units offered in
the Initial Public Offering. The Company accounted for the unit purchase option, inclusive of the receipt of $100 cash payment,
as an expense of the Initial Public Offering resulting in a charge directly to shareholders&rsquo; equity. The Company estimated
the fair value of the unit purchase option to be $528,441 (or $3.36 per Unit) using the Black-Scholes option-pricing model. The
fair value of the unit purchase option granted to the underwriters was estimated as of the date of grant using the following assumptions:
(1) expected volatility of 35%, (2) risk-free interest rate of 1.77% and (3) expected life of five years. The unit purchase option
and such units purchased pursuant to the unit purchase option, as well as the ordinary shares underlying such units, the rights
included in such units, the ordinary shares that are issuable for the rights included in such units, the warrants included in
such units, and the shares underlying such warrants, have been deemed compensation by FINRA and are therefore subject to a 180-day
lock-up pursuant to Rule 5110(g)(1) of FINRA&rsquo;s NASDAQ Conduct Rules. Additionally, the unit purchase option may not be sold,
transferred, assigned, pledged or hypothecated for a one-year period (including the foregoing 180-day period) following the date
of Initial Public Offering except to any underwriter and selected dealer participating in the Initial Public Offering and their
bona fide officers or partners. The unit purchase option grants to holders demand and &ldquo;piggy back&rdquo; rights for periods
of five and seven years, respectively, from the effective date of the registration statement with respect to the registration
under the Securities Act of the securities directly and indirectly issuable upon exercise of the option. The Company will bear
all fees and expenses attendant to registering the securities, other than underwriting commissions which will be paid for by the
holders themselves. The exercise price and number of units issuable upon exercise of the unit purchase option may be adjusted
in certain circumstances including in the event of a stock dividend, or the Company&rsquo;s recapitalization, reorganization,
merger or consolidation. However, the option will not be adjusted for issuances of ordinary shares at a price below its exercise
price.<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YEARS ENDED DECEMBER 31, 2018 AND 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 9. FAIR VALUE MEASUREMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company follows the guidance in ASC
820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial
assets and liabilities that are re-measured and reported at fair value at least annually.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the Company&rsquo;s financial
assets and liabilities reflects management&rsquo;s estimate of amounts that the Company would have received in connection with
the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants
at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize
the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal
assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify
assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 17.6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents information
about the Company&rsquo;s assets that are measured at fair value on a recurring basis at December 31, 2018 and 2017, and indicates
the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 18.7pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Description</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Marketable securities held in Trust Account</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: center">1</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">63,310,884</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">62,208,330</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 29.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 10. SUBSEQUENT EVENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 29.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates subsequent events
and transactions that occur after the balance sheet date up to the date that the consolidated financial statements were issued.
Other than as described below, the Company did not identify subsequent events that would have required adjustment or disclosure
in the consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2019, the Company converted
$100,000 of its promissory notes issued to Bison Capital into a convertible promissory note in the amount of $100,000 to evidence
the Working Capital Loans. The loan is evidenced by a promissory note, is non-interest bearing, unsecured and payable in cash or
convertible in Private Units at $10.00 per unit, at Bison Capital&rsquo;s discretion, on the consummation of a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2019, Bison Capital committed
to provide $200,000 in loans to the Company in order to finance transaction costs in connection with a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has filed a preliminary proxy
statement on February 22, 2019 and its amendment on March 4, 2019, pursuant to which it is seeking shareholder approval to extend
the time by which the Company is required to consummate a Business Combination from March 23, 2019 to June 24, 2019, or such earlier
date as determined by the Company&rsquo;s board of directors (the &ldquo;Extension Proposal&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 3, 2019, the Company received
a commitment from Xynomic that it has agreed to contribute to the Company as a loan $0.02 per month for each Public Share that
is not redeemed by the Company&rsquo;s shareholders (the &ldquo;Contribution&rdquo;) in connection with the Extension Proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 4, 2019, Bison filed a definitive
proxy statement on Schedule 14A for the shareholders&rsquo; approval on the Extension Amendment and Trust Amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 21, 2019, Bison held a special
meeting of stockholders (the &ldquo;Extension Meeting&rdquo;). At the Extension Meeting, the Company&rsquo;s stockholders approved
the following items: (i) an amendment to the Company&rsquo;s Amended and Restated Memorandum of Association and Articles of Association
extending the date by which the Company must consummate its initial business combination and the date for cessation of operations
of the Company if the Company has not completed an initial business combination from March 23, 2019 to June 24, 2019 or such earlier
date as determined by the Board of Directors of the Company (the &ldquo;Extension Amendment Proposal&rdquo;) and (ii) an amendment
(the &ldquo;Amendment to Trust Agreement&rdquo;) to the Trust Agreement (the &ldquo;Trust Agreement&rdquo;) between the Company
and Continental extending the date on which to commence liquidation of the Trust Account in accordance with the Trust Agreement,
as amended by the Amendment to Trust Agreement, from March 23, 2019 to June 24, 2019 (the &ldquo;Trust Amendment Proposal&rdquo;).
In connection with the Extension Meeting, shareholders holding 5,234,420 public shares exercised their right to redeem such public
shares for a pro rata portion of the Trust Account. As a result, an aggregate of $55,177,977 (or $10.54 per share) was removed
from the Trust Account to pay such holders.&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_003"></A>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March&nbsp;31,<BR> 2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">(Unaudited)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in">Current Assets</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-left: 0.25in">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,210</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">122,615</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">15,089</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">27,299</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.375in">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,299</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">149,914</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Marketable securities held in Trust Account</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8,477,530</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">63,310,884</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total Assets</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">8,495,829</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">63,460,798</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Accounts payable and accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">227,799</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">164,893</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Advances from related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,804</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,804</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Convertible promissory note &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Promissory note &ndash; related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">110,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">200,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total Current Liabilities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">839,603</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">766,697</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Commitments and Contingencies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Ordinary shares subject to redemption, 251,625 and 5,501,868 shares at redemption value as of March 31, 2019 and December 31, 2018, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,656,225</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,694,100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Shareholders&rsquo; Equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0in">Preferred shares, no par value; unlimited shares authorized, none issued and outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in; text-indent: -0.125in">Ordinary shares, no par value; unlimited shares authorized; 2,492,892 and 2,477,069 shares issued and outstanding (excluding 251,625 and 5,501,868 shares subject to redemption) as of March 31, 2019 and December 31, 2018, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,636,334</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,776,436</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Retained earnings</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">363,667</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">223,565</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total Shareholders&rsquo; Equity</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,000,001</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,000,001</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">TOTAL LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">8,495,829</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">63,460,798</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of the unaudited condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<BR> March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-bottom: 1.5pt">Operating costs</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">204,521</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">125,916</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0.125in">Loss from operations</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(204,521</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(125,916</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other income:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">347,210</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">220,841</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Unrealized loss on marketable securities held in Trust Account</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,587</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(19,491</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; text-indent: 0.125in">Net income</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">140,102</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">75,434</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted average shares outstanding, basic and diluted&nbsp;<SUP>(1)</SUP></FONT></TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,477,069</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,405,433</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basic and diluted net income (loss) per ordinary share&nbsp;</B><SUP>(2)</SUP></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">0.01</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(0.05</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Excludes
an aggregate of up to 251,625 and 5,562,820 ordinary shares subject to possible redemption at March 31, 2019 and 2018, respectively.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
income (loss) per ordinary share - basic and diluted excludes income attributable to shares subject to possible redemption of
$107,970 and $185,524 for the three months ended March 31, 2019 and 2018, respectively (see Note 2).</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of the unaudited condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 244.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS&rsquo; EQUITY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Ordinary Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">Retained</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">Total<BR> Shareholders&rsquo;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Earnings</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Equity</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%">Balance &ndash; January 1, 2019</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,477,069</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,776,436</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">223,565</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,000,001</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in; text-indent: -0.125in">Change in value of ordinary shares subject to possible redemption</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,823</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(140,102</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(140,102</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">140,102</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">140,102</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt">Balance &ndash; March 31, 2019 (unaudited)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,492,892</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,636,334</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">363,667</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,000,001</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>

<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Ordinary Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1.5pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.05in 0pt 0; text-align: center"><B>Retained
<BR>
Earnings/<BR>
(Accumulated)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">Total<BR> Shareholders&rsquo;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Deficit</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Equity</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%">Balance &ndash; January 1, 2018</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,405,433</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,043,062</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(43,061</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,000,001</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Change in value of ordinary shares subject to possible redemption</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,684</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(75,434</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(75,434</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,434</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,434</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt">Balance &ndash; March 31, 2018 (unaudited)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,416,117</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,967,628</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">32,373</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,000,001</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of the unaudited condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<BR> March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Cash Flows from Operating Activities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">140,102</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">75,434</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments to reconcile net income to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Interest earned on marketable securities held in Trust Account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(347,210</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(220,841</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Unrealized loss on marketable securities held in Trust Account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,587</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,491</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,210</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,009</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Accounts payable and accrued expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">62,906</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">36,698</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0.375in">Net cash used in operating activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(129,405</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(67,209</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Cash Flows from Investing Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Cash withdrawn from Trust Account</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">55,177,977</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0.375in">Net cash provided by investing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">55,177,977</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Cash Flows from Financing Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Proceeds from promissory note &ndash; related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Redemption of ordinary shares</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(55,177,977</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0.375in">Net cash used in financing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(55,167,977</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Net Change in Cash</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(119,405</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(67,209</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Cash &ndash; Beginning</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">122,615</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">210,088</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt">Cash &ndash; Ending</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">3,210</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">142,879</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Non-Cash investing and financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Change in value of ordinary shares subject to possible redemption</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">140,102</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">75,434</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Conversion of promissory notes to convertible promissory notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part
of the unaudited condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARCH 31, 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bison Capital Acquisition Corp. (the &ldquo;Company&rdquo;)
is a blank check company incorporated in the British Virgin Islands on October 7, 2016. The Company was formed for the purpose
of acquiring, engaging in a share exchange, share reconstruction and amalgamation, purchasing all or substantially all of the assets
of, entering into contractual arrangements, or engaging in any other similar business combination with one or more businesses or
entities (a &ldquo;Business Combination&rdquo;). Although the Company is not limited to a particular industry or geographic region
for purposes of consummating an initial business combination, the Company focuses on businesses that have their primary operations
located in Asia and North America in media/entertainment, consumer services and healthcare industries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All activity through March 31, 2019 relates
to the Company&rsquo;s formation, its initial public offering of 6,037,500 units (the &ldquo;Initial Public Offering&rdquo;), the
simultaneous sale of 432,062 units (the &ldquo;Private Units&rdquo;) in a private placement to the Company&rsquo;s sponsor, Bison
Capital Holding Company Limited (&ldquo;Bison Capital&rdquo;) and EarlyBirdCapital, Inc. (&ldquo;EarlyBirdCapital&rdquo;) and their
designees, identifying a target company for a Business Combination and activities in connection with the proposed acquisition of
Xynomic Pharmaceuticals, Inc., a Delaware corporation (&ldquo;Xynomic&rdquo;) (see Note 5).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has one subsidiary, Bison Capital
Merger Sub Inc., a wholly-owned subsidiary of the Company incorporated in Delaware on August 20, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Company&rsquo;s Memorandum
of Association and Articles of Association, the Company initially had until March 23, 2019 to consummate a Business Combination.
On March 21, 2019, the Company shareholders approved to extend the period of time for which the Company is required to consummate
a Business Combination until June 24, 2019 (the &ldquo;Combination Period&rdquo;), or such earlier date as determined by the Company&rsquo;s
Board of Directors (the &ldquo;Extension Amendment&rdquo;). Shareholders holding 5,234,420 public shares exercised their right
to redeem such public shares for a pro rata portion of the Trust Account. The Company paid cash in the aggregate amount of $55,177,977,
or approximately $10.54 per share, to redeeming shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 3, 2019, the Company received
a commitment from Xynomic that it has agreed to contribute to the Company as a loan $0.02 per month for each public share that
is not redeemed by the Company&rsquo;s shareholders (the &ldquo;Contribution&rdquo;) in connection with the Extension Amendment.
The amount of the Contribution will not bear interest and will be repayable by the Company to Xynomic upon consummation of a Business
Combination. Xynomic will have the sole discretion whether to continue extending for additional calendar months until the Combination
Period and if Xynomic determines not to continue extending for additional calendar months, its obligation to make Contributions
following such determination will terminate. In May 2019, $16,062 was loaned to the Company and deposited into the Trust Account,
which amount is equal to $0.02 for each of the 803,080 shares that were not redeemed (see Note 8).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Liquidity</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has principally financed its
operations from inception using proceeds from the sale of its equity securities to its shareholders prior to the Initial Public
Offering (the &ldquo;Initial Shareholders&rdquo;) and such amount of proceeds from the Initial Public Offering that were placed
in an account outside of the Trust Account for working capital purposes. As of March 31, 2019, the Company had $3,210 of cash held
outside of the Trust Account. As of March 31, 2019, Bison Capital has loaned the Company an aggregate of $610,000 and has committed
to provide an additional $190,000 in loans to the Company. Based on the foregoing, the Company believes it will have sufficient
cash to meet its needs through the earlier of consummation of a Business Combination or June 24, 2019, the date that the Company
will be required to cease all operations except for the purpose of winding up, if a Business Combination is not consummated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Basis of presentation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
(&ldquo;GAAP&rdquo;) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation
S-X of the Securities and Exchange Commission (the &ldquo;SEC&rdquo;). Certain information or footnote disclosures normally included
in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations
of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a
comprehensive presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying
unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are
necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARCH 31, 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying unaudited condensed consolidated
financial statements should be read in conjunction with the Company&rsquo;s Annual Report on <A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019003564/f10k2018_bisoncapitalacq.htm">Form 10-K</A> for the year ended December
31, 2018 as filed with the SEC on March 5, 2019, which contains the audited financial statements and notes thereto, together with
Management&rsquo;s Discussion and Analysis. The financial information as of December 31, 2018 is derived from the audited financial
statements presented in the Company&rsquo;s Annual Report on <A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019003564/f10k2018_bisoncapitalacq.htm">Form 10-K</A> for the year December 31, 2018. The interim results for
the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December
31, 2019 or for any future interim periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Principles of Consolidation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying condensed consolidated
financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances
and transactions have been eliminated in consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Use of estimates</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements
in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Making estimates requires management to
exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or
set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate,
could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from
those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Net income (loss) per share</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net income (loss) per share is computed
by dividing net income (loss) by the weighted average number of ordinary shares outstanding during the period. The Company applies
the two-class method in calculating earnings per share. Ordinary shares subject to possible redemption at March 31, 2019 and 2018,
which are not currently redeemable and are not redeemable at fair value, have been excluded from the calculation of basic income
(loss) per share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company
has not considered the effect of (1) warrants sold in the Initial Public Offering and private placement to purchase 3,234,781 ordinary
shares, (2) rights sold in the Initial Public Offering and private placement that convert into 646,957 ordinary shares, and (3)
157,500 ordinary shares, warrants to purchase 78,750 ordinary shares and rights that convert into 15,750 ordinary shares in the
unit purchase option sold to the underwriter, in the calculation of diluted income (loss) per share, since the exercise of the
warrants and the conversion of the rights into ordinary shares is contingent upon the occurrence of future events. As a result,
diluted income (loss) per share is the same as basic income (loss) per share for the periods presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Reconciliation of net income (loss)
per ordinary share</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s net income is adjusted
for the portion of income that is attributable to ordinary shares subject to redemption, as these shares only participate in the
earnings of the Trust Account and not the income or losses of the Company. Accordingly, basic and diluted income (loss) per ordinary
share is calculated as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<BR> March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">140,102</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">75,434</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: Income attributable to ordinary shares subject to redemption</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(107,970</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(185,524</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Adjusted net income (loss)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">32,132</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(110,090</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Weighted average shares outstanding, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,477,069</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,405,433</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Basic and diluted net income (loss) per ordinary share</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">0.01</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.05</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARCH 31, 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Recent accounting pronouncements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management does not believe that any recently
issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company&rsquo;s
condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 3. RELATED PARTY TRANSACTIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Related Party Loans and Promissory Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In order to finance transaction costs in
connection with a Business Combination, Bison Capital or the Company&rsquo;s officers and directors or their respective affiliates
may, but are not obligated to, loan the Company funds as may be required (the &ldquo;Working Capital Loans&rdquo;). If the Company
completes a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does
not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds
held in the Trust Account would be used to repay the Working Capital Loans. Such Working Capital Loans would be evidenced by promissory
notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender&rsquo;s
discretion, up to $500,000 of notes may be converted upon consummation of a Business Combination into additional Private Units
at a price of $10.00 per unit (the &ldquo;Working Capital Units&rdquo;). As of March 31, 2019, Bison Capital has loaned the Company
an aggregate of $500,000, which is evidenced by a promissory note, non-interest bearing, unsecured and payable in cash or convertible
in Private Units at $10.00 per unit, at Bison Capital&rsquo;s discretion, on the consummation of a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2019, $100,000 of loans from
Bison Capital were converted into convertible promissory loans and is included in the $500,000 outstanding amount noted above.&nbsp;In
addition, as of March 31, 2019, Bison Capital has loaned the Company an aggregate amount of $110,000 in order to finance transaction
costs in connection with a Business Combination. The loan is non-interest bearing, unsecured and due to be paid on the consummation
of a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2019, Bison Capital committed
to provide $200,000 in loans to the Company in order to finance transaction costs in connection with a Business Combination. In
March 2019, Bison Capital loaned the Company $10,000. The loan is non-interest bearing, unsecured and due to be paid on the consummation
of a Business Combination. Any additional loans will be evidenced by a promissory note, will be non-interest bearing, unsecured
and will only be repaid upon the completion of a Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At March 31, 2018, an aggregate of $610,000
is owed by the Company to Bison Capital pursuant to the above loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Administrative Services Arrangement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bison Capital entered into an agreement
whereby, commencing on June 19, 2017 through the earlier of the Company&rsquo;s consummation of a Business Combination and its
liquidation, to make available to the Company certain general and administrative services, including office space, utilities and
administrative services, as the Company may require from time to time. The Company will pay Bison Capital $5,000 per month for
these services. For the three months ended March 31, 2019 and 2018, the Company incurred $15,000 and $12,500, respectively, in
fees for these services. At March 31, 2019 and December 31, 2018, $105,000 and $90,000 in administrative fees, respectively, are
included in accounts payable and accrued expenses in the accompanying condensed balance sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 4. COMMITMENTS AND CONTINGENCIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Registration Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to a registration rights agreement
entered into on June 19, 2017, the holders of the ordinary shares issued to the Initial shareholders (the &ldquo;Founder Shares&rdquo;),
Private Units (and underlying securities) and working capital units (and underlying securities) are entitled to registration rights.
The holders of a majority-in-interest of these securities are entitled to make up to three demands, excluding short form demands,
that the Company register such securities. In addition, the holders have certain &ldquo;piggy-back&rdquo; registration rights with
respect to registration statements filed subsequent to the consummation of a Business Combination. Notwithstanding anything to
the contrary, EarlyBirdCapital may participate in a &ldquo;piggy-back&rdquo; registration only during the seven year period beginning
on the effective date of the registration statement. However, the registration rights agreement provides that the Company will
not permit any registration statement filed under the Securities Act of 1993, as amended, to become effective until termination
of the applicable lock-up period. The Company will bear the expenses incurred in connection with the filing of any such registration
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARCH 31, 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Business Combination Marketing Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 19, 2017, the Company entered into
a Business Combination Marketing Agreement with EarlyBirdCapital wherein EarlyBirdCapital would act as an advisor in connection
with a Business Combination to assist the Company in holding meetings with its shareholders to discuss the potential Business Combination
and the target business&rsquo; attributes, introduce the Company to potential investors that are interested in purchasing the Company&rsquo;s
securities, assist the Company in obtaining shareholder approval for the Business Combination and assist the Company with its press
releases and public filings in connection with the Business Combination. The Company will pay EarlyBirdCapital a cash fee for such
services upon the consummation of a Business Combination in an amount equal to $1,811,250 (exclusive of any applicable finders&rsquo;
fees which might become payable). Notwithstanding the foregoing, the fee will be reduced by an amount equal to 2% of the dollar
amount of purchases of the Company&rsquo;s ordinary shares by investors introduced to the Company by Bison Capital or the Company&rsquo;s
officers, directors or their respective affiliates following announcement by the Company of a proposed vote on such Business Combination
and do not seek conversion of their shares in connection with such proposed Business Combination; provided, however, that the fee
will not be reduced by more than $500,000.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Finders Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 16, 2017, the Company entered
into a finder agreement (the &ldquo;Finder Agreement&rdquo;) with EarlyBirdCapital pursuant to which EarlyBirdCapital will introduce
potential targets (the &ldquo;Targets&rdquo;) to the Company on a nonexclusive basis in connection with a Business Combination.
The Company shall pay EarlyBirdCapital for its services, upon the closing (or closings) of a Business Combination with a Target,
a cash fee equal to 1.0% of the Total Consideration (as defined in the Finder Agreement) deducting any finder fee, advisor fee
or any other type of service fee or compensation that Target has paid or has agreed to pay to EarlyBirdCapital in connection with
such Business Combination. The Company shall also reimburse EarlyBirdCapital for all out-of-pocket expenses incurred and such expenses
shall not exceed $10,000 in the aggregate through the termination of the Finder Agreement unless otherwise consented to in writing
by the Company in advance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 5. MERGER AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 12, 2018, the Company entered
into an Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;) with Xynomic, Bison Capital Merger Sub Inc., a Delaware
corporation (&ldquo;Merger Sub&rdquo;), and Yinglin Mark Xu (&ldquo;Stockholder Representative&rdquo;), solely in his capacity
as the Stockholder Representative thereunder. Pursuant to the Merger Agreement, among other things, Merger Sub will merge with
and into Xynomic, with Xynomic continuing as the surviving entity and a wholly-owned subsidiary of the Company (the &ldquo;Merger&rdquo;
and the &ldquo;Surviving Company&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the effective date of the closing (the
&ldquo;Effective Time&rdquo;), each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective
Time (excluding dissenting shares, if any) will be automatically converted into the right to receive, on a pro rata basis, the
Closing Consideration Shares (as defined below) and the Earnout Shares (as defined below), and each option to purchase Xynomic
stock that is outstanding immediately prior to the Effective Time will be assumed by the Company and automatically converted into
an option to purchase shares of common stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Merger Agreement, the aggregate
merger consideration payable upon the Closing (the &ldquo;Aggregate Merger Consideration&rdquo;) consists of the Closing Merger
Consideration (as defined below) and the Earnout Consideration (as defined below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The &ldquo;Closing Merger Consideration&rdquo;
means (a) $350,000,000,&nbsp;<U>minus</U>&nbsp;(i) the amount of Xynomic&rsquo;s closing indebtedness,&nbsp;<U>plus</U>&nbsp;(ii)
the amount of Xynomic&rsquo;s closing cash,&nbsp;<U>minus</U>&nbsp;(iii) the amount of Xynomic&rsquo;s transaction expenses,&nbsp;<U>plus</U>&nbsp;(iv)
certain closing tax assets,&nbsp;<U>plus</U>&nbsp;(v) the amount, if any, by which Xynomic&rsquo;s closing working capital exceeds
an agreed upon target amount of working capital, minus (vi) the amount, if any, by which such target amount of working capital
exceeds Xynomic&rsquo;s closing working capital. The Closing Merger Consideration is payable in newly issued shares (the &ldquo;Closing
Consideration Shares&rdquo;) of the Company&rsquo;s common stock at a value of $10.15 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Merger Agreement provides that, in
addition to the Closing Merger Consideration, Xynomic stockholders will receive additional consideration of an additional 9,852,216
shares of Company common stock (representing $100,000,000 based on a $10.15 per share value of the Company&rsquo;s common stock).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Consummation of the transactions contemplated
by the Merger Agreement is subject to the satisfaction or waiver by the respective parties of a number of conditions, including
the approval of the Merger Agreement and the transactions contemplated thereby by Xynomic&rsquo;s and the Company&rsquo;s respective
stockholders. Other closing conditions include, among others: (i) the respective representations of the parties to each other being
true and correct; (ii) performance and compliance with in all material respects of the respective covenants and agreements of each
party; (iii) the applicable waiting periods, if any, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 having expired
or terminated; (iv) the Company having at least $7,500,000 of net tangible assets remaining after the closing of the contemplated
transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Merger also calls for additional agreements,
including, among others, the Escrow Agreement, the Non-competition Agreements, the Lock-Up Agreements, the Voting and Support Agreement,
and the Registration Rights Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 6. SHAREHOLDERS&rsquo; EQUITY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Preferred Shares</I></B>&nbsp;&mdash;
The Company is authorized to issue an unlimited number of no par value preferred shares, divided into five classes, Class A through
Class E, each with such designation, rights and preferences as may be determined by a resolution of the Company&rsquo;s board
of directors to amend the Memorandum and Articles of Association to create such designations, rights and preferences. The Company
has five classes of preferred shares to give the Company flexibility as to the terms on which each Class is issued. All shares
of a single class must be issued with the same rights and obligations. Accordingly, starting with five classes of preferred shares
will allow the Company to issue shares at different times on different terms. At March 31, 2019 and December 31, 2018, there are
no preferred shares designated, issued or outstanding.<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BISON CAPITAL ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARCH 31, 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Ordinary Shares</I></B>&nbsp;&mdash;
The Company is authorized to issue an unlimited number of no par value ordinary shares. Holders of the Company&rsquo;s ordinary
shares are entitled to one vote for each share. At March 31, 2019 and December 31, 2018, there were 2,492,892 and 2,477,069 ordinary
shares issued and outstanding, respectively (excluding 251,625 and 5,501,868 ordinary shares subject to possible redemption).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 7. FAIR VALUE MEASUREMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company follows the guidance in ASC
820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial
assets and liabilities that are re-measured and reported at fair value at least annually.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the Company&rsquo;s financial
assets and liabilities reflects management&rsquo;s estimate of amounts that the Company would have received in connection with
the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants
at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize
the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal
assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify
assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 17.6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents information
about the Company&rsquo;s assets that are measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018,
and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 18.7pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Description</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March&nbsp;31,<BR> 2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Marketable securities held in Trust Account</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: center">1</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">8,477,530</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">63,310,884</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 8. SUBSEQUENT EVENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 29.7pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates subsequent events
and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements were
issued. Other than as described below, the Company did not identify subsequent events that would have required adjustment or disclosure
in the condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May&nbsp;1, 2019, the Company and Yinglin
Mark Xu entered into a Backstop and Subscription Agreement (the &ldquo;<B><I>Backstop Agreement</I></B>&rdquo;), pursuant to which
Yinglin Mark Xu agreed to purchase up to $7,500,001 ordinary shares in the open market or in other privately negotiated transactions
with third parties (Yinglin Mark Xu is not obligated to pay a price of greater than $10.15 per share); or from the Company at a
price of $10.15 per share concurrently with the consummation of the Business Combination, in order to ensure that the Company has
at least $7,500,001 of net tangible assets remaining at the Closing after giving effect to the redemption of any ordinary shares
by the public shareholders in connection with the Business Combination with Xynomic (the &ldquo;<B><I>Backstop Commitment</I></B>&rdquo;).
The Company&rsquo;s charter does not allow the Company to issue any additional shares or any debt securities that would entitle
the holders to receive funds from the Trust Account or vote on any Business Combination proposal. As any purchase by Yinglin Mark
Xu under the Backstop Commitment would occur after the Record Date, he would not be entitled to vote those shares on the Business
Combination proposals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the Closing, the Company and Yinglin
Mark Xu will enter into a registration rights agreement, in a form to be agreed upon, with respect to the ordinary shares purchased
by Yinglin Mark Xu in connection with the Backstop Agreement (the &ldquo;<B><I>Backstop Shares</I></B>&rdquo;). If Yinglin Mark
Xu assigns all or a portion of its obligations under the Backstop Agreement to investors that are qualified institutional buyers
or institutional accredited investors, such assignees will take a proportionate share of Yinglin Mark Xu&rsquo;s rights with respect
to the Backstop Shares and proportionate rights under the registration rights agreement contemplated by the Backstop Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the Backstop Commitment,
the Company will be able to consummate the Business Combination even if all of its public shares are redeemed by the public shareholders
as long as the share purchases by Yinglin Mark Xu contemplated by the Backstop Commitment close immediately prior to the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In May 2019, $16,062 was loaned to the
Company and deposited into the Trust Account, which amount is equal to $0.02 for each of the 803,080 shares that were not redeemed.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_004"></A>Report of Independent Registered Public
Accounting Firm</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the Shareholders and Board of Directors<BR>
Xynomic Pharmaceuticals, Inc.:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Opinion on the Consolidated Financial
Statements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying consolidated
balance sheets of Xynomic Pharmaceuticals, Inc. and subsidiaries (the Company) as of December&nbsp;31, 2017 and 2018, the related
consolidated statements of comprehensive loss, changes in shareholders&rsquo; deficit, and cash flows for the years then ended,
and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements
present fairly, in all material respects, the financial position of the Company as of December&nbsp;31, 2017 and 2018, and the
results of its operations and its cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Going Concern</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated
financial statements, the Company has suffered recurring losses from operations, has net current liabilities and accumulated deficit,
and has limited resources available to fund current research and development activities, and will require substantial additional
financing to continue to fund its research and development activities that raise substantial doubt about its ability to continue
as a going concern. Management&rsquo;s plans in regard to these matters are also described in Note 1. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Basis for Opinion</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These consolidated financial statements
are the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on these consolidated financial
statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United
States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws
and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing
procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements. We believe that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">/s/ KPMG Huazhen LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the Company&rsquo;s auditor since 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Beijing, China<BR>
April 3, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="f_005"></A>XYNOMIC
PHARMACEUTICALS, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED <FONT STYLE="text-transform: uppercase">BALANCE
SHEETS</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>(I</B></FONT><B>n
U.S. dollars, except share data<FONT STYLE="text-transform: uppercase">)</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Note</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-style: italic">Current assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 65%; padding-left: 0.125in">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center">3</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">100,344</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,746,370</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">5</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,122</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">277,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Prepaid expenses to a shareholder</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">14</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">116,244</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">237,710</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,024,120</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2(f)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">280,730</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2(g)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,937</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Other non-current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">6</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">155,176</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">239,584</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,461,963</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS&rsquo; DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 0.125in">Current liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Bank overdraft</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">33,619</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,954</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 0in; padding-left: 0.125in">Accrued expenses and other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">7</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">229,982</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,407,261</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: 0in; padding-left: 0.125in">Amount due to shareholders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">14</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">630,903</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,233,728</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total current liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">894,504</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">17,645,943</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total liabilities</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">894,504</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">17,645,943</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Commitments and Contingencies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">13</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left">Mezzanine equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Angel Preferred Shares (par value US$0.0001 per share as of December 31, 2017 and 2018; 23,435,379 shares authorized, issued and outstanding as of December 31, 2017 and 2018. Redemption value of US$537,274&nbsp;&nbsp;and US$580,256 as of December 31, 2017 and 2018; Liquidation value of US$751,233 and US$811,332 as of December 31, 2017 and 2018)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">9</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">537,274</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">580,256</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Series A-1 Preferred Shares (par value US$0.0001 per share as of December 31, 2017 and 2018; 12,147,500 shares authorized, issued and outstanding as of December 31, 2017 and 2018. Redemption value of US$4,542,389 and US$4,905,780 as of December 31, 2017 and 2018; Liquidation value of US$6,448,355 and US$6,964,223 as of December 31, 2017 and 2018)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">9</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,542,389</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,905,780</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Series B Preferred Shares (par value US$0.0001 per share as of December 31, 2018; nil and 5,281,101 shares authorized, nil and 5,281,101 shares issued and outstanding as of December 31, 2017 and 2018. Redemption value of US$2,424,712 as of December 31, 2018; Liquidation value of US$24,335,989 as of December 31, 2018)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">9</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,424,712</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total mezzanine equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,079,663</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,910,748</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left">Shareholders&rsquo; deficit:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Ordinary shares (par value US$0.0001 per share as of December 31, 2017 and 2018; 149,617,121 shares authorized, 9,617,121 shares issued and outstanding as of December 31, 2017 and 2018)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">962</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">962</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,168,915</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accumulated other comprehensive income</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,564</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,735,545</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(34,323,169</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total shareholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(5,734,583</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(20,094,728</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 0.125in; text-indent: -0.125in">TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS&rsquo; DEFICIT</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">239,584</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,461,963</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>The accompanying notes are an integral
part of these consolidated financial statements.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>XYNOMIC
PHARMACEUTICALS, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED <FONT STYLE="text-transform: uppercase">statements
of COMPREHENSIVE lOSS</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>(I</B></FONT><B>n
U.S. dollars, except share data<FONT STYLE="text-transform: uppercase">) </FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Note</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Year Ended<BR> December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 65%; text-align: left; padding-left: 0.125in">Research and development</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,321,247</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">25,159,602</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">884,980</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,049,353</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">General and administrative to related parties</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">14</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">248,737</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">362,336</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,454,964</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">28,571,291</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">5,454,964</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">28,571,291</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Other income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Investment income</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">16,541</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total other income, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">16,541</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Interest expenses to a related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">14</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">32,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Loss from operations before income tax benefit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">5,454,964</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">28,587,624</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Income tax</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">4</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">5,454,964</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">28,587,624</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accretion to preferred share redemption value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,269,366</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,831,085</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net loss attributable to ordinary shareholders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">6,724,330</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">31,418,709</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Other comprehensive (income)/loss:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Foreign currency translation adjustment, net of nil income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(58,564</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Unrealized gain on available for sale securities, net of nil income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16,541</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in">Less: reclassification adjustment for gain on available for sale securities realized in net income, net of nil income taxes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">16,541</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total other comprehensive income</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(58,564</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Comprehensive loss attributable to ordinary shareholders</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">6,724,330</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">31,360,145</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Weighted average ordinary shares outstanding &ndash; basic and diluted</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">8,826,673</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">9,617,121</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Loss per share - basic and diluted</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">11</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.76</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3.27</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>The accompanying notes are an integral
part of these consolidated financial statements.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>XYNOMIC
PHARMACEUTICALS, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS&rsquo; DEFICIT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>(I</B></FONT><B>n
U.S. dollars, except share data<FONT STYLE="text-transform: uppercase">) </FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp; </I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 8pt; text-indent: -8pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Ordinary shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">Additional<BR> paid-in</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">Accumulated Other Comprehensive</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">Accumulated</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">Total Shareholders&rsquo;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 8pt; text-indent: -8pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">capital</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Income</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">deficit</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Deficit</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font-weight: bold; padding-bottom: 1.5pt; padding-left: 8pt; text-indent: -8pt">Balance as of January&nbsp;1, 2017</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 7%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 7%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 7%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 7%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(918</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 7%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(918</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 8pt; text-indent: -8pt">Issuance of ordinary shares (Note 10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,617,121</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">962</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">989,703</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">990,665</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 8pt; text-indent: -8pt">Redeemable convertible preferred shares redemption value accretion (Note 9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(989,703</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(279,663</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,269,366</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 8pt; text-indent: -8pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,454,964</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,454,964</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 8pt; text-indent: -8pt">Balance as of December&nbsp;31, 2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">9,617,121</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">962</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(5,735,545</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(5,734,583</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 8pt; text-indent: -8pt">Beneficial conversion feature of Series B Preferred Shares (Note 9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 8pt; text-indent: -8pt">Redeemable convertible preferred shares redemption value accretion (Note 9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,831,085</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,831,085</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 8pt; text-indent: -8pt">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,587,624</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,587,624</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 8pt; text-indent: -8pt">Foreign currency translation adjustment, net of nil income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,564</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,564</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 8pt; text-indent: -8pt">Unrealized holding gains on available-for-sale security, net of nil income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,541</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,541</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 8pt; text-indent: -8pt">Reclassification adjustment for gains on available-for-sale securities realized in net income, net of nil income taxes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(16,541</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(16,541</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt; padding-left: 8pt; text-indent: -8pt">Balance as of December&nbsp;31, 2018</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">9,617,121</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">962</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">14,168,915</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">58,564</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(34,323,169</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(20,094,728</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp; &nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>The accompanying notes are an integral
part of these consolidated financial statements.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="text-transform: uppercase"><B>XYNOMIC
PHARMACEUTICALS, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED <FONT STYLE="text-transform: uppercase">statements
of cash flows</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>(I</B></FONT><B>n
U.S. dollars<FONT STYLE="text-transform: uppercase">)</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Year Ended<BR> December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">CASH FLOWS FROM OPERATING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(5,454,964</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(28,587,624</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left">Adjustments to reconcile net loss to net cash provided by operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16,541</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">170</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">605</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Depreciation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">505</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21,122</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(266,910</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Prepaid expenses to a shareholder</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(116,244</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">116,244</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Other non-current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(157,483</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Accrued expenses and other payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">229,382</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,074,501</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Amount due to shareholders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">113,514</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net cash used in operating activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(5,362,778</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(14,723,189</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Purchase of intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,044</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(684</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Purchase of property and equipment</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(176,815</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Purchase of short-term investments</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,447,904</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Sale of short-term investments</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,496,052</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net cash used in investing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(2,044</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(129,351</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Bank overdraft</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,619</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,665</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Proceeds from advance from a Series B shareholder</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,425,959</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Repayment of advance from a Series B shareholder</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(262,743</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Proceeds from short-term loan</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">906,810</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Repayment of short-term loan</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(877,450</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Proceeds from issuance of ordinary shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">962</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Proceeds from issuance of Series Angel Preferred Shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Proceeds from issuance of Series A-1 Preferred Shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,300,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Proceeds from issuance of convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Proceeds from issuance of Series B Preferred Shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Advance from a shareholder</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">630,585</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,407,054</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net cash provided by financing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,465,166</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">19,570,965</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Effect of foreign exchange rate changes on cash</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(72,399</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">NET INCREASE IN CASH</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">100,344</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,646,026</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">CASH, BEGINNING OF THE YEAR</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100,344</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">CASH, END OF THE YEAR</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">100,344</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,746,370</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">SUPPLEMENTAL INFORMATION</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Interest paid</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Income tax paid</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Non-cash transactions:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Discount due to beneficial conversion feature</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">17,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Convertible notes converted into Series B Preferred Shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>The accompany notes are an integral
part of these consolidated financial statements.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>XYNOMIC
PHARMACEUTICALS, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOR THE YEARS ENDED DECEMBER 31, 2017
AND 2018</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>(I</B></FONT><B>n
U.S. dollars, except share data<FONT STYLE="text-transform: uppercase">)</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ORGANIZATION
AND PRINCIPAL ACTIVITIES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Xynomic Pharmaceuticals, Inc.
(the &ldquo;Company&rdquo; or &ldquo;Xynomic&rdquo;) was incorporated in the United States on August 24, 2016. The Company and
its subsidiaries (collectively, the &ldquo;Group&rdquo;), are primarily engaged in in-licensing, developing and commercializing
oncology drug candidates in the People&rsquo;s Republic of China (&ldquo;PRC&rdquo;), the United States, and rest of the world.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As of December 31, 2018, the
Company&rsquo;s subsidiaries are as following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subsidiaries</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date of incorporation</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Place of incorporation <BR>
/establishment</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percentage of economic ownership</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 50%; padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Xynomic Pharmaceuticals
    (Nanjing) Co., Ltd. <BR>
(&ldquo;Xynomic Nanjing&rdquo;)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 20%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November&nbsp;20,&nbsp;2017</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRC</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Xynomic Pharmaceuticals (Shanghai) Co., Ltd.
    <BR>
(&ldquo;Xynomic Shanghai&rdquo;)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July 31, 2018</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRC</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Xynomic Pharmaceuticals (Zhongshan) Co., Ltd.
    <BR>
(&ldquo;Xynomic Zhongshan&rdquo;)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 15, 2018</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRC</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>Liquidity </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has not generated any
revenues from product sales. Substantial additional financing will be required by the Group to continue to fund its research and
development activities. No assurance can be given that any such financing will be available when needed or that the Group&rsquo;s
research and development efforts will be successful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group&rsquo;s ability to
fund operations is based on its ability to attract investors and its ability to borrow funds on reasonable economic terms. Historically,
the Group has relied principally on equity financing and shareholder&rsquo;s borrowings to fund its operations and business development.
The Group&rsquo;s ability to continue as a going concern is dependent on management&rsquo;s ability to successfully execute its
business plan, which includes generating revenues after drug marketing, controlling operating expenses, as well as, continuing
to obtain additional equity financing. On April 3, 2018, the Group issued convertible notes to Northern Light Venture Capital V,
Ltd., and Bo Tan and received proceeds of US$2,500,000, which were converted into 776,633 Series B Preferred Shares in August 2018.
Further in August 2018, the Group raised US$17 million by issuance of 5,281,101 Series B Preferred Shares to certain investors,
including the conversion of convertible notes of US$2.5 million. On September 12, 2018, the Group entered into an Agreement and
Plan of Merger (the &ldquo;Merger Agreement&rdquo;) with Yinglin Mark Xu, Bison Capital Acquisition Corp. (&ldquo;BCAC&rdquo;),
a Special Purpose Acquisition Company listed in Nasdaq, and Bison Capital Merger Sub Inc. (&ldquo;Merger Sub&rdquo;). Pursuant
to the Merger Agreement, among other things, Merger Sub will merge with and into Xynomic, with Xynomic continuing as the surviving
entity and a wholly-owned subsidiary of BCAC (the &ldquo;Merger&rdquo; and the &ldquo;Surviving Company&rdquo;). The Merger Agreement
is contingent depending on the approval of shareholders and others described in Merger Agreement. This business combination is
still in process. On March 21, 2019, BCAC&rsquo;s stockholders approved the following items: (i) an amendment to the BCAC&rsquo;s
Amended and Restated Memorandum of Association and Articles of Association extending the date by which BCAC must consummate its
initial business combination and the date for cessation of operations of BCAC if BCAC has not completed an initial business combination
from March 23, 2019 to June 24, 2019 or such earlier date as determined by the Board of Directors of BCAC (the &ldquo;Extended
Termination Date&rdquo;) and (ii) an amendment (the &ldquo;Amendment to Trust Agreement&rdquo;) to the Trust Agreement (the &ldquo;Trust
Agreement&rdquo;) between BCAC and Continental extending the date on which to commence liquidation of the Trust Account in accordance
with the Trust Agreement, as amended by the Amendment to Trust Agreement, from March 23, 2019 to June 24, 2019. The Group also
plans to attract institutional investors following the business combination. Further, the Group can adjust the pace of its clinical
development and patient recruitment and control the operating expenses of the Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group currently does not
have any commitments to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable terms,
if at all. If the Group cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its
research and development programs to: commercialize potential products or technologies that it might otherwise seek to develop
or commercialize independently; consider other various strategic alternatives, including another merger or sale of the Group; or
cease operations. If the Group engages in collaborations, it may receive lower consideration upon commercialization of such products
than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the product development
process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has prepared its financial
statements assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction of
liabilities in the normal course of business. The Group has incurred recurring losses from operations since inception. The Group
incurred a net loss of US$5,454,964 and US$28,587,624 for the years ended December 31, 2017 and 2018, respectively. Further as
of December 31, 2018, the Group had net current liabilities (current assets less current liabilities) of US$ 12,621,823 and accumulated
deficit of US$34,323,169. The Group&rsquo;s ability to continue as a going concern is dependent on its ability to raise capital
to fund its current research and development activities and future business plans. Additionally, volatility in the capital markets
and general economic conditions in the United States may be a significant obstacle to raising the required funds. These factors
raise substantial doubt about its ability to continue as a going concern. The financial statements included herein do not include
any adjustments that might be necessary should the Group be unable to continue as a going concern. If the going concern basis were
not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities,
the reported expenses and the balance sheet classifications used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Operations of the Group are subject
to certain risks and uncertainties including various internal and external factors that will affect whether and when the Group&rsquo;s
product candidates become approved drugs and how significant their market share will be, some of which are outside of the Group&rsquo;s
control. The length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage
of the drug approval process will materially affect the Group&rsquo;s financial condition and future operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;<FONT STYLE="text-transform: uppercase">&nbsp;</FONT></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(a)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basis
of presentation</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The consolidated financial statements
of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America
(&ldquo;U.S. GAAP&rdquo;), and include the financial statements of Xynomic and its subsidiaries. All inter-company transactions
and balances have been eliminated upon consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(b)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Use
of estimates</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The preparation of financial statements
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected
in the Company&rsquo;s consolidated financial statements include valuation of ordinary shares issued for share-based compensation,
the fair value of the ordinary shares to determine the existence of beneficial conversion feature of the redeemable convertible
preferred shares and recoverability of deferred tax assets. The current economic environment has increased the degree of uncertainty
inherent in these estimates and assumptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(c)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Cash consists of cash on hand and cash in bank.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><B>&nbsp; &nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(d)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Financial
instruments</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Financial instruments of the Group
primarily consist of cash and amount due to shareholders. The carrying values of the Group&rsquo;s financial instruments approximate
their fair values, principally because of the short-term maturity of these instruments or their terms.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(e)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Short-term
investments</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">For the year ended December 31,
2018, the Company invested US$4,447,904, in wealth management products issued by commercial banks in the PRC which are redeemed
upon demand of the Group. The Group earned investment income of US$16,541 on the wealth management products, which was included
in investment income in the consolidated statements of comprehensive loss for the year ended December 31, 2018. As of December
31, 2018, there were no balance in short-term investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(f)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Property
and equipment</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Property and equipment are stated
at cost less accumulated depreciation and any recorded impairment. Depreciation on property and equipment is calculated on the
straight-line method over the following useful lives of the assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; width: 41%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Electronic equipment</FONT></TD>
    <TD STYLE="white-space: nowrap; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 58%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3 years</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="white-space: nowrap; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leasehold improvement</FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The shorter of lease terms and estimated useful lives</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify">Property and equipment at December
31, 2017 and 2018 consisted of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Leasehold improvement</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">276,838</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Electronic equipment</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,379</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Property and Equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">281,217</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: Accumulated depreciation</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(487</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Property and Equipment, net</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">280,730</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify">Depreciation expenses were recorded
in general and administrative of US$505 for the year ended December 31, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(g)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Intangible
assets</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp; </B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>As of December 31, 2017</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Weighted average amortization period</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Gross carrying amount</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Accumulated amortization</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net carrying amount</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Years</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>USD</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>USD</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>USD</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 51%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intangible assets</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,044</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(170</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,874</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As of December 31, 2018</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Weighted average amortization period</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Gross carrying amount</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Accumulated amortization</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net carrying amount</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Years</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>USD</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>USD</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>USD</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intangible assets</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,705</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(768</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,937</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Intangible assets mainly consist
of externally purchased software which are amortized on a straight-line basis. The estimated useful life of the software is five
years. The Group has no intangible assets with indefinite lives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Amortization expenses of US$170
and US$605 were recognized in general and administrative for the years ended December 31, 2017 and 2018, respectively. Estimated
amortization expenses of intangible assets for the years ending December 31, 2019, 2020, 2021 and 2022 are US$880, US$409, US$409
and US$239, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(h)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Impairment
of long-lived assets</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Group evaluates the recoverability
of long-lived assets, including property and equipment and intangible assets with finite useful lives, whenever events or changes
in circumstances indicate that a long-lived asset&rsquo;s carrying amount may not be recoverable. The Group measures the carrying
amount of long-lived asset (assets group) against the estimated undiscounted future cash flows associated with the asset (assets
group). Impairment exists when the sum of the undiscounted cash flows expected to be generated by that asset is less than the carrying
value of the asset (assets group) being evaluated. Impairment loss is calculated as the amount by which the carrying value of the
asset (assets group) exceeds its fair value. Fair value is estimated based on various techniques, including the discounted value
of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows
over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed
and estimated amounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">For the years ended December 31,
2017 and 2018, no impairment loss for long-lived assets was recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(i)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Research
and development expenses</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Elements of research and development
expenses primarily include (1) payroll and other related costs of personnel engaged in research and development activities, (2)
in-licensed patent rights fee of exclusive development rights of drugs granted to the Group, (3) costs related to preclinical testing
of the Group&rsquo;s technologies under development and clinical trials such as payments to contract research organizations (&ldquo;CROs&rdquo;),
(4) costs to develop the product candidates, including raw materials and supplies related expenses, such as payments to contract
manufacture organizations (&ldquo;CMOs&rdquo;), (5) other research and development expenses. Research and development expenses
are charged to expense as incurred when these expenditures relate to the Group&rsquo;s research and development services and have
no alternative future uses. The conditions enabling capitalization of development costs as an asset have not yet been met and,
therefore, all development expenditures are recognized in statements of comprehensive loss when incurred.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><B>&nbsp;&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(j)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Income
taxes</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Deferred income taxes are provided
using the asset and liability method. Under this method, deferred income taxes are recognized for net operating losses available
for carry-forwards and temporary differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax basis using enacted tax rates in effect for the years in which the differences are expected to reverse.
A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that
some portion of, or all of the deferred income tax assets will not be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 73.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Income taxes are provided for in
accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. The impact of an uncertain
income tax position on the income tax return is recognized at the largest amount that is more-likely-than not to be sustained upon
audit of the related tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood
of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The
Group records interest and penalties related to unrecognized tax benefits (if any) in general and administrative expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(k)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Loss
per share</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Basic loss per ordinary share is
computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding
during the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Diluted loss per ordinary share
reflect the potential dilution that could occur if dilutive potential common shares were exercised or converted into ordinary shares.
The Group has convertible preferred shares which could potentially dilute basic loss per share. The dilutive effect of convertible
preferred shares is computed using the treasury stock method. Potential dilutive securities are not included in the calculation
of diluted loss per share if the impact is anti-dilutive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>&nbsp; &nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(l)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Share-based
compensation</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Awards granted to non-employees</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Group has accounted for equity
instruments issued to non-employees in accordance with the provisions of ASC 505, Equity-Based Payments to Non-Employees. All transactions
in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration
received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the
fair value of the equity instrument issued is the date on which the counterparty&rsquo;s performance is completed as there is no
associated performance commitment. The expense is recognized in the same manner as if the Group had paid cash for the services
provided by the nonemployees in accordance with ASC 505. &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">In 2017, the Group issued 3,000,010
ordinary shares for a cash consideration of US$300 to Bridge Pharm International Inc., for the financial advisory services in connection
with Series A-1 Preferred Shares issuance. The Group has accounted the difference between the consideration received and the fair
value of these ordinary shares as redeemable convertible preferred share issuance cost, which was recorded as a reduction of the
carrying amount of the redeemable convertible preferred shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(m)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Fair
value</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Fair value is the price that would
be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded
at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions
that market participants would use when pricing the asset or liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Fair value hierarchy prioritizes
the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which
the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value
measurement as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
1-inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar assets
or liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable
in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: 0.5in"><B>&nbsp;
</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
3-inputs are generally unobservable and typically reflect management&rsquo;s estimates of assumptions that market participants
would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The carrying amounts of cash and
amount due to shareholders as of December 31, 2017 and 2018 approximate fair value because of the short maturity of these instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(n)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Commitments
and contingencies</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">In the normal course of business,
the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide
range of matters, including, among others, government investigations, lawsuits, and non-income tax matters. An accrual for a loss
contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.
If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then
the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is
disclosed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(o)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Segment
reporting</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">In accordance with ASC 280, Segment
Reporting, the Group&rsquo;s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when
making decisions about allocating resources and assessing performance of the Group as a whole and hence, the Group has only one
reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. The geographic
information of the Group&rsquo;s long-lived assets is as following.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">PRC</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">281,201</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">United States</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,466</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total long-lived assets</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,874</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">282,667</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(p)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Concentration
and risk</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><I>Concentration of suppliers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The following suppliers for the Group&rsquo;s research
and development activities accounted for 10% or more of research and development expenses for the years ended December 31, 2017
and 2018:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: black 1.5pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the Year Ended</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December&nbsp;31,</B></P></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2017</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2018</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">USD</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">USD</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 52%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supplier A</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11,278,667</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">45</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supplier B</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,601,128</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supplier C</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,500,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">81</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,500,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
less than 10% of research and development expenses for the years ended December 31, 2017 and 2018.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 33.3pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><I>Concentration of license agreements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The Group&rsquo;s most advanced
drug candidates in its pipeline are in-licensed as disclosed in Note 12.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(q)</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Recently
issued accounting pronouncements not yet adopted</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify">In February 2016, the FASB issued
ASU No. 2016-02 (&ldquo;ASU 2016-02&rdquo;), <I>Leases</I>. ASU 2016-02 specifies the accounting for leases. For operating leases,
ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value
of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so
that the cost of the lease is allocated over the lease term, on a generally straight-line basis. ASU 2016-02 is effective for public
companies for annual reporting periods, and interim periods within those years beginning after December 15, 2018. For all other
entities, it is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning
after December 15, 2020. Early adoption is permitted. Management does not plan to early adopt ASU 2016-02 and is currently evaluating
the impact of adopting ASU 2016-02 on its consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify">In August 2016, the FASB issued
ASU No. 2016-15, <I>Classification of Certain Cash Receipts and Cash Payments</I> (&ldquo;ASU 2016-15&rdquo;), which addressed
and provided guidance for each of eight specific cash flow issues with the objective of reducing the existing diversity in practice.
This standard is be effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within
those fiscal years. For all other entities, the amendments in ASU No. 2016-15 are effective for fiscal years beginning after December
15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. Management does
not plan to early adopt ASU 2016-15 and do not believe that the adoption of this guidance will have a material effect on the consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify">In June 2018, the FASB issued
ASU No. 2018-07, <I>Compensation-Stock Compensation (Topic 718)</I> - Improvements to Nonemployee Share-Based Payment Accounting
(&ldquo;ASU 2018-07&rdquo;). The amendments in ASU 2018-07 expand the scope of Topic 718 to include share-based payment transactions
for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards
except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over
which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic
718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor&rsquo;s
own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based
payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services
to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. ASU 2018-07 is effective
for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year.
For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within
fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity&rsquo;s adoption date
of Topic 606. The management is currently evaluating the impact of adopting ASU 2018-07 on its consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify">In August 2018, the FASB issued
ASU No. 2018-13, <I>Fair Value Measurement (Topic 820)</I>: Disclosure Framework-Changes to the Disclosure Requirements for Fair
Value Measurement (ASU 2018-13) (&ldquo;ASU 2018-13&rdquo;). ASU 2018-13 modifies certain disclosure requirements on fair value
measurements, including (i) clarifying narrative disclosure regarding measurement uncertainty from the use of unobservable inputs,
if those inputs reasonably could have been different as of the reporting date, (ii) adding certain quantitative disclosures, including
(a) changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value
measurements held at the end of the reporting period and (b) the range and weighted average of significant unobservable inputs
used to develop Level 3 fair value measurements, and (iii) removing certain fair value measurement disclosure requirements, including
(a) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (b) the policy for timing
of transfers between levels of the fair value hierarchy and (c) the valuation processes for Level 3 fair value measurements. The
amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning
after December 15, 2019. The Company is permitted to early adopt any removed or modified disclosures and delay adoption of the
additional disclosures until their effective date. Management does not plan to early adopt this guidance and is currently evaluating
the impact of adopting ASU No. 2018-13 on its consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>3.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CASH</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Group&rsquo;s cash is deposited in financial institutions
at below locations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Financial institutions in the mainland of the PRC</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">&mdash;Denominated in RMB&#9;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">523</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Financial institutions in the United&nbsp;States</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">&mdash;Denominated in USD&#9;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100,344</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,745,847</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total cash balances held at financial institutions&#9;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">100,344</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,746,370</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>4.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INCOME
TAXES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>United States </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Xynomic, which was incorporated
on August 24, 2016, in Wyoming and was redomesticated to Delaware on April 3, 2018, is subject to statutory U.S. Federal corporate
income tax at a rate of 35% for the year ended December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On December 22, 2017, the Tax
Cuts and Job Act (the &ldquo;Tax Act&rdquo;) was enacted into law which reduced the U.S. Federal statutory income tax rate from
35% to 21%, effective from January 1, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>People&rsquo;s Republic
of China </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Xynomic Nanjing, Xynomic Shanghai
and Xynomic Zhongshan are all incorporated in the PRC and are subject to the statutory tax rate of 25% in accordance with the PRC
Enterprise Income Tax Law (&ldquo;EIT Law&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The components of loss before income taxes
are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended<BR> December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">U.S.</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(5,454,964</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(27,038,779</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">PRC</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,548,845</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt">Total</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(5,454,964</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(28,587,624</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The actual income tax benefit
reported in the consolidated statements of comprehensive loss differs from the respective amount computed by applying the U.S.
Federal statutory income tax rate of 35% for the year ended December 31, 2017 and 21% for the year ended December 31, 2018 due
to the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the year ended </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December&nbsp;31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font-weight: bold; text-align: left">Computed &ldquo;expected&rdquo; income tax benefit</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,909,237</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,003,401</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Non-deductible expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Entertainment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,300</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(498</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">M&amp;A expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(296,097</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Tax rate differential</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,881</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Research and development credit adjustment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">425,478</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Increase in valuation allowance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,144,634</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,194,165</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Impact of change in statutory tax rate</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(763,303</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Actual income tax benefit</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The tax effects of the Group&rsquo;s
temporary differences that give rise to significant portions of the deferred income tax assets are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred income tax assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Tax loss carryforwards</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,144,955</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,760,111</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Research and development credit carryforwards</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">538,580</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Advertising cost</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,578</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: valuation allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,144,955</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(7,325,269</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total deferred income tax assets, net</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The movements of the valuation allowance are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Balance at the beginning of the year</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">321</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,144,955</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Additions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,144,634</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,194,165</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Foreign currency translation adjustment</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(13,851</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Balance at the end of the year</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,144,955</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">7,325,269</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As of December 31, 2017 and 2018,
the valuation allowance of US$1,144,955 and US$7,325,269 were related to the deferred income tax assets of Xynomic and its subsidiaries,
which were all in loss positions. As of December 31, 2017 and 2018, management believes it is more likely than not that the Group
will not realize the deferred income tax assets, net of the valuation allowance. As of December 31, 2018, US$1,436,758 of tax loss
carryforwards will expire by December 31, 2023, if not used. The Company also has research and development credit carryforwards
of approximately $538,580 as of December 31, 2018 that will expire by December 31, 2038.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company and each of its PRC
subsidiaries file income tax returns in the United States and the PRC, respectively. The Company is subject to U.S. federal income
tax examination by tax authorities for tax years from 2016. According to the PRC Tax Administration and Collection Law, the statute
of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding
agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more
than RMB100,000. In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation
in the case of tax evasion. The income tax returns of the Company&rsquo;s PRC subsidiaries for the years from 2017 are open to
examination by the PRC tax authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PREPAID
EXPENSES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Prepaid expenses consist of the
following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Prepaid research and development expenses</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">207,988</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Prepaid rental expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,371</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Prepaid professional fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Others</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,102</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,391</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total prepaid expenses</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">21,122</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">277,750</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>6.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OTHER
NON-CURRENT ASSETS</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Other non-current assets consist
of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">VAT input tax</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">52,762</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Prepaid insurance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">93,075</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">Deposits</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">9,339</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total other non-current assets</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">155,176</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>7</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ACCRUED
EXPENSES AND OTHER CURRENT LIABILITIES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Accrued expenses and other current liabilities
consist of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Research and development expense-Contract Research Organizations</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">112,060</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">10,304,750</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Research and development expense-Contract Manufacture Organizations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,706</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,874,956</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">License fee payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Professional fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,668</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">824,360</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Payroll and social insurance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,548</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147,692</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Payable for leasehold improvement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">110,736</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">Others</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">144,767</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total accrued expenses and other current liabilities</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">229,982</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">14,407,261</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>8.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONVERTIBLE
NOTES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On March 26, 2018, the Company
entered a convertible promissory note agreement (the &ldquo;2018 Convertible Notes&rdquo;) with Northern Light Venture Capital
V, Ltd., and Bo Tan (collectively &ldquo;2018 Convertible Notes Holders&rdquo;) to obtain a loan of US$2,500,000 with a term of
one hundred and eighty-three (183) days. On April 3, 2018, the convertible notes were issued and the Company received proceeds
of US$2,500,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The 2018 Convertible Notes automatically
convert into the Company&rsquo;s preferred shares upon the next financing closing. No interest shall accrue on the outstanding
principal amount of the 2018 Convertible Notes. The issuance of the preferred shares of the Company pursuant to the conversion
of the 2018 Convertible Notes shall be subject to the same terms and conditions applicable to the preferred shares of the Company
sold in the next financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In August 2018, the 2018 Convertible
Notes were converted into 776,633 Series B Preferred Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REDEEMABLE
CONVERTIBLE PREFERRED SHARES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Redeemable convertible preferred shares consist of
the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Angel Preferred Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Series A-1 Preferred Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Series B Preferred Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Balance as of January 1, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 64%; text-align: left">Issuance for cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,300,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Issuance cost</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(989,703</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Redemption value accretion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">37,274</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,232,092</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Balance as of December 31, 2017</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">537,274</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">4,542,389</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Issuance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Discount due to beneficial conversion feature</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,000,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Redemption value accretion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">42,982</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">363,391</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,424,712</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt">Balance as of December 31, 2018</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">580,256</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,905,780</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,424,712</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>Angel Preferred Shares and Series A-1
Preferred Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In January, 2017, 24,435,379
Redeemable Convertible Angel Preferred Shares (&ldquo;Angel Preferred Shares&rdquo;) were issued to the founder of the Company,
Yinglin Mark Xu, for consideration of US$500,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In February, 2017, the Company
entered into a Preferred Share Purchase Agreement (&ldquo;SPA&rdquo;) with certain investors, pursuant to which 12,147,500 Redeemable
Convertible Series A-1 Preferred Shares (&ldquo;Series A-1 Preferred Shares&rdquo;) were issued for consideration of US$4,300,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has classified the
Angel Preferred Shares and the Series A-1 Preferred Shares (collectively &ldquo;Preferred Shares&rdquo;) as mezzanine equity in
the consolidated balance sheets since they are contingently redeemable at the option of the holders or upon the occurrence of an
event that is not solely within the control of the Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has determined that
conversion and redemption features embedded in the Preferred Shares are not required to be bifurcated and accounted for as a derivative,
as the economic characteristics and risks of the embedded conversion and redemption features are clearly and closely related to
that of the Preferred Shares. The Preferred Shares are not readily convertible into cash as there is not a market mechanism in
place for trading of the Group&rsquo;s shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has determined that
there was no beneficial conversion feature attributable to any of the Preferred Shares because the initial effective conversion
prices of these Preferred Shares were higher than the fair value of the Group&rsquo;s ordinary shares at the relevant commitment
dates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the carrying values
of the Preferred Shares are accreted from the share issuance dates to the redemption value on the earliest redemption dates. The
accretions are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in
capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The rights, preferences and privileges
of the Preferred Shares are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Redemption Rights </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Each holder of the outstanding
Preferred Shares may require that the Company redeem all or part of the Preferred Shares held by such holder, if (a) the Company
is unable to obtain exclusive global rights of Abexinostat from AbbVie Inc. (or from Pharmacyclics LLC) by April 30, 2017; (b)
there is any material breach by any of the Group or by any direct or indirect owners of the ordinary shares of any of their representations,
warranties, covenants or other obligations, and such breach has not been cured by the breach party to the satisfaction of such
preferred shareholder and the losses (if any) of such preferred shareholder resulting from such breach has not been indemnified
within thirty days after receipt of notice from such preferred shareholder; (c) any other class or series of equity securities
of the Group becomes redeemable; or (d) the date that any material adverse change in the regulatory environment that will cause
the structure of the Group to be in contravention with any applicable laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The redemption value is an amount
equal to 100% of the Preferred Shares plus 8% compound interest per annum and accrued but unpaid dividends. The Group recognizes
the redemption value by using redemption price of US$500,000 and US$4,300,000 respectively plus 8% compound interest for the period
from the date on which the Group receives the preferred shares issuance price to each balance sheet date and accretes changes in
the redemption value. Changes in the redemption value are considered to be changes in accounting estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Conversion Right </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Each Preferred Share is convertible,
at the option of the holder, at any time after the date of issuance of such Preferred Shares according to a conversion ratio, subject
to adjustments for dilution, including but not limited to share splits, share combination, share dividends and distribution and
certain other events. Each Preferred Share is convertible into a number of ordinary shares determined by dividing the applicable
original issuance price by the conversion price. As of December 31, 2017 and 2018, the conversion price of each Preferred Share
is the same as its original issuance price, no adjustments to conversion price have occurred, and each Preferred Share is convertible
into one ordinary share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; <FONT STYLE="text-transform: uppercase">&nbsp;</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Each Preferred Share shall automatically
be converted into ordinary shares, at the then applicable preferred share conversion price upon (i) Qualified M&amp;A or Qualified
Initial Public Offering (&ldquo;Qualified IPO&rdquo;) or (ii) written consent of the holders of at least 20% of the voting power
of then outstanding Preferred Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Dividends rights </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Preferred Shares holders are
entitled to receive dividends at the rate of 8% of the original issuance price. The Company is not obliged to pay such dividends
to Preferred Shares holders until a liquidation, winding up or a deemed liquidation event of the Company takes place. The deemed
liquidation event represents any sale of shares, merger, consolidation or other similar transaction involving the Group in which
its shareholders do not retain a majority of the voting power in the surviving the Company, the exclusive, irrevocable licensing
of all or substantially all the Group&rsquo;s intellectual property to a third party, or a sales of all or substantially all the
Group&rsquo;s assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Liquidation Rights </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">At the time of the liquidation,
dissolution or winding up (as the case may be), the holder(s) of the Preferred Shares shall be entitled to receive in preference
to the holders of ordinary Shares, a liquidation preference per Preferred Share equivalent to 1.4 times the sum of the original
issuance price and any accrued and unpaid dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>Series B Preferred Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On June 4, 2018, the Company
entered into a share purchase agreement with certain investors, pursuant to which a total of 5,281,101 Redeemable Convertible Series
B Preferred Shares (&ldquo;Series B Preferred Shares&rdquo;) were to be issued for an aggregated cash consideration of US$17,000,000.
On August 16, 2018, the Series B Preferred Shares were issued and US$17,000,000 was received, including the conversion of convertible
notes of US$2.5 million (Note 8).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The rights, preferences and privileges
of the Series B Preferred Shares are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Redemption Rights</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Unless prohibited by Delaware
law governing distributions to stockholders, at any time after the earlier of (i) the fifth anniversary of the Series B Preferred
Shares original issue date; (ii) occurrence of any material breach of any transaction documents by the corporation or the founder
or (iii) the redemption request by the holder of Series A-1 Preferred Shares, each share of Series B Preferred Shares shall be
redeemable at the option of each holder of the Series B Preferred Stock, out of funds legally available therefor, at a redemption
price per share that equals the sum of (A) 100% of the original issue price per share for Series B Preferred Shares, (B) an amount
that would accrue on the original issue price for Series B Preferred Shares at a rate of 12% per annum, for each year such Series
B Preferred Shares was outstanding measured from the Series B original issue date, and (C) all the accrued but unpaid dividends
on such Series B Preferred Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Conversion Right</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Each preferred share is convertible,
at the option of the holder, at any time after the date of issuance of such preferred shares according to a conversion ratio, subject
to adjustments for dilution, including but not limited to share splits, share combination, share dividends and distribution and
certain other events. Each preferred share is convertible into a number of ordinary shares determined by dividing the applicable
original issuance price by the conversion price. The conversion price of each preferred share is the same as its original issuance
price and no adjustments to conversion price have occurred, and each Series B Preferred Share is convertible into one ordinary
share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Each preferred share shall automatically
be converted into ordinary shares, at the then applicable preferred share conversion price upon (a) the closing of the sale of
shares of Common Stock to the public at a pre-offering valuation of at least $400,000,000, in a Qualified Initial Public Offering
(&ldquo;Qualified IPO&rdquo;), or (b) (ii) written consent of the holders of at least 66% of the voting power of then outstanding
preferred shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Dividends rights</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Preferred shares holders are
entitled to receive dividends at the rate of 6% of the original issue price. The Company is not obliged to pay such dividends to
preferred shares holders until a liquidation, winding up or a deemed liquidation event of the Company takes place. The deemed liquidation
event represents any sale of shares, merger, consolidation or other similar transaction involving the Group in which its shareholders
do not retain a majority of the voting power in the surviving the Company, the exclusive, irrevocable licensing of all or substantially
all the Group&rsquo;s intellectual property to a third party, or a sale of all or substantially all the Group&rsquo;s assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Liquidation Rights</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">At the time of the liquidation,
dissolution or winding up, the holders of the preferred shares shall be entitled to receive in preference to the holders of ordinary
shares, a liquidation preference per preferred share equivalent to 1.4 times the sum of the original issuance price and any accrued
and unpaid dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has classified the
Series B Preferred Shares as mezzanine equity in the consolidated balance sheets since they are contingently redeemable at the
option of the holders or upon the occurrence of an event that is not solely within the control of the Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has determined that
there was a beneficial conversion feature attributable to Series B Preferred Shares, as the initial effective conversion price
of the Series B Preferred Shares (US$3.22 per share) was lower than the fair value of the ordinary shares at the commitment date
(US$8.70 per share). The intrinsic value of the beneficial conversion feature, US$28,940,433, was greater than the proceeds allocated
to the Series B Preferred Shares, US$17,000,000. The amount of the discount assigned to the beneficial conversion feature is limited
to the amount of the proceeds allocated to the Series B Preferred Shares, which was US$17,000,000. The intrinsic value of the beneficial
conversion feature was recorded as additional paid-in capital with a corresponding discount against Series B Preferred Shares issued,
which resulted in an initial carrying amount of zero.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group accretes changes in
the redemption value over the period from the date of issuance to the earliest redemption date of the security using the interest
method. As the initial carrying amount of Series B Preferred Shares is zero, the Group amortizes the discount using the straight-line
method. The accretion is recorded against retained earnings, or in the absence of retained earnings, by charges against additional
paid-in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated
deficit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>10.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ORDINARY
SHARES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In January 2017, the Company
issued 6,617,111 ordinary shares at par value of US$0.0001 to two founders of the Company for a consideration of US$662.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="text-transform: uppercase">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In connection with Series A-1
Preferred Shares issuance, 3,000,010 ordinary shares were issued to Bridge Pharm International Inc., (&ldquo;Bridge Pharm&rdquo;)
for consideration of US$300 for its financial advisory service for the fund raising. The difference between the fair value of the
ordinary shares of US$990,003 and the consideration paid of US$300 was treated as issuance cost and recorded as a reduction of
the proceeds from the Series A-1 Preferred Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>11.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LOSS
PER SHARE</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Basic and diluted net loss per share are calculated
as follow:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended <BR>
December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Numerator:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net loss attributable to ordinary shareholders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,724,330</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">31,418,709</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Denominator:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Weighted average number of ordinary shares-basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,826,673</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,617,121</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per share-basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">0.76</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3.27</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; &nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">When the dividends to preferred
shares are not fully paid, the ordinary shares holders shall not participate in undistributed earnings. If all dividends to preferred
shares holders are fully paid, the holders of the preferred shares and the holders of the ordinary shares participate in undistributed
earnings on a pro rata basis, as if the preferred shares had been converted into ordinary shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As a result of the Group&rsquo;s
net loss for the years ended December 31, 2017 and 2018, preferred shares outstanding in the respective years were excluded from
the calculation of diluted loss per share as their inclusion would have been anti-dilutive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended <BR>
December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2017</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Number of Angel Preferred Shares outstanding</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">23,435,379</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">23,435,379</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Number of Series A-1 Preferred Shares outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,147,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,147,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Number of Series B Preferred Shares outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,281,101</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>12.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LICENSES
ARRANGEMENT</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>License agreement with Pharmacyclics LLC (&ldquo;Pharmacyclics&rdquo;)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In February 2017, the Group entered
into a license agreement with Pharmacyclics, under which the Group obtained an exclusive and worldwide license or sublicense under
certain patents and know-how of Pharmacyclics to develop, manufacture and commercialize Pharmacyclics&rsquo;s HDAC inhibitor, also
known as Abexinostat, for all human and non-human diagnostic, prophylactic, and therapeutic uses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under the terms of the agreement,
the Group made upfront payments of US$3.5 million in 2017 and 1<SUP>st</SUP> milestone payment of US$3.5 million in 2018 to Pharmacyclics
which were recorded as research and development expenses in 2017 and 2018, respectively. In addition, the Group is obligated to
pay the following development and regulatory milestone payments: 1) 2<SUP>nd</SUP> milestone payment of US$6,500,000 upon regulatory
approval for the first indication for a licensed product in China or in the United States; 2) 3rd milestone payment of US$4,000,000
upon regulatory approval for the second indication for a licensed product in China or in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the Group will pay
to Pharmacyclics royalties at a flat high-teen percentage rate on the net sales of the licensed products. The Group shall have
no obligation to pay any royalty with respect to net sales of any licensed product in any country or other jurisdiction after the
royalty term for such licensed product in such country or other jurisdiction has expired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The license agreement with Pharmacyclics
will remain in effect until the expiration of the royalty term and may be early terminated by either party for the other party&rsquo;s
uncured material breach, bankruptcy, insolvency, or similar event. Pharmacyclics has the right to terminate the agreement if the
Group challenge Pharmacyclics&rsquo; patents or fails its diligent obligations to develop or commercialize the licensed product
pursuant to the license agreement with Pharmacyclics. In addition, the Group may terminate this agreement for convenience with
advance written notice to Pharmacyclics. In the event this license agreement is terminated for any reason other than Pharmacyclics&rsquo;
material breach, the Group will be responsible for continuing, at its cost for up to six months, to conduct clinical studies it
conducts at the termination and transfer the control of the clinical studies to Pharmacyclics. If such transfer is expressly prohibited
by a regulatory authority, the Group will continue to conduct such clinical studies to completion, at the Group&rsquo;s cost.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Patent assignment and licensing agreement with
Boehringer Ingelheim International GMBH (&ldquo;BII&rdquo;)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In August 2017, the Group entered
into a Patent assignment and licensing agreement with BII, under which the Group accepts the assignment and transfer of the patents
and know-how of BII to exclusively develop, manufacture and commercialize BII&rsquo;s Pan-RAF Inhibitor BI 882370, also known as
Dabrafenib, for the diagnosis, prevention or treatment of any and all diseases or conditions in humans or animals. BII retains
the exclusive right to use the licensed compound to conduct internal preclinical research.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under the terms of the agreement,
the Group made upfront payments to BII totaling US$0.3 million which was recorded as a research and development expense in 2017.
In addition, the Group is obligated to pay the following development and regulatory milestone payments: 1) 1<SUP>st</SUP> milestone
payment of US$ 1,700,000 upon first dosing of a patient in Phase I Clinical Trial in the US or China; 2) 2<SUP>nd</SUP> milestone
payment of US$ 4,000,000 upon first dosing of a patient in a pivotal Phase III Clinical Trial in the first indication in the US
or China; 3) 3<SUP>rd</SUP> milestone payment of US$2,000,000 upon first dosing of a patient in a pivotal Phase III Clinical Trial
in a second indication in the US or China; 4) 4<SUP>th</SUP> milestone payment of US$ 7,000,000 upon the grant of the first marketing
authorization of the first indication in the US; 5) 5<SUP>th</SUP> milestone payment of US$3,000,000 upon the grant of the first
marketing authorization of the first indication in China.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the Group will pay
royalties at a certain percentage of the net sales. The royalty term commences from the first commercial sale of such licensed
product in such country until the later of (i) the date on which such licensed product is no longer covered by a valid claim of
the assigned patents and assigned invention, (ii) the expiration of regulatory exclusivity of the licensed product in such country,
or (iii) the tenth anniversary of the first launch of the respective licensed product in the country, provided the licensed know-how
is still proprietary, or such licensed know-how is no longer proprietary owing to a breach of its confidentiality obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has the right to terminate
this agreement by providing BII with written notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>License agreement with BII
(XP-105)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In December 2018, Xynomic entered
into a license agreement with BII for the worldwide exclusive rights to develop and commercialize XP-105 (also known as BI 860585)
for all human and non-human diagnostic, prophylactic, and therapeutic uses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under the terms of the agreement,
as of December 31, 2018 the Group was obligated to make upfront payments to BII totaling US$1 million which was recorded as a research
and development expense for the year ended December 31, 2018 and was included in accrued expenses and other current liabilities
as of December 31, 2018. In addition, the Group is obligated to pay the following development and regulatory milestone payments:
1) 1<SUP>st</SUP> milestone payment of US$7,000,000 upon first dosing of a patient in Phase II or Phase III Clinical Trial in the
first indication either of which is intended to be a pivotal trial; 2) 2<SUP>nd</SUP> milestone payment of US$10,000,000 upon the
grant of the first Marketing Authorization of the first indication.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the Group will pay
royalties at a certain percentage of the net sales. The royalty term commences from the first commercial sale of such licensed
product in such country until the later of (i) the date on which such licensed product is no longer covered by a valid claim of
the licensed patents, (ii) the expiration of regulatory exclusivity of the licensed product in such country, or (iii) the tenth
anniversary of the first launch of the respective licensed product in the country in the indication, provided the licensed know-how
is still proprietary, or such licensed know-how is no longer proprietary owing to a breach of its confidentiality obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has the right to terminate
this agreement by providing BII with written notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>13.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>COMMITMENTS
AND CONTINGENCIES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease
commitments</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">The Group entered into non-cancelable
operating leases, primarily for office space, for initial terms of 12 to 36 months. Minimum rent payments under operating leases
are recognized on a straight-line basis over the term of the lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">Future minimum lease payments
under non-cancelable operating leases with remaining lease terms in excess of one year as of December 31, 2018 are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Minimum <BR> Lease Payment <BR> Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">Year ending December 31:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; text-align: justify">2019</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">184,844</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">228,774</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">197,551</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">41,237</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">652,406</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">Rental expenses for operating
leases for the years ended December 31, 2017 and 2018 were nil and US$139,043, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
commitments</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">The Group is a party to or assignee
of license and collaboration agreements that may require it to make future payments relating to milestone fees and royalties on
future sales of licensed products (Note 12).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>14.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>RELATED
PARTY TRANSACTIONS</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amount
due to shareholders</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payable
due to a shareholder</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">For the years ended December 31,
2017 and 2018, Yinglin Mark XU, the founder and CEO of the Company, advanced US$630,585 and US$1,407,054, respectively, to the
Company to fund its operation. As of December 31, 2017 and 2018, the amount due to Yinglin Mark XU was US$630,903 and US$2,008,936,
respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Services
purchased from a company affiliated with a shareholder</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.3pt; text-indent: -13.6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Eigenbridge, Inc., a company affiliated
with Yong Cui, one of the Company&rsquo;s shareholders and Vice President of Chemistry, Manufacturing and Controls, entered into
a contractor agreement with the Company on February 26, 2017. Pursuant to the agreement, Eigenbridge, Inc., provided specialized
advisory services to the Company. The Company recognized general and administrative of US$69,960 and US$246,092 for the year ended
December 31, 2017 and 2018, respectively. The amount due to Eigenbridge, Inc., were nil and US$80,640 as of December 31, 2017 and
2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">iii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Advances
from and interest payable to a shareholder</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.3pt; text-indent: -13.6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On May 2, 2018, as one of the potential
investors of Series B financing, Zhongshan Bison Healthcare Investment Limited (Limited Partnership) (&ldquo;Zhongshan Bison&rdquo;)
entered into a loan agreement with Xynomic Pharmaceuticals (Nanjing) Co., Ltd. (&ldquo;Xynomic Nanjing&rdquo;). On May 13, 2018,
Zhongshan Bison made an advance of RMB9,435,000 (equivalent to US$1,425,959) to fund the operations and business development of
Xynomic Nanjing. Zhongshan Bison is entitled to withdraw the advance within 5 business days after Zhongshan Bison paid the first
investment of Series B financing, or if current shareholders and investors fail to subscribe shares of the Series B financing within
6 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On August 16, 2018, Zhongshan Bison
became one of the Series B Preferred Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On August 23, 2018, Xynomic Nanjing
entered into a termination agreement for the advance from Zhongshan Bison. Xynomic Nanjing is required to a) repay RMB1,800,000
of the advance from Zhongshan Bison within 2 days after signing the agreement; and b) repay the remaining RMB7,635,000 of the advance
from Zhongshan Bison and interest accrued at annual interest rate of 8% from signing the agreement within six months from the date
of the termination agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On August 23, 2018, Xynomic Nanjing
repaid RMB1,800,000 (equivalent to US$262,743) of the advance from Zhongshan Bison. As of December 31, 2017 and 2018, the advance
from Zhongshan Bison was nil and US$1,112,455, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On January 21, 2019, Xynomic Nanjing
repaid RMB5,064,000 (equivalent to US$747,189) of the advance from Zhongshan Bison. On February 20, 2019, Zhongshan Bison agreed
to extend the due date of the remaining advance of RMB2,571,000 (US$ 380,562) and all accrued interest to April 15, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Xynomic Nanjing accrued interest
expense of US$32,874 for the advance from Zhongshan Bison for the year ended December 31, 2018. The interest payable to Zhongshan
Bison was US$31,697 as of December 31, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Short-term
loan from a company affiliated with a shareholder</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">In April 2018, Xynomic Nanjing entered into a short-term loan agreement with Shanghai Jingshu Venture
Capital Center (&ldquo;Shanghai Jingshu&rdquo;), one of the potential investors of Series B financing and an entity affiliated
with Infinite Fortune Limited, one of the Company&rsquo;s shareholders, to obtain an interest-free loan of RMB6,000,000 (equivalent
to US$906,810) to fund its operations and business development before receiving the investment of Series B financing. The Company
is required to return the short-term loan within the earliest of (a) 183 days; or (b) 20 business days after receiving the Shanghai
Jingshu&rsquo;s investment consideration for Series B Preferred Shares. In August 2018, Xynomic Nanjing fully repaid the loan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Service
purchased from a shareholder</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">In June 2017, the Group paid
US$295,021 to Bridge Pharm International Inc., one of the Company&rsquo;s shareholders, pursuant to 20 months services agreement.
Under the agreement, Bridge Pharm International Inc. provides consulting service, including business development, screening and
selection of contract research organizations and contract manufacturing organizations and scouting and references of key scientific
and managerial personnel to the Group. The Company recognized general and administrative of US$178,777 and US$116,244 for the years
ended December 31, 2017 and 2018, respectively. The prepaid expenses to Bridge Pharm International Inc. was US$116,244 and nil
as of December 31, 2017 and 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>15.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SUBSEQUENT
EVENT</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.25in"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has considered subsequent
events through April 3, 2019, which was the date these consolidated financial statements were available to be issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On March 3, 2019, the Group signed
a commitment letter with BCAC. For the stockholders of BCAC, who did not exercise their rights to redeem their shares in BCAC after
the special shareholder meeting on March 21, 2019, the Group agreed to contribute to BCAC as a loan of $0.02 per month per BCAC&rsquo;s
share until the Extended Termination Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="f_006"></A>XYNOMIC
PHARMACEUTICALS, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDENSED CONSOLIDATED <FONT STYLE="text-transform: uppercase">BALANCE
SHEETS</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>(I</B></FONT><B>n
U.S. dollars, except share data<FONT STYLE="text-transform: uppercase">)</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">As of December 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">As of<BR> March 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Note</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid">(Unaudited)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-style: italic">Current assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 65%; padding-left: 0.125in">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center">2</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,746,370</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,049,561</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Prepaid expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">4</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">277,750</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">98,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,024,120</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,148,435</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">5</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">280,730</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">486,363</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,937</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,701</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Other non-current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">6</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">155,176</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">175,035</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,461,963</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,811,534</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS&rsquo; DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 0.125in">Current liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Bank overdraft</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,954</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,040</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Accrued expenses and other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">7</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,407,261</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,615,282</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: 0in; padding-left: 0.125in">Amount due to shareholders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">12</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,233,728</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,872,456</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total current liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">17,645,943</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">20,493,778</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total liabilities</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">17,645,943</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">20,493,778</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Commitments and Contingencies</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">11</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Mezzanine equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Angel Preferred Shares (par value US$0.0001 per share as of December 31, 2018 and March 31, 2019; 23,435,379 shares authorized, issued and outstanding as of December 31, 2018 and March 31, 2019. Redemption value of US$580,256 and US$591,373 as of December 31, 2018 and March 31,2019; Liquidation value of US$811,332 and US$826,875 as of December 31, 2018 and March 31, 2019)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">8</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">580,256</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">591,373</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">Series A-1 Preferred Shares (par value US$0.0001 per share as of December 31, 2018 and March 31, 2019; 12,147,500 shares authorized, issued and outstanding as of December 31, 2018 and March 31, 2019. Redemption value of US$4,905,780 and US$4,999,764 as of December 31, 2018 and March 31, 2019; Liquidation value of US$6,964,223 and US$7,097,643 as of December 31, 2018 and March 31, 2019)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">8</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,905,780</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,999,764</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in">Series B Preferred Shares (par value US$0.0001 per share as of December 31, 2018 and March 31, 2019; 5,281,101 shares authorized, 5,281,101 shares issued and outstanding as of December 31, 2018 and March 31, 2019. Redemption value of US$2,424,712 and US$4,017,589 as of December 31, 2018 and March 31, 2019; Liquidation value of US$24,335,989 and US$24,678,294 as of December 31, 2018 and March 31, 2019)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">8</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,424,712</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,017,589</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total mezzanine equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,910,748</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">9,608,726</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Shareholders&rsquo; deficit:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Ordinary shares (par value US$0.0001 per share as of December 31, 2018 and March 31, 2019; 149,617,121 shares authorized, 9,617,121 shares issued and outstanding as of December 31, 2018 and March 31, 2019)</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">962</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">962</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,168,915</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,154,219</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accumulated other comprehensive income</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,564</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,573</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(34,323,169</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(48,467,724</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total shareholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(20,094,728</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(28,290,970</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS&rsquo; DEFICIT</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,461,963</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,811,534</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>The accompanying notes are an integral
part of these unaudited condensed consolidated financial statements.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Page; Sequence: 232; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>XYNOMIC
PHARMACEUTICALS, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNAUDITED CONDENSED CONSOLIDATED <FONT STYLE="text-transform: uppercase">statements
of COMPREHENSIVE lOSS</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>(I</B></FONT><B>n
U.S. dollars, except share data<FONT STYLE="text-transform: uppercase">) </FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Note</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<BR> March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 65%; text-align: left; padding-left: 0.125in">Research and development</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">466,402</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,324,310</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">103,475</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,779,249</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">General and administrative to related parties</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">12</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">49,053</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">25,908</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">618,930</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">14,129,467</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">618,930</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">14,129,467</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Interest expenses to a related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">12</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">15,088</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Loss from operations before income tax benefit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">618,930</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">14,144,555</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Income tax</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">3</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">618,930</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">14,144,555</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accretion to preferred share redemption value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">97,316</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,697,978</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net loss attributable to ordinary shareholders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">716,246</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">15,842,533</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Other comprehensive loss:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Foreign currency translation adjustment, net of nil income taxes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">36,991</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total other comprehensive loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">36,991</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Comprehensive loss attributable to ordinary shareholders</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">716,246</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">15,879,524</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Weighted average ordinary shares outstanding &ndash; basic and diluted</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">9,617,121</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">9,617,121</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Loss per share - basic and diluted</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">9</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.07</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1.65</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>The accompanying notes are an integral
part of these unaudited condensed consolidated financial statements.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>XYNOMIC
PHARMACEUTICALS, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNAUDITED CONDENSED CONSOLIDATED <FONT STYLE="text-transform: uppercase">statements
of cash flows</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>(I</B></FONT><B>n
U.S. dollars<FONT STYLE="text-transform: uppercase">)</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<BR> March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">CASH FLOWS FROM OPERATING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(618,930</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(14,144,555</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Share-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,683,282</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">102</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">246</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Depreciation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,981</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,411</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">184,144</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Prepaid expenses to a shareholder</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,490</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Other non-current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18,325</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Accrued expenses and other payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,417</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,068,190</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Amount due to shareholders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(65,552</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net cash used in operating activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(551,510</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(3,268,589</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Purchase of property and equipment</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(92,367</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net cash used in investing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(92,367</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Bank overdraft</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(31,288</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,086</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Repayment of advance from a Series B shareholder</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(747,189</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Advance from a shareholder</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">498,222</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">412,961</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net cash provided by/(used in) financing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">466,934</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(333,142</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Effect of foreign exchange rate changes on cash</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(2,711</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">NET DECREASE IN CASH</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(84,576</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(3,696,809</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">CASH, BEGINNING OF THE PERIOD</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100,344</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,746,370</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt">CASH, END OF THE PERIOD</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">15,768</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,049,561</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">SUPPLEMENTAL INFORMATION</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Interest paid</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Income tax paid</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.25in">Acquisition of property and equipment included in accrued expenses and other liabilities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">133,061</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>The accompany notes are an integral
part of these unaudited condensed consolidated financial statements.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>XYNOMIC
PHARMACEUTICALS, INC.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOR THE THREE MONTHS ENDED MARCH 31,
2018 AND 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>(I</B></FONT><B>n
U.S. dollars, except share data<FONT STYLE="text-transform: uppercase">)</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>(a)</I></B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Basis
of Presentation</I></B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
(&ldquo;U.S. GAAP&rdquo;). Certain information and footnote disclosures normally included in financial statements prepared in accordance
with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the United States Securities and Exchange
Commission (&ldquo;SEC&rdquo;). The condensed consolidated balance sheet as of December 31, 2018 was derived from the audited consolidated
financial statements of Xynomic Pharmaceuticals, Inc. (&ldquo;the Company&rdquo;) and its subsidiaries (the &ldquo;Group&rdquo;).
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated balance
sheet of the Group as of December 31, 2018, and the related consolidated statements of comprehensive loss, changes in equity and
cash flows for the year then ended, included in Bison Capital Acquisition Corp.&rsquo;s Proxy Statement/Prospectus on <FONT><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019005733/fs42018a2_bisoncapitalacq.htm">Form S-4/A</A></U></FONT> filed with the SEC on April 4, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In the opinion of management, all adjustments (which
include normal recurring adjustments) necessary to present a fair statement of the financial position as of March 31, 2019, the
results of operations and cash flows for the three months ended March 31, 2018 and 2019, have been made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The preparation of the unaudited condensed consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited condensed consolidated
financial statements and the reported amounts of revenue and expenses during the reporting period. Significant accounting estimates
include, but not limited to the fair value of the ordinary shares to determine the existence of beneficial conversion feature of
the redeemable convertible preferred shares, the fair value of share-based compensation awards, depreciable lives of property and
equipment, the recoverability of the carrying amounts of property and equipment and the recoverability of deferred income tax assets.
Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such,
differences may be material to the unaudited condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>Liquidity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has not generated any revenues from product
sales. Substantial additional financing will be required by the Group to continue to fund its research and development activities.
No assurance can be given that any such financing will be available when needed or that the Group&rsquo;s research and development
efforts will be successful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group&rsquo;s ability to fund operations is based
on its ability to attract investors and its ability to borrow funds on reasonable economic terms. Historically, the Group has relied
principally on equity financing and shareholder&rsquo;s borrowings to fund its operations and business development. The Group&rsquo;s
ability to continue as a going concern is dependent on management&rsquo;s ability to successfully execute its business plan, which
includes generating revenues after drug marketing, controlling operating expenses, as well as, continuing to obtain additional
equity financing. On April 3, 2018, the Group issued convertible notes to Northern Light Venture Capital V, Ltd., and Bo Tan and
received proceeds of US$2,500,000, which were converted into 776,633 Series B Preferred Shares in August 2018. Further in August
2018, the Group raised US$17 million by issuance of 5,281,101 Series B Preferred Shares to certain investors, including the conversion
of convertible notes of US$2.5 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On May 15, 2019, the Company closed a merger (the
&ldquo;Closing&rdquo;), pursuant to certain Agreement and Plan of Merger (as amended, the &ldquo;Merger Agreement&rdquo;), dated
as of September 12, 2018, entered into by and among by and among (i) Bison Capital Acquisition Corp., a British Virgin Islands
company to be domesticated to Delaware immediately prior to the Merger (&ldquo;Bison&rdquo;, sometimes is referred as &ldquo;XYN&rdquo;
posting the Merger); (ii) Bison Capital Merger Sub Inc., a Delaware corporation (&ldquo;Merger Sub&rdquo;) (iii) the Company; and
(iv) Yinglin Mark Xu (&ldquo;Stockholder Representative&rdquo;), solely in his capacity as the Stockholder Representative thereunder,
among other things, Merger Sub merged with and into the Company, with the Company continuing as the surviving entity and a wholly-owned
subsidiary of Bison, which then changed its name to &ldquo;Xynomic Pharmaceuticals Holdings, Inc.&rdquo; (the &ldquo;Merger&rdquo;
and &ldquo;XYN&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On the same day, XYN received written notice from
the staff of the NASDAQ Stock Market LLC (&ldquo;Nasdaq&rdquo;) indicating that the Staff had determined to delist its securities
from NASDAQ based upon the non-compliance with the requirement of a minimum of 300 round lot holders of and 400 round lot holders
of purchase warrants and the requirement of the minimum US$5 million in stockholders&rsquo; equity. XYN intends to request a hearing
before the Nasdaq Hearings Panel (the &ldquo;Panel&rdquo;), and such request will stay any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to XYN by the Panel.
XYN intends to pursue certain actions to increase the number of round lot holders of its common stock and warrants as well as increase
its stockholders&rsquo; equity as soon as practicable to meet the applicable listing requirements; however, there can be no assurances
that XYN will be able to do so within the period of time that may be granted by the Panel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group also plans to attract institutional investors
following the business combination. Further, the Group can adjust the pace of its clinical development and patient recruitment
and control the operating expenses of the Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group currently does not have any commitments
to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable terms, if at all. If the
Group cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its research and development
programs to: commercialize potential products or technologies that it might otherwise seek to develop or commercialize independently;
consider other various strategic alternatives, including another merger or sale of the Group; or cease operations; or its securities
may be delisted from Nasdaq. If the Group engages in collaborations, it may receive lower consideration upon commercialization
of such products than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the
product development process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has prepared its financial statements assuming
that it will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal
course of business. The Group has incurred recurring losses from operations since inception. The Group incurred a net loss of US$14,144,555
for the three months ended March 31, 2019. Further, as of March 31, 2019, the Group had net current liabilities (current assets
less current liabilities) of US$19,345,343 and accumulated deficit of US$48,467,724. The Group&rsquo;s ability to continue as a
going concern is dependent on its ability to raise capital to fund its current research and development activities and future business
plans. Additionally, volatility in the capital markets and general economic conditions in the United States may be a significant
obstacle to raising the required funds. These factors raise substantial doubt about its ability to continue as a going concern.
The financial statements included herein do not include any adjustments that might be necessary should the Group be unable to continue
as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary
in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Operations of the Group are subject to certain risks
and uncertainties including various internal and external factors that will affect whether and when the Group&rsquo;s product candidates
become approved drugs and how significant their market share will be, some of which are outside of the Group&rsquo;s control. The
length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage of the drug
approval process will materially affect the Group&rsquo;s financial condition and future operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>(b)</I></B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Share-based
Compensation</I></B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company granted share options to its selected
employees and non-employee consultants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Share-based awards granted to employees with service
conditions attached are measured at the grant date fair value and are recognized as an expense using graded vesting method over
the requisite service period, which is generally the vesting period. The forfeitures are accounted when they occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In June 2018, the FASB issued ASU No. 2018-07, Compensation
- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (&ldquo;ASU 2018-07&rdquo;). The new
guidance largely aligns the accounting for share-based awards issued to employees and nonemployees. Existing guidance for employee
awards will apply to non-employee share-based transactions with limited exceptions. The Company adopted this guidance on January
1, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify">Share-based awards granted to non-employees are
measured at the grant date fair value. When no future services are required to be performed by the non-employee in exchange for
an award of equity instruments, the cost of the award is expensed on the grant date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Option-pricing models are adopted to measure the value
of awards at each grant date. The determination of fair value is affected by the share price as well as assumptions relating to
a number of complex and subjective variables, including but not limited to the expected share price volatility, actual and projected
employee and non-employee share option exercise behavior, risk-free interest rates and expected dividends. The use of the option-pricing
model requires extensive actual employee and non-employee exercise behavior data for the relative probability estimation purpose,
and a number of complex assumptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>(c)</I></B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Concentration
and risk</I></B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><I>Concentration of suppliers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">The following suppliers for the Group&rsquo;s research
and development activities accounted for 10% or more of research and development expenses for the three months ended March 31,
2018 and 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For
the Three Months Ended<BR>
March&nbsp;31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">USD</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">%</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">USD</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">%</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Supplier A</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,632,651</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">49</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Supplier B</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">678,925</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Supplier C</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">112,326</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Supplier D</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">102,223</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Supplier E</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">99,394</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Supplier F</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,271</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
less than 10% of research and development expenses for the three months ended March 31, 2018 and 2019.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CASH</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Company&rsquo;s cash is deposited in financial
institutions at below locations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December&nbsp;31, <BR>
2018</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March&nbsp;31, <BR>
2019</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Financial institutions in the mainland of the PRC</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">&mdash;Denominated in RMB</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">523</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">495</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Financial institutions in the United&nbsp;States</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">&mdash;Denominated in USD</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,745,847</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,049,066</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total cash balances held at financial institutions</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,746,370</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,049,561</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>3.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INCOME
TAXES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended <BR>
March&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Loss before income taxes</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(618,930</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(14,144,555</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Income tax expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Effective income tax rate</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">0</TD><TD STYLE="font-style: italic; text-align: left">%</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">0</TD><TD STYLE="font-style: italic; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The effective income tax rates for the three months
ended March 31, 2018 and 2019 were 0% and 0%, respectively. The effective income tax rate for the three months ended March 31,
2018 and 2019 differs from the U.S. Federal statutory corporate income tax rate of 21% is primarily due to the increase in valuation
allowance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>4.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PREPAID
EXPENSES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Prepaid expenses consist of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As
of<BR>
December&nbsp;31,<BR>
2018</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March&nbsp;31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2019</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Prepaid research and development expenses</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">207,988</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,967</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Prepaid rental expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,371</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,992</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Prepaid health insurance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,703</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Others</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,391</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,212</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total prepaid expenses</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">277,750</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">98,874</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PROPERTY
AND EQUIPMENT, NET</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December&nbsp;31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2018</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2019</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Leasehold improvement</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">276,839</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">296,524</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Lab equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,087</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Electronic equipment</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,379</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">14,357</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">281,218</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">510,968</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(488</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(24,605</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Property and equipment, net</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">280,730</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">486,363</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The depreciation expense for property and equipment
was nil and US$23,981 for the three months ended March 31, 2018 and 2019, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>6.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OTHER
NON-CURRENT ASSETS</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Other non-current assets consist of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December&nbsp;31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2018</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 31, 2019</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">VAT input tax</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">52,762</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">78,673</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Prepaid insurance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">93,075</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,407</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">Deposits</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">9,339</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8,955</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total other non-current assets</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">155,176</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">175,035</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>7.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ACCRUED
EXPENSES AND OTHER CURRENT LIABILITIES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Accrued expenses and other current liabilities
consist of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December&nbsp;31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2018</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 31,</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2019</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Research and development expense-Contract Research Organizations</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">10,304,750</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,889,717</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Research and development expense-Contract Manufacture Organizations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,874,956</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,105,725</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">License fee payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Professional fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">824,360</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">985,963</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Payroll and social insurance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147,692</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">280,343</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Payables for equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">138,002</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Payable for leasehold improvement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">110,736</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">105,795</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Others</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">144,767</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">109,737</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total accrued expenses and other current liabilities</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">14,407,261</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">17,615,282</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>&nbsp;&nbsp;</I>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>8.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REDEEMABLE
CONVERTIBLE PREFERRED SHARES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Redeemable convertible preferred shares consist of
the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Angel Preferred Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Series A-1 Preferred Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Series B Preferred Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%">Balance as of December 31, 2018</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 9%; font-weight: bold; text-align: right">580,256</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 9%; font-weight: bold; text-align: right">4,905,780</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 9%; font-weight: bold; text-align: right">2,424,712</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Redemption value accretion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">11,117</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">93,984</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,592,877</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt">Balance as of March 31, 2019</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">591,373</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,999,764</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,017,589</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LOSS
PER SHARE</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Basic and diluted net loss per share for each of the
periods presented are calculated as follow:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Three Months Ended</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Numerator:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net loss attributable to ordinary shareholders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">716,246</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">15,842,533</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Denominator:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Weighted average number of ordinary shares-basic and diluted</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">9,617,121</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">9,617,121</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per share-basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">0.07</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1.65</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">When the dividends to preferred shares are not fully
paid, the ordinary shares holders shall not participate in undistributed earnings. If all dividends to preferred shares holders
are fully paid, the holders of the preferred shares and the holders of the ordinary shares participate in undistributed earnings
on a pro rata basis, as if the preferred shares had been converted into ordinary shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">As a result of the Group&rsquo;s net loss for the
three months ended March 31, 2018 and 2019, preferred shares and options outstanding in the respective periods were excluded from
the calculation of diluted loss per share as their inclusion would have been anti-dilutive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Three Months Ended</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Number of Angel Preferred Shares outstanding</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">23,435,379</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">23,435,379</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Number of Series A-1 Preferred Shares outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,147,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,147,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Number of Series B Preferred Shares outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,281,101</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Number of Share options outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">886,046</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>10.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LICENSES
ARRANGEMENT</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><I>License agreement with Pharmacyclics
LLC (&ldquo;Pharmacyclics&rdquo;)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In February 2017, the Group entered into a license
agreement with Pharmacyclics, under which the Group obtained an exclusive and worldwide license or sublicense under certain patents
and know-how of Pharmacyclics to develop, manufacture and commercialize Pharmacyclics&rsquo;s HDAC inhibitor, also known as Abexinostat,
for all human and non-human diagnostic, prophylactic, and therapeutic uses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under the terms of the agreement, the Group made upfront
payments of US$3.5 million in 2017 and 1st milestone payment of US$3.5 million in 2018 to Pharmacyclics which were recorded as
research and development expenses in 2017 and 2018, respectively. In addition, the Group is obligated to pay the following development
and regulatory milestone payments: 1) 2nd milestone payment of US$6,500,000 upon regulatory approval for the first indication for
a licensed product in China or in the United States; 2) 3rd milestone payment of US$4,000,000 upon regulatory approval for the
second indication for a licensed product in China or in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the Group will pay to Pharmacyclics royalties
at a flat high-teen percentage rate on the net sales of the licensed products. The Group shall have no obligation to pay any royalty
with respect to net sales of any licensed product in any country or other jurisdiction after the royalty term for such licensed
product in such country or other jurisdiction has expired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The license agreement with Pharmacyclics will remain
in effect until the expiration of the royalty term and may be early terminated by either party for the other party&rsquo;s uncured
material breach, bankruptcy, insolvency, or similar event. Pharmacyclics has the right to terminate the agreement if the Group
challenge Pharmacyclics&rsquo; patents or fails its diligent obligations to develop or commercialize the licensed product pursuant
to the license agreement with Pharmacyclics. In addition, the Group may terminate this agreement for convenience with advance written
notice to Pharmacyclics. In the event this license agreement is terminated for any reason other than Pharmacyclics&rsquo; material
breach, the Group will be responsible for continuing, at its cost for up to six months, to conduct clinical studies it conducts
at the termination and transfer the control of the clinical studies to Pharmacyclics. If such transfer is expressly prohibited
by a regulatory authority, the Group will continue to conduct such clinical studies to completion, at the Group&rsquo;s cost.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Patent assignment and licensing agreement with
Boehringer Ingelheim International GMBH (&ldquo;BII&rdquo;)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In August 2017, the Group entered into a Patent assignment
and licensing agreement with BII, under which the Group accepts the assignment and transfer of the patents and know-how of BII
to exclusively develop, manufacture and commercialize BII&rsquo;s Pan-RAF Inhibitor BI 882370, also known as Dabrafenib, for the
diagnosis, prevention or treatment of any and all diseases or conditions in humans or animals. BII retains the exclusive right
to use the licensed compound to conduct internal preclinical research.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under the terms of the agreement, the Group made upfront
payments to BII totaling US$0.3 million which was recorded as a research and development expense in 2017. In addition, the Group
is obligated to pay the following development and regulatory milestone payments: 1) 1st milestone payment of US$ 1,700,000 upon
first dosing of a patient in Phase I Clinical Trial in the US or China; 2) 2nd milestone payment of US$ 4,000,000 upon first dosing
of a patient in a pivotal Phase III Clinical Trial in the first indication in the US or China; 3) 3rd milestone payment of US$2,000,000
upon first dosing of a patient in a pivotal Phase III Clinical Trial in a second indication in the US or China; 4) 4th milestone
payment of US$ 7,000,000 upon the grant of the first marketing authorization of the first indication in the US; 5) 5th milestone
payment of US$3,000,000 upon the grant of the first marketing authorization of the first indication in China.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the Group will pay royalties at a certain
percentage of the net sales. The royalty term commences from the first commercial sale of such licensed product in such country
until the later of (i) the date on which such licensed product is no longer covered by a valid claim of the assigned patents and
assigned invention, (ii) the expiration of regulatory exclusivity of the licensed product in such country, or (iii) the tenth anniversary
of the first launch of the respective licensed product in the country, provided the licensed know-how is still proprietary, or
such licensed know-how is no longer proprietary owing to a breach of its confidentiality obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Group has the right to terminate this agreement
by providing BII with written notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>License agreement with BII (XP-105)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In December 2018, Xynomic entered into a license agreement
with BII for the worldwide exclusive rights to develop and commercialize XP-105 (also known as BI 860585) for all human and non-human
diagnostic, prophylactic, and therapeutic uses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Under the terms of the agreement, as of March 31,
2019 the Group was obligated to make upfront payments to BII totaling US$1 million which was recorded as a research and development
expense for the year ended December 31, 2018 and was included in accrued expenses and other current liabilities as of December
31, 2018. In addition, the Group is obligated to pay the following development and regulatory milestone payments: 1) 1st milestone
payment of US$7,000,000 upon first dosing of a patient in Phase II or Phase III Clinical Trial in the first indication either of
which is intended to be a pivotal trial; 2) 2nd milestone payment of US$10,000,000 upon the grant of the first Marketing Authorization
of the first indication.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the Group will pay royalties at a certain
percentage of the net sales. The royalty term commences from the first commercial sale of such licensed product in such country
until the later of (i) the date on which such licensed product is no longer covered by a valid claim of the licensed patents, (ii)
the expiration of regulatory exclusivity of the licensed product in such country, or (iii) the tenth anniversary of the first launch
of the respective licensed product in the country in the indication, provided the licensed know-how is still proprietary, or such
licensed know-how is no longer proprietary owing to a breach of its confidentiality obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">The Group has the right to terminate this agreement
by providing BII with written notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>11.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>COMMITMENTS
AND CONTINGENCIES</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease
commitments</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">The Group entered into non-cancelable operating leases,
primarily for office space, for initial terms of 12 to 36 months. Minimum rent payments under operating leases are recognized on
a straight-line basis over the term of the lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">Future minimum lease payments under non-cancelable
operating leases with remaining lease terms in excess of one year as of March 31, 2019 are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"><B><I>&nbsp;</I></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Minimum <BR>
Lease Payment <BR>
Amount</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 88%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year ending March 31,</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">247,639</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">234,064</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">185,207</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>666,910</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">Rental expenses for operating leases for the three
months ended March 31, 2018 and 2019 were US$16,026 and US$48,164, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
commitments</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">The Group is a party to or assignee of license and
collaboration agreements that may require it to make future payments relating to milestone fees and royalties on future sales of
licensed products (Note 10).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>12.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>RELATED
PARTY TRANSACTIONS</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amount
due to shareholders</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"><B>&nbsp; </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payable
due to a shareholder</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">For the three months ended March 31, 2018 and 2019,
Yinglin Mark XU, the founder and CEO of the Company, advanced US$498,222 and US$412,961, respectively, to the Company to fund its
operation. As of December 31, 2018 and March 31, 2019, the amount due to Yinglin Mark XU was US$2,008,936 and US$2,441,776, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Services
purchased from a company affiliated with a shareholder</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.3pt; text-indent: -13.6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Eigenbridge, Inc., a company affiliated with Yong Cui,
one of the Company&rsquo;s shareholders and Vice President of Chemistry, Manufacturing and Controls, entered into a contractor
agreement with the Company on February 26, 2017. Pursuant to the agreement, Eigenbridge, Inc., provided specialized advisory services
to the Company. The Company recognized general and administrative of nil and US$25,908 for the three months ended March 31, 2018
and 2019, respectively. The amount due to Eigenbridge, Inc., were US$80,640 and nil as of December 31, 2018 and March 31, 2019,
respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">iii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Advances
from and interest payable to a shareholder</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.3pt; text-indent: -13.6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On May 2, 2018, as one of the potential investors of
Series B financing, Zhongshan Bison Healthcare Investment Limited (Limited Partnership) (&ldquo;Zhongshan Bison&rdquo;) entered
into a loan agreement with Xynomic Pharmaceuticals (Nanjing) Co., Ltd. (&ldquo;Xynomic Nanjing&rdquo;). On May 13, 2018, Zhongshan
Bison made an advance of RMB9,435,000 (equivalent to US$1,425,959) to fund the operations and business development of Xynomic Nanjing.
Zhongshan Bison is entitled to withdraw the advance within 5 business days after Zhongshan Bison paid the first investment of Series
B financing, or if current shareholders and investors fail to subscribe shares of the Series B financing within 6 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On August 16, 2018, Zhongshan Bison became one of the
Series B Preferred Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On August 23, 2018, Xynomic Nanjing entered into a termination
agreement for the advance from Zhongshan Bison. Xynomic Nanjing is required to a) repay RMB1,800,000 of the advance from Zhongshan
Bison within 2 days after signing the agreement; and b) repay the remaining RMB7,635,000 of the advance from Zhongshan Bison and
interest accrued at annual interest rate of 8% from signing the agreement within six months from the date of the termination agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On August 23, 2018, Xynomic Nanjing repaid RMB1,800,000
(equivalent to US$262,743) of the advance from Zhongshan Bison. As of December 31, 2018, the advance from Zhongshan Bison was US$1,112,455.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">On January 21, 2019, Xynomic Nanjing repaid RMB5,064,000
(equivalent to US$747,189) of the advance from Zhongshan Bison. On February 20, 2019, Zhongshan Bison agreed to extend the due
date of the remaining advance of RMB2,571,000 (US$383,097) and all accrued interest to April 15, 2019. On April 12, 2019, Zhongshan
Bison agreed to further extend the due date of the remaining advance of RMB2,571,000 (US$383,097) and all accrued interest to June
30, 2019. On June 30, 2019, the due date was further extended to September 15, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Xynomic Nanjing accrued interest expense of US$15,088
for the advance from Zhongshan Bison for the three months ended March 31, 2019. The interest payable to Zhongshan Bison was US$31,697
and US$47,583 as of December 31, 2018 and March 31, 2019, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Service
purchased from a shareholder</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">In June 2017, the Group paid US$295,021 to Bridge
Pharm International Inc., one of the Company&rsquo;s shareholders, pursuant to 20 months services agreement. Under the agreement,
Bridge Pharm International Inc. provides consulting service, including business development, screening and selection of contract
research organizations and contract manufacturing organizations and scouting and references of key scientific and managerial personnel
to the Group. The Company recognized general and administrative of US$49,053 and nil for the three months ended March 31, 2018
and 2019, respectively. The balance related to the Bridge Pharm International Inc. was nil as of December 31, 2018 and March 31,
2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>13.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SHARE-BASED
COMPENSATION</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt"><I><U>2018 Stock Incentive Plan</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">On August 28, 2018, the Board of Directors of the
Company approved a resolution to adopt the 2018 Stock Incentive Plan (the &ldquo;2018 Plan&rdquo;) that provides for the granting
of options to selected employees, directors and non-employee consultants to acquire ordinary shares of the Company at exercise
prices determined by the Board or the administrator appointed by the Board at the time of grant. Upon this resolution, the Board
of Directors and shareholders authorized and reserved 8,908,430 ordinary shares for the issuance under the 2018 Plan. The number
of ordinary shares available under the Plan shall increase annually on the first day of each fiscal year, beginning with the second
fiscal year following the effective date of this Plan, and continuing until (and including) the fiscal year ending December 31,
2028, with such annual increase equal to the lesser of (i) 3,000,000 ordinary shares, (ii) 5% of the number of ordinary shares
issued and outstanding on December 31 of the immediately preceding calendar year, and (iii) an amount determined by the Board.
As of December 31, 2018 and March 31, 2019, 8,908,430 and 8,022,384 awards remain available for future grants under the 2018 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">Under the 2018 Plan, the Company granted 886,046
ordinary shares of the Company with the below vesting schedule on January 21, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">Granted to an employee (100,000 shares): 25% of
the options is to be vested on April 30, 2019, and 1/48 of the options to be vested each month thereafter;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">Granted to a non-employee (786,046 shares): 25%
of the options is to be vested on August 31, 2019, and 1/48 of the options to be vested each month thereafter, subject to an acceleration
vesting schedule that 75% is to be issued upon completion of the Company&rsquo;s merger with Bison Capital Acquisition Corp, and
25% to be issued in one year after the closing of the merger.&nbsp; The cost of the share options granted to the non-employee was
fully recognized at the grant date, as no substantive future services are required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt"><I><U>Summary of Share Option Activities</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">The following tables summarize the Company&rsquo;s
share option activities for the three months ended March 31, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Weighted</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Weighted</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>average</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>remaining</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Aggregate</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number&nbsp;of</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>exercise</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>contractual</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>intrinsic</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Granted to Employee</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>shares</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>price</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>years</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>value</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>US$</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>US$</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 51%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Outstanding at January&nbsp;1, 2019</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Granted</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.00</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Forfeited</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Outstanding at March&nbsp;31, 2019</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>100,000</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1.00</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9.82</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>855,730</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exercisable as of March&nbsp;31, 2019</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Weighted</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Weighted</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>average</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>remaining</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Aggregate</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number&nbsp;of</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>exercise</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>contractual</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>intrinsic</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Granted to Non-employee</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>shares</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>price</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>years</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>value</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>US$</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>US$</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 51%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Outstanding at January&nbsp;1, 2019</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Granted</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">786,046</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.10</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Forfeited</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Outstanding at March&nbsp;31, 2019</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>786,046</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>0.10</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9.82</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>7,433,873</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exercisable as of March&nbsp;31, 2019</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">No options were exercised during the three months
ended March 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">Management is responsible for determining the fair
value of options granted to employees and non-employees and considered a number of factors including valuations. The Company&rsquo;s
share-based compensation cost is measured at the fair value of the options as calculated under the binomial models.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">Assumptions used in the option-pricing model are
presented below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2019</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 89%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk-free interest rate</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.77</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected term</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10&nbsp;years</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Volatility rate</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36.1</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividend yield</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exercise multiple</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.8</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair value of underlying ordinary share</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.5573</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">The Company estimated the risk-free rates based
on the 10-year U.S. bond as at the option valuation date. Life of the share options is the contract life of the option. Based on
the option agreements, the contract life of the option are 10 years from the respective grant date. The expected volatility at
the option valuation date was estimated based on historical volatility of comparable companies. The Company has no history or expectation
of paying dividends on its ordinary shares. The Company estimated the fair value of the ordinary shares using the equity allocation
approach when valuing options granted. As the Company did not have sufficient information of past employee exercise history, the
expected exercise multiple was estimated by referencing to How to Value Employee Stock Options (published by John Hull&amp; Allen
White, Financial Analysts Journal, 2004 edition), a well-accepted academic publication.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">The weighted average grant date fair value of the
share options granted for the three months ended March 31, 2019 was US$9.3653. Compensation expense of US$7,683,282 were recognized
in general and administrative relating to the 886,046 options for the three months ended March 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.65pt; text-align: justify">As of March 31, 2019, there was US$614,833 unrecognized
compensation expenses related to non-vested options. The expenses are expected to be recognized over a period of 3.08 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>14.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CHANGES
IN SHAREHOLDERS&rsquo; DEFICIT</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ordinary</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Additional<BR>
paid-in</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Accumulated<BR>
other<BR>
comprehensive</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Accumulated</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B><BR>
<B>Shareholders&rsquo;</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: -0.125in; padding-left: 0.125in"></TD>
    <TD STYLE="text-align: center"></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shares</B></FONT></TD>
    <TD STYLE="text-align: center"></TD>
    <TD STYLE="text-align: center"></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount</B></FONT></TD>
    <TD STYLE="text-align: center"></TD>
    <TD STYLE="text-align: center"></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>capital</B></FONT></TD>
    <TD STYLE="text-align: center"></TD>
    <TD STYLE="text-align: center"></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>income/(loss)</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;deficit</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Deficit</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 34%; text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Balance as of December 31, 2017</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9,617,121</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>962</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(5,735,545</B></FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(5,734,583</B></FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Redeemable convertible preferred shares redemption value accretion</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(97,316</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(97,316</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(618,930</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(618,930</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Balance as of March 31, 2018</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9,617,121</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>962</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(97,316</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(6,354,475</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(6,450,829</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD></TR>

<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ordinary</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Additional<BR>
paid-in</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Accumulated<BR>
other<BR>
comprehensive</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Accumulated</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B><BR>
<B>Shareholders&rsquo;</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shares</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>capital</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>income/(loss)</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>deficit</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Deficit</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 34%; padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Balance as of December 31, 2018</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9,617,121</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>962</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>14,168,915</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>58,564</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(34,323,169</B></FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(20,094,728</B></FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Redeemable convertible preferred shares redemption value accretion (Note 8)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,697,978</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,697,978</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(14,144,555</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(14,144,555</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Foreign currency translation adjustment, net of nil income taxes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(36,991</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(36,991</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Share-based compensation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,683,282</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,683,282</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Balance as of March 31, 2019</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9,617,121</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>962</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>20,154,219</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>21,573</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(48,467,724</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(28,290,970</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>15.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SUBSEQUENT
EVENT</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has considered subsequent events through
July 5, 2019, which was the date these consolidated financial statements were available to be issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On May 15, 2019 (the &ldquo;Effective Time&rdquo;),
each share of the Company&rsquo;s ordinary shares and preferred shares issued and outstanding prior to the Effective Time was automatically
converted into the right to receive, on a pro rata basis, the Closing Consideration Shares (as defined in the Merger Agreement)
and the Earnout Shares (as defined in the Merger Agreement), and each option to purchase the Company&rsquo;s ordinary shares that
was outstanding immediately prior to the Effective Time was assumed by the XYN and automatically converted into an option to purchase
shares of common stock of the XYN.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Following the business combination, the Company became
a subsidiary of XYN.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>UNAUDITED
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Xynomic Pharmaceuticals Holdings, Inc. is
providing the following unaudited pro forma condensed combined financial information to aid you in your analysis of the financial
aspects of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The following unaudited pro forma condensed
combined balance sheet as of March 31, 2019 combines amounts derived from the unaudited consolidated balance sheet of Xynomic as
of March 31, 2019 with the unaudited consolidated balance sheet of Bison as of March 31, 2019, giving effect to the Business Combination
as if it had been consummated as of that date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The following unaudited pro forma condensed combined statements of operations for the year ended December
31, 2018 combines the amounts derived from the audited consolidated statement of comprehensive loss of Xynomic for the year ended
December 31, 2018 with the audited consolidated income statement of Bison for the year ended December 31, 2018, giving effect to
the Business Combination as if it had occurred on January 1, 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The following unaudited pro forma condensed
combined statements of operations for the three months ended March 31, 2019 combines the amounts derived from the unaudited condensed
consolidated statement&nbsp;of comprehensive loss of Xynomic for the three months ended March 31, 2019 with the unaudited consolidated
income statement of Bison for the three months ended March 31, 2019, giving effect to the Business Combination as if it had occurred
on January 1, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The historical financial information has
been adjusted to give effect to pro forma events that are related and/or directly attributable to the Business Combination, are
factually supportable and are expected to have a continuing impact on the combined results. The adjustments presented in the unaudited
pro forma condensed combined financial statements have been identified and presented to provide relevant information necessary
for an accurate understanding of the combined company upon consummation of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The historical financial
information of Xynomic was derived from the audited consolidated financial statements of Xynomic for the year ended December 31,
2018 and 2017 and the unaudited consolidated financial statements of Xynomic for the three months ended March 31, 2019 and 2018,
included elsewhere in this Form 8-K. The historical financial information of Bison was derived from the unaudited consolidated
financial statements of Bison for the three months ended March 31, 2019 and 2018 included in the Form 10-Q filed on May 14, 2019.
This information should be read together with Xynomic&rsquo;s and Bison&rsquo;s audited and unaudited financial statements and
related notes, &ldquo;<I>Xynomic Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</I>,&rdquo;&nbsp;<I>&ldquo;Bison&rsquo;s
Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</I>&rdquo; and other financial information
included elsewhere in this proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The unaudited pro forma condensed combined
financial information is for illustrative purposes only. The financial results may have been different had the companies always
been combined. You should not rely on the unaudited pro forma condensed combined financial information as being indicative of the
historical results that would have been achieved had the companies always been combined or the future results that the combined
company will experience. Bison and Xynomic have not had any historical relationship prior to the Business Combination except that
(a) Zhongshan Bison Healthcare Investment Limited (Limited Partnership) (&ldquo;<I>Zhongshan Bison</I>&rdquo;) is holding 1,553,265
shares of Series B preferred stock of Xynomic representing approximately 2.96% equity interest in Xynomic immediately prior to
the Closing, and (b) Mr. Peixin Xu, the Chairman of Bison, is the beneficial owner of 21% of Zhongshan Bison and his wife owns
100% of the Sponsor. Accordingly, no pro forma adjustments were required to eliminate activities between the companies.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The Business Combination will be accounted
for as a reverse merger in accordance with accounting principles generally accepted in the United States of America. Under this
method of accounting, Bison will be treated as the &ldquo;acquired&rdquo; company for financial reporting purposes. This determination
was primarily based on Xynomic comprising the ongoing operations of the combined entity, Xynomic&rsquo;s senior management comprising
the senior management of the combined company, and Xynomic&rsquo;s stockholders having a majority of the voting power of the combined
company. Accordingly, for accounting purposes, the Business Combination will be treated as the equivalent of Xynomic issuing stock
for the net assets of Bison, accompanied by a recapitalization. These transactions are not business combinations because Bison
is not a business under S-X Rule 11-01(d). The private operating company would credit equity for the fair value of the net assets
of the shell company (i.e., no goodwill or intangible assets would be recognized). Operations prior to the Business Combination
will be those of Xynomic.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">The aggregate number of Bison&rsquo;s ordinary
shares that will be issued to Xynomic&rsquo;s equity holders at the closing of the Business Combination will consist of the Closing
Consideration Shares that equal to (a) $350,000,000 minus (b) the amount of the Closing Indebtedness, plus (c) the amount of the
Closing Cash (which may be a positive or negative dollar amount), minus (d) the amount of the Company Transaction Expenses, plus
(e) the Closing Tax Benefits, plus (f) if Closing Working Capital is greater than Target Working Capital, an amount equal to (x)
Closing Working Capital minus (y) Target Working Capital, minus (g) if Target Working Capital is greater than the Closing Working
Capital an amount equal to (x) Target Working Capital minus (y) Closing Working Capital (capitalized terms are defined in the Merger
Agreement), if any, divided by $10.15 and 9,852,216 Earnout Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32.45pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Merger Agreement, immediately prior to the Closing, and giving effect to the completion of any redemptions, but excluding
the payment of Bison&rsquo;s reasonable expenses, the amount of net tangible assets shall be no less than $7,500,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 32.45pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Given that the Extension Amendment Proposal
and the Trust Amendment Proposal were approved at the Extension Meeting and shareholders holding 5,234,420 public shares exercised
their rights to redeem such public shares for a pro rata portion of the Trust Account, an aggregate of $55,177,977 (or $10.54 per
share) was removed from the Trust Account to pay such shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Public shareholders are further redeemed
789,269 public shares in connection with the expected shareholder vote to approve the proposed business combination with Xynomic,
which has been consummated by May 17, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Based upon the adjusted equity valuation
of Xynomic of $435,036,831 as of the closing, a total of 42,860,772 Merger Consideration Shares were issued, of which 9,852,216
of such shares are serving as the Earnout Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">As a condition to the Business Combination
and as further discussed in the accompanying Current Report on Form 8-K, the Backstop Investors purchased $7.67 million of our
ordinary shares through a private placement that occurred simultaneously with that of the Business Combination, in order to ensure
that there is at least $7.5 million in net tangible assets available in the Company immediately following the Business Combination
(the &ldquo;Backstop&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">As a result of the Business Combination
(i) after 789,269 ordinary shares were redeemed and converted into cash, (ii) an adjusted equity valuation of $435,036,831, (iii)
the issuance of 755,873 ordinary shares to Backstop investor, and (iv) Bison&rsquo;s sponsor select to convert its promissory notes
of $500,000 to ordinary shares at price of $10.00 per share, Xynomic stockholders will own approximately 94.24% of the Company&rsquo;s
ordinary shares to be outstanding immediately after the Business Combination, and Bison shareholders will own approximately 5.76%
of the Company&rsquo;s outstanding ordinary shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PRO FORMA CONDENSED COMBINED BALANCE
SHEET</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AS OF MARCH 31, 2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(A)<BR>
Xynomic</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(B)<BR>
Bison</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Pro Forma<BR>
Adjustments</B></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Pro Forma&nbsp;<BR>
Balance sheet</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Assets</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current assets:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 50%; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,049,561</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,210</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$ 8,477,530</FONT></TD>
    <TD STYLE="white-space: nowrap; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(1)</SUP></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,689,656</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8,330,748</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(5)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,804</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(7)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(783,798</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(8)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,103,607</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prepaid expenses</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">98,874</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,089</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">113,963</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total Current Assets</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1,148,435</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>18,299</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>4,050,836</B></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5,217,570</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-current assets:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash and marketable securities held in Trust Account</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,477,530</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8,477,530</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intangible assets, net</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,701</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,701</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property and equipment, net</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">486,363</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">486,363</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other non-current assets</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">175,035</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">175,035</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total Non-Current Assets</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">663,099</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,477,530</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8,477,530</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">663,099</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total Assets</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1,811,534</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>8,495,829</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(4,426,694</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5,880,669</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Liabilities</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current liabilities:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bank overdraft</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,040</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,040</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Advance from related party</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,804</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,804</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(7)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amount due to shareholders</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,872,456</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,872,456</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-indent: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accrued expenses and other current liabilities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">17,615,282</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">227,799</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">17,843,081</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-indent: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Promissory notes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">610,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(500,000</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(110,000</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total Current Liabilities</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>20,493,778</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>839,603</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(3,484,260</B></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>17,849,121</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total Liabilities</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>20,493,778</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>839,603</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(3,484,260</B></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 4.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>17,849,121</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Commitments and Contingencies</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mezzanine Equity</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Angel preferred shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">591,373</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(591,373</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Series A-1 preferred shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,999,764</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4,999,764</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Series B preferred shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,017,589</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4,017,589</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ordinary shares subject to possible redemption</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,656,225</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,656,225</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(5)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total Mezzanine Equity</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9,608,726</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2,656,225</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(12,264,951</B></FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shareholders&rsquo; Equity/(Deficit)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ordinary shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">962</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,636,334</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4,636,086</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">75</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(5)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,304</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,607</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additional paid-in capital</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,154,219</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,636,086</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,672,037</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">499,994</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,674,535</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(5)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,969,089</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">37,256,890</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accumulated other comprehensive income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21,573</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21,573</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Accumulated deficit)/Retained earnings</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(48,467,724</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">363,667</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(363,667</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(783,798</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(8)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(49,251,522</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total Shareholders&rsquo; Equity/(Deficit)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(28,290,970</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5,000,001</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>11,322,517</B></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(11,968,452</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt; padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total Liabilities, Mezzanine Equity and Shareholders&rsquo; Equity/(Deficit)</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1,811,534</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>8,495,829</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(4,426,694</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5,880,669</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Page; Sequence: 248; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->64<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pro Forma Adjustments to the Unaudited
Condensed Combined Balance Sheet</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(A)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Derived
from the unaudited consolidated balance sheet of Xynomic as of March 31, 2019;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(B)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Derived
from the unaudited balance sheet of Bison as of March 31, 2019.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Liquidate
the investments held in trust by Bison;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reclassification
from Ordinary shares to Additional paid in capital as the Domestication exchanged the no par value share to $0.0001 per share;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
reflect the proceeds received from the issuance of 755,873 ordinary shares to the Backstop Investor, of which Yinglin Mark Xu
subscribed 742,080 ordinary shares and Bison Sponsor subscribed 13,793 ordinary shares;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
reflect Bison&rsquo;s promissory notes of $500,000 conversion at $10.00 per unit, and the conversion of Rights to 5,000 shares;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result of 789,269 ordinary shares redeemed by Bison&rsquo;s shareholder, $8,330,748 was paid in cash to the redeem the shares
at the value at March 31, 2019.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
reflect the recapitalization of Xynomic through the issuance of 42,636,484 shares of the Company&rsquo;s ordinary shares and the
elimination the historical accumulated deficit of Bison, the accounting acquiree.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The following table details
the calculation of the number of shares comprising the Closing Consideration Shares and Earnout Shares in accordance with the terms
of the Merger Agreement as if the merger had occurred on March 31, 2019, which is estimated to be approximately 42,636,484 shares:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: justify">Base Merger consideration</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">350,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Earnout consideration</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Less: Indebtedness</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,872,456</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Plus: Cash held by Xynomic as of March 31, 2019</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,049,561</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Plus: Difference between Actual Working Capital and Target Working Capital</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(15,416,789</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Adjusted Merger consideration</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">432,760,316</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Share Price</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">10.15</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Shares issued for recapitalization</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">42,636,484</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
record repayment of advances from related parties, and amount due to shareholders</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
record payment of estimated legal, financial advisory, accounting, printing and other professional fees related to the Business
Combination</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 249; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->65<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOR THE YEAR ENDED DECEMBER 31, 2018</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">(A)<BR> Xynomic</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">(B)<BR> Bison</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Pro Forma<BR> Adjustments<BR> Assuming<BR> Maximum<BR> Redemptions</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Pro Forma<BR> Income<BR> statement<BR> Assuming<BR> Maximum<BR> Redemptions</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 9pt">General and administrative</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,049,353</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">835,928</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(1,852,582</TD><TD STYLE="width: 1%; text-align: left; white-space: nowrap">)<SUP>(1)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,032,699</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">General and administrative to related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">362,336</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">362,336</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Research and development</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">25,159,602</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">25,159,602</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">28,571,291</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">835,928</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,852,582</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; white-space: nowrap">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">27,554,637</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Net operating (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,571,291</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(835,928</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,852,582</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,554,637</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Other income (expense):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Unrealized loss on securities held in Trust Account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(19,186</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,186</TD><TD STYLE="text-align: left; white-space: nowrap"><SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,121,740</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,121,740</TD><TD STYLE="text-align: left; white-space: nowrap">)<SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,541</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,541</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Interest expense to a related party</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(32,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(32,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Income (loss) before income taxes</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(28,587,624</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">266,626</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750,028</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(27,570,970</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Income tax expense</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Net (loss) income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,587,624</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">266,626</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750,028</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27,570,970</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Accretion to preferred share redemption value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,831,085</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,831,085</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; white-space: nowrap">)<SUP>(2)</SUP></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Net (loss)/income attributable to the Company&rsquo;s ordinary shareholders</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(31,418,709</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">266,626</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,581,113</TD><TD STYLE="padding-bottom: 4pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(27,570,970</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Other comprehensive income/(loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Foreign currency translation adjustment, net of nil income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,564</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,564</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Unrealized gain on available for sale securities, net of nil income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,541</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,541</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Less: reclassification adjustment for gain on available for sale securities realized in net income, net of nil income taxes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(16,541</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(16,541</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Total other comprehensive income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,564</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left; white-space: nowrap">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,564</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Comprehensive (loss)/income attributable to ordinary shareholders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(31,360,145</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">266,626</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,581,113</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(27,512,406</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Weighted average shares outstanding, basic</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,426,155</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">45,004,818</TD><TD STYLE="padding-bottom: 4pt; text-align: left; white-space: nowrap"><SUP>(4)</SUP></TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">47,430,973</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Basic net loss per share</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.30</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.58</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(A)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Derived from the audited consolidated statement of comprehensive loss of Xynomic for the year ended December 31, 2018.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(B)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Derived from the audited statements of operations of Bison for the year ended December 31, 2018.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To eliminate direct costs of the Business Combination which are reflected in the historical financial statements of Bison and Xynomic in the amount of $ 442,595 and $ 1,409,987 as of December 31, 2018.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To eliminate the accretion to the redemption value on preferred shares as of the beginning of the periods.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To eliminate unrealized gain/(loss) and interest income on marketable securities held in the trust account as of the beginning of the period.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As the Business Combination is being reflected as if it had occurred at the beginning of the periods presented, the calculation of weighted average shares outstanding for basic and diluted net income/(loss) per share assumes that the shares issuable relating to the Business Combination have been outstanding for the entire periods presented. If the maximum number of shares are redeemed, this calculation is retroactively adjusted to eliminate such shares for the entire period. The Bison public shares used in the weighted average shares calculation is computed as the sum of the public shares outstanding, plus the shares issued to the investor, less the shares redeemed. Weighted average common shares outstanding - basic and diluted is calculated as follows, the potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended<BR> December&nbsp;31,&nbsp;<BR> 2018</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Weighted average shares calculation, basic</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-indent: -10pt; padding-left: 10pt">BCAC weighted average public shares outstanding</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,955,248</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC rights converted to shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">651,956</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC promissory notes conversion</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Backstop shares issued to Yinglin Mark Xu</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">728,172</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Backstop shares issued to Bison Sponsor</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,852</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">BCAC shares issued in Business Combination</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">44,035,745</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">47,430,973</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Percent of shares owned by Xynomic&rsquo;s holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">94.38</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Percent of shares owned by BCAC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.62</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt">Weighted average shares calculation, basic</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Existing Xynomic holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,763,917</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">BCAC holders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,667,056</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average shares, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">47,430,973</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt">Weighted average shares calculation, diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,667,056</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC shares issued in Business Combination</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,763,917</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC warrants underlying public shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,043,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">241,030</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Unit purchase option</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">252,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">50,967,753</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Percent of shares owned by Xynomic&rsquo;s holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87.83</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Percent of shares owned by BCAC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.17</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt">Weighted average shares calculation, diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Existing Xynomic holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,763,917</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">BCAC holders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6,203,836</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average shares, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">50,967,753</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOR THE THREE MONTHS ENDED MARCH 31,
2019</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(UNAUDITED)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(A)<BR>
Xynomic</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(B)<BR>
Bison</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Pro Forma<BR>
Adjustments<BR>
Assuming<BR>
Maximum<BR>
Redemptions</B></FONT></TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Pro Forma<BR>
Income<BR>
statement<BR>
Assuming<BR>
Maximum<BR>
Redemptions</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Operating expenses:</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 50%; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">General and administrative</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,779,249</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">204,521</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(359,272</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,624,498</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">General and administrative to related parties</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,908</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,908</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research and development</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,324,310</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,324,310</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total operating expenses</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,129,467</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">204,521</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(359,272</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,974,716</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net operating (loss) income</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(14,129,467</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(204,521</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">359,272</FONT></TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,974,716</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Other income (expense):</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unrealized loss on securities held in Trust Account</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,587</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,587</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">347,210</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(347,210</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest expense to a related party</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(15,088</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(15,088</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Income (loss) before income taxes</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(14,144,555</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>140,102</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,649</FONT></TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(13,989,804</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Income tax expense</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net (loss) income</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(14,144,555</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">140,102</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,649</FONT></TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(13,989,804</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accretion to preferred share redemption value</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,697,978</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,697,978</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)<SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt; padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net (loss)/income attributable to the Company&rsquo;s ordinary shareholders</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(15,842,533</FONT></TD>
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">140,102</FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,712,627</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double"><SUP>&nbsp;</SUP></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(13,989,804</FONT></TD>
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Other comprehensive income/(loss)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Foreign currency translation adjustment, net of nil income taxes</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36,991</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36,991</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total other comprehensive income</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36,991</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36,991</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Comprehensive (loss)/income attributable to ordinary shareholders</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(15,879,524</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">140,102</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,712,627</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><SUP>&nbsp;</SUP></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(14,026,795</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted average shares outstanding, basic</FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,477,069</FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">43,572,490</FONT></TD>
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(4)</SUP></FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">46,049,559</FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic net loss per share</FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.01</FONT></TD>
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt"><SUP>&nbsp;</SUP></TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.30</FONT></TD>
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(A)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Derived
from the unaudited consolidated statement of comprehensive loss of Xynomic for the three months ended March 31, 2019;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(B)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Derived
from the unaudited statements of operations of Bison for the three months ended March 31, 2019.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
eliminate direct costs of the Business Combination which are reflected in the historical financial statements of Bison and Xynomic
in the amount of $73,455 and $285,817 during the three months ended March 31, 2019;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
eliminate the accretion to the redemption value on preferred shares as of the beginning of the periods.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
eliminate unrealized gain/(loss) and interest income on marketable securities held in the trust account as of the beginning of
the period.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
the Business Combination is being reflected as if it had occurred at the beginning of the periods presented, the calculation of
weighted average shares outstanding for basic and diluted net income/(loss) per share assumes that the shares issuable relating
to the Business Combination have been outstanding for the entire periods presented. If the maximum number of shares are redeemed,
this calculation is retroactively adjusted to eliminate such shares for the entire period. The Bison public shares used in the
weighted average shares calculation is computed as the sum of the public shares outstanding, plus the shares issued to the investor,
less the shares redeemed. Weighted average common shares outstanding - basic and diluted is calculated as follows, the potentially
dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three&nbsp;Months Ended&nbsp;<BR> March&nbsp;31, <BR>
2019</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Weighted average shares calculation, basic</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-indent: -10pt; padding-left: 10pt">BCAC weighted average public shares outstanding</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,941,437</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC rights converted to shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">646,954</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC shares subject to redemption reclassified to equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,811</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC promissory notes and rights conversion</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Backstop shares issued to Yinglin Mark Xu</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">742,080</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Backstop shares issued to Bison Sponsor</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,793</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">BCAC shares issued in Business Combination</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">42,636,484</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">46,049,559</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Percent of shares owned by Xynomic&rsquo;s holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">94.20</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Percent of shares owned by BCAC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.80</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt">Weighted average shares calculation, basic</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Existing Xynomic holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,378,564</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">BCAC holders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,670,995</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">46,049,559</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt">Weighted average shares calculation, diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,670,995</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC shares issued in Business Combination</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,378,564</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">BCAC warrants underlying public shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,018,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">241,030</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Unit purchase option</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">252,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">49,561,339</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Percent of shares owned by Xynomic&rsquo;s holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87.53</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Percent of shares owned by BCAC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.47</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt">Weighted average shares calculation, diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Existing Xynomic holders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,378,564</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">BCAC holders</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6,182,775</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">49,561,339</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A NAME="a_028"></A><B>PART
II&nbsp;&mdash;&nbsp;INFORMATION NOT REQUIRED IN PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
13. <I>Other Expenses of Issuance and Distribution</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth all expenses to be paid by the Registrant, other than estimated placement agents&rsquo; fees, in connection
with our public offering. All amounts shown are estimates except for the SEC registration fee and the FINRA filing fee:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 82%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SEC
    registration fee</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FINRA
    filing fee</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legal
    fees and expenses</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounting
    fees and expenses</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transfer
    agent and registrar fees</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Miscellaneous
    fees and expenses</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 4.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"></TD>
    <TD>*</TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 4%; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="width: 96%; text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimated.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
14. <I>Indemnification of Directors and Officers</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>XYN
following the consummation of the Business Combination</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
145(a) of the DGCL empowers a corporation to indemnify any director, officer, employee or agent, or former director, officer,
employee or agent, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation)
by reason of his service as a director, officer, employee or agent of the corporation, or his service, at the corporation&rsquo;s
request, as a director, officer, employee or agent of another corporation or enterprise, against expenses (including attorneys&rsquo;
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding provided that such director or officer acted in good faith and in a manner reasonably believed to be
in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, provided that
such director or officer had no reasonable cause to believe his conduct was unlawful.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
145(b) of the DGCL empowers a corporation to indemnify any person who was or is a party or is threatened to be made a party to
any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by
reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving
at the request of the corporation as a director, officer, employee or agent of another enterprise, against expenses (including
attorneys&rsquo; fees) actually and reasonably incurred in connection with the defense or settlement of such action or suit provided
that such director or officer acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests
of the corporation, except that no indemnification may be made in respect of any claim, issue or matter as to which such director
or officer shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware Court of Chancery
or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability
but in view of all the circumstances of the case, such director or officer is fairly and reasonably entitled to indemnity for
such expenses which the court shall deem proper.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
145 of the DGCL further provides that to the extent a director or officer of a corporation has been successful in the defense
of any action, suit or proceeding referred to in Section 145(a) or Section 145(b) of the DGCL or in the defense of any claim,
issue or matter therein, he shall be indemnified against expenses (including attorneys&rsquo; fees) actually and reasonably incurred
by him in connection therewith, provided that indemnification provided for by Section 145 of the DGCL or granted pursuant thereto
shall not be deemed exclusive of any other rights to which the indemnified party may be entitled, and empowers the corporation
to purchase and maintain insurance on behalf of a director or officer of the corporation against any liability asserted against
him or incurred by him in any such capacity or arising out of his status as such whether or not the corporation would have the
power to indemnify him against such liabilities under Section 145 of the DGCL.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bylaws
of the combined entity provides that the combined entity shall indemnify to the fullest extent authorized or permitted by applicable
law, indemnify its current and former directors and officers, as well as those persons who, while directors or officers of the
combined entity, are or were serving as directors, officers, employees or agents of another entity, trust or other enterprise,
including service with respect to an employee benefit plan, in connection with any threatened, pending or completed proceeding,
whether civil, criminal, administrative or investigative, against all expense, liability and loss reasonably incurred or suffered
by any such person in connection with any such proceeding. Notwithstanding the foregoing, a person eligible for indemnification
pursuant to the bylaws will be indemnified by the combined entity in connection with a proceeding initiated by such person only
if such proceeding was authorized by the board of directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
right to indemnification conferred by combined entity&rsquo;s bylaws is a contract right that includes the right to be paid by
combined entity the expenses incurred in defending or otherwise participating in any proceeding referenced above in advance of
its final disposition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the Closing, the Company has entered into indemnification agreements with each of its directors and executive officers. These
agreements require the Company to indemnify these individuals to the fullest extent permitted under Delaware law against liabilities
that may arise by reason of their service to the Company, and to advance expenses incurred as a result of any proceeding against
them as to which they could be indemnified.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Form of the Indemnification Agreement is filed with this prospectus as Exhibit 10.20 and is incorporated herein by
reference. The foregoing description of the Indemnification Agreement does not purport to be complete and is subject to, and is
qualified in its entirety by, the full text of the Indemnification Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Bison
prior to the consummation of the Business Combination</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">British
Virgin Islands law does not limit the extent to which a company&rsquo;s memorandum and articles of association may provide for
indemnification of officers and directors, except to the extent any such provision may be held by a British Virgin Islands court
to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime.
Our memorandum and articles of association provide that, subject to certain limitations, we shall indemnify our directors and
officers against all expenses, including legal fees, and against all judgments, fines and amounts paid in settlement and reasonably
incurred in connection with legal, administrative or investigative proceedings. Such indemnity only applies if the person acted
honestly and in good faith with a view to our best interests and, in the case of criminal proceedings, the person had no reasonable
cause to believe that his or her conduct was unlawful.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling
us pursuant to the foregoing provisions, we have been informed that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act and is theretofore unenforceable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
15. <I>Recent Sales of Unregistered Securities</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
42,860,772 Merger Consideration Shares and the 742,080 Backstop Shares were issued in reliance upon an exemption from the registration
requirements of the Securities Act, pursuant to the Section 4(a) (2) of the Securities Act and Regulation S promulgated under
the Securities Act. The Sellers and Yinglin Mark Xu receiving the shares represented their intentions to acquire the shares for
investment only and not with a view to or for sale in connection with any distribution, and appropriate restrictive legends were
affixed to the certificates representing the shares. The parties also had adequate access, through business or other relationships,
to information about the Company. For additional information of the Merger Consideration Shares and Backstop Shares, please
see Item 1 [&#9679;] on page [&#9679;].</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
16. <I>Exhibits and Financial Statement Schedules </I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following exhibits are filed as part of this Registration Statement:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 9%; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit&nbsp;No.</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 90%; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description</B></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390018012450/f8k091218ex2-1_bison.htm">Merger
    Agreement (Incorporated by reference to Exhibit 2.1 to the registrant&rsquo;s Current Report on Form 8-K filed by the registrant
    on September 13, 2018)</A></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.2</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019002160/fs42018a1ex2-2_bison.htm">Amendment
    No. 1 to Merger Agreement dated February 11, 2019 (Incorporated by reference to Exhibit 2.2 to the registrant&rsquo;s Form
    S-4/A filed by the registrant on February 12, 2019, file number 333-229127)</A></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.3</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019003185/f8k022519ex2-1_bison.htm">Amendment
    No. 2 to Merger Agreement dated February 22, 2019 (incorporated by reference to Exhibit 2.1 to registrant&rsquo;s current
    report on Form 8-K filed on February 27, 2019)</A></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.4</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019005733/fs42018a2ex2-4_bisoncap.htm">Amendment
    No. 3 to the Merger Agreement (Incorporated by reference to Exhibit 2.4 to the registrant&rsquo;s Form S-4/A filed by the
    registrant on April 4, 2019, file number 333-229127)</A></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019008879/f8k051519ex3-1_xynomic.htm">Certificate
    of Incorporation of the Company, effective on May 14, 2019 (incorporated by reference to Exhibit 3.1 to registrant&rsquo;s
    current report on Form 8-K filed on May 15, 2019)</A></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019008879/f8k051519ex3-2_xynomic.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amended
    and Restated Certificate of Incorporation of the Company, effective on May 15, 2019 (incorporated by reference to Exhibit
    3.2 to registrant&rsquo;s current report on Form 8-K filed on May 15, 2019)</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.3</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019008879/f8k051519ex3-3_xynomic.htm">Bylaws
    of Xynomic Pharmaceuticals Holdings, Inc. (incorporated by reference to Exhibit 3.3 to registrant&rsquo;s current report on
    Form 8-K filed on May 15, 2019)</A></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390017006029/fs12017ex4iii_bisoncapital.htm">Specimen
    Warrant Certificate (incorporated by reference to Exhibit 4.3 to the registrant&rsquo;s registration statement on Form S-1
    filed on May 31, 2017)</A></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390017006806/f8k061917ex1i_bisoncap.htm">Warrant
    Agreement, dated June 19, 2017, between Continental Stock Transfer &amp; Trust Company and the Registrant (incorporated by
    reference to Exhibit 4.1 to registrant&rsquo;s current report on Form 8-K filed on June 26, 2017)</A></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390017006806/f8k061917ex4ii_bisoncap.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unit Purchase Option Agreement, dated June 19, 2017, between the Registrant and EarlyBirdCapital, Inc. (incorporated by reference to Exhibit 4.2 to registrant&rsquo;s current report on Form 8-K filed on June 26, 2017)</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion
    of Hunter Taubman Fischer &amp; Li LLC*</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019008879/f8k051519ex10-1_xynomic.htm">Amended
    and Restated Registration Rights Agreement dated May 15, 2019 (incorporated by reference to Exhibit 10.1 to registrant&rsquo;s
    current report on Form 8-K filed on May 15, 2019)</A></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019008879/f8k051519ex10-4_xynomic.htm">Escrow
    Agreement by and among Bison Capital Acquisition Corp., Yinglin Mark Xu and Continental Stock Transfer &amp; Trust Company
    (incorporated by reference to Exhibit 10.4 to registrant&rsquo;s current report on Form 8-K filed on May 15, 2019).</A></FONT></TD></TR>

<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390018012450/f8k091218ex10-2_bison.htm">Form
    of Lock-Up Agreement to be entered into by and among Bison Capital Acquisition Corp. and&nbsp;the stockholders party thereto
    (incorporated by reference to Exhibit 10.2 to registrant&rsquo;s current report on Form 8-K filed on September 13, 2018)</A></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390018012450/f8k091218ex10-5_bison.htm">Form
    of Non-Competition and Non-Solicitation Agreement to be entered into by and among Bison Capital Acquisition Corp. and the
    covered parties thereto (incorporated by reference to Exhibit 10.5 to registrant&rsquo;s current report on Form 8-K filed
    on September 13, 2018)</A></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019007632/f8k050119ex10-1_bisoncapital.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Backstop and Subscription Agreement, dated as of May 1, 2019 between Bison Capital Acquisition Corp. and Yinglin Mark Xu (incorporated by reference to Exhibit 10.1 to the registrant&rsquo;s Current Report on Form 8-K filed by the registrant on May 2, 2019)</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390017006806/f8k061917ex10v_bisoncap.htm">Escrow
    Agreement, dated June 19, 2017 between the Registrant, Continental Stock Transfer &amp; Trust Company and the Initial Shareholders
    (incorporated by reference to Exhibit 10.5 to registrant&rsquo;s current report on Form 8-K filed on June 26, 2017)</A></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390017006806/f8k061917ex10iii_bisoncap.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Letter
    Agreement, dated June 19, 2017, among the Registrant, EarlyBirdCapital, Inc. and each of the sponsor, directors and officers
    of the Registrant (incorporated by reference to Exhibit 10.3 to registrant&rsquo;s current report on Form 8-K filed on June
    26, 2017)</FONT></A></TD></TR>

<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.8</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; width: 90%"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019006416/fs42018a3ex10-14_bisoncap.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">License Agreement by and between Pharmacyclics LLC and Xynomic Pharmaceuticals, Inc. dated February 23, 2017 (incorporated by reference to Exhibit 10.14 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.9</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019002160/fs42018a1ex10-14_bison.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Patent Assignment And Licensing Agreement by And between Boehringer Ingelheim International GMBH And Xynomic Pharmaceuticals, Inc. dated August 16, 2017 (incorporated by reference to Exhibit 10.15 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.10</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019002160/fs42018a1ex10-15_bison.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Licensing Agreement by and between Boehringer Ingelheim International Gmbh And Xynomic Pharmaceuticals, Inc. dated December 20, 2018 (incorporated by reference to Exhibit 10.16 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit&nbsp;No.</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify; width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description</B></FONT></TD></TR>

<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.11</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019002160/fs42018a1ex10-16_bison.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bridge Loan Agreement by and between Xynomic Pharmaceuticals, Inc., a Wyoming corporation, and Yinglin Mark Xu dated August 15, 2017 (incorporated by reference to Exhibit 10.17 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.12</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019002160/fs42018a1ex10-17_bison.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amended Bridge Loan Agreement By And Between Xynomic Pharmaceuticals, Inc., a Wyoming corporation, and Yinglin Mark Xu Dated As Of August 31, 2017 (incorporated by reference to Exhibit 10.18 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.13</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019002160/fs42018a1ex10-18_bison.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment Agreement by and between Xynomic Pharmaceuticals, Inc. and Sophia Paspal effective as of January 16, 2019 (incorporated by reference to Exhibit 10.19 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.14</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019005733/fs42018a2ex10-20_bisoncap.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Labor Contract by and between Xynomic Pharmaceuticals, Inc.(Zhongshan) and Bing Zhao dated March 1, 2019 (incorporated by reference to Exhibit 10.20 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.15</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019005733/fs42018a2ex10-21_bisoncap.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cooperation Development Agreement for New Drugs between Xynomic Nanjing and Niefang Yu, effective as of May 1, 2018 (incorporated by reference to Exhibit 10.21 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.16</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019002160/fs42018a1ex10-21_bison.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Contractor Agreement by and between Xynomic Pharmaceuticals, Inc. and Eigenbridge, Inc. dated February 26, 2017 (incorporated by reference to Exhibit 10.22 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.17</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019005733/fs42018a2ex10-23_bisoncap.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment Agreement by and between Xynomic Pharmaceuticals, Inc., and Ying Zhang, effective as of January 1, 2019 (incorporated by reference to Exhibit 10.23 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.18</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019005733/fs42018a2ex10-24_bisoncap.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment Agreement by and between Xynomic Pharmaceuticals, Inc., and Jason Wentao Wu, effective as of January 1, 2019 (incorporated by reference to Exhibit 10.24 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.19</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019006416/fs42018a3ex10-25_bisoncap.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-Competition Agreement by and between Xynomic Pharmaceuticals, Inc.(Zhongshan) and Bing Zhao dated March 1, 2019 (incorporated by reference to Exhibit 10.25 to registrant&rsquo;s registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)</FONT></A></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.20</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019008879/f8k051519ex10-7_xynomic.htm">Form of Indemnification Agreement with each director and office (incorporated by reference to Exhibit 10.7 to registrant&rsquo;s current report on Form 8-K filed on May 15, 2019)</A></FONT></TD></TR>

<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.21</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 90%; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019012473/f8k070919ex10-1_xynomic.htm">Securities Purchase Agreement with investors in the Unit Offering dated July 10, 2019 (incorporated by reference to Exhibit 10.1 to registrant&rsquo;s current report on Form 8-K filed on July 11, 2019)</A>


</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify">10.22</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019012473/f8k070919ex10-2_xynomic.htm">Form of Not Warrant (incorporated by reference to Exhibit 10.2 to registrant&rsquo;s current report on Form 8-K filed on July 11, 2019)</A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019007565/fs42018a5_bisoncapitalacq.htm#n7">Corporation Governance and Nominating Committee Charter (included as Annex G to the registrant&rsquo;s Form S-4/A filed by the registrant on May 1, 2019, file number 333-229127)</A></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14.2</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390017003943/filename12.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit Committee Charter (incorporated by reference to Exhibit 99.1 to registrant&rsquo;s registration statement on Form S-1 filed on May 31, 2017, file number 333-218404)</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14.3</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390017003943/filename13.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compensation Committee Charter (incorporated by reference to Exhibit 99.2 to registrant&rsquo;s registration statement on Form S-1 filed on May 31, 2017, file number 333-218404)</FONT></A></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14.4</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1697805/000121390019008879/f8k051519ex14-1_xynomic.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insider Trading Policy (incorporated by reference to Exhibit 14.1 to registrant&rsquo;s current report on Form 8-K filed on May 15, 2019).</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14.5</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="fs12019ex14-5_xynomic.htm">2018 Equity Incentive Plan, assumed and adopted on May 15, 2019</A></FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="fs12019ex23-1_xynomic.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Marcum LLP</FONT></A></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.2</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="fs12019ex23-2_xynomic.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of KPMG Huazhen LLP</FONT></A></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.3</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Hunter Taubman Fischer &amp; Li LLC (included in Exhibit 5.1)*</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><A HREF="#a_029"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Power of Attorney (included in signature page)</FONT></A></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
be filed by amendment.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Item
17. Undertakings</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insofar
as indemnification for liabilities arising under the Securities Act of 1933, as amended (the Act), may be permitted to directors,
officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed
in the Act and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final adjudication of such issue. The Registrant hereby undertakes
that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)
To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering
price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement.&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall
be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold
at the termination of the offering.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)
That for the purpose of determining any liability under the Securities Act of 1933 in a primary offering of securities of the
undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities
to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the
undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)
Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant
to Rule 424;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred
to by the undersigned Registrant;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned
Registrant or its securities provided by or on behalf of the undersigned registrant; and&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)
That for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial
distribution of the securities, the undersigned Registrant undertakes that in a primary offering of securities of the undersigned
registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser,
if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant
will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
undersigned Registrant hereby undertakes to provide to the Underwriters at the closing specified in the underwriting agreement
certificates in such denominations and registered in such names as required by the Underwriters to permit prompt delivery to each
purchaser.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 63pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers, and controlling
persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant
of expenses incurred or paid by a director, officer, or controlling person of the Registrant in the successful defense of any
action, suit, or proceeding) is asserted by such director, officer, or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit
to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such issue.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
undersigned registrant hereby undertakes that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed
as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant
pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement
as of the time it was declared effective.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form
of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide offering thereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SIGNATURES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement on Form S-1 to be
signed on its behalf by the undersigned, thereunto duly authorized in the City of New York, New York on July 11, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt"><B>XYNOMIC PHARMACEUTICALS HOLDINGS, INC.</B></FONT></TD></TR>
<TR>
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 35%">&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt">/s/ Yinglin Mark Xu</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Yinglin Mark Xu</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">President, Chairman and Chief Executive Officer</FONT></TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><A NAME="a_029"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>POWER
OF ATTORNEY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
person whose individual signature appears below hereby authorizes and appoints Howard Doong and Eugene Jiang, and each of them,
with full power of substitution and resubstitution and full power to act without the other, as his true and lawful&nbsp;attorney-in-fact&nbsp;and
agent to act in his name, place and stead and to execute in the name and on behalf of each person, individually and in each capacity
stated below, and to file any and all amendments to this registration statement, including any and all post-effective amendments,
or any registration statements to be filed in connection with this registration statement pursuant to Rule 462 under the Securities
Act of 1933, as amended, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said&nbsp;attorneys-in-fact&nbsp;and agents, and each of them, full power and
authority to do and perform each and every act and thing, ratifying and confirming all that said&nbsp;attorneys-in-fact&nbsp;and
agents or any of them or their or his substitute or substitutes may lawfully do or cause to be done by virtue thereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the
capacities and on the dates indicated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 30%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 56%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 12%; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;/s/
    Yinglin Mark Xu</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President,
    Chairman, Chief Executive Officer and </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July
    11,     2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yinglin
    Mark Xu</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Interim Chief Financial Officer <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal
    Executive Officer)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;/s/
    Jinwei Coco Kou</FONT></TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interim
    Chief Accounting Officer </FONT></TD>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July
    11,     2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">Jinwei Coco Kou</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal
    Financial and Accounting Officer)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Tingzhi Qian&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July
    11,     2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tingzhi
    Qian</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Charles Vincent Prizzi&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July
    11,     2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Charles
    Vincent Prizzi</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Thomas Folinsbee&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July
    11,     2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Thomas
    Folinsbee</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;/s/
    Richard Peidong Wu</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July&nbsp;11,
    2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Richard
    Peidong Wu</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;/s/
    Adam Inglis</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director
    </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July&nbsp;11,
    2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adam
    Inglis</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
Wentao Jason Wu</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Operating Officer</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July&nbsp;11,
    2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wentao
    Jason Wu</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Jiayuan James Tong</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Strategy Officer and Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July&nbsp;11,
    2019</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jiayuan
    James Tong</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
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[{"type": "S-1", "sequence": "1", "filename": "fs12019_xynomicpharma.htm", "description": "REGISTRATION STATEMENT", "secsgml_size_bytes": 2912232}]
{"company-data": {"conformed-name": "XYNOMIC PHARMACEUTICALS HOLDINGS, INC.", "cik": "0001697805", "assigned-sic": "2834", "irs-number": "000000000", "state-of-incorporation": "D8", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-232598", "film-number": "19950362"}, "business-address": {"street1": "609-610 21ST CENTURY TOWER", "street2": "40 LIANGMAQIAO ROAD, CHAOYANG DISTRICT", "city": "BEIJING", "state": "F4", "zip": "100016", "phone": "9493506999"}, "mail-address": {"street1": "609-610 21ST CENTURY TOWER", "street2": "40 LIANGMAQIAO ROAD, CHAOYANG DISTRICT", "city": "BEIJING", "state": "F4", "zip": "100016"}, "former-company": [{"former-conformed-name": "Bison Capital Acquisition Corp.", "date-changed": "20170621"}, {"former-conformed-name": "Bison Capital Acquisition Corp", "date-changed": "20170209"}]}
As filed with the Securities and Exchange
Commission on July 11, 2019
Registration No. 333-[●]
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
XYNOMIC PHARMACEUTICALS HOLDINGS, INC.
(Exact name of registrant as specified
in its charter)
Delaware
2834
83-4696467
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
Suite 3306, K. Wah Centre,
1010 Middle Huaihai Road
Shanghai 200031, China
(86) 21-5418-0212
(Address, including zip code, and telephone
number, including area code, of registrant's principal executive offices)
Yinglin Mark Xu
Chairman of the Board
Chief Executive Officer
President and Interim Chief Financial
Officer
Xynomic Pharmaceuticals Holdings, Inc.
Suite 3306, K. Wah Centre,
1010 Middle Huaihai Road
Shanghai 200031, China
(86) 21-5418-0212
(Name, address, including zip code, and
telephone number, including area code, of agent for service)
With copies to:
Arila Er Zhou, Esq.
Hunter Taubman Fischer &Li LLC
1450 Broadway, 26th Floor
New York, NY 10018
Tel: 212.530.2232
Fax: 212.202.6380
Approximate date of commencement of
proposed sale of the securities to the public:
As soon as practicable after this registration statement is declared effective.
If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the
following box. ☒
If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. ☐
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.
See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company"
and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐
Accelerated filer ☐
Non-accelerated filer ☒
Smaller reporting company ☒
Emerging growth company ☒
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities to be Registered
Amount to be
Registered(1)
Proposed
Maximum
Offering
Price Per
Share(1)(2)
Proposed
Maximum
Aggregate
Offering
Price(6)
Amount of
Registration
Fee(3)
Shares of Common Stock, par value $0.0001 per share
[●]
[●]
$
65,000,000
$
7,878
Underwriter Warrants (5)
[●]
-
-
-
Shares of Common Stock, par value $ .001 per share underlying Underwriter Warrants
[●]
$
[●]
$
[●]
$
[●]
Total Registration Fee
[●]
$
[●]
$
[●]
(1)
Includes the aggregate offering price of additional shares that the underwriters have the option to purchase to cover over-allotments, if any.
(2)
Estimated solely for the purpose of computing the amount of the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.
The Registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
that specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Securities
and Exchange Commission, acting pursuant to said Section 8(a), may determine.
The information
in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed
with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell and is not soliciting an offer
to buy these securities in any jurisdiction where the offer or sale is not permitted.
SUBJECT TO
COMPLETION, DATED JULY 11, 2019
PRELIMINARY PROSPECTUS
[●] Shares of Common Stock
PRICE US$
PER
SHARES
This is a "firm
commitment" public offering (the "Offering") of securities of Xynomic Pharmaceuticals Holdings, Inc.
(referred to herein as "we", "us", "our", "XYN", "Registrant", or
the "Company"). We are selling shares of common stock of the Company, par value $0.0001 per share (the
"Common Shares") for an aggregate of $65,000,000, with the
underwriter's option to exercise over-allotment option to purchase additional 15% of the shares issued in the Offering
within 45 days of the closing.
Our Common Stock is listed on The Nasdaq
Capital Market under the symbol "XYN." On July 10, 2019, the last reported sale price of our Common Stock on The Nasdaq
Capital Market was US$3.26  per share.
We
are an "emerging growth company" as defined under the federal securities laws. Investing in our shares of common stock
involves risks. See "
Risk Factors
"
beginning on page 21.
Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.
Public
Offering
Price per Share
Total
Public
Offering
Price
Underwriting
Commissions (1)
Proceeds to Our
Company Before
Expenses
Offering Amount
$
[●]
$
65,000,000
$
[●]
$
[●]
(1)
See
                                         the section titled "Underwriters" for a description of the compensation payable
                                         to the underwriters.
Xynomic
Pharmaceuticals Holdings, Inc. has granted the underwriters the right to purchase up to an additional
[
●
]shares
of Common Stock at the public offering price less underwriting discount.
The Securities and Exchange Commission and state regulators
have not approved or disapproved of these securities, or determined if this prospectus is truthful or complete. Any representation
to the contrary is a criminal offense. The underwriters expect to deliver the share of common stock to purchasers on or about
_____,
2019.
[●]
The date of this prospectus is  ______,
2019
TABLE OF CONTENTS
PROSPECTUS
    CONVENTIONS
1
INDUSTRY
    AND MARKET DATA
4
PROSPECTUS
    SUMMARY
5
THE
    OFFERING
15
SELECTED
    HISTORICAL FINANCIAL INFORMATION OF BISON
17
SELECTED
    UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
18
RISK
    FACTORS
21
CAUTIONARY
    NOTE REGARDING FORWARD-LOOKING STATEMENTS
62
USE
    OF PROCEEDS
63
DIVIDEND
    POLICY
64
CAPITALIZATION
65
DILUTION
66
MANAGEMENT'S
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
67
XYNOMIC'S
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
70
BISON'S MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
83
BUSINESS
86
MANAGEMENT
144
EXECUTIVE
    COMPENSATION
148
SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
153
CERTAIN
    RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
155
DESCRIPTION
    OF SECURITIES
159
SHARES
    ELIGIBLE FOR FUTURE SALE
164
UNDERWRITING
165
TAXATION
168
LEGAL
    MATTERS
178
EXPERTS
178
WHERE
    YOU CAN FIND MORE INFORMATION
179
PART
    II — INFORMATION NOT REQUIRED IN PROSPECTUS
II-1
You should rely only
on the information contained in this prospectus or in any free writing prospectus that we may specifically authorize to be delivered
or made available to you. We and our Underwriter have not authorized anyone to provide you with any information other than that
contained in this prospectus or in any free writing prospectus we may authorize to be delivered or made available to you. We take
no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This
prospectus may only be used where it is legal to offer and sell our securities. The information in this prospectus is accurate
only as of the date of this prospectus, regardless of the time of delivery of this prospectus or any sale of our securities. Our
business, financial condition, results of operations and prospects may have changed since that date. We are not making an offer
of these securities in any jurisdiction where the offer is not permitted.
Unless the context requires otherwise, the
words "we," "us," "our," "the Company" and "XYN" refer to Xynomic Pharmaceuticals
Holding, Inc. and its subsidiaries and consolidated affiliated entities taken as a whole. For purposes of this prospectus, unless
the context otherwise requires, the term "shareholders" shall refer to the holders of our shares of common stock.
For investors outside the United States,
neither we nor any of the underwriters have done anything that would permit this offering or possession or distribution of this
prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons who come into
possession of this prospectus in jurisdictions outside the United States are required to inform themselves about and to observe
any restrictions as to this offering and the distribution of this prospectus and any such free-writing prospectus outside the United
States.
i
PROSPECTUS CONVENTIONS
Unless otherwise
stated or unless the context otherwise requires, the terms "we," "us," "our," the "Company,"
"XYN", "combined company" and "post-combination company" refer to Xynomic Pharmaceuticals
Holdings, Inc. and its subsidiaries including Xynomic Pharmaceuticals, Inc. following the consummation of the Business Combination
on May 15, 2018, which was known as Bison Capital Acquisition Corp., prior to the consummation of the Business Combination.
Furthermore, in this
document:
"
10% Shareholder
"
means a U.S. Holder of the Company's common shares who actually and constructively owns (after taking into account the attribution
rules of Section 424(d) of the Code) 10% or more (by vote or value) of Xynomic's common shares.
"
Aggregate
Merger Consideration
" means the sum of Earnout Consideration and Closing Merger Consideration.
"
Bison,
"
means Bison Capital Acquisition Corp., originally formed as a British Virgin Islands company and continue as a Delaware
corporation renamed "
Xynomic Pharmaceuticals Holdings,
Inc.
" following the consummation of the Business Combination.
"
Bison ordinary
shares
" or "
ordinary shares
" means ordinary shares, no par value, of Bison.
"
Business
Combination
" means the acquisition by us of all of the equity interests of Xynomic Pharmaceuticals Inc.
("Xynomic"), pursuant to the Merger Agreement, whereby Merger Sub, a wholly-owned subsidiary of Bison, merged
with and into Xynomic, with Xynomic surviving the merger and being the whole owned subsidiary of Bison and other transactions
contemplated in the Merger Agreement.
"
Closing
"
means the closing of the public offering as set forth in this prospectus.
"
Closing Merger
Consideration
" means $350,000,000, minus (i) the amount of Xynomic's Business Combination closing indebtedness,
plus (ii) the amount of Xynomic's Business Combination closing cash, minus (iii) the amount of Xynomic's Business Combination
transaction expenses, plus (iv) certain closing tax assets, plus (v) the amount, if any, by which Xynomic's Business Combination
closing working capital exceeds an agreed upon target amount of working capital, minus (vi) the amount, if any, by which such target
amount of working capital exceeds Xynomic's Business Combination closing working capital.
"
Closing Consideration
Shares
" means the aggregate number of newly issued shares of Company common stock equal to the Closing Merger Consideration
divided by $10.15.
"
Code
"
means the Internal Revenue Code of 1986, as amended or now in effect or as hereafter amended, including, but not limited to, any
successor or substitute federal Tax codes or legislation.
"
Current Bylaws
"
means the Xynomic's bylaws as effective on May 15, 2019.
"Domestication"
means on May 14, 2019, Bison Capital Acquisition Corp. re-domiciled out of the British Virgin Islands and continue as a company
incorporated in the State of Delaware.
"
EarlyBirdCapital
"
means EarlyBirdCapital, Inc., an underwriter and sole book-running manager in the IPO.
"
Earnout Shares
"
means 9,852,216 shares of Company common stock (representing $100,000,000 based on a $10.15 per share value of the Company's
common stock).
"Earnout Escrow
Account"
means the account where the Merger Agreement provided that the Earnout Shares would be deposited at Closing.
"Effective
Time"
means the time of filing the certificate of merger with the Secretary of State of the State of Delaware or such
other time specified in the certificate of merger.
"Escrow Account"
means at the Business Combination Closing, 3% of the Closing Consideration Shares were deposited in an escrow account to serve
as security for, and the exclusive source of payment of, the Company's indemnity rights under the Merger Agreement and any
excess of the estimated Closing Merger Consideration over the final Closing Merger Consideration amount determined post-Closing.
1
"
Escrow Agent
"
means Continental Stock Transfer & Trust Company.
"
Escrow Agreement
"
means an escrow agreement to be entered among Bison, the shareholder representative on behalf of certain Xynomic stockholders,
and the Escrow Agent pursuant to which, certain Xynomic stockholders will deposit certain Escrow Shares with the Escrow Agent to
security the performance of the indemnification obligations of the Xynomic stockholders under the Merger Agreement.
"
Escrow Shares
"
means 3% of the Closing Consideration Shares were deposited into escrow to support certain indemnification obligations under the
Merger Agreement in accordance with the terms set forth in certain escrow agreement.
"
Founder Shares
"
means the 1,509,375 shares of Bison ordinary shares issued to our Sponsor and James Jiayuan Tong in a private placement prior to
our IPO.
"
Group
" means 1) upon the consummation of the Business Combination dated May 15, 2019,
XYN, Xynomic, and its subsidiaries, including Xynomic Pharmaceuticals (Nanjing) Co., Ltd., Xynomic Pharmaceuticals (Shanghai) Co.,
Ltd., and Xynomic Pharmaceuticals (Zhongshan) Co., Ltd.; and 2) prior to the consummation of the Business Combination dated May
15, 2019, Xynomic, and its subsidiaries, including Xynomic Pharmaceuticals (Nanjing) Co., Ltd., Xynomic Pharmaceuticals (Shanghai)
Co., Ltd., and Xynomic Pharmaceuticals (Zhongshan) Co., Ltd.
"
Incentive
Plan
" means the Xynomic 2018 Equity Incentive Plan which was assumed and adopted by the Company on May 15,
2019.
"
Initial Shareholders
"
means our Sponsor and each of our current officers and current directors and an advisor, in each case, that hold Founder Shares.
"
Initial Public
Offering
" or "
IPO
" means the initial public offering of Bison units, each comprised of one ordinary
share, one-half of one warrant, and one right to receive one–tenth of an ordinary share upon the Closing, consummated on
June 23, 2017 with respect to 5,250,000 units and on June 28, 2017 with respect to 787,500 units related to the full exercise of
the underwriter's over-allotment option, in each case at $10.00 per unit.
"
Merger
"
or "
merger
" means acquisition by us of all of Xynomic equity interests, pursuant to the Merger Agreement, whereby
Merger Sub, a wholly-owned subsidiary of Bison, merged with and into Xynomic Pharmaceuticals, Inc., with Xynomic Pharmaceuticals,
Inc. surviving the merger and being the wholly-owned subsidiary of Bison.
"
Merger Agreement
"
means the Merger Agreement, dated as of September 12, 2018, as it may be amended, by and among the Company, Merger Sub, Xynomic
and a representative of Xynomic stockholders, a copy of which is attached hereto as
Exhibit 2.1
.
"
Merger Sub
"
means Bison Capital Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of Bison, solely set up for the purpose
of facilitate and effect the Business Combination.
"
Merger Consideration
Shares
" means the sum of Closing Consideration Shares and Earnout Shares.
"
common stocks
"
or "
our shares of common stock
" means shares of common stock, par value $0.0001 per share, of XYN.
"
PRC
"
or "
China
" means the People's Republic of China excluding Taiwan, Hong Kong and Macau for purposes of
this proxy statement/prospectus.
"
Previous
Charters
" means the memorandum and articles of association of Bison as amended and restated on June 19, 2017 and March
21, 2019, previously registered by the Registrar of Corporate Affairs in the British Virgin Islands before the Business Combination.
"
private shares,
"
"
private rights
" and "
private warrants
" mean the ordinary shares, rights and warrants included
within the private units.
"
Private Units
"
or "
private units
" means the 432,062 units Bison sold privately to our Sponsor and EarlyBirdCapital in connection
with the IPO.
"
private warrants
"
means the 216,031 warrants included in the private units, each of which entitles the holder to purchase one Bison Ordinary
Share at a price of $11.50 per whole share, subject to certain adjustment.
2
"
public rights
"
mean rights included in units issued in our IPO (whether they were purchased in the IPO or thereafter in the open market) and common
stocks issued in this offering.
"
Public Shareholders
"
or "
public shareholders
" means holders of public shares, including the Initial Shareholders to the extent the
Initial Shareholders hold public shares, provided that the Initial Shareholders will be considered a "
public shareholder
"
only with respect to any public shares held by them.
"
Public Shares
"
or "
public shares
" means the ordinary shares issued in our IPO (whether they were purchased in the IPO or thereafter
in the open market) and common stocks issued in this public offering.
"
public warrants
"
means the warrants issued in our IPO, each of which is exercisable for one Bison ordinary share in accordance with its terms.
"
Registration
Rights Agreement
" means the Amended and Restated Registration Rights Agreement dated May 15, 2019 among the Company, and certain
Xynomic stockholders and each of our Initial Shareholders.
"
rights
"
means the private rights and the public rights, taken together.
"
shares
,"
with respect to Bison, means, (1) prior to the Domestication, our ordinary shares with no par value, and (2) after the Domestication,
shares of our common stock, $0.0001 par value per share.
"
Sponsor
"
means Bison Capital Holding Company Limited, a Cayman Islands company.
"
Trust Account
"
means the trust account where the Company places its net proceeds of the sale of the Units in the Initial Public Offering and the
Private Units upon the closing of the Initial Public Offering and the private placement on June 23, 2017.
"
Xynomic
"
means Xynomic Pharmaceuticals, Inc. a Delaware corporation, and, unless the context requires otherwise, its consolidated subsidiaries,
taken together.
"
Xynomic stockholders
"
means the stockholders of Xynomic Pharmaceuticals, Inc. immediately prior to the closing of the Business Combination.
"
Zhongshan
Bison
" means Zhongshan Bison Healthcare Investment Limited, a limited partnership holding 1,553,265 shares of Series
B preferred stock of Xynomic representing approximately 2.96% equity interest in Xynomic immediately prior to the Closing.
For
clarification, this prospectus follows English naming convention of first name followed by last name, regardless of whether an
individual's name is Chinese or English.
3
INDUSTRY AND MARKET DATA
This
prospectus includes information with respect to market and industry conditions and market share from third-party sources or based
upon estimates using such sources when available. We have not, directly or indirectly, sponsored or participated in the publication
of any of such materials. We believe that such information and estimates are reasonable and reliable. We also assume the information
extracted from publications of third-party sources has been accurately reproduced.  We understand that the Company would be
liable for the information included in this prospectus if any part of the information was incorrect, misleading or imprecise to
a material extent.
4
PROSPECTUS SUMMARY
This summary highlights information
contained elsewhere in this prospectus and does not contain all of the information that you should consider in making your investment
decision. Before investing in our securities, you should carefully read this entire prospectus, including our financial statements
and the related notes and the information set forth under the headings "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations" in each case included elsewhere in this prospectus.
Company Overview
We are a clinical stage
biopharmaceutical company that discovers and develops innovative small molecule drug candidates for the treatment of cancer in
humans. Our approach is to focus on drug candidates that target both hematological malignancies and solid tumors. Our lead drug
candidate is abexinostat, an orally dosed, hydroxamic acid-based small molecule histone deacetylase ("
HDAC
")
inhibitor. Our other clinical stage drug candidate is XP-105, an orally bioavailable kinase inhibitor, which inhibits both raptor-mammalian target
of rapamycin ("
mTOR
") complex 1 and rictor-mTOR complex 2. In addition, we have several pre-clinical oncology
drug candidates in our pipeline. Among these drug candidates, XP-102 (also known as BI 882370), a selective pan-RAF inhibitor,
is the closest to clinical testing. The following is a summary of our product development pipeline:
We have not completed
any clinical trials since our inception. With respect to the pipeline programs referenced in the above figure, all of the completed
clinical trials of abexinostat were conducted by or on behalf of either Pharmacyclics LLC ("
Pharmacyclics
")
or Servier Laboratories and the one completed clinical trial of XP-105 was conducted by or on behalf of Boehringer Ingelheim
International GmbH ("
Boehringer Ingelheim
" or "
BII"
). We have obtained exclusive rights to
use all the data generated in these previously completed clinical trials.
●
Abexinostat
— our most advanced
drug candidate, abexinostat, has been evaluated in 18 Phase 1/2 clinical trials for lymphoma and solid tumors. In February 2017,
Xynomic, our subsidiary, entered into a license agreement with Pharmacyclics, a subsidiary of AbbVie Inc. ("
AbbVie
"),
for the worldwide exclusive rights to develop and commercialize abexinostat for all human and non-human diagnostic, prophylactic,
and therapeutic uses. Since its in-licensing of abexinostat, Xynomic has started enrolling patients in clinical trials for
three different indications: (1) in follicular lymphoma, as a monotherapy, (2) in renal cell carcinoma, in combination with pazopanib,
and (3) in multiple solid tumors, in combination with Keytruda
®
. In addition, we plan to initiate four clinical
trials of abexinostat in the next six months.
5
●
XP-105
(also known as BI 860585)
— In December 2018, Xynomic entered into a license agreement with Boehringer Ingelheim for the worldwide exclusive rights
to develop and commercialize XP-105 for all human and non-human diagnostic, prophylactic,
and therapeutic uses. Prior to this license, BII had completed one Phase 1 clinical trial for solid tumors. We plan to initiate
one clinical trial of XP-105 in late 2019.
●
Pre-Clinical Programs
— In addition, we have several
                                                                                      pre-clinical oncology drug candidates in our pipeline. Among these drug candidates, XP-102 (also known as BI
                                                                                      882370), a selective pan-RAF inhibitor to which Xynomic obtained a worldwide exclusive license from Boehringer Ingelheim to
develop and commercialize
abexinostat for all human and non-human diagnostic, prophylactic, and therapeutic uses
, is the closest to clinical testing. We have completed pre-IND meeting with the FDA and expect to initiate
Phase I clinical trial of XP-102 in the fourth quarter of 2019.
The
following is a summary of our on-going and planned trials:
Business Strategy
Our business strategy
has been designed to enable us to achieve our mission of developing and commercializing innovative drug products in the field of
oncology. The key tenets of  our strategy include the following:
Build an
oncology franchise to maximize value.
Oncology is our therapeutic focus. According to data published by
EvaluatePharma
®
, oncology was the top therapy area in the global pharmaceutical market with sales of
$93.7 billion in 2016, or 11.7% of the market
(Source:
http://info.evaluategroup.com/rs/607-YGS-364/images/wp16.pdf
). This number is projected to grow to
$192.2 billion in 2022, highlighting the rapid growth in this market. The strong and sustainable growth of the oncology
market is mainly driven by three factors:
●
cancer remains one of the leading causes of natural
deaths worldwide;
●
there are a high degree of unmet medical needs in oncology;
and
●
oncology drugs that have obtained regulatory approval
have demonstrated commercial success for numerous pharma companies.
6
Capitalize on
our expertise to develop a pipeline of small molecule, oral, targeted drug candidates.
Our core
scientific team has many years of experience in research, development and manufacturing of small molecule, oral, targeted drug
candidates against cancer and other diseases. This expertise as our core strength will continue to be leveraged as we expand our
pipeline. According to a 2015 IMS study, targeted therapies make up approximately 87% of the late-phase oncology pipelines
under development worldwide. Thus, our focus on targeted drug candidates aligns with this global trend in oncology treatments.
Oral dosage represents another recent trend in oncology medication as oral dosage has been shown to significantly improve patient
compliance and quality of life.
Strategically
in-license global rights to late stage drug candidates.
Our lead drug candidate abexinostat
was licensed from Pharmacyclics. Prior to Xynomic's acquisition of the global exclusive license, Pharmacyclics had tested
abexinostat on approximately 600 patients globally and had assembled a large amount of potentially valuable clinical data on safety
and efficacy, which, subject to the outcome of further clinical trials, potentially could enable us to launch the product in the
U.S., China, EU and other key markets. Our ability to obtain global licenses on assets from multinational pharmaceutical companies
such as AbbVie and BII is a result of our management's extensive network within the global biopharmaceutical industry and
deal making and deal execution expertise. We will continue to leverage this competitive advantage to access top-quality drug
candidates for in-licensing and co-development opportunities, and potential future co-marketing partnerships.
Build a strong
internal research and development team to enrich the pipeline.
In addition to our in-licensing strategy,
we have built a team of researchers with expertise in epigenetics and kinase inhibition, which could enable us to potentially discover
new mechanisms of action ("
MOA
"), potentially design innovative molecules around these MOAs, and potentially
move promising molecules to clinical testing.
Utilize
global resources to lower cost and improve efficiency.
With our presence in both the U.S. and
China, we can potentially leverage high-quality, low-cost global resources to efficiently develop our pipeline. We keep
core competencies such as research, clinical development management and business development in house, while outsourcing
commoditized activities such as small-molecule manufacturing and clinical study management to reputable vendors. This
hybrid model potentially allows us to access efficient resources globally, manage investment in redundant infrastructure, and
secure a more favorable return on investment. We have established a vigorous vendor selection process to ensure that we
receive the highest quality and compliance level at a reasonable cost. For instance, abexinostat's active
pharmaceutical ingredient ("
API
") and finished dosage formulation are manufactured in Europe, whereas its
pivotal clinical trials are managed by top multinational contract research organizations, or CROs such as PPD Development, LP
("
PPD
") and Parexel International (IRL) Ltd. ("
Parexel
").
Capture potential
lower research and development costs, better access to patient pool and growing market in China.
In
addition to their years of professional training and industry experience in the U.S., our founders have significant personal and
professional experience in China, the second largest pharmaceutical market in the world. Building on this, we are well positioned
to capitalize on China, both as a potential market for Xynomic's oncology drugs and a location for lower research and development
costs and better access to patient pools. Pursuant to recent regulatory reform in China, China's drug approval process has
been enhanced to make it more similar to those of other developed countries. This will further allow us to potentially leverage
our resources in China to develop products for the U.S. and the rest of the world.
Market Opportunity
The American Cancer
Society estimates that approximately 1,735,350 million new cancer cases will be diagnosed in the U.S. in 2018, and there
will be approximately 609,640 cancer deaths. According to a report published by Allied Market Research, the global market for
cancer therapeutics was valued at $81.2 billion in 2016 and is projected to reach $178.9 billion by 2023, at a CAGR
of 11.9% from 2017-2023. This growth will be driven by factors such as development of novel cancer therapeutics and an increase
in cancer awareness and availability of oncology drugs in developing markets. Specifically, the global market size for follicular
lymphoma ("FL") is expected to reach $4.1 billion by 2023, for  renal cell carcinoma  ("RCC"),
$4.7 billion, for certain solid tumors treated by Keytruda
®
, $8.0 billion, for breast cancer, $20.0 billion
and for diffuse large B-cell lymphoma ("DLBCL"), $14.4 billion. According to a September 2018 report by
WHO's International Agency for Research on Cancer, among females, breast cancer is the most commonly diagnosed cancer, whereas
colorectal cancer is the 2
nd
among females and the 3
rd
among males. According to IMS and iHealthcareanalyst,
drugs treating breast cancers and rectal cancers are expected to generate annual revenue of approximately $25.4 billion by
2023.
7
Competition
Our industry is highly
competitive and subject to rapid and significant technological change, with over 500 companies worldwide developing late-phase oncology
drugs, according to a 2015 IMS study. Our potential competitors include large pharmaceutical and biotechnology companies and specialty
pharmaceutical companies, academic institutions, government agencies, and research institutions. The market for oncology therapeutics
is becoming increasingly competitive. Our products, however, upon approval, will be focused, at least initially, on specific oncology
indications with high unmet medical need. Key competitive factors affecting the commercial success of our product candidates are
likely to be efficacy, safety and tolerability profile, reliability and durability of response, convenience of dosing, and price
and reimbursement.
If abexinostat is approved
to treat relapsed or refractory ("R/R") follicular lymphoma ("FL"), abexinostat will compete with approved therapies including Gilead's Zydelig
®
(a PI3
inhibitor), Bayer's Aliqopa™, and Roche's Gazyva
®
(an antibody). If abexinostat is approved
to treat R/R diffuse large B-cell lymphoma ("DLBCL"), abexinostat will compete with Gilead's Yescarta (a CAR-T therapy) and Novartis' Kymriah
®
(a
CAR-T therapy). If it is approved in first-line or second-line RCC, abexinostat, used in combination with pazopanib,
will compete with Bristol-Myers Squibb's Opdivo™/Yervoy
®
(a PD-1 inhibitor and a monoclonal
antibody), Pfizer's Sutent
®
, Novartis' Afinitor
®
(a mTORC inhibitor), Roche's
Avastin
®
(a monoclonal antibody) in combination with interferon alfa, and Novartis' Votrient
®
(generic
name pazopanib, a VEGF inhibitor) as a single agent.
If XP-105, combined
with paclitaxel, is approved to treat breast cancer, it will compete with approved therapies including standard-of-care chemotherapies such as paclitaxel and targeted agents such as Novartis' Afinitor
®
(a mTORC inhibitor) plus
exemestane, Novartis' Kisqali
®
(a CDK4/6 inhibitor), Roche's Herceptin
®
(a monoclonal
antibody), AstraZeneca's Faslodex
®
(a selective estrogen receptor degrader), and Pfizer's Ibrance
®
(a
CDK4/6 inhibitor).
We will develop
XP-102, in combination with a marketed MEK inhibitor, to treat colorectal cancer ("CRC") and melanoma, and if
it is approved, it will compete with marketed combination RAF/MEK targeted therapy such as Daiichi-Sankyo and
Roche's Zelboraf
®
+ Cotellic
®
, Novartis' Tafinlar
®
+
Mekinist
®
, and Array BioPharma's Braftovi
™
+ Mektovi
®
.
Material Risks
and Challenges
We
face substantial competition from a great many established and emerging pharmaceutical and biotech companies that develop, distribute
or sell therapeutics to treat the same indications that our drug candidates are designed to treat. Our current and potential competitors
include large pharmaceutical and biotechnology companies, and specialty pharmaceutical and generic drug companies. Many of our
current and potential competitors have substantially greater financial, technical and human resources than we do and significantly
more experience in the marketing, commercialization, discovery, development and regulatory approvals of products, which could place
us at a significant competitive disadvantage or deny our marketing exclusivity rights. Typically, our competitors will most likely
have more capital resources to support their products than we do. In addition, you should
carefully
consider the risks described under the "Risk Factors" section beginning on page 21 before investing in us. Some of
these risks are:
●
Risks
related to our financial position and need for additional capital including, but not limited to:
○
We are a biopharmaceutical company with a limited operating history and has not yet generated any revenue from product sales. Xynomic, our operating subsidiary, has incurred operating losses since its inception and may never achieve or maintain profitability; and
○
We will need to raise substantial additional funding. If we are unable to raise capital when needed at favorable terms, it will be forced to delay, reduce, or eliminate some of its drug development programs or commercialization efforts.
8
●
Risks
related to our business including but not limited to:
○
All of our drug candidates are still in development. If we are unable to obtain regulatory approval and ultimately commercialize our drug candidates or experiences significant delays in doing so, our business, financial condition, results of operations, and prospects will be materially and adversely affected;
○
We may be unable to obtain regulatory approval under applicable regulatory requirements;
○
Clinical drug development involves a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results. Failure can occur at any stage of clinical development;
○
We may attempt to secure approval of abexinostat from the FDA through the use of the Accelerated Approval Program, but such mechanism may not actually lead to a faster development or regulatory review or approval process. If we are unable to obtain approval of abexinostat through the Accelerated Approval Program in the United States, we may be required to conduct additional nonclinical and clinical studies and trials beyond those that we currently contemplate, which could increase the expense of obtaining, reduce the likelihood of obtaining, and/or delay the timing of obtaining, necessary marketing approval. Even if we receive approval from the FDA under the Accelerated Approval Program, if our confirmatory post-marketing trial does not verify clinical benefit, or if it does not comply with rigorous post-marketing requirements, the FDA may seek to withdraw the approval;
○
If we are unable to obtain the National Medical Products Administration of China (the "NMPA," formerly known as CFDA) approval for our drug candidates to be eligible for an expedited registration pathway as Category 1 drug candidates, the time and cost we would incur to obtain regulatory approvals may increase. Even if we receive such Category 1 designation, it may not lead to a faster development, review or approval process;
○
Our drug candidates may cause
undesirable side effects that could delay or prevent their regulatory approval, limit the commercial profile of an approved label,
or result in significant negative consequences following regulatory approval, if any; and
○
We face substantial competition, which may result in our competitors discovering, developing, or commercializing drugs before or more successfully than we do, or develop therapies that are more advanced or effective than ours.
●
Risks
related to government regulation including but not limited to:
○
The regulatory approval process is highly uncertain and we may not obtain approval under the Accelerated Approval Program or the conventional pathway, as required for the commercialization;
○
Even if we receive regulatory approval for any of our drug candidates, we will be subject to ongoing regulatory obligations and continued regulatory review, which may result in significant additional expense. Additionally, our drug candidates, if approved, could be subject to labeling and other restrictions and market withdrawal, and we may be subject to penalties if we fail to comply with regulatory requirements or experiences unanticipated problems;
○
If we or our current or future collaborators, manufacturers or service providers fail to comply with healthcare laws and regulations, we or they could be subject to enforcement actions, which could affect our ability to develop, market and sell our products and may harm our reputation; and
○
Legislative or regulatory FDA reforms in the United States may make it more difficult and costly for us to obtain regulatory clearance or approval and to produce, market and distribute its products after clearance or approval is obtained.
9
●
Risks
related to our dependence on third parties including, but not limited to:
○
We depend on third party manufacturers for the manufacture of our drug candidates as well as on third parties for our supply chain, and if we experience problems with any of these third parties, the manufacture of our drug candidates or products could be delayed, which could harm our results of operations;
○
We rely on third parties to conduct our pre-clinical studies and clinical trials. If these third parties do not successfully carry out their contractual duties or meet expected deadlines, we may not be able to obtain regulatory approval for or commercialize our drug candidates and our business could be substantially harmed; and
○
If we lose our relationships with CROs, our drug development efforts could be delayed.
●
Risks
related to doing business in china including without limitation:
○
Pharmaceutical companies in China are required to comply with extensive regulations and hold a number of permits and licenses to carry on their business. Our ability to obtain and maintain these regulatory approvals is uncertain, and future government regulation may place additional burdens on our efforts to commercialize our drug candidates;
○
If we fail to comply with environmental, health, and safety laws and regulations of the PRC, we could become subject to fines or penalties or incur costs that could have a material adverse effect on the success of our business;
○
If additional remedial measures are imposed on the "big four" PRC-based accounting firms, including Xynomic's independent registered public accounting firm for the financial statements for the fiscal year ended December 31, 2018 and 2017, in administrative proceedings brought by the SEC alleging those firms' failure to meet specific criteria set by the SEC with respect to requests for the production of documents, we could be unable to timely file our future financial statements in compliance with the requirements of the Exchange Act; and
○
Uncertainties with respect to the PRC legal system and changes in laws, regulations, and policies in China could materially and adversely affect us.
●
Risks
related to intellectual property including without limitation:
○
If we breach a license agreement or other intellectual property-related agreements for our drug candidates or otherwise experience disruptions to our business relationships with its licensors, we could lose the ability to continue the development and commercialization of ours drug candidates;
○
We depend on our licensors or patent owners of our in-licensed patent rights to prosecute and maintain patents and patent applications that are material to our business. Any failure by our licensors or such patent owners to effectively protect these patent rights could adversely impact our business and operations;
○
If we are unable to obtain and maintain patent protection for our drug candidates through intellectual property rights, or if the scope of such intellectual property rights obtained is not sufficiently broad, third parties may compete directly against us; and
○
If our drug candidates infringe, misappropriate, or otherwise violate the intellectual property rights of third parties, we may incur substantial liabilities, and it may not be able to sell or commercialize these drug candidates.
10
●
Risks
related to our securities including without limitation:
○
We do not currently intend to pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on the appreciation in the price of our common stock;
○
We may not be able to timely and effectively implement controls and procedures required by Section 404 of the Sarbanes Oxley Act of 2002 that will be applicable to us after the Business Combination. Furthermore, if our internal control over financial reporting or our disclosure controls and procedures are not effective, we may not be able to accurately report our financial results, prevent fraud, or file our periodic reports in a timely manner, which may cause investors to lose confidence in our reported financial information and may lead to a decline in our stock price;
○
Our independent auditors have issued an audit opinion for our company, which includes a statement describing our going concern status. Our financial status creates a doubt whether we will continue as a going concern;
○
We indemnify our directors and officers against certain liabilities and do not presently carry director and officer liability insurance;
○
There can be no assurance that our shares and warrants will continue to be so listed or, if listed, that we will be able to comply with the continued listing standards of Nasdaq;
○
The future exercise of registration rights may adversely affect the market price of our common stock; and
○
Warrants will become exercisable for our Company common shares, which would increase the number of Company common shares eligible for future resale in the public market and result in dilution to our stockholders.
These and other risks
described in this prospectus could materially and adversely impact our business, financial condition, operating results and cash
flow, which could cause the trading price of our Common Stock to decline and could result in a loss of your investment.
Recent Material Events
Consummation of the Business Combination and Backstop
Subscription
On May 15, 2019, Bison
Capital Acquisition Corp., our predecessor at that time ("
Bison
"), consummated the previously announced
business combination (the "
Business Combination
") following a special meeting of shareholders held on
May 14, 2019 (the "
Special Meeting
") where the shareholders of Bison, which, prior to the consummation
of the Business Combination, domesticated as a Delaware corporation and, immediately thereafter known as "Xynomic Pharmaceuticals
Holdings, Inc.", considered and approved, among other matters, a proposal to adopt that certain Agreement and Plan of Merger
(as amended, the "
Merger Agreement
"), dated as of September 12, 2018, entered into by and
among (i) Bison; (ii) Bison Capital Merger Sub Inc., a Delaware corporation ("
Merger Sub
") (iii) Xynomic
Pharmaceuticals, Inc., a Delaware corporation ("
Xynomic
"); and (iv) Yinglin Mark Xu ("
Stockholder
Representative
"), solely in his capacity as the Stockholder Representative thereunder.
Pursuant to the Merger
Agreement, among other things, Merger Sub merged with and into Xynomic, with Xynomic continuing as the surviving entity
and a wholly-owned subsidiary of the Company (the "
Merger
" and the "
Surviving Company
").
The merger became effective on May 15, 2019.
On May 14, 2019, prior
to the consummation of the Business Combination, Bison re-domiciled out of the British Virgin Islands and domesticated as a Delaware
corporation (the "
Domestication
"). As a result, Bison is no longer a company incorporated in the British
Virgin Islands.
11
On May 15, 2019, pursuant
to the Backstop Agreement dated May 1, 2019 entered into by and between Bison and Yinglin Mark Xu, Mr. Xu together with his
assignee Bison Capital Holding Company Limited, purchased from the Company 755,873 shares of common stock at a price of $10.15
per share for a total consideration of $7,672,112 (the "
Backstop Shares
" and "
Backstop Subscription
").
As a result of Backstop Subscription, Bison had at least $7,500,001 of net tangible assets remaining at the Closing after giving
effect to the redemption of any Ordinary Shares by the public shareholders in connection with the Business Combination.
At the closing on May
15, 2019, each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective Time was automatically
converted into the right to receive, on a pro rata basis, the Closing Consideration Shares (as defined below) and the Earnout Shares
(as defined below), and each option to purchase Xynomic stock that was outstanding immediately prior to the Effective Time was
assumed by the Company and automatically converted into an option to purchase shares of common stock of the Company.
At the closing, pursuant
to the Merger Agreement, all Xynomic stockholders received a number of newly issued shares of Company common stock equal to the
Closing Merger Consideration divided by $10.15 per share (the "
Closing Consideration Shares
"). The Closing
Merger Consideration equals to (a) $350,000,000, minus (i) the amount of Xynomic's closing indebtedness, plus (ii) the amount
of Xynomic's closing cash, minus (iii) the amount of Xynomic's transaction expenses, plus (iv) certain closing tax
assets, plus (v) the amount, if any, by which Xynomic's closing working capital exceeds an agreed upon target amount of working
capital, minus (vi) the amount, if any, by which such target amount of working capital exceeds Xynomic's closing working
capital.
In addition to the
Closing Consideration Shares, Xynomic stockholders received an additional 9,852,216 shares of common stock in aggregate (the "
Earnout
Shares
" and, together with the Closing Consideration Shares, the "
Merger Consideration Shares
").
As a result, the Company issued 42,860,772 common shares as in aggregate Merger Consideration Shares to shareholders of Xynomic
immediately prior to the closing (the "
Sellers
").
Pursuant to the Merger
Agreement, 1,285,822 shares were deposited into an escrow account (the "
Escrow Account
") to serve as
security for, and the exclusive source of payment of, the Company's indemnity rights under the Merger Agreement and any excess
of the estimated Closing Merger Consideration over the final Closing Merger Consideration amount determined post-Closing.
As a result of the
Business Combination, the Sellers, as the former shareholders of Xynomic, became the controlling shareholders of the Company and
Xynomic became a subsidiary of the Company. The Business Combination was accounted for as a reverse merger, wherein Xynomic is
considered the acquirer for accounting and financial reporting purposes.
Prior to the Business
Combination, we were a "shell company" (as such term is defined in Rule 12b-2 under the Securities Exchange Act of
1934, as amended). As a result of the Business Combination, we have ceased to be a "shell company" and will continue
the existing business operations of Xynomic as a publicly traded company under the name "Xynomic Pharmaceuticals Holdings,
Inc."
As used in this Report
henceforward, unless otherwise stated or the context clearly indicates otherwise, the terms the "Registrant," "Company,"
"we," "us", "our"and "XYN" refer to Xynomic Pharmaceuticals Holdings, Inc., and
its subsidiaries at and after the Closing, giving effect to the Business Combination.
Nasdaq Listing Compliance
On May 15, 2019, we
received written notice from the staff of The NASDAQ Stock Market LLC ("
Nasdaq
") indicating that the
Staff had determined to delist the Company's securities from Nasdaq based upon the Company's non-compliance with Nasdaq
Listing Rules 5505(a)(3) and 5515(a)(4), which require a minimum of 300 round lot holders of common stock and 400 round lot holders
of common stock purchase warrants for initial listing on The Nasdaq Capital Market. The Staff's determination also cited
the Company's non-compliance with the minimum $5 million in stockholders' equity requirement, as set forth in Nasdaq
Listing Rule 5505(b)(1)(A).
12
Upon request, a hearing
before the Panel was scheduled on July 11, 2019 and our request for hearing has stayed any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to the Company by
the Panel. We intend to pursue certain actions including this Offering to increase the number of round lot holders of its common
stock as well as increase its stockholders' equity as soon as practicable to meet the applicable listing requirements; however,
there can be no assurances that the Company will be able to do so within the period of time that may be granted by the Panel.
Unit Offering
On
or about July 10, 2019, we entered into certain Securities Purchase Agreement (the "Unit SPA") with certain "accredited
investors" as defined in Rule 501(a) of Regulation D as promulgated under the Securities Act (the "Unit Purchasers"),
pursuant to which we agreed to sell to such Unit Purchasers an aggregate of approximate USD$10 million of units (the "Units")
of the Company, at a purchase price of USD$3.80 per Unit (subject to adjustment) (the "Unit Offering"). Each Unit consists
of one share of Common Stock and one-half warrant (the "Unit Warrant"). Each whole Unit Warrant can be exercised to
purchase one share of Common Stock at $7.00 per share and shall expire in three (3) years of the issuance, and have the rights
and preference set forth in certain warrant agreement. Furthermore, the Unit SPA provides, among other terms, a maximum offering
in an aggregate of $15 million with the first closing of a minimum of $5 million upon delivery of the closing conditions set forth
in the Unit SPA, provided that no closing shall occur after September 30, 2019 subject to certain exception.
The
Units, the shares of Common Stock underlying the Units (the "Unit Shares"), the Unit Warrants issued in the Offering,
and shares of Common Stock issuable upon exercise of the Unit Warrants (the "Unit Warrant Shares"), are exempt from
the registration requirements of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D.
The
proceeds of this Unit Offering will be used for working capital and general corporate purposes.
The
Unit SPA also contains customary representation and warranties of the Company and the Unit Purchasers, indemnification obligations
of the Company, termination provisions, and other obligations and rights of the parties. Additionally, we anticipate that the Unit
Purchasers will enter into a lock-up agreement at the closing pursuant to which that they would agree not to sell or otherwise
transfer or dispose the Units, Unit Shares, Unit Warrants, or Unit Warrant Shares during the six-month period commencing on the
earlier of the effective date of a registration statement in connection with the first follow-on public offering after the date
of the Unit SPA or the issuance date of the Units.
The Form of the Unit SPA and the Form of the Unit Warrants are filed as Exhibits 10.22 and 10.23 to this
prospectus, respectively; and such documents are incorporated herein by reference. The foregoing is only a brief description of
the material terms of the Unit SPA and the Unit Warrants, and does not purport to be a complete description of the rights and obligations
of the parties thereunder and is qualified in its entirety by reference to such exhibits.
Corporate Structure and Information
The corporate structure of the
Company is illustrated as follows:
Xynomic Pharmaceuticals,
Inc. ("Xynomic DE"), a company established under the laws of the Delaware in 2016, is our primary operating entity
and 100% owned by us.
Xynomic Pharmaceuticals
(Nanjing) Co., Ltd. ("Xynomic Najing"), a limited company established under the laws of PRC in 2017, engages in research and development of pharmaceuticals
business and is 100% owned by Xynomic DE.
Xynomic Pharmaceuticals
(Zhongshan) Co., Ltd. ("Xynomic Zhongshan"), a limited company established under the laws of PRC in 2018, engages in
research and development of pharmaceuticals business and is 100% owned by Xynomic Nanjing.
Xynomic Pharmaceuticals
(Shanghai) Co., Ltd. ("Xynomic Shanghai"), a limited company established under the laws of PRC in 2018, engages in
research and development of pharmaceuticals business and is 100% owned by Xynomic Nanjing.
The mailing address
of our principal executive office is: Suite 3306, K. Wah Centre, 1010 Middle Huaihai Road, Shanghai 200031, China.
13
Implications of Our Being an "Emerging Growth Company"
We
qualify as an "emerging growth company"
as defined in the Jumpstart Our Business Startups Act of 2012, or
the JOBS Act, until the earlier of (1) the last day of the fiscal year (a) following June 23, 2022, the fifth anniversary of
our IPO, (b) in which we have total annual gross revenue of at least $1.07 billion, (c) our non-convertible debt issued
within a three year period exceeds $1 billion, or (d) if the market value of our shares that are held by non-affiliates
exceeds $700 million on the last day of our second fiscal quarter. An "emerging growth company" may take
advantage of reduced reporting requirements that are otherwise generally applicable to public companies. In particular, as an
emerging growth company, we:
●
are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing how those elements fit with our principles and objectives, which is commonly referred to as "compensation discussion and analysis";
●
are not required to obtain an attestation and report from our auditors on our management's assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;
●
are not required to obtain a non-binding advisory vote from our shareholders on executive compensation or golden parachute arrangements (commonly referred to as the "say-on-pay," "say-on frequency" and "say-on-golden-parachute" votes);
●
are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;
●
are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act; and
●
will not be required to conduct an evaluation of our internal control over financial reporting for two years.
14
THE OFFERING
Issuer
Xynomic Holdings Pharmaceuticals, Inc.
Securities being offered by us
[●]
Price per share
[●]
Option to purchase additional shares exercisable for 45 days from the closing of this offering
[●]
Shares of Common Stock outstanding as of July 10, 2019
46,273,846
Shares of Common Stock outstanding immediately following the consummation of this Offering
[●]
Amount of the Offering
[●]
Minimum purchase
[●]
Symbol
XYN for Common Stock
Transfer Agent
Continental Stock Transfer & Trust Company
Use of Proceeds
Risk Factors
Investing in our securities involves a high degree of risk and purchasers may lose part or all of their investment. See "Risk Factors" for a discussion of factors you should carefully consider before deciding to invest in our securities beginning on Page 21.
Dividend Policy
We have no present plan to declare dividends and plan to retain our earnings to continue to grow our business.
Underwriter Warrants
We have agreed to issue to the Underwriter warrants to purchase up to [●]
*
The number of
                                                                                                                                                             shares of common stock to be outstanding after this offering is based on [●] shares of Common Stock outstanding as of
                                                                                                                                                             July 10, 2019, and excludes:
●
[●]
shares
of Common Stock issuable upon the exercise of stock options outstanding as of July 10, 2019;
●
[●]
shares of common stock
issuable
upon the exercise of warrants (See "Description of Securities — Warrants");
●
[●]
shares
of Common Stock reserved for future issuance under our 2018 Equity Incentive Plan, or Incentive Plan, as of July 10, 2019;
●
[●]
shares
of Common Stock issuable upon the exercise of EarlyBirdCapital's purchase option (See "Description of Securities —
Purchase Option"); and
●
[●]
shares of
                                                                                                                                                      Common Stock issuable upon the exercise of a warrant to be issued to [●] in connection with this
                                                                                                                                                      Offering.
Our Incentive Plan also provides for automatic
annual increases in the number of shares reserved thereunder. See "Executive Compensation — Employee Benefit Plans"
for additional information.
Except as otherwise indicated, all information
in this prospectus assumes:
●
no exercise or cancellation of outstanding options
or vesting of RSUs subsequent to July 10, 2019; and
●
no exercise by the underwriters of their overallotment
option.
15
SELECTED
HISTORICAL CONSOLIDATED FINANCIAL INFORMATION OF XYNOMIC
The following table
sets forth selected historical consolidated financial information derived from our wholly owned subsidiary following the consummation
of the Business Combinatin on May 15, 2019, Xynomic Pharmaceuticals, Inc.'s audited consolidated financial statements as
of December 31, 2018 and 2017, and for the years ended December 31, 2018 and 2017, and its unaudited consolidated interim financial
data for the period ended March 31, 2019, each of which is included elsewhere in this prospectus.
The
historical results presented below are not necessarily indicative of the results to be expected for any future period. You should
carefully read the following selected consolidated financial information in conjunction with the section entitled "
Xynomic
Management's Discussion and Analysis of Financial Condition and Results of Operations
" and Xynomic's consolidated
financial statements and the related notes appearing elsewhere in this prospectus
.
For the Year Ended
For the Three
Months ended
Selected Consolidated Statements of Comprehensive Loss:
December 31,
2018
December 31,
2017
March 31,
2019
(dollars in thousands)
Operating expenses
Research and development
$
25,160
$
4,321
$
5,324
General and administrative
$
3,049
$
885
$
8,780
General and administrative to related parties
362
249
26
Loss from operations
$
(28,571
)
$
(5,455
)
$
(14,130
)
Other income
Investment income
17
-
-
Interest expenses to a related party
(33
)
-
(15
)
Loss from operations before income tax benefit
$
(28,587
)
$
(5,455
)
$
(14,145
)
Income tax
-
-
-
Net Loss
$
(28,587
)
$
(5,455
)
$
(14,145
)
Accretion to preferred share redemption value
$
(2,831
)
$
(1,269
)
$
(1,698
)
Net loss attributable to ordinary shareholders
$
(31,418
)
$
(6,724
)
$
(15,843
)
As of
As of
Selected
    Consolidated Balance Sheets:
December 31,
2018
December 31,
2017
March 31,
2019
(dollars in thousands)
Current assets
$
5,024
$
238
$
1,149
Non-current assets
$
438
$
2
$
663
Total assets
$
5,462
$
240
$
1,812
Current liabilities
$
17,645
$
895
$
20,494
Non-current liabilities
$
-
$
-
$
-
Total liabilities
$
17,645
$
895
$
20,494
Total mezzanine equity-Series Angel, A-1, B
$
7,911
$
5,080
$
9,609
Shareholders' deficit:
Ordinary Shares
$
1
$
1
$
1
Additional paid-in capital
14,169
-
20,154
Accumulated other comprehensive income
59
-
22
Accumulated deficit
(34,323
)
(5,736
)
(48,468
)
Total shareholders' deficit
(20,094
)
(5,735
)
(28,291
)
16
Selected
Historical Financial Information of Bison
The following table
sets forth selected historical financial information derived from our predecessor prior to the consummation of the Business Combination,
Bison's audited financial statements as of December 31, 2018, and 2017, and for the years ended December 31, 2018 and 2017,
and Bison's unaudited financial statements as of March 31, 2019, and for the three months ended March 31, 2019, which are
included elsewhere in this prospectus.
The historical results
presented below are not necessarily indicative of the results to be expected for any future period. You should carefully read the
following selected financial information in conjunction with the section entitled "
Bison Management's Discussion
and Analysis of Financial Condition and Results of Operations
" and Bison's financial statements and the related
notes appearing elsewhere in this prospectus.
Dollars in thousands except share and
per share amounts
Year ended
December 31,
Year ended
December 31,
Three Months ended March 31,
2018
2017
2019
Income Statement Data:
Operating costs
$
836
$
365
$
205
Interest income
$
1,122
$
341
$
347
Unrealized loss on marketable securities held in Trust Account
(19
)
(17
)
(3
)
Net Income (loss)
$
267
$
(41
)
$
140
Weighted average number of shares outstanding, excluding shares subject to possible redemption, basic and diluted
2,426,155
1,870,947
2,477,069
Net income (loss) per ordinary share: basic and diluted
$
(0.30
)
$
(0.18
)
$
0.01
Cash Flow Data:
Net cash used in operating activities
$
(687
)
$
(376
)
$
(129
)
Net cash used in investing activities
-
(61,884
)
55,178
Net cash provided by financing activities
$
600
62,172
(55,168
)
December 31,
2018
December 31,
2017
March 31,
2019
Balance Sheet Data:
Cash and cash equivalents
$
123
$
210
$
3
Cash and marketable securities held in trust account
$
63,310
$
62,208
$
8,477
Total assets
$
63,461
$
62,508
$
8,496
Ordinary shares subject to possible redemption
57,694
57,427
2,656
Total shareholders' equity
5,000
5,000
5,000
17
SELECTED UNAUDITED PRO FORMA CONDENSED
COMBINED FINANCIAL INFORMATION
The following unaudited
pro forma condensed combined balance sheet as of March 31, 2019 combines amounts derived from the unaudited consolidated balance
sheet of Xynomic as of March 31, 2019 with the unaudited consolidated balance sheet of Bison as of March 31, 2019, giving effect
to the Business Combination as if it had been consummated as of that date.
The following unaudited
pro forma condensed combined statement of operations for the year ended December 31, 2018 combines the amounts derived from audited
consolidated statement of comprehensive loss of Xynomic for the year ended December 31, 2018 with the audited consolidated income
statement of Bison for the year ended December 31, 2018, giving effect to the Business Combination as if it had occurred on January
1, 2018.
The following unaudited
pro forma condensed combined statements of operations for the three months ended March 31, 2019 combines the amounts derived from
the unaudited condensed consolidated statement of comprehensive loss of Xynomic for the three months ended March 31, 2019 with
the unaudited consolidated income statement of Bison for the three months ended March 31, 2019, giving effect to the Business
Combination as if it had occurred on January 1, 2018.
The historical financial
information has been adjusted to give effect to pro forma events that are related and/or directly attributable to the Business
Combination, are factually supportable, and are expected to have a continuing impact on the combined results. The adjustments presented
in the unaudited pro forma condensed combined financial statements have been identified and presented to provide relevant information
necessary for an accurate understanding of the combined company upon the Closing.
The selected unaudited
pro forma condensed combined financial information is for illustrative purposes only. The financial results may have been different
had the companies always been combined. You should not rely on the unaudited pro forma condensed combined financial information
as being indicative of the historical results that would have been achieved had the companies always been combined or the future
results that the combined company will experience. Bison and Xynomic have not had any historical relationship prior to the Business
Combination except that (a) Zhongshan Bison Healthcare Investment Limited (Limited Partnership) ("
Zhongshan Bison
")
is holding 1,553,265 shares of Series B preferred stock of Xynomic representing approximately 2.96% equity interest in Xynomic
immediately prior to the Closing, and (b) Mr. Peixin Xu, the Chairman of Bison, is the beneficial owner of 21% of Zhongshan Bison
and his wife owns 100% of the Sponsor. Accordingly, no pro forma adjustments were required to eliminate activities between the
companies.
The Business Combination
will be accounted for as a reverse merger in accordance with accounting principles generally accepted in the United States of America.
Under this method of accounting, Bison will be treated as the "acquired" company for financial reporting purposes.
This determination was primarily based on Xynomic comprising the ongoing operations of the combined entity, Xynomic's senior
management comprising the senior management of the combined company, and Xynomic's shareholders having a majority of the
voting power of the combined company. Accordingly, for accounting purposes, the Business Combination will be treated as the equivalent
of Xynomic issuing stock for the net assets of Bison, accompanied by a recapitalization. These transactions are not business combinations
because Bison is not a business under S-X Rule 11-01(d). The private operating company would credit equity for the fair value of
the net assets of the shell company (i.e., no goodwill or intangible assets would be recognized). Operations prior to the Business
Combination will be those of Xynomic.
18
The aggregate number
of Bison's ordinary shares that will be issued to Xynomic's equity holders at the closing of the Business Combination
will consist of the Closing Consideration Shares that equal to (a) $350,000,000 minus (b) the amount of the Closing Indebtedness,
plus (c) the amount of the Closing Cash (which may be a positive or negative dollar amount), minus (d) the amount of the Company
Transaction Expenses, plus (e) the Closing Tax Benefits, plus (f) if Closing Working Capital is greater than Target Working Capital,
an amount equal to (x) Closing Working Capital minus (y) Target Working Capital, minus (g) if Target Working Capital is greater
than the Closing Working Capital an amount equal to (x) Target Working Capital minus (y) Closing Working Capital (capitalized
terms are defined in the Merger Agreement), if any, divided by $10.15 and 9,852,216 Earnout Shares.
Given that the Extension
Amendment Proposal and the Trust Amendment Proposal were approved at the Extension Meeting and shareholders holding 5,234,420 public
shares exercised their rights to redeem such public shares for a pro rata portion of the Trust Account, an aggregate of $55,177,977
(or $10.54 per share) was removed from the Trust Account to pay such shareholders.
Public shareholders further redeemed 789,269 public shares in connection with the expected shareholder vote to approve the proposed business combination
with Xynomic, which has been consummated by May 17, 2019.
Based upon the adjusted
equity valuation of Xynomic of $435,036,831 as of the closing, a total of 42,860,772 Merger Consideration Shares were issued, of
which 9,852,216 of such shares are serving as the Earnout Shares.
As a condition to the
Business Combination and as further discussed in the Current Report on Form 8-K, the Backstop Investors purchased
$7.67 million of our ordinary shares through a private placement that occurred simultaneously with that of the Business Combination,
in order to ensure that there is at least $7.5 million in net tangible assets available in the Company immediately following the
Business Combination (the "Backstop").
As a result of the
Business Combination (i) after 789,269 ordinary shares were redeemed and converted into cash, (ii) an adjusted equity valuation
of $435,036,831, (iii) the issuance of 755,873 ordinary shares to Backstop investor, and (iv) Bison's sponsor select to convert
its promissory notes of $500,000 to ordinary shares at price of $10.00 per share, Xynomic stockholders will own approximately 94.24%
of the Company's ordinary shares to be outstanding immediately after the Business Combination, and Bison shareholders will
own approximately 5.76% of the Company's outstanding ordinary shares.
19
SELECTED UNAUDITED PRO FORMA CONDENSED
COMBINED FINANCIAL INFORMATION
(dollars in thousands except shares and
per share amounts)
Income statement – year ended December 31, 2018
Xynomic
Bison
Pro Forma
Total operating expenses
$
28,571
$
836
$
27,555
Net operating loss
(28,571
)
(836
)
(27,555
)
Other income/(expenses)
17
1,103
-
Interest expenses to a related party
(33
)
-
-
Income (loss) from operations before income tax expenses/(benefit)
(28,587
)
267
(27,571
)
Income tax
-
-
-
Net (loss) income
(28,587
)
267
(27,571
)
Accretion to preferred shares redemption value
(2,831
)
-
Net (loss) income attributable to ordinary shareholders
$
(31,418
)
$
267
$
(27,571
)
Weighted average shares outstanding
2,426,155
47,430,973
Basic and diluted net loss per share
$
0.30
$
(0.58
)
Income statement – three months ended March 31, 2019
Xynomic
Bison
Pro Forma
Total operating expenses
$
14,130
205
13,975
Net operating loss
(14,130
)
(205
)
(13,975
)
Other income/(expenses)
-
345
-
Interest expenses to a related party
(15
)
-
(15
)
Income (loss) from operations before income tax expenses/(benefit)
(14,145
)
140
(13,990
)
Income tax
-
-
-
Net (loss) income
(14,145
)
140
(13,990
)
Accretion to preferred shares redemption value
1,698
-
-
Net (loss) income attributable to ordinary shareholders
$
(15,843
)
140
(13,990
)
Weighted average shares outstanding
2,477,069
46,050
Basic and diluted net loss per share
(0.01
)
(0.30
)
Balance sheet data – as of March 31, 2019
Xynomic
Bison
Pro Forma
Total Current Assets
$
1,149
$
18
$
5,218
Total Non-Current Assets
663
8,478
633
Total Assets
1,812
8,496
5,881
Total Current Liabilities
20,494
840
17,849
Total Liabilities
20,494
840
17,849
Total Shareholders' Equity/(Deficit)
$
(28,291
)
$
5,000
$
(11,968
)
20
Risk
Factors
You should carefully review and consider
the following risk factors and the other information contained in this prospectus, including the financial statements and notes
to the financial statements included herein, in making investment decisions in connection with this Offering. The following risk
factors apply to the business and operations of Xynomic Parmaceuticals Holdings, Inc. following the completion of the Business
Combination. The occurrence of one or more of the events or circumstances described in these risk factors, alone, or in combination
with other events or circumstances, may adversely affect the ability to complete or realize the anticipated benefits of the Offering,
and may have a material adverse effect on the business, cash flows, financial condition, and results of operations of the combined
company. You should carefully consider the following risk factors in addition to the other information included in this proxy statement/prospectus,
including matters addressed in the section entitled "Cautionary Note Regarding Forward-Looking Statements." We
may face additional risks and uncertainties that are not presently known to us, or that we currently deem immaterial, which may
also impair our business or financial condition. The following discussion should be read in conjunction with the financial statements
and notes to the financial statements included herein.
Risks Related to Our Financial Position
and Need for Additional Capital
We are a biopharmaceutical company
with a limited operating history and has not yet generated any revenue from product sales. Xynomic, our operating subsidiary, has
incurred operating losses since its inception and may never achieve or maintain profitability.
We are a clinical stage
biopharmaceutical company with a limited operating history. Investment in biopharmaceutical product development is highly speculative
because it entails substantial upfront capital expenditures and significant risk that a drug candidate will fail to gain regulatory
approval or become commercially viable. Xynomic, our operating subsidiary, commenced operations in August 2016. Its operations
to date have been limited primarily to organizing and staffing the company, business planning, raising capital, in-licensing drug
candidates, undertaking pre-clinical studies, and clinically developing drug candidates. Xynomic has never generated any revenue
from drug sales, and has not obtained regulatory approvals for any of its drug candidates. For the year ended December 31, 2018,
Xynomic reported a net loss of $28.6 million.
We expect to incur
significantly higher expenses and operating losses over the next several years in connection with our ongoing activities, as we:
●
continue
pre-clinical and clinical development of its programs;
●
in-license
and subsequently develop additional oncology drug candidates;
●
continue
to discover, validate and develop additional drug candidates;
●
maintain,
expand and protect our intellectual property portfolio;
●
Hire
additional research, development and business personnel;
●
incur
costs associated with filing marketing authorization applications;
●
if
abexinostat is successfully approved for commercialization, incur additional costs associated with establishing sales and marketing
infrastructure for abexinostat in U.S., China and other territories; and
●
incur
additional costs associated with operating as a public company upon the Closing.
To become and remain
profitable, we must develop and eventually commercialize drug candidates with significant market potential. This will require it
to be successful in a range of challenging activities, including completing pre-clinical testing and clinical trials of its drug
candidates, obtaining marketing approval for these drug candidates, manufacturing, marketing and selling those drug candidates
for which it may obtain marketing approval, and satisfying any post-marketing requirements. It may never succeed in any or all
of these activities and, even if it does, we may never generate revenues that are significant or large enough to achieve profitability.
We may encounter unforeseen expenses, difficulties, complications, delays, and other unknown factors that may adversely affect
our business. The size of our future net losses will depend, in part, on the rate of future growth of our expenses and our ability
to generate revenue. Even if we achieve profitability in the future, we may not be able to sustain profitability in subsequent
periods.
21
We are a holding company and will
conduct all of our operations through our subsidiaries.
Following consummation
of the Business Combination, we are a holding company and derive all of our operating income from subsidiaries of us. Other than
any cash we may retain, all of our assets will be held by our direct and indirect subsidiaries. We will rely on the earnings and
cash flows of us, which will be paid to us by our subsidiaries, if and only to the extent available, in the form of dividends and
other payments or distributions, to meet our debt service obligations. The ability of our subsidiaries to pay dividends or make
other payments or distributions to us will depend on their respective operating results and may be restricted by, among other things,
the laws of their jurisdiction of organization (which may limit the amount of funds available for the payment of dividends and
other distributions to us), the terms of existing and future indebtedness and other agreements of our subsidiaries and the covenants
of any future outstanding indebtedness we or our subsidiaries incur.
We must obtain additional funds to
finance our operations and to remain a going concern.
Xynomic incurred recurring
losses from operations since inception and the net current liabilities (current assets less current liabilities) raise substantial
doubt about its ability to continue as a going concern. The Group has prepared its financial statements assuming that it will continue
as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business.
The Group has incurred recurring losses from operations since inception. The Group incurred a net loss of US$14,144,555 for the
three months ended March 31, 2019. Further, as of March 31, 2019, the Group had net current liabilities (current assets less current
liabilities) of US$19,345,343 and accumulated deficit of US$48,467,724. The Group's ability to continue as a going concern
is dependent on its ability to raise capital to fund its current research and development activities and future business plans.
Additionally, volatility in the capital markets and general economic conditions in the United States may be a significant obstacle
to raising the required funds. These factors raise substantial doubt about its ability to continue as a going concern. The financial
statements included herein do not include any adjustments that might be necessary should the Group be unable to continue as a going
concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the
carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used.
Xynomic's ability
to continue as a going concern will require it to obtain additional funding. The perception of Xynomic's ability to continue
as a going concern may make it more difficult to obtain financing for the continuation of Xynomic's operations and could
result in the loss of confidence by investors and employees. Additionally, volatility in the capital markets and general economic
conditions in the United States may be a significant obstacle to raising the required funds.
After the consummation
of the Business Combination, Xynomic's business consists of our business. The current assets of the Group are lower than its current
liabilities. It raises substantial doubt our ability to continue as a going concern.
We will need to raise substantial
additional funding. If we are unable to raise capital when needed at favorable terms, it will be forced to delay, reduce, or eliminate
some of its drug development programs or commercialization efforts.
Our ability to continue
as a going concern will require it to obtain additional funding. Furthermore, our future capital requirements will depend on and
could increase significantly as a result of many factors, including:
●
the
scope, progress, results, and costs of drug discovery, pre-clinical studies, laboratory testing, and clinical trials for our drug
candidates;
●
the
outcome, timing and cost of regulatory approvals by the Food and Drug Administration ("
FDA
"), National Medical
Products Administration ("
NMPA
"), EMA and comparable regulatory authorities, including the potential that the
FDA, NMPA, EMA or comparable regulatory authorities may require that we to perform additional studies;
●
the
costs, timing, and outcome of regulatory review of abexinostat and other drug candidates;
●
the
success of its effort to commercially launch abexinostat;
●
our
ability to in-license additional drug candidates on favorable terms, if at all;
●
the
achievement of milestones or occurrence of other developments that trigger payments under existing and new licensing agreements;
●
the
costs of preparing, filing, and prosecuting patent applications, maintaining and enforcing our intellectual property rights, and
defending intellectual property-related claims;
●
the
costs of securing outsourced manufacturing arrangements for commercial production; and
●
the
costs of establishing or contracting for sales and marketing capabilities if we obtain regulatory clearances to market abexinostat
or another drug candidate.
22
Additional fundraising
efforts may distract management from their day-to-day activities, which may adversely affect our ability to develop and commercialize
its drug candidates. There is no guarantee that future financing will be available in sufficient amounts or on terms acceptable
to us, if at all. Moreover, additional financing may adversely affect the holdings or the rights of stockholders, and the issuance
of additional securities, whether equity or debt, by us, or the possibility of such issuance, may cause the market price of our
shares to decline. The sale of additional equity or convertible securities would dilute all of our stockholders. The incurrence
of indebtedness would result in increased interest payment obligations and we may be required to agree to certain restrictive covenants,
such as limitations on its ability to incur additional debt, limitations on our ability to acquire, sell, or license intellectual
property rights, and other operating restrictions that could adversely impact our ability to conduct our business. We could also
be required to agree to terms unfavorable to us, any of which may have a material adverse effect on our business, operating results
and prospects.
If we are unable to
obtain funding on a timely basis, we will be required to significantly curtail, delay, or discontinue one or more of our research
or development programs or the commercialization of any drug candidate or be unable to expand our operations or otherwise capitalize
on our business opportunities, as desired, which could materially adversely affect our business, financial condition, and results
of operations.
Raising additional capital may cause
dilution to our existing stockholders, restrict our operations, or require us to relinquish rights to its technologies or drug
candidates.
Identifying and acquiring
rights to develop potential drug candidates and conducting pre-clinical testing and clinical trials is a time-consuming, expensive,
and uncertain process that may take years to complete, and our commercial revenue, if any, will be derived from sales of drug candidates
that we do not expect to be commercially available until we receive regulatory approval, if at all. We may never generate the necessary
data or results required to obtain regulatory approval and achieve product sales, and even if one or more of its drug candidates
are approved, they may not achieve commercial success. Accordingly, we may need to continue to rely on additional financing to
achieve our business objectives. Adequate additional financing may not be available to us on acceptable terms, or at all.
We may seek additional
funding through a combination of equity offerings, debt financings, collaborations, licensing arrangements, strategic alliances,
and marketing or distribution arrangements. To the extent that we raise additional capital through the sale of equity or convertible
debt securities, the ownership interest of our existing stockholders will be diluted, and the terms may include liquidation or
other preferences that adversely affect the rights as a holder of our common stock. The incurrence of additional indebtedness or
the issuance of certain equity securities could result in increased fixed payment obligations and could also result in certain
additional restrictive covenants, such as limitations on our ability to incur additional debt or issue additional equity, limitations
on our ability to acquire or license intellectual property rights, and other operating restrictions that could adversely impact
our ability to conduct our business. In addition, issuance of additional equity securities, or the possibility of such issuance,
may cause the market price of our common stock to decline. In the event that we enters into collaborations or licensing arrangements
to raise capital, we may be required to accept unfavorable terms, including relinquishing or licensing to a third party on unfavorable
terms to our rights to technologies or drug candidates that we otherwise would seek to develop or commercialize ourselves or potentially
reserve for future potential arrangements when we might be able to achieve more favorable terms.
We have a very limited operating
history, which may make it difficult for you to evaluate the success of our business to date and to assess its future viability.
We commenced its operations
in August 2016. Its operations to date have been limited to organizing and staffing the company, identifying potential partnerships
and drug candidates, acquiring product and technology rights, and conducting research and development activities for its drug candidates.
We have not yet demonstrated the ability to successfully complete large-scale, pivotal clinical trials. We have also not yet obtained
regulatory approval for, or demonstrated an ability to manufacture or commercialize, any of its drug candidates. Consequently,
any predictions about our future success, performance, or viability may not be as accurate as they could be if it had a longer
operating history or approved products on the market.
23
Our limited operating
history, particularly in light of the rapidly evolving drug research and development industry in which it operates, may make it
difficult to evaluate our current business and prospects for future performance. Its short history makes any assessment of its
future performance or viability subject to significant uncertainty. We will encounter risks and difficulties frequently experienced
by early-stage companies in rapidly evolving fields as it seeks to transition to a company capable of supporting commercial activities.
In addition, as a new business, it may be more likely to encounter unforeseen expenses, difficulties, complications, and delays
due to limited experience. If we do not address these risks and difficulties successfully, its business will suffer.
Risks Related to Our Business
All of our drug candidates are still
in development. If we are unable to obtain regulatory approval and ultimately commercialize our drug candidates or experiences
significant delays in doing so, our business, financial condition, results of operations, and prospects will be materially and
adversely affected.
All of our drug candidates
are still in development. One of our drug candidates is in clinical development and various others are in pre-clinical development.
Our ability to generate revenues from our drug candidates is dependent on our receipt of regulatory approval and successfully commercializing
such products, which may never occur. Each of our drug candidates will require additional pre-clinical and/or clinical development,
regulatory approval in multiple jurisdictions, development of manufacturing supply and capacity, substantial investment, and significant
marketing efforts before we generates any revenue from product sales. The success of our drug candidates will depend on several
factors, including the following:
●
successful
completion of pre-clinical and/or clinical studies;
●
successful
enrollment in, and completion of, clinical trials;
●
receipt
of regulatory approvals from applicable regulatory authorities for planned clinical trials, future clinical trials, or drug registrations,
manufacturing, and commercialization;
●
successful
completion of all safety studies required to obtain regulatory approval in China, the United States, and other jurisdictions for
our drug candidates;
●
developing
commercial manufacturing capabilities to the specifications for our drug candidates for clinical supply and commercial manufacturing;
●
making
and maintaining arrangements with third-party manufacturers;
●
obtaining
and maintaining patent, trade secret, and other intellectual property protection and/or regulatory exclusivity for our drug candidates;
●
launching
commercial sales of our drug candidates, if and when approved, whether alone or in collaboration with others;
●
acceptance
of the drug candidates, if and when approved, by patients, the medical community, and third-party payors;
●
effectively
competing with other therapies and alternative drugs;
●
obtaining
and maintaining healthcare coverage and adequate reimbursement;
●
successfully
enforcing and defending intellectual property rights and claims; and
●
maintaining
a continued acceptable safety profile of the drug candidates following regulatory approval.
24
The success of our
business is dependent upon our ability to develop and commercialize its clinical-stage drug candidates, particularly abexinostat,
which has three clinical trials currently on-going As a result, our business is substantially dependent on our ability to complete
the development of, obtain regulatory approval for, and successfully commercialize abexinostat and other drug candidates in a timely
manner.
We cannot commercialize
drug candidates in the United States or another jurisdiction outside of China without obtaining regulatory approval from the FDA
or comparable foreign regulatory authorities. Similarly, we cannot commercialize drug candidates in China without first obtaining
regulatory approval from the NMPA. The process to develop, obtain regulatory approval for, and commercialize drug candidates is
long, complex, and costly and approval may not be granted. Clinical trials conducted in one country may not be accepted by regulatory
authorities in other countries, and obtaining regulatory approval in one country does not mean that regulatory approval will be
obtained in any other country. Approval processes vary among countries and can involve additional product testing and validation
and additional administrative review periods. Even if our drug candidates were to successfully obtain approval from the FDA and
comparable foreign regulatory authorities, we would still need to seek approval in China and any other jurisdictions where we plan
to market the product. Any safety issues, product recalls, or other incidents related to products approved and marketed in one
jurisdictions may impact approval of those products by another jurisdiction. If we are unable to obtain regulatory approval for
our drug candidates in one or more jurisdictions, or any approval contains significant limitations imposed on certain drug candidates,
we may not be able to obtain sufficient funding or generate sufficient revenue to continue the development of our drug candidates
or any other drug candidate that we may in-license, acquire, or develop in the future.
We may be unable to obtain regulatory
approval under applicable regulatory requirements.
To gain approval to
market a drug product, regardless of whether it is through Accelerated Approval or the conventional pathway, we must provide the
FDA and foreign regulatory agencies with clinical data that adequately demonstrates the safety and efficacy of the product for
the intended indication applied for in the New Drug Application, or "
NDA
," or other respective regulatory filing.
Drug development is a long, expensive and uncertain process, and delay or failure can occur at any stage of any of our clinical
trials. A number of companies in the pharmaceutical industry have suffered significant setbacks in clinical trials even after promising
results in earlier nonclinical or clinical studies and trials. These setbacks have been caused by, among other things, nonclinical
findings made while clinical trials were underway and safety or efficacy observations made in clinical trials, including previously
unreported Adverse Events ("
AEs
"). Success in nonclinical testing and early clinical trials does not ensure
that later clinical trials will be successful, and the results of clinical trials by other parties may not be indicative of the
results in trials we may conduct.
Clinical drug development involves
a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future
trial results. Failure can occur at any stage of clinical development.
Clinical testing is
expensive and can take many years to complete, and its outcome is inherently uncertain. Failure can occur at any time during the
clinical trial process. The results of nonclinical and clinical studies and trials of our drug candidate may not be predictive
of the results of later-stage clinical trials. Drug candidates in later stages of clinical trials may fail to show the desired
safety and efficacy despite having progressed through nonclinical and clinical studies and trials. A number of companies in the
pharmaceutical industry have suffered significant setbacks in advanced clinical trials due to lack of efficacy or adverse safety
profiles, notwithstanding promising results in earlier studies and trials, and we cannot be certain that it will not face similar
setbacks. Based upon negative or inconclusive results, we or any potential future collaborator may decide, or regulators may require
us, to conduct additional nonclinical and clinical studies and trials. In addition, data obtained from trials and studies are susceptible
to varying interpretations, and regulators may not interpret our data as favorably as we do, which may delay, limit, or prevent
regulatory approval. Furthermore, we rely on contract research organizations ("
CROs
") and clinical trial sites
to ensure the proper and timely conduct of our clinical trials and, while we have agreements governing their committed activities,
we have limited influence over their actual performance.
25
In addition, we do
not know whether future clinical trials, if any, will begin on time, need to be redesigned, enroll an adequate number of patients
on time or be completed on schedule, if at all. Clinical trials can be delayed or aborted for a variety of reasons, including delay
or failure to:
●
obtain
regulatory approval to commence a trial, if applicable;
●
reach
agreement on acceptable terms with prospective CROs and clinical trial sites, the terms of which can be subject to extensive negotiation
and may vary significantly among different CROs and trial sites;
●
obtain
ethics committee or institutional review board, or "
IRB
," approval at each site;
●
recruit
suitable patients to participate in a trial and have such patients complete the clinical trial or return for post-treatment follow-up;
●
ensure
that clinical sites follow the trial protocol, comply with Good Clinical Practice, or "
GCP
," and continue to
participate in a clinical trial;
●
address
any patient safety concerns that arise during the course of a clinical trial;
●
ensure
that patients comply with and complete clinical trial protocol;
●
achieve
a sufficient level of endpoint events in the placebo group, if applicable;
●
initiate
or add a sufficient number of clinical trial sites;
●
ensure
that trial sites do not deviate from clinical trial protocol or drop out of a clinical trial;
●
address
any conflicts with new or existing laws or regulations;
●
manufacture
sufficient quantities of drug candidate for use in clinical trials and ensure clinical trial material is provided to clinical
sites in a timely manner; and
●
obtain
the statistical analysis plan to be used to evaluate the clinical trial data.
Patient enrollment
is a significant factor in the timing of clinical trials and is affected by many factors, including the size and nature of the
patient population, the proximity of patients to clinical sites, the eligibility criteria for the trial, the design of the clinical
trial, competing clinical trials and clinicians' and patients' perceptions as to the potential advantages of the drug
being studied in relation to other available therapies, including any new drugs or treatments that may be approved for the indications
we are investigating.
We could also encounter
delays if a clinical trial is suspended or terminated by it, by the ethics committees or IRBs of the institutions in which such
trials are being conducted, by an independent Safety Review Board, for such trial or by the FDA or other regulatory agencies. Such
parties may suspend or terminate a clinical trial due to a number of factors, including failure to conduct the clinical trial in
accordance with regulatory requirements or our clinical protocols, inspection of the clinical trial operations or trial site by
the FDA or other regulatory agencies resulting in the imposition of a clinical hold, unforeseen safety issues or adverse side effects,
failure to demonstrate a benefit from using a drug, changes in governmental regulations or administrative actions or lack of adequate
funding to continue the clinical trial.
Further,
conducting clinical trials in foreign countries presents additional risks that may delay completion of our clinical trials. These
risks include the failure of physicians or enrolled patients in foreign countries to adhere to clinical protocol as a result of
differences in healthcare services or cultural customs, managing additional administrative burdens associated with foreign regulatory
schemes, as well as political and economic risks relevant to such foreign countries. In addition, the FDA may determine that clinical
trial results obtained in foreign subjects do not represent the safety and efficacy of a product when administered in U.S. patients
and are thus not supportive of an NDA approval in the United States.
26
If we experience delays
in the start or completion of, or termination of, any clinical trial of our drug candidates, the commercial prospects of our drug
candidates may be harmed, and our ability to generate product revenues will be delayed. In addition, any delays in completing its
clinical trials will increase our costs, slow down our drug candidates' development and approval process and jeopardize our
ability to commence product sales and generate revenues. Any of these occurrences may significantly harm our business, financial
condition and prospects. In addition, many of the factors that cause, or lead to, a delay in the commencement or completion of
clinical trials may also ultimately lead to the denial of regulatory approval of its drug candidates.
We may allocate our limited resources
to pursue a particular drug candidate or indication and fail to capitalize on drug candidates or indications that may later prove
to be more profitable or for which there is a greater likelihood of success.
Because we have limited
financial and managerial resources, we must limit our licensing, research, and development programs to specific drug candidates
that we identify for specific indications. As a result, we may forego or delay pursuit of opportunities with other drug candidates
or for other indications that later prove to have greater commercial potential. Ourresource allocation decisions may cause us to
fail to capitalize on viable commercial drugs or profitable market opportunities. In addition, if we do not accurately evaluate
the commercial potential or target market for a particular drug candidate, we may relinquish valuable rights to that drug candidate
through collaboration, licensing, or other royalty arrangements when it would have been more advantageous for us to retain sole
development and commercialization rights to such drug candidate.
We may attempt to secure approval
of abexinostat from the FDA through the use of the Accelerated Approval Program, but such mechanism may not actually lead to a
faster development or regulatory review or approval process. If we are unable to obtain approval of abexinostat through the Accelerated
Approval Program in the United States, we may be required to conduct additional nonclinical and clinical studies and trials beyond
those that we currently contemplate, which could increase the expense of obtaining, reduce the likelihood of obtaining, and/or
delay the timing of obtaining, necessary marketing approval. Even if we receive approval from the FDA under the Accelerated Approval
Program, if our confirmatory post-marketing trial does not verify clinical benefit, or if it does not comply with rigorous post-marketing
requirements, the FDA may seek to withdraw the approval.
We currently plan to
seek U.S. approval for our lead drug candidate, abexinostat, through the FDA's Accelerated Approval Program. For any approval
to market a drug product, we must provide the FDA and foreign regulatory agencies with clinical data that adequately demonstrate
the safety and efficacy of the product for the indication applied for in the NDA or other respective regulatory filings. As described
in the section titled "Information about Xynomic—United States Regulation", the Accelerated Approval Program
is one of several approaches used by the FDA to make prescription drugs more rapidly available for the treatment of serious or
life-threatening diseases. Section 506(c) of the Federal Food, Drug and Cosmetic Act, or the "
FFDCA
," provides
that the FDA may grant accelerated approval to "a product for a serious or life-threatening condition upon a determination
that the product has an effect on a surrogate endpoint that is reasonably likely to predict clinical benefit, or on a clinical
endpoint that can be measured earlier than irreversible morbidity or mortality, that is reasonably likely to predict an effect
on irreversible morbidity or mortality or other clinical benefit, taking into account the severity, rarity, or prevalence of the
condition and the availability or lack of alternative treatments." Approval under the Accelerated Approval Program is subject,
however, to the requirement that the applicant conduct additional post-marketing clinical trials to verify and describe the drug's
clinical benefit, where there is uncertainty as to the relationship of the surrogate endpoint to the clinical benefit, or of the
observed clinical endpoint to ultimate outcome. Typically, clinical benefit is verified when post-marketing clinical trials show
that the drug provides a clinically meaningful positive therapeutic effect, that is, an effect on how a patient feels, functions,
or survives. The FDA may require that any confirmatory post-marketing trial be initiated or substantially underway prior to the
submission of an application under the Accelerated Approval Program. And, if such confirmatory post-marketing trial fails to confirm
the drug's clinical profile or risks and benefits, the FDA may withdraw its approval of the drug.
The FDA has broad discretion
with regard to approval under the Accelerated Approval Program, and even if we believe that the Accelerated Approval Program is
appropriate for abexinostat, it cannot assure you that the FDA will ultimately agree. Furthermore, even if we do obtain approval
under the Accelerated Approval Program, we may not experience a faster development process, review or approval compared to conventional
FDA procedures.
27
Even if we receive
approval for abexinostat under the Accelerated Approval Program, we will be subject to rigorous post-marketing requirements, including
the completion of one or more confirmatory post-marketing trials to verify the clinical benefit of the product, and submission
to the FDA of all promotional materials prior to their dissemination. The FDA could seek to withdraw an accelerated approval for
multiple reasons, including if we fail to conduct any required confirmatory post-marketing trial with due diligence, a confirmatory
post-marketing trial does not confirm the predicted clinical benefit, other evidence shows that the product is not safe or effective
under the conditions of use, or we disseminate promotional materials that are found by the FDA to be false and misleading.
Any delay in obtaining,
or inability to obtain, approval under the Accelerated Approval Program would delay or prevent commercialization of abexinostat
and would materially adversely affect our business, financial condition, results of operations, cash flows, and prospects.
If we are unable to obtain NMPA approval
for our drug candidates to be eligible for an expedited registration pathway as Category 1 drug candidates, the time and cost we
would incur to obtain regulatory approvals may increase. Even if we receive such Category 1 designation, it may not lead to a faster
development, review or approval process.
The NMPA categorizes
domestically-manufactured innovative drug applications as Category 1, provided such drug has a new and clearly defined structure,
pharmacological property and apparent clinical value and has not been marketed anywhere in the world. Domestically developed and
manufactured innovative drugs will be attributed to Category 1 for their CTA and NDA applications. Our clinical stage drug candidates
are eligible for Category 1 designation. A Category 1 designation by the NMPA may not be granted for any of its drug candidates
or may not lead to faster development or regulatory review or approval process. Moreover, a Category 1 designation does not increase
the likelihood that its drug candidates will receive regulatory approval.
The regulatory process
in China is evolving and subject to change. Any future policies, or changes to current polices, that the NMPA approves might require
us to change our planned clinical study design or otherwise spend additional resources and effort to obtain approval of our drug
candidates. In addition, policy changes may contain significant limitations related to use restrictions for certain age groups,
warnings, precautions or contraindications, or may be subject to burdensome post-approval study or risk management requirements.
If we are unable to obtain regulatory approval for its drug candidates in one or more jurisdictions, or any approval contains significant
limitations, we may not be able to obtain sufficient funding or generate sufficient revenue to continue the development of our
drug candidates or any other drug candidate that we may in-license, acquire or develop in the future.
The research and development projects
under our internal discovery programs are at an early stage of development. As a result, we are unable to predict if or when we
will successfully develop or commercialize any drug candidates under such programs.
Our internal discovery
programs are at an early stage of development and will require significant investment and regulatory approvals prior to commercialization.
We currently have no drug candidates beyond pre-clinical trials under its internal discovery programs. Each of our drug candidates
will require additional clinical and pre-clinical development, management of clinical, pre-clinical and manufacturing activities,
obtaining regulatory approval, obtaining manufacturing supply, building of a commercial organization, substantial investment, and
significant marketing efforts before it generates any revenue from product sales. We are not permitted to market or promote any
of our drug candidates before our recept of regulatory approval from the FDA, NMPA, or comparable regulatory authorities, and we
may never receive such regulatory approval for any such drug candidates.
We cannot be certain
that clinical development of any drug candidates from our internal discovery programs will be successful or that we will obtain
regulatory approval or be able to successfully commercialize any of our drug candidates and generate revenue. Success in pre-clinical
testing does not ensure that clinical trials will be successful, and the clinical trial process may fail to demonstrate that our
drug candidates are safe and effective for their proposed uses. Any such failure could cause us to abandon further development
of any one or more of our drug candidates and may delay development of other drug candidates. Any delay in, or termination of,
our clinical trials will delay and possibly preclude the filing of any NDAs, with the FDA, NMPA, or comparable regulatory authorities
and, ultimately, our ability to commercialize its drug candidates and generate product revenue.
28
If we encounters difficulties enrolling
patients in our clinical trials, our clinical development activities could be delayed or otherwise adversely affected.
We commenced three
clinical trials involving abexinostat. Timely completion of those clinical trials in accordance with their protocols depends, among
other things, on our ability to enroll a sufficient number of patients who meet the trial criteria and remain in the trial until
the conclusion. We may experience difficulties enrolling and retaining appropriate patients in its clinical trials for a variety
of reasons, including but not limited to:
●
the
size and nature of the patient population;
●
patient
eligibility criteria defined in the clinical protocol;
●
the
size of study population required for statistical analysis of the trial's primary endpoints;
●
the
proximity of patients to trial sites;
●
the
design of the trial and changes to the design of the trial;
●
our
ability to recruit clinical trial investigators with the appropriate competencies and experience;
●
competing
clinical trials for similar therapies or other new therapeutics, which will reduce the number and types of patients available;
●
clinicians'
and patients' perceptions as to the potential advantages and side effects of the drug candidates being studied in relation
to other available therapies, including any new drug candidates or treatments that may be approved for the indications we are
investigating;
●
our
ability to obtain and maintain patient consents;
●
patients
enrolled in clinical trials that may not complete a clinical trial; and
●
the
availability of approved therapies that are similar to our drug candidates.
Even if we are able
to enroll a sufficient number of patients in its clinical trials, delays in patient enrollment may result in increased costs or
may affect the timing or outcome of the planned clinical trials, which could prevent completion of these trials and adversely affect
its ability to advance the development of our drug candidates.
We have limited experience in conducting
clinical trials and results of earlier studies and trials may not be reproduced in future clinical trials.
For our drug candidates,
clinical testing is expensive and can take many years to complete, while failure can occur at any time during the clinical trial
process. The results of studies in animals and early clinical trials of our drug candidates may not predict the results of later-stage
clinical trials. Drug candidates in later stages of clinical trials may fail to show the desired safety and efficacy traits despite
having progressed through studies in animals and initial clinical trials. In some instances, there can be significant variability
in safety and/or efficacy results between different trials of the same drug candidate due to numerous factors, including changes
in trial procedures set forth in protocols, differences in the size and type of the patient populations (including genetic differences),
patient adherence to the dosing regimen and the patient dropout rate. Results in later trials may also differ from earlier trials
due to a larger number of clinical trial sites and additional countries and languages involved in such trials. In addition, the
design of a clinical trial can determine whether its results will support approval of a drug candidate, and flaws in the design
of a clinical trial may not become apparent until the clinical trial is well advanced and significant expense has been incurred.
29
A number of companies
in the pharmaceutical and biotechnology industries have suffered significant setbacks in advanced clinical trials due to lack of
demonstrated efficacy or adverse safety profiles, notwithstanding promising results in earlier trials. Clinical trials of potential
products often reveal that it is not practical or feasible to continue development efforts. Furthermore, if the trials we conduct
fail to meet their primary statistical and clinical endpoints, they will not support the approval from the FDA, NMPA, EMA or other
comparable regulatory authorities for its drug candidates. If this occurs, we would need to replace the failed study with new trials,
which would require significant additional expense, cause substantial delays in commercialization and materially adversely affect
our business, financial condition, cash flows and results of operations.
Results from completed human clinical
trials may not be representative of the results that are obtained after approval, if obtained, and product launch.
Human clinical trials
are very complicated undertakings. If we obtain FDA approval under the Accelerated Approval Program, safety risks not identified
in our prior clinical trials may first appear after we obtain approval and commercializes our drug candidates. Any new post-marketing
AEs may significantly impact our ability to market our drug candidates and may require that we recall and discontinue commercialization
of our drug candidates. Furthermore, if any confirmatory post-marketing trial fails to confirm a drug candidate's clinical
profile or clinical benefits, the FDA may withdraw its approval. Any of these events would materially harm our business.
Our drug candidates may cause undesirable
side effects that could delay or prevent their regulatory approval, limit the commercial profile of an approved label, or result
in significant negative consequences following regulatory approval, if any.
Undesirable side effects
caused by our drug candidates could cause it to interrupt, delay, or halt clinical trials or could cause regulatory authorities
to interrupt, delay, or halt its clinical trials or could result in a more restrictive label or the delay or denial of regulatory
approval by the NMPA, FDA, or other regulatory authorities. In particular, as is the case with all oncology drugs, it is likely
that there may be side effects, such as fatigue, nausea, and low blood cell levels, associated with the use of certain of our oncology
drug candidates. The drug-related side effects could affect patient recruitment or the ability of enrolled patients to complete
the trial or result in potential product liability claims. Any of these occurrences may harm our business, financial condition,
and prospects significantly.
Clinical trials assess
a sample of the potential patient population. With a limited number of patients and duration of exposure, rare and severe side
effects of our drug candidates may only be uncovered with a significantly larger number of patients exposed to the drug candidate.
If our drug candidates receive regulatory approval and we, our partners, or others identify undesirable side effects caused by
such drug candidates (or any other similar drugs) after such approval, a number of potentially significant negative consequences
could result, including:
●
the
NMPA, FDA, or other comparable regulatory authorities may withdraw or limit their approval of such drug candidates;
●
the
NMPA, FDA, or other comparable regulatory authorities may require the addition of labeling statements, such as a "boxed"
warning or a contra-indication;
●
we
may be required to create a medication guide outlining the risks of such side effects for distribution to patients;
●
we
may be required to change the way such drug candidates are distributed or administered, conduct additional clinical trials, or
change the labeling of our drug candidates;
●
the
NMPA, FDA, or other comparable regulatory authorities may require a Risk Evaluation and Mitigation Strategy, or REMS (or analogous
requirement), plan to mitigate risks, which could include medication guides, physician communication plans, or elements to assure
safe use, such as restricted distribution methods, patient registries, and other risk minimization tools;
●
we
may be subject to regulatory investigations and government enforcement actions;
●
we
may decide to remove such drug candidates from the marketplace;
●
we
could be sued and held liable for injury caused to individuals exposed to or taking our drug candidates; and
●
our
reputation may suffer.
30
Any of these events
could prevent us from achieving or maintaining market acceptance of the affected drug candidates and could substantially increase
the costs of commercializing our drug candidates, if approved, and significantly impact our ability to successfully commercialize
our drug candidates and generate revenue.
Our clinical development program
may not uncover all possible AEs that patients may experience. The number of subjects exposed to our drug candidates and the average
exposure time in the clinical development program may be inadequate to detect AEs, or chance findings, that may only be detected
once our drug candidates are administered to more patients and for greater periods of time.
Clinical trials by
their nature utilize a sample of the potential patient population. With a limited number of subjects and limited duration of exposure,
however, we cannot be fully assured that any of our drug candidates has no serious or severe side effects, and any such side effects
may only be uncovered with a significantly larger number of patients exposed to the drug candidate. It is possible that ongoing
and future clinical trials, as well as reports received from commercial use, if any of our drug candidates are approved, may identify
safety concerns.
Although we have monitored
the subjects in our trials for certain safety concerns and it has not seen evidence of significant safety concerns in our clinical
trials to date, patients treated with any of our drug candidates may experience adverse reactions. If safety problems occur or
are identified after a product candidate reaches the market, the FDA may require that we amend the labeling or conduct recall.
The FDA could also request that we withdraw a product form the market, or seek to withdraw its approval of a product.
The incidence and prevalence for
target patient populations of our drug candidates are based on estimates and third-party sources. If the market opportunities for
our drug candidates are smaller than we estimate or if any approval that we obtain is based on a narrower definition of the patient
population, our revenue and ability to achieve profitability might be materially and adversely affected.
Periodically, we make
estimates regarding the incidence and prevalence of target patient populations for particular diseases based on various third-party
sources and internally generated analysis and use such estimates in making decisions regarding our drug development strategy, including
acquiring or in-licensing drug candidates and determining indications on which to focus in pre-clinical or clinical trials.
These estimates may
be inaccurate or based on imprecise data. The total addressable market opportunity for abexinostat and our other drug candidates
will ultimately depend upon, among other things, the diagnosis criteria included in the final label for each of our drug candidates,
acceptance by the medical community and patient access, drug pricing and reimbursement. The number of patients in the major markets
and elsewhere may turn out to be lower than expected, patients may not be otherwise amenable to treatment with our drugs, or new
patients may become increasingly difficult to identify or gain access to, all of which would adversely affect our business, results
of operations, and prospects.
We face substantial competition,
which may result in our competitors discovering, developing, or commercializing drugs before or more successfully than we do, or
develop therapies that are more advanced or effective than ours.
The development and
commercialization of new drugs are highly competitive. We face competition with respect to our current drug candidates, and will
face competition with respect to any drug candidates that we may seek to develop or commercialize in the future, from major pharmaceutical
companies, specialty pharmaceutical companies, and biotechnology companies worldwide. For example, there are a number of large
pharmaceutical and biotechnology companies that are currently marketing drugs or are pursuing the development of therapies in the
field of HDAC inhibition to treat cancer. Some of these competitive drugs and therapies are based on scientific approaches that
are the same as or similar to our drug candidates. Potential competitors also include academic institutions, government agencies,
and other public and private research organizations that conduct research, seek patent protection, and establish collaborative
arrangements for research, development, manufacturing, and commercialization.
31
Specifically, there
are a large number of companies developing or marketing treatments for cancer. If abexinostat receives marketing approval for renal
cell carcinoma ("
RCC
"), follicular lymphoma ("
FL
"), and/or diffuse large B-cell lymphoma
("
DLBCL
"), it may face competition from approved drugs marketed by Bayer AG, Bristol-Myers Squibb Company, Gilead
Sciences, Inc., Merck & Co., Inc., Novartis AG, and Pfizer Inc. If XP-102 receives marketing approval for patients with colorectal
cancer or melanoma, it will face competition from Merck & Co., Inc., Novartis AG, Roche AG, and potentially other companies.
Many of the companies
against which we are competing against or which we may compete against in the future have significantly greater financial resources
and expertise in research and development, manufacturing, pre-clinical testing, conducting clinical trials, obtaining regulatory
approvals, and marketing approved drugs than us. Mergers and acquisitions in the pharmaceutical, biotechnology, and diagnostic
industries may result in even more resources being concentrated among a smaller number of its competitors. Smaller or early stage
companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established
companies. These competitors also compete with us in recruiting and retaining qualified scientific and management personnel and
in establishing clinical trial sites and patient registration for clinical trials, as well as in acquiring technologies complementary
to, or necessary for, its programs.
Our commercial opportunities
could be reduced or eliminated if our competitors develop and commercialize drugs that are safer, more effective, with fewer or
less severe side effects, more convenient, or less expensive than drugs that we may develop. Our competitors also may obtain FDA,
NMPA or other regulatory approval for their drugs more rapidly than we may obtain approval for our drugs, which could result in
our competitors establishing a strong market position before we are able to enter the market. Additionally, technologies developed
by our competitors may render our potential drug candidates uneconomical or obsolete, and we may not be successful in marketing
our drug candidates against competitors.
Even if our drug candidates obtain
regulatory approval, they may never achieve market acceptance or commercial success, which will depend, in part, upon the degree
of acceptance among physicians, patients, patient advocacy groups, health care payors, and the medical community.
Even if we obtain FDA
or other regulatory approvals, our drug candidates may not achieve market acceptance among physicians, patients, patient advocacy
groups, health care payors, or the medical community, and may not be commercially successful. If approved, market acceptance of
our drug candidates depends on a number of factors, including:
●
the
efficacy of the product as demonstrated in clinical trials;
●
the
prevalence and severity of any side effects and overall safety profile of the product;
●
the
clinical indications for which the product is approved;
●
the
potential and perceived advantages of our drug candidates over current options or future alternative treatments;
●
the
strength of our marketing organization and distribution channels;
●
the
quality of our relationships with patient advocacy groups;
●
the
availability and sufficiency of third-party coverage and adequate reimbursement;
●
acceptance
by physicians, major operators of clinics and patients of the product as a safe and effective chronic daily treatment and willingness
of physicians to prescribe our drug candidates;
●
the
cost of treatment in relation to alternative treatments and willingness to pay for our drug candidates, if approved, on the part
of patients;
32
●
relative
convenience and ease of administration of our drug candidates; and
●
the
availability of the product and our ability to meet market demand, including providing a reliable supply for long-term daily treatment.
Any failure by our
drug candidates, if they obtain regulatory approval, to achieve market acceptance or commercial success would adversely affect
our results of operations.
If any of our drug candidates are
approved for marketing and commercialization and we are unable to develop sales, marketing and distribution capabilities on our
own or enter into agreements with third parties to perform these functions on acceptable terms, we will be unable to successfully
commercialize any such future therapeutics.
We currently has no
sales, marketing, or distribution capabilities or experience. In order to commercialize our drug candidates, if approved, we must
build marketing and sales capabilities or make arrangements with third parties to perform these services, and we may not be successful
in doing so. Building the requisite sales, marketing or distribution capabilities will be expensive and time-consuming and will
require significant attention of our leadership team to manage. Any failure or delay in the development of our sales, marketing
or distribution capabilities would adversely impact the commercialization of our products. The competition for talented individuals
experienced in selling and marketing pharmaceutical products is intense, and we cannot assure you that we can assemble an effective
team. Additionally, we may choose to collaborate, either globally or on a territory-by-territory basis, with third parties on the
commercialization of our drug candidates. If we are unable to enter into such arrangements on acceptable terms or at all, we may
not be able to successfully commercialize our drug candidates if and when we receive regulatory approval or any such commercialization
may experience delays or limitations.
We may be subject to
additional risks related to operating in foreign countries either oursevles or through a third-party, including:
●
differing
regulatory requirements in foreign countries;
●
unexpected changes in tariffs, trade barriers, price and exchange controls and other regulatory requirements;
●
economic weakness, including inflation or political instability in particular foreign economies and markets;
●
compliance with tax, employment, immigration and labor laws for employees living or traveling abroad;
●
foreign taxes, including withholding of payroll taxes;
●
foreign currency fluctuations, which could result in increased operating expenses and reduced revenues, and other obligations incident to doing business in another country;
●
difficulties staffing and managing foreign operations;
●
workforce uncertainty in countries where labor unrest is more common than in the United States;
●
potential liability under the Foreign Corrupt Practices Act of 1977 or comparable foreign regulations;
●
challenges enforcing our contractual and intellectual property rights, especially in those foreign countries that do not respect and protect intellectual property rights to the same extent as the United States;
●
production shortages resulting from any events affecting raw material supply or manufacturing capabilities abroad; and
●
business interruptions resulting from geopolitical actions, including war and terrorism.
33
If we fail to obtain and sustain
an adequate level of coverage and reimbursement for our drug candidates by third-party payors, sales would be adversely affected.
We expect patients
who have cancer to need chronic treatment but we anticipate that most patients will rely on coverage and reimbursement by a third-party
payor, such as Medicare, Medicaid or a private health insurer, to pay for such treatment. There will be no commercially viable
market for our drug candidates without coverage and reimbursement from third-party payors. Additionally, even if we obtain third-party
payor coverage and reimbursement for our drug candidates, if the level of coverage and reimbursement is below our expectations,
our revenue and gross margins will be adversely affected.
Obtaining coverage
and reimbursement approval for a product from a government or other third-party payor can be an expensive and time-consuming process
that could require us to provide supporting scientific, clinical and cost effectiveness data for the use of our products to the
payor. We cannot be certain if and when it will obtain formulary approval to allow us to sell our drug candidates, if approved,
into its target markets. Even if we obtain formulary approval, third-party payors, may carefully review and increasingly question
the coverage of, and challenge the prices charged for, drugs. Reimbursement rates from third-party payors vary depending on the
payor, the insurance plan and other factors. A current trend in the United States health care industry is toward cost containment.
Large public and private payors, managed care organizations, group purchasing organizations and similar organizations are exerting
increasing influence on decisions regarding the use of, and reimbursement levels for, particular treatments. Such third-party payors,
including Medicare, are questioning the coverage of, and challenging the prices charged for medical products and services, and
many third-party payors limit coverage of, or reimbursement for, newly approved health care products.
In addition, there
may be significant delays in obtaining such coverage and reimbursement for newly approved products, and coverage may be more limited
than the purposes for which the product is approved by the FDA or comparable foreign regulatory authorities. Moreover, eligibility
for coverage and reimbursement does not imply that a product will be paid for in all cases or at a rate that covers our costs,
including research, development, intellectual property, manufacture, sale and distribution expenses.
We cannot be sure that
reimbursement will be available for its drug candidates and, if coverage and reimbursement are available, what the level of reimbursement
will be. Our inability to promptly obtain coverage and adequate reimbursement rates from both government-funded and private payors
for any approved products that we develop could have a material adverse effect on our operating results, our ability to raise capital
needed to commercialize products and our overall financial condition.
Reimbursement may impact
the demand for, and the price of, our drug candidates, if approved. Assuming we obtain coverage for its drug candidates by a third-party
payor, the resulting reimbursement payment rates may not be adequate or may require co-payments that patients find unacceptably
high. Patients who are prescribed medications for the treatment of their conditions, and their prescribing physicians, generally
rely on third-party payors to reimburse all or part of the costs associated with those medications. Patients are unlikely to use
our drug candidates unless coverage is provided and reimbursement is adequate to cover all or a significant portion of the cost
of such drug candidates. Therefore, coverage and adequate reimbursement is critical to new product acceptance. Coverage decisions
may depend upon clinical and economic standards that disfavor new products when more established or lower cost therapeutic alternatives
are already available or subsequently become available.
Outside the United
States, international operations are generally subject to extensive governmental price controls and market regulations, and we
believe the increasing emphasis on cost-containment initiatives in Europe, Canada, China and other countries will put pressure
on the pricing and usage of its drug candidates. In many countries, the prices of medical products are subject to varying price
control mechanisms as part of national health systems. Other countries allow companies to fix their own prices for medicinal products,
but monitor and control company profits. Additional foreign price controls or other changes in pricing regulation could restrict
the amount that we are able to charge for our drug candidates, if approved. Accordingly, in markets outside the United States,
the reimbursement for our drug candidates compared with the United States and may be insufficient to generate commercially reasonable
revenue and profits.
34
Our future success depends on our
ability to retain key executives and to attract, retain, and motivate qualified personnel.
We are highly dependent
on the research, clinical and business development expertise of Yinglin Mark Xu, its Chairman, Chief Executive Officer, and President;
Wentao Jason Wu, its Chief Operating Officer; Yong Cui, our Vice President of Chemistry, Manufacturing, and Controls; as well as
the other principal members of its management, scientific, and clinical team. We have not entered into employment letter agreements
with all of its executive officers. Under the employment letter agreements we have entered with its executive officers, any of
them may terminate his or her employment with it at any time. We do not maintain key person insurance for any of its executives
or other employees. In addition, we rely on consultants and advisors, including scientific and clinical advisors, to assist it
in formulating its research, development, and commercialization strategy. Our consultants and advisors may have commitments under
consulting or advisory contracts with other entities that may limit their availability to us. If we are unable to continue to attract
and retain high-quality personnel, its ability to pursue its growth strategy will be limited. While we are working on rectifying
its failure to put proper employment arrangements in place in the past for certain senior management positions, it is uncertain
that such failure could be retroactively rectified completely.
Recruiting and retaining
qualified management, scientific, clinical, manufacturing, and sales and marketing personnel will also be critical to our success.
The loss of the services of its executive officers or other key employees could impede the achievement of our research, development,
and commercialization objectives and seriously harm its ability to successfully implement its business strategy. Furthermore, replacing
executive officers and key employees may be difficult and may take an extended period of time because of the limited number of
individuals in our industry with the breadth of skills and experience required to successfully develop, gain regulatory approval
of, and commercialize drugs. Competition to hire from this limited pool is intense, and we may be unable to hire, train, retain,
or motivate these key personnel on acceptable terms given the competition among numerous pharmaceutical and biotechnology companies
for similar personnel. We also experience competition for the hiring of scientific and clinical personnel from universities and
research institutions. In addition, even though Dr. James Jiayuan Tong, the current Bison Chief Executive Officer, remains as a
Chief Strategy Officer at the combined entity, our management will be required to devote significant time to new compliance initiatives
from its status as a U.S. public company, which may require it to recruit more management personnel. Failure to succeed in clinical
trials may make it more challenging to recruit and retain qualified scientific personnel.
We will need to develop and expand
our business, and we may encounter difficulties in managing this development and expansion, which could disrupt its operations.
As of July 10, 2019,
there were 24 full-time and 10 part-time employees and consultants in our total staff headcount of 34. To manage its anticipated
development and expansion, we must continue to implement and improve our managerial, operational, and financial systems, expand
our facilities and continue to recruit and train additional qualified personnel. Also, our management may need to divert a disproportionate
amount of their attention away from its day-to-day activities and devote a substantial amount of time to managing these development
activities. Due to our limited resources, we may not be able to effectively manage the expansion of our operations or recruit
and train additional qualified personnel. If our management is unable to effectively manage its expected development and expansion,
our expenses may increase more than expected, our ability to generate or increase our revenue could be reduced and we may not
be able to implement our business strategy. Our future financial performance and our ability to commercialize our drug candidates,
if approved, and compete effectively will depend, in part, on our ability to effectively manage the future development and expansion
of the Company.
Product liability claims or lawsuits
could cause us to incur substantial liabilities.
We will face an inherent
risk of product liability exposure related to the testing of our drug candidates in human clinical trials and will face an even
greater risk if we commercially sell any drug candidates that we may develop. If we cannot successfully defend oursevles against
claims that our drug candidates caused injuries, we could incur substantial liabilities.
Although we
maintain product liability insurance coverage, it may not be adequate to cover all liabilities that we may incur. Insurance
coverage is increasingly expensive. We may not be able to maintain insurance coverage at a reasonable cost or in an amount
adequate to satisfy any liability that may arise.
35
Our Current Charter provides for
an exclusive forum for any derivative action or proceeding brought on our behalf, which may limit a shareholder's ability
to bring a claim in a judicial forum that it finds favorable for such disputes and may discourage lawsuits with respect to such
claims.
Our Current Charter
specifies that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by law,
the Court of Chancery of the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding
brought on behalf of us; (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers
or other employees or agents to us or our stockholders; (iii) any action asserting a claim against us arising pursuant to any provision
of the DGCL or our amended and restated certificate of incorporation or amended and restated bylaws; or (iv) any action asserting
a claim against us governed by the internal affairs doctrine; provided that, the exclusive forum provision will not apply to suits
brought to enforce any liability or duty created by the Securities Act, the Exchange Act or rules and regulations thereunder. We
believe these provisions may benefit us by providing increased consistency in the application of Delaware law and federal securities
laws by chancellors and judges, as applicable, particularly experienced in resolving corporate disputes, efficient administration
of cases on a more expedited schedule relative to other forums and protection against the burdens of multi-forum litigation. However,
these provisions may have the effect of discouraging lawsuits against our directors and officers. The enforceability of similar
choice of forum provisions in other companies' certificates of incorporation has been challenged in legal proceedings, and
it is possible that, in connection with any applicable action brought against us, a court could find the choice of forum provisions
contained in our restated certificate of incorporation to be inapplicable or unenforceable in such action.
Our internal IT systems, or those
of our third-party CROs or other contractors or consultants, may fail or suffer security breaches, which could result in a material
disruption of its drug candidates' development programs.
Despite the implementation
of security measures, our internal IT systems and those of its third-party CROs and other contractors and consultants are vulnerable
to damage from computer viruses, unauthorized access, natural disasters, terrorism, war, and telecommunication and electrical failures.
While we have not experienced any such system failure, accident, or security breach to date, if such an event were to occur and
cause interruptions in its operations, it could result in a material disruption of our programs. For example, the loss of clinical
trial data for its drug candidates could result in delays in our regulatory approval efforts and significantly increase our costs
to recover or reproduce the data. To the extent that any disruption or security breach results in a loss of or damage to its data
or applications or other data or applications relating to its technology or drug candidates, or inappropriate disclosure of confidential
or proprietary information, including health information collected through clinical trials, we could incur liabilities and the
further development of its drug candidates could be delayed.
Risks Related to Government Regulation
The regulatory approval process is
highly uncertain and we may not obtain approval under the Accelerated Approval Program or the conventional pathway, as required
for the commercialization.
The research, testing,
manufacturing, labeling, approval, selling, import, export, pricing and reimbursement, marketing and distribution of drug products
are subject to extensive regulation by the FDA and other regulatory agencies in the United States and other countries, which regulations
differ from country to country. Neither we nor any future collaboration partner is permitted to market a drug product in the United
States until we receive approval of an NDA from the FDA. We have not submitted an application or obtained marketing approval for
any drug candidate anywhere in the world. Obtaining regulatory approval of an NDA, even under the Accelerated Approval Program,
can be a lengthy, expensive and uncertain process. In addition, failure to comply with FDA and other applicable U.S. and foreign
regulatory requirements may subject us to administrative or judicially imposed sanctions or other actions, including:
●
warning
letters;
●
civil
and criminal penalties;
●
injunctions;
36
●
withdrawal
of regulatory approval of products;
●
product
seizure or detention;
●
product
recalls;
●
total
or partial suspension of production; and
●
refusal
to approve pending NDAs or supplements to approved NDAs.
Prior to obtaining
approval to commercialize a drug candidate in the United States or abroad, We or our collaborators must demonstrate with substantial
evidence from well-controlled clinical trials, and to the satisfaction of the FDA or other foreign regulatory agencies, that such
drug candidates are safe and effective for their intended uses. The number of nonclinical and clinical studies and trials that
will be required for FDA approval varies depending on the drug candidate, the disease or condition that the drug candidate is designed
to address, and the regulations applicable to any particular drug candidate. We may seek approval for one or more drug candidates
under the FDA's Accelerated Approval Program, which would allow it to demonstrate an effect on a surrogate endpoint that
is reasonably likely to predict clinical benefit, but it will be subject to rigorous post-marketing requirements, including the
completion of one or more confirmatory post-marketing trials to verify the clinical benefit of the product candidate. If unable
to obtain approval under the Accelerated Approval Program, we will have to pursue a conventional approval pathway. In addition,
in such case, the FDA could determine that any pivotal Phase 3 clinical trials we have conducted are not sufficient to support
approval under the conventional pathway. Results from nonclinical and clinical trials and studies can be interpreted in different
ways. Even if we believe the nonclinical or clinical data for our drug candidate is promising, such data may not be sufficient
to support approval by the FDA and other regulatory agencies. Administering drug candidates to humans may produce undesirable side
effects, which could interrupt, delay or halt clinical trials and result in the FDA or other regulatory agencies denying approval
of a drug candidate for any or all targeted indications.
Both accelerated and
conventional regulatory approval pathways of an NDA or NDA supplement are not guaranteed, and the approval process is expensive
and may take several years. The FDA also has substantial discretion in the approval process and we may encounter matters with the
FDA that require us to expend additional time and resources and delay or prevent the approval of our drug candidates. For example,
the FDA may require us to conduct additional studies or trials either prior to approval or post-marketing, such as additional drug-drug
interaction studies or safety or efficacy studies or trials, or it may object to elements of our clinical development program such
as the number of subjects enrolled in its current clinical trials from the United States. Despite the time and expense exerted,
failure can occur at any stage. The FDA can delay, limit or deny approval of a drug candidate for many reasons, including, but
not limited to, the following:
●
a
drug candidate may not be deemed safe or effective;
●
the
FDA might not approve our trial design and analysis plan;
●
the
FDA may not find the data from nonclinical and clinical studies and trials sufficient;
●
clinical
inspection(s) by the FDA or other regulatory authorities may result in unacceptable findings that could negatively impact approval;
●
the
FDA might not accept or deem acceptable a third-party manufacturers' processes or facilities; or
●
the
FDA may change its approval policies or adopt new regulations.
If we fail to demonstrate
safety and efficacy in clinical trials or do not gain regulatory approval, our business and results of operations will be materially
and adversely harmed. Additionally, if the FDA requires that we conduct additional clinical trials, places limitations on product
use in our FDA-approved labeling, delays approval to market or limits the use of any drug candidate, our business and results of
operations may be harmed.
37
We are conducting and may in the
future conduct clinical trials for our drug candidates outside the United States and the FDA may not accept data from such trials.
Although the FDA may
accept data from clinical trials conducted outside the United States in support of safety and efficacy claims, this is subject
to certain conditions. For example, such foreign clinical trials should be conducted in accordance with GCPs, including review
and approval by an independent ethics committee and obtaining the informed consent from subjects of the clinical trials. The foreign
clinical data should also be applicable to the U.S. population and U.S. medical practice. Other factors that may affect the acceptance
of foreign clinical data include differences in clinical conditions, study populations or regulatory requirements between the United
States and the foreign country. To the extent that we have conducted, are conducting, and will conduct trials with majority enrollment
outside the United States, the FDA may not accept our foreign clinical data, and in such event, we may be required to re-conduct
the relevant clinical trials within the United States, which would be costly and time-consuming, and which could have a material
and adverse effect on its ability to carry out its business plans.
Even if we receive regulatory approval
for any of our drug candidates, we will be subject to ongoing regulatory obligations and continued regulatory review, which may
result in significant additional expense. Additionally, our drug candidates, if approved, could be subject to labeling and other
restrictions and market withdrawal, and we may be subject to penalties if we fail to comply with regulatory requirements or experiences
unanticipated problems.
Even if a drug is approved
by the FDA and/or foreign regulatory agencies, regulatory agencies may still impose significant restrictions on a product's
indicated uses or marketing or impose various ongoing requirements. Furthermore, any new legislation addressing drug safety issues
could result in delays or increased costs to assure compliance. In addition, if a drug receives approval under the FDA's
Accelerated Approval Program, it will be subject to special post-marketing requirements, including the completion of confirmatory
post-marketing clinical trials to verify the clinical benefit of the product, and submission to the FDA of all promotional materials
prior to their dissemination. The FDA could seek to withdraw the approval for multiple reasons, including if we fail to conduct
any required confirmatory post-marketing trial with due diligence, a confirmatory post-marketing trial does not confirm the predicted
clinical benefit, other evidence shows that the product is not safe or effective under the conditions of use, or we disseminate
promotional materials that are found by the FDA to be false and misleading.
If any of our drug
candidates receives approval under the Accelerated Approval Program, it will be subject to ongoing regulatory requirements for
conducting post-marketing clinical studies and trials, labeling, packaging, storage, advertising, promotion, sampling, record-keeping
and submission of safety and other post-market information, including both federal and state requirements in the United States.
In addition, manufacturers and manufacturers' facilities are required to comply with extensive FDA requirements, including
ensuring that quality control and manufacturing procedures conform to the current Good Manufacturing Practices, or "
cGMP
".
As such, we and our contract manufacturers are subject to continual review and periodic inspections to assess compliance with cGMP.
Accordingly, we must conduct the confirmatory post-marketing trial in a diligent manner and we and others with whom we work must
continue to expend time, money, and effort in all areas of regulatory compliance, including manufacturing, production, and quality
control. We will also be required to report certain adverse reactions and production problems, if any, to the FDA, and to comply
with requirements concerning advertising and promotion. Promotional communications with respect to prescription drugs are subject
to a variety of legal and regulatory restrictions and must be consistent with the information in the product's approved label.
As such, we may not promote any product, if approved, for indications or uses for which it does not have FDA approval.
If
any of our product candidates receives approval under the Accelerated Approval Program but we fail to conduct the required confirmatory
post-marketing trials with due diligence or such post-marketing trials fail to confirm the clinical profile or risks and benefits,
the FDA may withdraw its approval. If a regulatory agency discovers previously unknown problems with a product, if approved, such
as AEs of unanticipated severity or frequency, or problems with the facility where the product is manufactured, or disagrees with
the promotion, marketing, or labeling of a product, the regulatory agency may impose restrictions on the product or us, including
requiring withdrawal of the product from the market. If we fail to comply with applicable regulatory requirements, a regulatory
agency or enforcement authority may:
●
issue
warning letters;
●
impose
civil or criminal penalties;
38
●
suspend
regulatory approval;
●
suspend
any of our ongoing clinical trials;
●
refuse
to approve pending applications or supplements to approved applications submitted by us;
●
impose
restrictions on our operations, including closing our contract manufacturers' facilities; or
●
seize
or detain products or require a product recall.
Any government investigation
of alleged violations of law could require us to expend significant time and resources in response and could generate negative
publicity. Any failure to comply with ongoing regulatory requirements may significantly and adversely affect our ability to commercialize
and generate revenues. If regulatory sanctions are applied or if regulatory approval is withdrawn, the value of our company and
our operating results will be adversely affected. Additionally, if we are unable to generate revenues from the sale of any of product
candidates, if approved, our potential for achieving profitability will be diminished and the capital necessary to fund our operations
will be increased.
The regulatory requirements
and policies may change, and additional government regulations may be enacted for which we may also be required to comply. We cannot
predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative action,
either in the United States or in other countries. If we or any future collaboration partner are not able to maintain regulatory
compliance, we or such collaboration partner, as applicable, may face government enforcement action and our business will suffer.
We may be exposed to liabilities
under the U.S. Foreign Corrupt Practices Act, or FCPA, and Chinese anti-corruption laws, and any determination that we have violated
these laws could have a material adverse effect on our business or our reputation.
We are subject to the
FCPA. The FCPA generally prohibits us from making improper payments to non-U.S. officials for the purpose of obtaining or retaining
business. We are also subject to the anti-bribery laws of other jurisdictions, particularly China. As our business expands, the
applicability of the FCPA and other anti-bribery laws to our operations will increase. Our procedures and controls to monitor anti-bribery
compliance may fail to protect us from reckless or criminal acts committed by our employees or agents. If we, due to either our
own deliberate or inadvertent acts or those of others, fails to comply with applicable anti-bribery laws, our reputation could
be harmed and we could incur criminal or civil penalties, other sanctions and/or significant expenses, which could have a material
adverse effect on our business, including our financial condition, results of operations, cash flows and prospects.
Our business may be affected by litigation
and government investigations.
We may from time to
time receive inquiries and subpoenas and other types of information requests from government authorities and others and it may
become subject to claims and other actions related to our business activities. While the ultimate outcome of investigations, inquiries,
information requests and legal proceedings is difficult to predict, defense of litigation claims can be expensive, time-consuming
and distracting, and adverse resolutions or settlements of those matters may result in, among other things, modification of our
business practices, costs and significant payments, any of which could have a material adverse effect on our business, financial
condition, results of operations and prospects.
39
If we or our current or future collaborators,
manufacturers or service providers fail to comply with healthcare laws and regulations, we or they could be subject to enforcement
actions, which could affect our ability to develop, market and sell our our products and may harm our reputation.
Although we do not
currently have any products on the market, once our drug candidates or clinical trials are covered by federal health care programs,
we will be subject to additional healthcare statutory and regulatory requirements and enforcement by the federal, state and foreign
governments of the jurisdictions in which we conduct our business. Healthcare providers, physicians and third-party payors play
a primary role in the recommendation and prescription of any therapeutic candidates for which we obtain marketing approval. Our
arrangements with third-party payors and customers may expose us to broadly applicable fraud and abuse and other healthcare laws
and regulations that may constrain the business or financial arrangements and relationships through which we would market, sell
or distribute our therapeutic candidates for which we obtain marketing approval. Restrictions under applicable federal and state
healthcare laws and regulations, include, but are not limited to, the following:
●
the
U.S. federal Anti-Kickback Statute, which prohibits, among other things, persons from soliciting, receiving, offering or providing
remuneration, directly or indirectly, to induce either the referral of an individual for a healthcare item or service, or the
purchasing or ordering of an item or service, for which payment may be made, in whole or in part, under a federal healthcare program,
such as Medicare or Medicaid;
●
the
U.S. federal False Claims Act, which imposes criminal and civil penalties, including through civil whistleblower or qui tam
actions, against individuals or entities for knowingly presenting, or causing to be presented, to the federal government, claims
for payment that are false or fraudulent or making a false statement to avoid, decrease or conceal an obligation to pay money
to the federal government. In addition, the government may assert that a claim including items and services resulting from a violation
of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the False Claims Act;
●
HIPAA
includes a fraud and abuse provision referred to as the HIPAA All-Payor Fraud Law, which imposes criminal and civil liability
for executing a scheme to defraud any healthcare benefit program (
i.e.
, not just federal healthcare programs), or knowingly
and willfully falsifying, concealing or covering up a material fact or making any materially false statement in connection with
the delivery of or payment for healthcare benefits, items or services; similar to the federal Anti-Kickback Statute, a person
or entity does not need to have actual knowledge of the statute or specific intent to violate it in order to have committed a
violation;
●
HIPAA,
as amended by HITECH, and its implementing regulations, which impose obligations on certain covered entity healthcare providers,
health plans, and healthcare clearinghouses as well as their business associates that perform certain services involving the use
or disclosure of individually identifiable health information, including mandatory contractual terms, with respect to safeguarding
the privacy, security, and transmission of individually identifiable health information, and require notification to affected
individuals and regulatory authorities of certain breaches of security of individually identifiable health information;
●
the
federal Physician Payment Sunshine Act and the implementing regulations, also referred to as "Open Payments," issued
under the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act, collectively,
the ACA, which require that manufacturers of pharmaceutical and biological drugs reimbursable under Medicare, Medicaid, or the
Children's Health Insurance Program report to the Department of Health and Human Services all consulting fees, travel reimbursements,
research grants, and other payments, transfers of value or gifts made to U.S.-licensed physicians and U.S. teaching hospitals
with limited exceptions; and
●
analogous
state laws and regulations, such as, state anti-kickback and false claims laws potentially applicable to sales or marketing arrangements
and claims involving healthcare items or services reimbursed by non-governmental third-party payors, including private insurers;
and some state laws require pharmaceutical companies to comply with the pharmaceutical industry's voluntary compliance guidelines
and the relevant compliance guidance promulgated by the federal government in addition to requiring drug manufacturers to report
information related to payments to physicians and other healthcare providers or marketing expenditures, and state laws governing
the privacy and security of health information in certain circumstances, many of which differ from each other in significant ways
and often are not preempted by HIPAA, thus complicating compliance efforts; and state transparency laws that require the reporting
of certain pricing information; among other state laws.
40
Ensuring that our future
business arrangements with third-parties comply with applicable healthcare laws and regulations could involve substantial costs.
If our operations are found to be in violation of any such requirements, we may be subject to penalties, including civil or criminal
penalties, monetary damages, the curtailment or restructuring of its operations, or exclusion from participation in government
contracting, healthcare reimbursement or other government programs, including Medicare and Medicaid, any of which could adversely
affect its financial results. Although an effective compliance program can mitigate the risk of investigation and prosecution for
violations of these laws, these risks cannot be entirely eliminated. Any action against us for an alleged or suspected violation
could cause it to incur significant legal expenses and could divert our management's attention from the operation of its
business, even if its defense is successful. In addition, achieving and sustaining compliance with applicable laws and regulations
may be costly to us in terms of money, time and resources.
If we or our current
or future collaborators, manufacturers or service providers fail to comply with applicable federal, state or foreign laws or regulations,
we could be subject to enforcement actions, which could affect its ability to develop, market and sell its therapeutics successfully
and could harm our reputation and lead to reduced acceptance of its therapeutics by the market. These enforcement actions include,
among others:
●
adverse
regulatory inspection findings;
●
warning
or untitled letters;
●
voluntary
product recalls or public notification or medical product safety alerts to healthcare professionals;
●
restrictions
on, or prohibitions against, marketing our therapeutics;
●
restrictions
on, or prohibitions against, importation or exportation of our therapeutics;
●
suspension
of review or refusal to approve pending applications or supplements to approved applications;
●
exclusion
from participation in government-funded healthcare programs;
●
exclusion
from eligibility for the award of government contracts for our therapeutics;
●
FDA
debarment;
●
suspension
or withdrawal of therapeutic approvals;
●
seizures
or administrative detention of therapeutics;
●
injunctions;
and
●
civil
and criminal penalties and fines.
The healthcare industry is heavily
regulated in the U.S. at the federal, state, and local levels, and our failure to comply with applicable requirements may subject
us to penalties and negatively affect our financial condition.
As a healthcare company,
our operations, clinical trial activities and interactions with healthcare providers may be subject to extensive regulation in
the U.S., particularly if the Company receives FDA approval for any of its therapeutics in the future. For example, if we receive
FDA approval for a therapeutic for which reimbursement is available under a federal healthcare program (e.g., Medicare, Medicaid),
we would be subject to a variety of federal laws and regulations, including those that prohibit the filing of false or improper
claims for payment by federal healthcare programs (e.g., the False Claims Act), prohibit unlawful inducements for the referral
of business reimbursable by federal healthcare programs (e.g., the federal Anti-Kickback Statute), and require disclosure of certain
payments or other transfers of value made to U.S.-licensed physicians and teaching hospitals, or Open Payments. We are not able
to predict how third parties will interpret these laws and apply applicable governmental guidance and may challenge our practices
and activities under one or more of these laws. If our past or present operations are found to be in violation of any of these
laws, we could be subject to civil and criminal penalties, which could hurt our business, our operations and financial condition.
41
Similarly,
HIPAA prohibits, among other offenses, knowingly and willfully executing a scheme to defraud any health care benefit program, including
private payors, or falsifying, concealing or covering up a material fact or making any materially false, fictitious or fraudulent
statement in connection with the delivery of or payment for items or services under a health care benefit program. To the extent
that it acts as a business associate to a healthcare provider engaging in electronic transactions, we may also be subject to the
privacy and security provisions of HIPAA, as amended by HITECH, which restricts the use and disclosure of patient-identifiable
health information, mandates the adoption of standards relating to the privacy and security of patient-identifiable health information,
and requires the reporting of certain security breaches to healthcare provider customers with respect to such information. Additionally,
many states have enacted similar laws that may impose more stringent requirements on entities like us. Failure to comply with applicable
laws and regulations could result in substantial penalties and adversely affect our financial condition and results of operations.
If approved, our product candidates
may cause or contribute to adverse medical events that it is required to report to regulatory agencies and if we fail to do so
it could be subject to sanctions that would materially harm its business.
If we are successful
in commercializing any product candidate, FDA and most foreign regulatory agency regulations require that we report certain information
about adverse medical events if the product may have caused or contributed to those AEs. The timing of our obligation to report
would be triggered by the date we become aware of the adverse event as well as the nature of the event. We may fail to report AEs
within the prescribed timeframe. We may also fail to appreciate a reportable adverse event, especially if it is not reported to
us as an adverse event or if it is an adverse event that is unexpected or removed in time from the use of a product, if approved.
If we fail to comply with our reporting obligations, the FDA or a foreign regulatory agency could take action, including criminal
prosecution, the imposition of civil monetary penalties, and seizure of our products, if approved.
Our ability to obtain services, reimbursement
or funding from the federal government may be impacted by possible reductions in federal spending.
U.S. federal government
agencies currently face potentially significant spending reductions. The Budget Control Act of 2011, or the "
BCA
,"
established a Joint Select Committee on Deficit Reduction, which was tasked with achieving a reduction in the federal debt level
of at least $1.2 trillion. That committee did not draft a proposal by the BCA's deadline. As a result, automatic cuts, referred
to as sequestration, in various federal programs were scheduled to take place, beginning in January 2013, although the American
Taxpayer Relief Act of 2012 delayed the BCA's automatic cuts until March 1, 2013. While the Medicare program's
eligibility and scope of benefits are generally exempt from these cuts, Medicare payments to providers and Part D health plans
are not exempt. The BCA did, however, provide that the Medicare cuts to providers and Part D health plans would not exceed two
percent. President Obama issued the sequestration order on March 1, 2013, and cuts went into effect on April 1, 2013.
Additionally, the Bipartisan Budget Act of 2018 extended sequestration for Medicare through fiscal year 2027.
The U.S. federal
budget remains in flux, which could, among other things, cut Medicare payments to providers. Although the BBA passed in February
2018 enacts a two-year federal spending agreement and raises the federal spending cap on non-defense spending for fiscal years
2018 and 2019, the Medicare program is frequently identified as a target for spending cuts. The full impact on our business of
any future cuts in Medicare or other programs is uncertain. In addition, we cannot predict any impact President Trump's administration
and the U.S. Congress may have on the federal budget. If federal spending is reduced, anticipated budgetary shortfalls may
also impact the ability of relevant agencies, such as the FDA or the National Institutes of Health, to continue to function at
current levels. Amounts allocated to federal grants and contracts may be reduced or eliminated. These reductions may also impact
the ability of relevant agencies to timely review and approve therapeutic research and development, manufacturing, and marketing
activities, which may delay our ability to develop, market, and sell any drugs it may develop.
42
Our business may be affected by litigation
and government investigations.
We may from time to
time receive inquiries and subpoenas and other types of information requests from government authorities and others and it may
become subject to claims and other actions related to its business activities. While the ultimate outcome of investigations, inquiries,
information requests and legal proceedings is difficult to predict, defense of litigation claims can be expensive, time-consuming
and distracting, and adverse resolutions or settlements of those matters may result in, among other things, modification of our
business practices, costs and significant payments, any of which could have a material adverse effect on its business, financial
condition, results of operations and prospects.
Legislative or regulatory FDA reforms
in the United States may make it more difficult and costly for us to obtain regulatory clearance or approval and to produce, market
and distribute its products after clearance or approval is obtained.
From time to time,
legislation is drafted and introduced in Congress that could significantly change the statutory provisions governing the regulatory
clearance or approval, manufacture, and marketing of regulated products or the reimbursement thereof. In addition, FDA regulations
and guidance are often revised or reinterpreted by the FDA in ways that may significantly affect our business and our drug candidates.
Any new regulations or revisions or reinterpretations of existing regulations may impose additional costs or lengthen review times
of our drug candidates. We cannot determine what effect changes in regulations, statutes, legal interpretation or policies, when
and if promulgated, enacted or adopted may have on our business in the future. Such changes could, among other things, require:
●
additional
clinical trials to be conducted prior to obtaining approval;
●
changes
to manufacturing methods;
●
recall,
replacement, or discontinuance of our drug candidates, if approved; and
●
additional
record keeping.
Each of these would
likely entail substantial time and cost and could materially harm our business and our financial results. In addition, delays in
receipt of or failure to receive regulatory clearances or approvals would harm its business, financial condition and results of
operations.
Further, the United
States and some foreign jurisdictions have enacted or are considering a number of legislative and regulatory proposals to change
the healthcare system in ways that could affect our ability to sell our products, if approved, and profitably. Among policy makers
and payors in the United States and elsewhere, there is significant interest in promoting changes in healthcare systems with the
stated goals of containing healthcare costs, improving quality and expanding access.
In the United States,
the pharmaceutical industry has been a particular focus of these efforts and has been significantly affected by major legislative
initiatives, including the Patient Protection and Affordable Care Act (the "
PPACA
"), which contains provisions
that may potentially reduce the profitability of products, including, for example, increased rebates for products sold to Medicaid
programs, extension of Medicaid rebates to Medicaid managed care plans, mandatory discounts for certain Medicare Part D beneficiaries
and annual fees based on pharmaceutical companies' share of sales to federal health care programs. There have been judicial
and Congressional challenges to the PPACA, as well as efforts by the Trump administration to repeal or replace certain aspects
of the PPACA. Since January 2017, President Trump has signed two Executive Orders and other directives designed to delay the implementation
of certain provisions of the PPACA or otherwise circumvent some of the requirements for health insurance mandated by the PPACA.
While Congress has not passed comprehensive repeal legislation, two bills affecting the implementation of certain taxes under the
PPACA have been signed into law, including the repeal, effective January 1, 2019, of the tax-based shared responsibility payment
imposed by the PPACA on certain individuals who fail to maintain qualifying health coverage for all or part of a year that is commonly
referred to as the "individual mandate." Additionally, on January 22, 2018, President Trump signed a continuing resolution
on appropriations for fiscal year 2018 that delayed the implementation of certain fees mandated by the PPACA, including the so-called
"Cadillac" tax on certain high cost employer-sponsored insurance plans, the annual fee imposed on certain health insurance
providers based on market share, and the medical device excise tax on non-exempt medical devices. Moreover, the Bipartisan Budget
Act of 2018, among other things, amends the PPACA, effective January 1, 2019, to increase from 50% to 70% the point-of-sale discount
to eligible beneficiaries during their coverage gap period that is owed by pharmaceutical manufacturers who participate in Medicare
Part D and to close the coverage gap in most Medicare drug plans, commonly referred to as the "donut hole." In the
future, there may be additional challenges and amendments to the PPACA. It remains to be seen precisely what new legislation will
provide, when it will be enacted, and what impact it will have on the availability of healthcare and containing or lowering the
cost of healthcare, including the cost of pharmaceutical products.
43
Additionally, there
has been increasing legislative and enforcement interest in the United States with respect to specialty drug pricing practices.
Specifically, there have been several recent U.S. Congressional inquiries and proposed and enacted federal and state legislation
designed to, among other things, bring more transparency to drug pricing, review the relationship between pricing and manufacturer
patient programs, and reform government program reimbursement methodologies for drugs. At the federal level, the Trump administration's
budget proposal for fiscal year 2019 contains additional drug price control measures that could be enacted during the 2019 budget
process or in other future legislation, including, for example, measures to end Medicare Part B coverage of medications and to
shift those medication costs to Medicare Part D, to allow some states to negotiate drug prices under Medicaid and to eliminate
cost sharing for generic drugs for low-income patients. While any proposed measures will require authorization through additional
legislation to become effective, Congress and the Trump administration have each indicated that it will continue to seek new legislative
and/or administrative measures to control drug costs. At the state level, legislatures are increasingly passing legislation and
implementing regulations designed to control pharmaceutical and biological product pricing, including price or patient reimbursement
constraints, discounts, restrictions on certain product access and marketing cost disclosure and transparency measures, and, in
some cases, designed to encourage importation from other countries and bulk purchasing. The implementation of cost containment
measures or other healthcare reforms may prevent us from being able to generate revenue, attain profitability, or commercialize
its drug candidates for which it may receive regulatory approval in the future.
Any therapeutics we develos may become
subject to unfavorable pricing regulations, third party coverage and reimbursement practices or healthcare reform initiatives,
thereby harming our business.
The regulations that
govern marketing approvals, pricing and reimbursement for new therapeutics vary widely from country to country. Some countries
require approval of the sale price of a therapeutic before it can be marketed. In many countries, the pricing review period begins
after marketing or therapeutic licensing approval is granted. In some foreign markets, prescription pharmaceutical pricing remains
subject to continuing governmental control even after initial approval is granted. Although we intend to monitor these regulations,
our programs are currently in the early stages of development and we will not be able to assess the impact of price regulations
for a number of years. As a result, we might obtain regulatory approval for a therapeutic in a particular country, but then be
subject to price regulations that delay its commercial launch of the therapeutic and negatively impact the revenues we are able
to generate from the sale of the therapeutic in that country.
Our ability to commercialize
any therapeutics successfully also will depend in part on the extent to which coverage and reimbursement for these therapeutics
and related treatments will be available from government health administration authorities, private health insurers and other organizations.
However, there may be significant delays in obtaining coverage for newly-approved therapeutics. Moreover, eligibility for coverage
does not necessarily signify that a therapeutic will be reimbursed in all cases or at a rate that covers our costs, including research,
development, manufacture, sale and distribution costs. Also, interim payments for new therapeutics, if applicable, may be insufficient
to cover our costs and may not be made permanent. Thus, even if we succeed in bringing one or more therapeutics to the market,
these therapeutics may not be considered cost-effective, and the amount reimbursed for any therapeutics may be insufficient to
allow us to sell its therapeutics on a competitive basis. Because its programs are in the early stages of development, we are unable
at this time to determine their cost effectiveness or the likely level or method of reimbursement. Increasingly, the third party
payors who reimburse patients or healthcare providers, such as government and private insurance plans, are seeking greater upfront
discounts, additional rebates and other concessions to reduce the prices for therapeutics. If the price we are able to charge for
any therapeutics it develops, or the reimbursement provided for such therapeutics, is inadequate in light of its development and
other costs, its return on investment could be adversely affected.
44
We believe that the
efforts of governments and third party payors to contain or reduce the cost of healthcare, and specifically, therapeutics, and
legislative and regulatory proposals to broaden the availability of healthcare will continue to affect the business and financial
condition of pharmaceutical and biotechnology companies. A number of legislative and regulatory changes in the healthcare system
in the U.S. and other major healthcare markets have been proposed. These developments could, directly or indirectly, affect our
ability to sell its therapeutics, if approved, at a favorable price.
Risks Related to Our Dependence on
Third Parties
We depend on third party manufacturers
for the manufacture of our drug candidates as well as on third parties for our supply chain, and if we experience problems with
any of these third parties, the manufacture of our drug candidates or products could be delayed, which could harm our results of
operations.
We rely on third-party
manufacturers to manufacture our drug candidates, such reliance entails risks to which we would not be subject to if we manufactured
drug candidates or products ourselves, including reliance on the third party for regulatory compliance and quality assurance, the
possibility of breach of the manufacturing agreement by the third party because of factors beyond our control (including a failure
to synthesize and manufacture our drug candidates or any products we may eventually commercialize in accordance with its specifications)
and the possibility of termination or nonrenewal of the agreement by the third party, based on its own business priorities, at
a time that is costly or damaging to us. In addition, the FDA, NMPA and other regulatory authorities require that our drug candidates
and any products that we may eventually commercialize be manufactured according to the current Good Manufacturing Practices, or
"
cGMP
," standards. Any failure by its third-party manufacturers to comply with cGMP standards or failure to
scale up manufacturing processes, including any failure to deliver sufficient quantities of drug candidates in a timely manner,
could lead to a delay in, or failure to obtain, regulatory approval of any of our drug candidates. In addition, such failure could
be the basis for the FDA, NMPA, or other regulatory authorities to issue a warning or untitled letter, withdraw approvals for drug
candidates previously granted to us, or take other regulatory or legal action, including recall or seizure, total or partial suspension
of production, suspension of ongoing clinical trials, refusal to approve pending applications or supplemental applications, detention
or product, refusal to permit the import or export of products, injunction, or imposing civil and criminal penalties.
We rely on third parties to conduct
our pre-clinical studies and clinical trials. If these third parties do not successfully carry out their contractual duties or
meet expected deadlines, we may not be able to obtain regulatory approval for or commercialize our drug candidates and our business
could be substantially harmed.
We have relied upon
and plan to continue to rely upon third-party CROs to conduct, monitor and/or manage some of our ongoing pre-clinical and clinical
programs. We rely on these parties for execution of our pre-clinical studies and clinical trials, and controls only certain aspects
of their activities. Nevertheless, we are responsible for ensuring that each of our studies is conducted in accordance with the
applicable protocol and legal, regulatory, and scientific standards, and our reliance on the CROs does not relieve us of our regulatory
responsibilities. We also relyon third parties to assist in conducting our pre-clinical studies in accordance with Good Laboratory
Practices, or "
GLP
," and the Administrative Regulations on Experimental Animals, or the Animal Welfare Act requirements.
We and our CROs are required to comply with GCP, regulations and guidelines enforced by the FDA, NMPA, and comparable foreign regulatory
authorities for all of our drug candidates in clinical development. Regulatory authorities enforce these GCP requirements through
periodic inspections of trial sponsors, investigators, and trial sites. If we or any of our CROs fail to comply with applicable
GCP requirements, the clinical data generated in its clinical trials may be deemed unreliable and the FDA, NMPA or comparable foreign
regulatory authorities may require us to perform additional clinical trials before approving its marketing applications. We cannot
assure you that upon inspection by a given regulatory authority, such regulatory authority will determine that any of its clinical
trials comply with International Conference on Harmonisation-Good Clinical Practice, or "
ICH-GCP
," requirements.
In addition, our clinical trials must be conducted with product produced under the cGMP requirements. Failure to comply with these
regulations may require us to repeat pre-clinical and clinical trials, which would delay the regulatory approval process.
Our CROs are not our
employees, and except for remedies available to us under our agreements with such CROs. We cannot control whether or not they devote
sufficient time and resources to our on-going clinical, non-clinical, and pre-clinical programs. If CROs do not successfully carry
out their contractual duties or obligations or meet expected deadlines or if the quality or accuracy of the clinical data they
obtain are compromised due to their failure to adhere to our clinical protocols, regulatory requirements, or for other reasons,
our clinical trials may be extended, delayed, or terminated and we may not be able to obtain regulatory approval for or successfully
commercialize its drug candidates. As a result, our results of operations and the commercial prospects for its drug candidates
would be harmed, our costs could increase, and our ability to generate revenues could be delayed or compromised.
45
If we lose our relationships with
CROs, our drug development efforts could be delayed.
We rely on third-party
vendors and CROs for some of our pre-clinical studies and clinical trials related to our drug development efforts. Switching or
adding additional CROs involves additional cost and requires management's time and focus. Our CROs have the right to terminate
their agreements with us in the event of an uncured material breach. In addition, some of our CROs have the ability to terminate
their respective agreements with us if it can be reasonably demonstrated that the safety of the subjects participating in our clinical
trials warrants such termination, if we make a general assignment for the benefit of our creditors, or if we are liquidated. Identifying,
qualifying, and managing performance of third-party service providers can be difficult and time-consuming, and will cause delays
in its development programs. In addition, there is a natural transition period when a new CRO commences work and the new CRO may
not provide the same type or level of services as the original provider. If any of our relationships with our third-party CROs
are terminated, we may not be able to enter into arrangements with alternative CROs or to do so on commercially reasonable terms,
and we may not be able to meet our desired clinical development timelines.
Our employees, principal investigators,
CROs, and consultants may engage in misconduct or other improper activities, including non-compliance with regulatory standards
and requirements and insider trading.
We are exposed to the
risk that iour employees, principal investigators, CROs, and consultants may engage in fraudulent conduct or other illegal activity.
Misconduct by these parties could include intentional, reckless and/or negligent conduct or disclosure of unauthorized activities
to us that violate the regulations of the FDA, the Centers for Medicare and Medicaid Services ("
CMS
"), the Department
of Health and Human Services ("
HHS
"), Office of Inspector General ("
OIG
"), and other regulatory
authorities, including those laws requiring the reporting of true, complete and accurate information to such authorities, healthcare
fraud and abuse laws and regulations in the United States and abroad, or laws that require the reporting of financial information
or data accurately. In particular, sales, marketing, and business arrangements in the healthcare industry are subject to extensive
laws and regulations intended to prevent fraud, misconduct, kickbacks, self-dealing, and other abusive practices. These laws and
regulations may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer
incentive programs, and other business arrangements. Activities subject to these laws also involve the improper use of information
obtained in the course of clinical trials or creating fraudulent data in our pre-clinical studies or clinical trials, which could
result in regulatory sanctions and cause serious harm to its reputation. We intend to adopt, prior to the completion of the Merger,
a code of conduct, and other applicable policies and procedures, applicable to all of our employees, but it is not always possible
to identify and deter misconduct by employees and other third parties, and the precautions we take to detect and prevent this activity
may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or
other actions or lawsuits stemming from a failure to comply with these laws or regulations. Additionally, we are subject to the
risk that a person could allege such fraud or other misconduct, even if none occurred. If any such actions are instituted against
us, and it is not successful in defending itself or asserting its rights, those actions could have a significant impact on our
business, including the imposition of civil, criminal and administrative penalties, damages, monetary fines, possible exclusion
from participation in Medicare, Medicaid and other federal healthcare programs, contractual damages, reputational harm, diminished
profits and future earnings, and curtailment of its operations, any of which could adversely affect our ability to operate its
business and its results of operations.
46
Risks Related to Doing Business in
China
Pharmaceutical companies in China
are required to comply with extensive regulations and hold a number of permits and licenses to carry on their business. Our ability
to obtain and maintain these regulatory approvals is uncertain, and future government regulation may place additional burdens on
our efforts to commercialize our drug candidates.
The pharmaceutical
industry in China is subject to extensive government regulation and supervision. The regulatory framework addresses all aspects
of operating in the pharmaceutical industry, including approval, registration, production, distribution, packaging, labelling,
storage and shipment, advertising, licensing and certification requirements and procedures, periodic renewal and reassessment processes,
registration of new drugs, and environmental protection. Violation of applicable laws and regulations may materially and adversely
affect our business. In order to commercialize its drug candidates and manufacture and distribute pharmaceutical products in China,
we are required to:
●
obtain
a pharmaceutical manufacturing permit and Good Manufacturing Practice ("
GMP
") certificate for each production
facility from the NMPA and its relevant branches for trading and distribution of drugs not manufactured by the drug registration
certificate holder;
●
obtain
a drug registration certificate, which includes a drug approval number, from the NMPA for each drug manufactured by it;
●
obtain
a pharmaceutical distribution permit and good supply practice, or "
GSP
," certificate from the NMPA and its
relevant branches; and
●
renew
the pharmaceutical manufacturing permits, the pharmaceutical distribution permits, drug registration certificates, GMP certificates,
and GSP certificates every five years, among other requirements.
If
we are unable to obtain or renew such permits or any other permits or licenses required for its operations, we will not be able
to engage in the commercialization, manufacture, and distribution of our drug candidates and our business may be adversely affected.
The regulatory framework
governing the pharmaceutical industry in China is subject to changes and amendments from time to time. In recent years, the regulatory
framework in China regarding the pharmaceutical industry has undergone significant changes, and we expect that it will continue
to undergo significant changes. Any such changes or amendments may result in increased compliance costs on its business or cause
delays in or prevent the successful development or commercialization of its drug candidates in China and reduce the current benefits
we believe are available to us from developing and manufacturing drugs in China. Chinese authorities have become increasingly vigilant
in enforcing laws in the pharmaceutical industry and any failure by us or our partners to maintain compliance with applicable laws
and regulations or obtain and maintain required licenses and permits may result in the suspension or termination of its business
activities in China. We believe our strategy and approach is aligned with the Chinese government's policies, but we cannot
ensure that its strategy and approach will continue to be aligned.
If we fail to comply with environmental,
health, and safety laws and regulations of the PRC, we could become subject to fines or penalties or incur costs that could have
a material adverse effect on the success of our business.
We are subject to numerous
environmental, health, and safety laws and regulations, including those governing laboratory procedures and the handling, use,
storage, treatment, and disposal of hazardous materials and wastes. Our operations primarily occur in China and involve the use
of hazardous materials, including chemical materials. Our operations also produce hazardous waste products. We are therefore subject
to PRC laws and regulations concerning the discharge of waste water, gaseous waste, and solid waste during its processes of research
and development of drugs. Although we engage competent third party contractors for the transfer and disposal of these materials
and wastes, we may not at all times comply fully with environmental regulations. Any violation of these regulations may result
in substantial fines, criminal sanctions, revocations of operating permits, shutdown of its facilities, and obligation to take
corrective measures. We cannot completely eliminate the risk of contamination or injury from these materials and wastes. In the
event of contamination or injury resulting from the use or discharge of hazardous materials, we could be held liable for any resulting
damages, and any liability could exceed its resources. we also could incur significant costs associated with civil, administrative,
or criminal fines and penalties.
47
Although we maintain
workers' compensation insurance to cover costs and expenses incurred due to on-the-job injuries to our employees and third
party liability insurance for injuries caused by unexpected seepage, pollution, or contamination, such insurance may not provide
adequate coverage against potential liabilities. Furthermore, the PRC government may take steps towards the adoption of more stringent
environmental regulations. Due to the possibility of unanticipated regulatory or other developments, the amount and timing of future
environmental expenditures may vary substantially from those currently anticipated. If there is any unanticipated change in the
environmental regulations, we may need to incur substantial capital expenditures to install, replace, upgrade, or supplement our
manufacturing facility and equipment or make operational changes to limit any adverse impact or potential adverse impact on the
environment in order to comply with new environmental protection laws and regulations. If such costs become prohibitively expensive,
we may be forced to cease certain aspects of our business operations.
Xynomic's audit report for
the fiscal years ended December 31, 2018 and 2017 included in this prospectus is prepared by an auditor who is not inspected by
the Public Company Accounting Oversight Board and, as such, our investors are deprived of the benefits of such inspection.
Xynomic's independent
registered public accounting firm who audited its financial statements for the fiscal years ended December 31, 2018 and 2017, as
auditors of companies that are traded publicly in the United States and a firm registered with the U.S. Public Company Accounting
Oversight Board (the "PCAOB"), is required by the laws of the United States to undergo regular inspections by the PCAOB
to assess its compliance with the laws of the United States and professional standards. Because Xynomic's auditors are located
in China, a jurisdiction where the PCAOB is currently unable to conduct inspections without the approval of the PRC authorities,
Xynomic's auditors are not currently inspected by the PCAOB.
Inspections of other
firms that the PCAOB has conducted outside China have identified deficiencies in those firms' audit procedures and quality
control procedures, which may be addressed as part of the inspection process to improve future audit quality. This lack of PCAOB
inspections in China prevents the PCAOB from regularly evaluating Xynomic's auditor's audits and its quality control
procedures. As a result, investors may be deprived of the benefits of PCAOB inspections.
The inability of the
PCAOB to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of Xynomic's auditor's
audit procedures or quality control procedures as compared to auditors outside of China that are subject to PCAOB inspections.
Investors may lose confidence in Xynomic's reported financial information and procedures and the quality of its consolidated
financial statements.
If additional remedial measures are
imposed on the "big four" PRC-based accounting firms, including Xynomic's independent registered public accounting
firm for the financial statements for the fiscal year ended December 31, 2018 and 2017, in administrative proceedings brought by
the SEC alleging those firms' failure to meet specific criteria set by the SEC with respect to requests for the production
of documents, we could be unable to timely file our future financial statements in compliance with the requirements of the Exchange
Act.
Starting
in 2011, the PRC affiliates of the "big four" accounting firms, including Xynomic's independent registered public
accounting firm, were affected by a conflict between U.S. and PRC law. Specifically, for certain U.S. listed companies operating
and audited in mainland China, the SEC and the PCAOB sought to obtain from the PRC-based accounting firms access to their audit
work papers and related documents. The firms were, however, advised and directed that under PRC law they could not respond directly
to the U.S. regulators on those requests, and that requests by foreign regulators for access to such papers in China had to
be channeled through the China Securities Regulatory Commission, or the CSRC.
In
late 2012, this impasse led the SEC to commence administrative proceedings under Rule 102(e) of its Rules of Practice and
also under the Sarbanes-Oxley Act of 2002 against the PRC-based accounting firms, including Xynomic's independent registered
public accounting firm. In January 2014, the administrative law judge reached an initial decision to impose penalties on the
firms including a temporary suspension of their right to practice before the SEC. The accounting firms filed a petition for review
of the initial decision. In February 2015, before a review by the commissioners of the SEC had taken place, the firms reached
a settlement with the SEC. Under the settlement, the SEC accepts that future requests by the SEC for the production of documents
will normally be made to the CSRC. The firms will receive matching Section 106 requests, and are required to abide by
a detailed set of procedures with respect to such requests, which in substance require them to facilitate production via the CSRC.
If they fail to meet specified criteria, the SEC retains authority to impose a variety of additional remedial measures on the firms
depending on the nature of the failure. Remedies for any future noncompliance could include, as appropriate, an automatic six-month
bar on a single firm's performance of certain audit work, commencement of a new proceeding against a firm, or in extreme cases
the resumption of the current proceeding against all four firms. If additional remedial measures are imposed on the Chinese affiliates
of the "big four" accounting firms, including Xynomic's independent registered public accounting firm, in administrative
proceedings brought by the SEC alleging the firms' failure to meet specific criteria set by the SEC with respect to requests for
the production of documents, we could be unable to timely file future financial statements in compliance with the requirements
of the Exchange Act.
48
In the event that the
SEC restarts the administrative proceedings, depending upon the final outcome, companies listed in the U.S. with major PRC operations
may find it difficult or impossible to retain auditors in respect of their operations in China, which could result in financial
statements being determined to not be in compliance with the requirements of the Exchange Act, including possible delisting. Moreover,
any negative news about any such future proceedings against these audit firms may cause investor uncertainty regarding PRC-based,
U.S.-listed companies and the market price of our ordinary shares may be adversely affected.
If Xynomic's
independent registered public accounting firm was denied, even temporarily, the ability to practice before the SEC and Xynomic
was unable to timely find another registered public accounting firm to audit and issue an opinion on its financial statements,
its financial statements could be determined not to be in compliance with the requirements of the Exchange Act. Such a determination
could ultimately lead to the delay or abandonment of this offering, delisting of our ordinary shares from Nasdaq or deregistration
from the SEC, which would substantially reduce or effectively terminate the trading of our ordinary shares in the U.S.
The PRC's economic, political,
and social conditions, as well as governmental policies, could affect the business environment and financial markets in China,
and our ability to operate its business, maintain its liquidity, and keep our access to capital.
A significant portion
of our operations are conducted in China. Accordingly, our business, results of operations, financial condition, and prospects
may be influenced to a significant degree by economic, political, legal, and social conditions in China. China's economy
differs from the economies of developed countries in many respects, including with respect to the amount of government involvement,
level of development, growth rate, control of foreign exchange, and allocation of resources. While the PRC economy has experienced
significant growth over the past 30 years, growth has been uneven across different regions and among various economic sectors of
China. The PRC government has implemented various measures to encourage economic development and guide the allocation of resources.
Some of these measures may benefit the overall PRC economy, but may have a negative effect on us. For example, our financial condition
and results of operations may be adversely affected by government control over capital investments or changes in tax regulations
that are currently applicable to it. In addition, in the past the PRC government implemented certain measures, including interest
rate increases, to control the pace of economic growth. These measures may cause decreased economic activity in China, which may
adversely affect our business and results of operation. More generally, if the business environment in China deteriorates from
the perspective of domestic or international investment, our business in China may also be adversely affected.
Uncertainties with respect to the
PRC legal system and changes in laws, regulations, and policies in China could materially and adversely affect us.
We conduct our business
primarily through our subsidiaries in China. PRC laws and regulations govern our operations in China. Our subsidiaries are generally
subject to laws and regulations applicable to foreign investments in China, which may not sufficiently cover all of the aspects
of our economic activities in China. In addition, the implementation of laws and regulations may be in part based on government
policies and internal rules that are subject to the interpretation and discretion of different government agencies (some of which
are not published on a timely basis or at all) that may have a retroactive effect. As a result, we may not always be aware of any
potential violation of these policies and rules. Such unpredictability regarding its contractual, property, and procedural rights
could adversely affect our business and impede our ability to continue our operations. Furthermore, since PRC administrative and
court authorities have significant discretion in interpreting and implementing statutory and contractual terms, it may be more
difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy in Chinese
legal system than in more developed legal systems. These uncertainties could materially and adversely affect our business and results
of operations.
In addition, any administrative
and court proceedings in China may be protracted, resulting in substantial costs and diversion of resources and management attention.
49
Restrictions on dividend distribution
and currency exchange may limit our PRC Subsidiaries to distribute dividend to us or limit our ability to utilize revenues generated
by our PRC subsidiaries effectively.
A portion of our future
revenue potentially will be generated by our PRC subsidiaries. Under PRC laws and regulations, our PRC subsidiaries, each of which
is a wholly foreign-owned enterprise, may pay dividends only out of its respective accumulated profits as determined in accordance
with PRC accounting standards and regulations. In addition, a wholly foreign-owned enterprise is required to set aside at least
10% of its accumulated after-tax profits each year, if any, to fund a certain statutory reserve fund, until the aggregate amount
of such fund reaches 50% of its registered capital. Such reserve funds cannot be distributed to us as dividends.
In addition, our PRC
subsidiaries will generate primarily all of their revenue in RMB and the Chinese government imposes controls on the convertibility
of RMB into foreign currencies and, in certain cases, the remittance of currency out of China. Such control and restrictions could
affect the ability of our PRC subsidiaries to remit sufficient foreign currency to us for us to pay dividends or make other payments
or otherwise to satisfy our foreign currency denominated obligations. The RMB is currently convertible under the "current
account," which includes dividends, trade and service-related foreign exchange transactions, but not under the "capital
account," which includes foreign direct investment and loans, including loans that we may secure from our PRC subsidiaries.
Currently, our PRC subsidiaries may purchase foreign currency for settlement of "current account transactions," including
payment of dividends to us, without the approval of the state administration of foreign exchange, or the "
SAFE
.",
by complying with certain procedural requirements. However, in response to the persistent capital outflow in China and the RMB's
depreciation against the U.S. dollar, the relevant Chinese governmental authorities have tightened up their control over currency
exchange. Any existing and future restrictions on currency exchange could limit our ability to utilize revenue generated in RMB
to fund our business activities outside of China or pay dividends in US dollars to our shareholders. Foreign exchange transactions
under the capital account remain subject to limitations and require approvals from, or registration with, SAFE and other relevant
Chinese governmental authorities. This could affect our ability to obtain foreign currency through debt or equity financing for
our subsidiaries. Any limitation on the ability of our PRC subsidiaries to pay dividends or make other kinds of payments to us
could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business,
pay dividends, or otherwise fund and conduct our business.
Restrictions on currency exchange
may limit our ability to receive and use financing in foreign currencies effectively.
Our PRC subsidiaries'
ability to obtain foreign exchange is subject to significant foreign exchange controls and, in the case of transactions under the
capital account, requires the approval of and/or registration with PRC government authorities, including the SAFE. In particular,
if we finance its PRC subsidiaries by means of foreign debts from us or other foreign lenders, the amount is not allowed to, among
other things, exceed the statutory limits and such loans must be registered with the local counterpart of the SAFE. If we finance
its PRC subsidiaries by means of additional capital contributions, the amount of these capital contributions must first be approved
or filed by the relevant government approval authority.
In
light of the various requirements imposed by PRC regulations on loans to, and direct investment in, PRC entities by offshore holding
companies, we cannot assure you that it will be able to complete the necessary government registrations or obtain the necessary
government approval on a timely basis, if at all, with respect to future loans or capital contributions by us to our PRC subsidiaries.
If we fail to complete such registrations or obtain such approval, our ability to use the proceeds we receive from this offering
and to capitalize or otherwise fund our PRC operations may be negatively affected, which could materially and adversely affect
our liquidity and our ability to fund and expand our business.
50
Any failure to comply with PRC regulations
regarding the registration requirements for our employee equity incentive plans may subject it to fines and other legal or administrative
sanctions, which could adversely affect its business, financial condition and results of operations.
In February 2012, the
SAFE promulgated the Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in
Stock Incentive Plans of Overseas Publicly Listed Companies, or the Stock Option Rules. In accordance with the Stock Option Rules
and relevant rules and regulations, PRC citizens or non-PRC citizens residing in China for a continuous period of not less than
one year, who participate in any stock incentive plan of an overseas publicly listed company, subject to a few exceptions, are
required to register with SAFE through a domestic qualified agent, which could be a PRC subsidiary of such overseas listed company,
and complete certain procedures. Our PRC subsidiaries and our employees who are PRC citizens or who reside in China for a continuous
period of not less than one year and who participate in our stock incentive plan will be subject to such regulation. We plans to
assist our employees to register their share options or shares. However, any failure of our PRC individual beneficial owners and
holders of share options or shares to comply with the SAFE registration requirements may subject them to fines and legal sanctions
and may limit the ability of our PRC subsidiaries to distribute dividends to us. we also faces regulatory uncertainties that could
restrict its ability to adopt additional incentive plans for our directors and employees under PRC law.
Risks Related to Intellectual Property
If we breach a license agreement
or other intellectual property-related agreements for our drug candidates or otherwise experience disruptions to our business relationships
with its licensors, we could lose the ability to continue the development and commercialization of ours drug candidates.
Our business relies,
in large part, on our ability to develop and commercialize drug candidates it has licensed and sublicensed from third parties,
including abexinostat from Pharmacyclics and XP-102 and XP-105 from Boehringer Ingelheim. If our licensors breach such agreements,
we may not be able to enforce such agreements against our licensors' parent entity or affiliates. Under each of our licenses
and intellectual property-related agreements, in exchange for licensing or sublicensing to Xynomic the right to develop and commercialize
the applicable drug candidates, our licensors will be eligible to receive from milestone payments, royalties from commercial sales
of such drug candidates, assuming relevant approvals from government authorities are obtained, or other payments. Our licenses
and intellectual property-related agreements also require it to comply with other obligations including development and diligence
obligations, providing certain information regarding our activities with respect to such drug candidates, and/or maintaining the
confidentiality of information it receives from our licensors.
If we fail to meet any
of our material obligations under our license and intellectual property-related agreements, our licensors have the right to terminate
their licenses and sublicenses and, upon the effective date of such termination, have the right to re-obtain the licensed and sub-licensed
technology and intellectual property. While we would expect to exercise all rights and remedies available to it, including seeking
to cure any breaches by it, and otherwise seek to preserve our rights under the intellectual property rights licensed and sublicensed
to it, we may not be able to do so in a timely manner, at an acceptable cost, or at all. In particular, some of the milestone payments
are payable upon our drug candidates reaching development milestones and before we have commercialized, or received any revenue
from the sales of such drug candidates, and we cannot guarantee that it will have sufficient resources to make such milestone payments.
Any uncured material breach under the license agreements could result in our loss of exclusive rights and may lead to a complete
termination of our rights to the applicable drug candidate. Any of the foregoing could have a material adverse effect on our business,
financial conditions, results of operations, and prospects.
In addition, the agreements
under which we currently license intellectual property or technology from third parties are complex, and certain provisions in
such agreements may be susceptible to multiple interpretations. The resolution of any contract interpretation disagreement that
may arise could narrow what we believe to be the scope of our rights to the relevant intellectual property or technology, or increase
what we believe to be our financial or other obligations under the relevant agreement, either of which could have a material adverse
effect on our business, financial condition, results of operations, and prospects. Moreover, if disputes over intellectual property
that we have licensed or sublicensed prevents or impairs our ability to maintain our current licensing arrangements on commercially
acceptable terms, we may be unable to successfully develop and commercialize the affected drug candidates, which could have a material
adverse effect on our business, financial conditions, results of operations, and prospects.
51
We depend on our licensors or patent
owners of our in-licensed patent rights to prosecute and maintain patents and patent applications that are material to our business.
Any failure by our licensors or such patent owners to effectively protect these patent rights could adversely impact our business
and operations.
We have licensed and
sublicensed patent rights from third parties for some of our development programs, including abexinostat from Pharmacyclics and
XP-102 and XP-105 from Boehringer Ingelheim. As a licensee and sublicensee of third parties, we rely on these third parties to
file and prosecute patent applications, maintain patents, and otherwise protect the licensed intellectual property under certain
of our license agreements. In addition, we have not had and does not have primary control over these activities for certain of
our patents or patent applications and other intellectual property rights that it jointly owns with certain of our licensors and
sub-licensors. We cannot be certain that these patents and patent applications have been or will be prepared, filed, prosecuted,
or maintained by such third parties in compliance with applicable laws and regulations, in a manner consistent with the best interests
of our business, or in a manner that will result in valid and enforceable patents or other intellectual property rights that cover
our drug candidates. If our licensors or such third parties fail to prepare, prosecute, or maintain such patent applications and
patents, or lose rights to those patent applications or patents, the rights we have licensed may be reduced or eliminated, and
our rights to develop and commercialize any of our drug candidates that are subject of such licensed rights could be adversely
affected.
If we are unable to obtain and maintain
patent protection for our drug candidates through intellectual property rights, or if the scope of such intellectual property rights
obtained is not sufficiently broad, third parties may compete directly against us.
Our success depends,
in part, on our ability to protect our drug candidates from competition by obtaining, maintaining, and enforcing our intellectual
property rights, including patent rights. We seek to protect the drug candidates and technology that it considers commercially
important by filing U.S., PRC, and international patent applications, relying on trade secrets or pharmaceutical regulatory protection
or employing a combination of these methods. We also seek to protect our proprietary position by in-licensing intellectual property
relating to our technology and drug candidates. We do not own or exclusively license any issued patents with respect to certain
of our drug candidates in all territories in which it plans to commercialize our drug candidates. If we or our licensors are unable
to obtain or maintain patent protection with respect to our drug candidates and technology it develops, our business, financial
condition, results of operations, and prospects could be materially harmed.
The patent prosecution
process is expensive, time-consuming, and complex, and we may not be able to file, prosecute, maintain, enforce, or license all
necessary or desirable patent applications at a reasonable cost or in a timely manner. In addition, our license and intellectual
property-related agreements may not provide it with exclusive rights to use our in-licensed intellectual property rights relating
to the applicable drug candidates in all relevant fields of use and in all territories in which it may wish to develop or commercialize
our technology and products in the future.
Patents may be invalidated
and patent applications may not be granted for a number of reasons, including known or unknown prior art, deficiencies in the patent
application, or the lack of novelty of the underlying invention or technology. It is also possible that we will fail to identify
patentable aspects of our research and development output in time to obtain patent protection. Although we enter into non-disclosure
and confidentiality agreements with parties who have access to confidential or patentable aspects of our research and development
output, such as our employees, corporate collaborators, outside scientific collaborators, contract manufacturers, consultants,
advisors, and any other third parties, any of these parties may breach such agreements and disclose such output before a patent
application is filed, thereby jeopardizing our ability to seek patent protection. In addition, publications of discoveries in the
scientific literature often lag behind the actual discoveries, and patent applications in the United States and other jurisdictions
are typically not published until 18 months after filing, or in some cases, not at all. Therefore, we cannot be certain that it
or our licensors were the first to make the inventions claimed in our owned or in-licensed patents or pending patent applications
or that we or our licensors were the first to file for patent protection of such inventions. Furthermore, the PRC and, recently,
the United States have adopted the "first-to-file" system under which whoever first files a patent application will
be awarded the patent if all other patentability requirements are met. Under the first-to-file system, third parties may be granted
a patent relating to a technology, which we invented.
52
In addition, under the
PRC Patent Law, any organization or individual that applies for a patent in a foreign country for an invention or utility model
accomplished in China is required to report to the State Intellectual Property Office, or "
SIPO
," for confidentiality
examination. Otherwise, if an application is later filed in China, the patent right will not be granted. Moreover, even if a patent
is granted from any of the applications, the grant of a patent is not conclusive as to our scope, validity, or enforceability.
The coverage claimed
in a patent application can be significantly reduced before the patent is issued, and our scope can be reinterpreted after issuance.
Even if patent applications we currently, or in the future, license or own are issued as patents, they may not be issued in a form
that will provide us with any meaningful protection, prevent competitors or other third parties from competing with it, or otherwise
provide us with any competitive advantage. In addition, the patent position of biotechnology and pharmaceutical companies generally
is highly uncertain, involves complex legal and factual questions, and has been the subject of much litigation in recent years.
As a result, the issuance, scope, validity, enforceability, and commercial value of our patent rights are highly uncertain.
The issuance of a patent
is not conclusive as to our inventorship, scope, validity, or enforceability, and our patents may be challenged in the courts or
patent offices in the PRC, United States, and abroad. We and our licensors may be subject to a third-party pre-issuance submission
of prior art to the United States Patent and Trademark Office, or "
USPTO
," or become involved in opposition,
derivation, revocation, re-examination, post-grant and
inter partes
review, or interference proceedings or similar proceedings
in foreign jurisdictions challenging our patent rights or the patent rights of others. An adverse determination in any such submission,
proceeding, or litigation could reduce the scope of, or invalidate, our owned or in-licensed patent rights, allow third parties
to commercialize our technology or drug candidates and compete directly with us without payments to it, or result in our inability
to manufacture or commercialize drug candidates without infringing, misappropriating, or otherwise violating third-party patent
rights. Moreover, Xynomic, or one of our licensors, may have to participate in interference proceedings declared by the USPTO to
determine priority of invention or in post-grant challenge proceedings, such as oppositions in a foreign patent office, that challenge
the priority of our or our licensor's invention or other features of patentability of our owned or in-licensed patents and
patent applications. Such challenges may result in the loss of patent rights, the loss of exclusivity, or in patent claims being
narrowed, invalidated, or held unenforceable, which could limit our ability to stop others from using or commercializing similar
or identical technology and products, or limit the duration of the patent protection of our technology and drug candidates. Such
proceedings also may result in substantial costs and require significant time from our scientists and management, even if the eventual
outcome is favorable to it. Consequently, we do not know whether any of our technologies or drug candidates will be protectable
or remain protected by valid and enforceable patents. Xynomic's competitors or other third parties may be able to circumvent
our owned or in-licensed patents by developing similar or alternative technologies or products in a non-infringing manner.
Furthermore, the terms
of patents are finite. The patents we own or in-license and the patents that may issue from our currently pending owned and in-licensed
patent applications generally have a 20-year protection period starting from the earliest filing date of such patents and patent
applications. Given the amount of time required for the development, testing, and regulatory review of new drug candidates, patents
protecting such drug candidates might expire before or shortly after such drug candidates are commercialized. As a result, our
owned or in-licensed patents and patent applications may not provide it with sufficient rights to exclude others from commercializing
products similar or identical to those of Xynomic. Moreover, some of our patents and patent applications are, and may in the future
be, co-owned with third parties. If it is unable to obtain an exclusive license to any such third-party co-owners' interest
in such patents or patent applications, such co-owners may be able to license their rights to other third parties, including our
competitors, and our competitors could market competing products and technology. In addition, we may need the cooperation of any
such co-owners of our patents in order to enforce such patents against third parties, and such cooperation may not be provided
to Xynomic. Any of the foregoing could have a material adverse effect on our competitive position, business, financial conditions,
results of operations, and prospects.
We may not be able to protect our
intellectual property and proprietary rights throughout the world.
Filing, prosecuting,
maintaining, and defending patents on drug candidates in all countries throughout the world would be prohibitively expensive, and
the laws of foreign countries may not protect our rights to the same extent as the laws of the United States. Consequently, we
may not be able to prevent third parties from practicing our inventions in all countries outside the United States or PRC or from
selling or importing products made using our inventions in or into the United States, the PRC, or other jurisdictions. Competitors
may use our technologies in jurisdictions where it has not obtained patent protection to develop their own competing products and,
in addition, may export otherwise infringing products to territories where we have patent protection or licenses but the enforcement
is not as strong as that in the United States. These products may compete with our products, and our patents or other intellectual
property rights may not be effective or sufficient to prevent them from competing.
53
Many companies have
encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions, including China.
The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade
secrets, and other intellectual property protection, particularly those relating to biotechnology products, which could make it
difficult for us to stop the infringement of our patents or marketing of competing products in violation of our intellectual property
and proprietary rights generally. Proceedings to enforce our intellectual property and proprietary rights in foreign jurisdictions
could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our patents
at risk of being invalidated or interpreted narrowly, could put our patent applications at risk of not issuing, and could provoke
third parties to assert claims against us. We may not prevail in any lawsuits that it initiates, and the damages or other remedies
awarded, if any, may not be commercially meaningful. Accordingly, our efforts to enforce our intellectual property and proprietary
rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that it develops
or licenses.
Furthermore, many countries
have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties. In addition, many
countries limit the enforceability of patents against government agencies or government contractors. In these countries, the patent
owner may have limited remedies, which could materially diminish the value of such patent. If we or any of our licensors is forced
to grant a license to third parties with respect to any patents relevant to our business, our competitive position may be impaired,
and our business, financial condition, results of operations, and prospects may be adversely affected.
If our drug candidates infringe,
misappropriate, or otherwise violate the intellectual property rights of third parties, we may incur substantial liabilities, and
it may not be able to sell or commercialize these drug candidates.
Our commercial success
depends significantly on our ability to develop, manufacture, market, and sell our drug candidates and use our proprietary technologies
without infringing, misappropriating, or otherwise violating the patents and other proprietary rights of third parties. The biotechnology
and pharmaceutical industries are characterized by extensive litigation regarding patents and other intellectual property rights.
In the PRC and the United States, invention patent applications are generally maintained in confidence until their publication,
which typically is 18 months after the filing date. The publication of discoveries in the scientific or patent literature frequently
occurs substantially later than the date on which the underlying discoveries were made and invention patent applications were filed.
Even after reasonable investigation, we may not know with certainty whether any third party may have filed a patent application
without our knowledge while it is still developing or producing that product. We may become a party to, or threatened with, adversarial
proceedings or litigation regarding intellectual property rights with respect to our technologies and any drug candidates it may
develop, including interference proceedings, post-grant review,
inter partes
review, and derivation proceedings before the
USPTO and similar proceedings in foreign jurisdictions.
Third parties may assert
infringement claims against us based on existing patents or patents that may be granted in the future, regardless of their merit.
Even if we believe third-party intellectual property claims are without merit, there is no assurance that a court would find in
our favor on questions of infringement, validity, enforceability, or priority. A court of competent jurisdiction could hold that
these third-party patents are valid, enforceable, and infringed, which could materially and adversely affect our ability to commercialize
any drug candidates it may develop and any other drug candidates or technologies covered by the asserted third-party patents. In
order to successfully challenge the validity of any such U.S. patent in federal court, we would need to overcome a presumption
of validity. There is no assurance that a court of competent jurisdiction would invalidate the claims of any such U.S. patent.
54
If we are found to infringe
a third party's patent rights, and is unsuccessful in demonstrating that such patents are invalid or unenforceable, we could
be required to:
●
obtain
royalty-bearing licenses from such third party to such patents, which may not be available on commercially reasonable terms, if
at all, and even if we were able to obtain such licenses, they could be non-exclusive, thereby giving our competitors and other
third parties access to the same technologies licensed to Xynomic, and could require it to make substantial licensing and royalty
payments;
●
defend litigation or administrative proceedings;
●
reformulate product(s) so that it does not infringe the intellectual property rights of others, which may not be possible or could be very expensive and time consuming;
●
cease developing, manufacturing, and commercializing the infringing technology or drug candidates; and
●
pay such third party significant monetary damages, including treble damages and attorneys' fees, if we are found to have willfully infringed a patent or other intellectual property right.
Claims that we have
misappropriated the confidential information or trade secrets of third parties could have a similar material adverse effect on
our business, financial condition, results of operations, and prospects. Even if we are successful in such litigation or administrative
proceedings, such litigation and proceedings may be costly and could result in a substantial diversion of management resources.
Any of the foregoing may have a material adverse effect on our business, prospects, financial condition, and results of operations.
Intellectual property litigation
and proceedings could cause us to spend substantial resources and distract our personnel from their normal responsibilities.
Even if resolved in
our favor, litigation or other legal proceedings relating to us, our licensor's or other third parties' intellectual
property claims may cause us to incur significant expenses and could distract our personnel from their normal responsibilities.
In addition, there could be public announcements of the results of hearings, motions, or other interim proceedings or developments,
and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the
price of our common stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources
available for development activities or any future sales, marketing, or distribution activities. We may not have sufficient financial
or other resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the costs
of such litigation or proceedings more effectively than Xynomic can because of their greater financial resources and more mature
and developed intellectual property portfolios. Uncertainties resulting from the initiation and continuation of patent litigation
or other proceedings could have a material adverse effect on our ability to compete in the marketplace.
We may not be successful in obtaining
necessary intellectual property rights to drug candidates for our development pipeline through acquisitions and in-licenses.
Although we also intend
to develop drug candidates through our own internal research, our near-term business model is predicated, in large part, on our
ability to successfully identify and acquire or in-license drug candidates to grow our drug candidate pipeline. However, we may
be unable to acquire or in-license intellectual property rights relating to, or necessary for, any such drug candidates from third
parties on commercially reasonable terms, or at all, because we are focusing on specific areas of care such as oncology and inflammatory
and infectious diseases. In that event, it may be unable to develop or commercialize such drug candidates. We may also be unable
to identify drug candidates that we believe are an appropriate strategic fit for our company and intellectual property relating
to, or necessary for, such drug candidates. Any of the foregoing could have a materially adverse effect on our business, financial
condition, results of operations, and prospects.
The in-licensing and
acquisition of third-party intellectual property rights for drug candidates is a competitive area, and a number of more established
companies are also pursuing strategies to in-license or acquire third-party intellectual property rights for drug candidates that
we may consider attractive or necessary. These established companies may have a competitive advantage over us due to their size,
cash resources, and greater clinical development and commercialization capabilities. Furthermore, companies that perceive us to
be a competitor may be unwilling to assign or license rights to it. If we are unable to successfully obtain rights to suitable
drug candidates, our business, financial condition, results of operations, and prospects for growth could suffer.
55
In addition, we expect
that competition for the in-licensing or acquisition of third-party intellectual property rights for drug candidates that are attractive
to it may increase in the future, which may mean fewer suitable opportunities for us as well as higher acquisition or licensing
costs. We may be unable to in-license or acquire the third-party intellectual property rights for drug candidates on terms that
would allow it to make an appropriate return on our investment.
Risks Related to Our Securities
We do not currently intend to pay
dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on the appreciation
in the price of our common stock.
Based on our current
indebtedness, financial condition and operating requirements, we do not expect to pay cash dividends on our shares. Any future
dividend payments are within the absolute discretion of our board of directors and will depend on, among other things, our results
of operations, working capital requirements, capital expenditure requirements, financial condition, level of indebtedness, contractual
restrictions with respect to payment of dividends, business opportunities, anticipated cash needs, provisions of applicable law,
and other factors that our board of directors may deem relevant.
We may not be able to timely and
effectively implement controls and procedures required by Section 404 of the Sarbanes Oxley Act of 2002 that will be applicable
to us after the Business Combination. Furthermore, if our internal control over financial reporting or our disclosure controls
and procedures are not effective, we may not be able to accurately report our financial results, prevent fraud, or file our periodic
reports in a timely manner, which may cause investors to lose confidence in our reported financial information and may lead to
a decline in our stock price.
As a public company,
we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act of 2002 (the "
Sarbanes Oxley
Act
"), the Dodd-Frank Wall Street Reform and Consumer Protection Act, the listing requirements of Nasdaq and other
applicable securities rules and regulations. We will be required to provide management's attestation on internal controls
commencing with the Company's annual report for the year ending December 31, 2019, in accordance with applicable SEC
guidance. The standards required for a public company under Section 404 of the Sarbanes Oxley Act of 2002 are significantly more
stringent than those required of a privately held company. Management may not be able to effectively and timely implement controls
and procedures that adequately respond to the regulatory compliance and reporting requirements that will be applicable to the Company
after the Business Combination. If we are not able to implement the additional requirements of Section 404 in a timely manner or
with adequate compliance, we may not be able to assess whether our internal controls over financial reporting are effective, which
may subject us to adverse regulatory consequences and could harm investor confidence and the market price of our common stock.
There is uncertainty regarding Xynomic's
ability to continue in business as disclosed in its
financial statements which includes a statement describing
its
going concern status. Xynomic's financial status creates a doubt whether Xynomic will continue as
a going concern.
Xynomic has prepared
its financial statements assuming that it will continue as a going concern, however, there is substantial doubt Xynomic can continue
as an ongoing business for the next twelve months. Xynomic's independent auditor has issued an audit opinion for Xymomic
with an explanatory paragraph describing an uncertainty about Xynomic's ability to continue as a going concern. The financial
statements do not include any adjustments that might result from the uncertainty regarding Xynomic's ability to continue
in business. As such Xymomic may have to cease operations and investors could lose part or all of their investment in Xynomic's
company.
After the consummation
of the Business Combination, Xynomic's business consists of our business. The current assets of the Group is lower than its current
liabilities. It raises substantial doubt our ability to continue as a going concern.
56
The price of our common stock may
be volatile and fluctuate substantially, which could result in substantial losses for holders of our common stock.
Our stock price is likely
to be volatile. The stock market in general and the market for biopharmaceutical companies in particular have experienced extreme
volatility that has often been unrelated to the operating performance of particular companies. As a result of this volatility,
you may not be able to sell your common stock at or above the price at which you purchased it. The market price for our common
stock may be influenced by many factors, including:
●
the success of competitive drugs;
●
results of clinical trials of our drug candidates or those of our competitors;
●
regulatory or legal developments in the United States and other countries;
●
developments or disputes concerning patent applications, issued patents, or other proprietary rights;
●
the recruitment or departure of key personnel;
●
the level of expenses related to any of our drug candidates or clinical development programs;
●
the results of our efforts to discover, develop, acquire, or in-license additional drug candidates or drugs;
●
actual or anticipated changes in estimates as to financial results, development timelines, or recommendations by securities analysts;
●
variations in our financial results or those of companies that are perceived to be similar to us;
●
changes in the structure of healthcare payment systems;
●
market conditions in the pharmaceutical and biotechnology sectors;
●
general economic, industry, and market conditions; and
●
the other factors described in this "Risk Factors" section.
If securities or industry analysts do not publish research
or publish inaccurate or unfavorable research about our business, our stock price and any trading volume could decline.
Any trading market for
our Common Stock that may develop will depend in part on the research and reports that securities or industry analysts publish
about us or our business. Securities and industry analysts do not currently, and may never, publish research on us or our business.
If no securities or industry analysts commence coverage of our company, the trading prices for our Common Stock could be negatively
affected. If securities or industry analysts initiate coverage, and one or more of those analysts downgrade our stock or publish
inaccurate or unfavorable research about our business, our stock price would likely decline. If one or more of these analysts cease
coverage of our company or fail to publish reports on us regularly, demand for our Common Stock could decrease, which might cause
our stock price and any trading volume to decline.
Future sales and issuances of our
Common Stock or rights to purchase Common Stock, including pursuant to our equity incentive plan or otherwise, could result in
dilution of the percentage ownership of our stockholders and could cause our stock price to fall.
We expect that we
will need significant additional capital in the future to continue our planned operations. To raise capital, we may sell Common
Stock, convertible securities or other equity securities in one or more transactions at prices and in a manner we determine from
time to time. If we sell Common Stock, convertible securities or other equity securities in more than one transaction, including
issuance of equity securities pursuant to any future stock incentive plan to our officers, directors, employees and non-employee
consultants for their services to us, investors in a prior transaction may be materially diluted by subsequent sales. Additionally,
any such sales may result in material dilution to our existing stockholders, and new investors could gain rights, preferences
and privileges senior to those of holders of our Common Stock. Further, any future sales of our Common Stock by us or resales
of our Common Stock by our existing stockholders could cause the market price of our Common Stock to decline. Any future grants
of options, warrants or other securities exercisable or convertible into our Common Stock, or the exercise or conversion of such
shares, and any sales of such shares in the market, could have an adverse effect on the market price of our Common Stock.
57
We indemnify our directors and officers
against certain liabilities and do not presently carry director and officer liability insurance.
As permitted under Delaware
law and pursuant to our governing documents and indemnification agreements with certain of our officers and directors, we indemnify
our directors and officers against monetary damages, including advancing expenses, to the fullest extent permitted by the Delaware
law. We do not carry director and officer liability insurance, so our assets are at risk in the event of successful
claims against us or our officers and directors. Our assets may not be sufficient to satisfy judgments against us and our officers
and directors in the event of such successful claims. In addition, our lack of director and officer liability insurance may adversely
affect our ability to attract and retain highly qualified directors and officers in the future.
Our Common
Stock may be subject to the "penny stock" rules of the Securities and Exchange Commission, which may make it more difficult
for stockholders to sell our Common Stock.
The
SEC has adopted Rule 15g-9 which establishes the definition of a "penny stock," for the purposes relevant to us, as
any equity security that has a market price of less than $5.00 per share, subject to certain exceptions. For any transaction involving
a penny stock, unless exempt, the rules require that a broker or dealer approve a person's account for transactions in penny
stocks, and the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and
quantity of the penny stock to be purchased.
In
order to approve a person's account for transactions in penny stocks, the broker or dealer must obtain financial information
and investment experience objectives of the person, and make a reasonable determination that the transactions in penny stocks are
suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating
the risks of transactions in penny stocks.
The
broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating
to the penny stock market, which, in highlight form sets forth the basis on which the broker or dealer made the suitability determination,
and that the broker or dealer received a signed, written agreement from the investor prior to the transaction.
Generally,
brokers may be less willing to execute transactions in securities subject to the "penny stock" rules. This may make
it more difficult for investors to dispose of the Company's Common Stock if and when such shares are eligible for sale and
may cause a decline in the market value of our stock.
Disclosure
also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the
commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the
rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to
be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny
stock.
Our executive officers, directors,
principal shareholders, and their affiliates continue to exercise significant influence over our company, which will limit your
ability to influence corporate matters and could delay or prevent a change in corporate control.
Our executive officers,
directors, principal shareholders and their affiliates will beneficially hold in aggregate 86.17% of the outstanding voting power.
These insiders are able to control all matters requiring stockholder approval, including the election of directors and approval
of significant corporate transactions. This could delay or prevent an outside party from acquiring or merging with us even if our
other stockholders wanted it to occur.
Anti-takeover provisions under Delaware
law could make an acquisition of us, which may be beneficial to our shareholders, more difficult and may prevent attempts by our
shareholders to replace or remove our current management.
We are currently governed
by the provisions of Section 203 of the DGCL, which limits the ability of shareholders owning in excess of 15% of our outstanding
voting stock to merge or combine with us. Although we believe these provisions collectively provide for an opportunity to obtain
greater value for shareholders by requiring potential acquirors to negotiate with our board of directors, they would apply even
if an offer rejected by our board were considered beneficial by some shareholders. In addition, these provisions may frustrate
or prevent any attempts by our shareholders to replace or remove our current management by making it more difficult for shareholders
to replace members of our board of directors, which is responsible for appointing the members of our management.
58
Sales of a substantial number of
shares of our common stock in the public market could cause our stock price to fall.
Xynomic
stockholders have agreed to lock up their Merger Consideration Shares until Febraury 15, 2020 (subject to certain exceptions)
and our Initial Shareholders have agreed to lock up 50% of the Founder Shares until the earlier of (a) May 15, 2020, or (b)
the date on which the closing price of the Company common shares equals or exceeds $12.50 per share for any 20 trading days
within any 30-trading day period and lock up the remaining 50% of the Founder Shares until May 15, 2020. If our Initial
Shareholders or Xynomic stockholders sell, or indicate an intention to sell, substantial amounts of our common stock in the
public market after all legal restrictions on resale lapse, the market price of our common stock could decline.
The unaudited pro forma financial
information included in this document may not be indicative of what our actual financial position or results of operations would
have been.
The unaudited pro forma
financial information in this prospectus is presented for illustrative purposes only and is not necessarily indicative of what
our actual financial position or results of operations would have been had the companies always been combined or for the periods
presented, or which may be realized in the future. See the section entitled "
Unaudited Pro Forma Condensed Combined Financial
Information
" for more information.
There is no guarantee that the public
warrants will ever be in the money, and they may expire worthless and the terms of our warrants may be amended.
The exercise price for
our warrants is $11.50 per whole share, subject to certain adjustment. Warrants may be exercised only for a whole number of Company
common shares. No fractional shares will be issued upon exercise of the warrants. There is no guarantee that the public warrants
will ever be in the money prior to their expiration and they may expire worthless.
In addition, the warrant
agreement between Continental Stock Transfer & Trust Company, as the warrant agent, and us provides that the terms of the warrants
may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, but requires the approval
by the holders of at least a majority of the then outstanding public warrants to make any change that adversely affects the interests
of the registered holders. Accordingly, we may amend the terms of the warrants in a manner adverse to a holder if holders of at
least a majority of the then outstanding public warrants approve of such amendment. Examples of such amendments could be amendments
to, among other things, increase the exercise price of the warrants, shorten the exercise period or decrease the number of Company
common shares purchasable upon exercise of a warrant.
A market for our securities may not
continue, which would adversely affect the liquidity and price of our securities.
Following the Business
Combination, the price of our securities may fluctuate significantly due to the market's reaction to the Business Combination,
the business of Xynomic and general market and economic conditions. An active trading market for our securities following the Business
Combination may never develop or, if developed, may not be sustained. In addition, the price of our securities after the Business
Combination can vary due to general economic conditions and forecasts, our general business condition, and the release of our financial
reports. Additionally, if our securities are not listed on, or become delisted from, Nasdaq for any reason, and are quoted on the
OTC Bulletin Board, an inter-dealer automated quotation system for equity securities that is not a national securities exchange,
the liquidity and price of our securities may be more limited than if we were quoted or listed on Nasdaq or another national securities
exchange. You may be unable to sell your securities unless a market can be established or sustained.
59
There can be no assurance that our
shares and warrants will continue to be so listed or, if listed, that we will be able to comply with the continued listing standards
of Nasdaq.
In connection with the
consummation of the Business Combination, we have received a written notice from Nasdaq indicating that Nasdaq determined to delist
the our securities based upon our non-compliance with Nasdaq Listing Rules 5505(a)(3) and 5515(a)(4), which require a minimum of
300 round lot holders of common stock and 400 round lot holders of warrants for initial listing on The Nasdaq Capital Market as
well as our non-compliance with the minimum $5 million in stockholders' equity requirement, as set forth in Nasdaq Listing
Rule 5505(b)(1)(A). Though we believe that the closing of this Offering will cure such deficiency as indicated in the letter from
Nasdaq, we cannot assure you that we may be granted additional time for stay by Nasdaq hearing panel before we close this Offering
or we can successfully close this Offering if at all.
If, Nasdaq delists our
shares or warrants from trading on its exchange due to our failure to meet Nasdaq's initial and/or continued listing standards,
we and our shareholders could face significant material adverse consequences including:
●
a
limited availability of market quotations for our securities;
●
a determination that our shares are "penny stock," which will require brokers trading in our shares to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for our shares;
●
a limited amount of analyst coverage; and
●
a decreased ability to issue additional securities or obtain additional financing in the future.
Pursuant to the Jumpstart Our Business
Startups Act of 2012 (the "JOBS Act"), our independent registered public accounting firm will not be required to attest
to the effectiveness of our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002
for so long as we are an "emerging growth company."
Section 404 of the Sarbanes-Oxley
Act of 2002 requires annual management assessments of the effectiveness of our internal control over financial reporting, and generally
requires in the same report a report by our independent registered public accounting firm on the effectiveness of our internal
control over financial reporting. Following the Business Combination, the combined company will continue to be required to provide
management's attestation on internal controls effective with respect to the year ended December 31, 2018, in accordance with
applicable SEC guidance.
However, under the JOBS
Act, our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control
over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 until we are no longer an "emerging growth
company." We could be an "emerging growth company" until the earlier of (1) the last day of the fiscal year (a)
following June 23, 2022, the fifth anniversary of our IPO, (b) in which we have total annual gross revenue of at least $1.07 billion,
(c) our non-convertible debt issued within a three year period exceeds $1 billion, or (d) if the market value of our shares that
are held by non-affiliates exceeds $700 million on the last day of our second fiscal quarter.
In addition, Section
107 of the JOBS Act also provides that an "emerging growth company" can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. An "emerging
growth company" can therefore delay the adoption of certain accounting standards until those standards would otherwise apply
to private companies. We have chosen not to "opt out" of such extended transition period, which means that when a standard
is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company,
can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison
of our financial statements with another public company which is neither an emerging growth company nor an emerging growth company
which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting
standards used. Such circumstances could adversely affect the value and liquidity of our securities.
The future exercise of registration
rights may adversely affect the market price of our common stock.
We have entered
into registration rights agreement with majority shareholders of the Company which grants holders of our Founder Shares,
Private Units, Working Capital Units, Backstop Shares and the Merger Consideration Shares respective demand registration
rights and piggy back registration rights. See description of "
Registration Rights Agreement
" on page 3.
We also granted investors in the Unit Offering certain piggy-back registration rights.
60
Warrants will become exercisable
for our Company common shares, which would increase the number of Company common shares eligible for future resale in the public
market and result in dilution to our stockholders.
We currently have 3,259,779
warrants issued and outstanding Each warrant entitles the holder thereof to purchase one share of our Common Stock at a price of
$11.50 per whole share, subject to adjustments. No fractional shares will be issued upon exercise of the warrants. In addition,
we expect to issue additional up to [  ] Series A Warrants at the closings of the Unit Offering, each of which would entitle the
holder to purchase one share of Common Stock at a price of $7.00 per whole share, subject to adjustments. To the extent warrants
are exercised, additional shares will be issued, which will result in dilution to the then existing holders of Company common shares
and increase the number of Company common shares eligible for resale in the public market. Sales of substantial numbers of such
shares in the public market could adversely affect the market price of our common stock.
The foreign subsidiaries of the combined
entity may qualify as a controlled foreign corporation ("CFC"), which could result in adverse U.S. federal income tax
consequences to the combined entity.
Under the CFC rules,
a 10% Shareholder generally must include annually as ordinary income its pro rata share of its CFC's "subpart F income"
and "global intangible low-taxed income," even if no distributions are made by the foreign subsidiaries to the combined
entity. Therefore, the combined entity must generally include annually as ordinary income its foreign subsidiaries' "subpart
F income" and "global intangible low-taxed income," even if no distributions are made by the foreign subsidiaries
to the combined entity, causing adverse U.S. federal income tax consequences to the combined entity. We urge U.S. investors to
consult their own tax advisors regarding the possible application of the CFC rules.
We may have
been, and may become, subject to income tax (or an increased amount of income tax) in one or more countries, including the United
States, which could materially reduce our after-tax returns and the value of Company common shares.
All
or a portion of the income of our foreign subsidiaries may be treated in the United States as effectively connected with a U.S.
trade or business. Whether our foreign subsidiaries have been, or will be, subject to tax in the United States is not free from
doubt in light of the applicable tax law and guidance regarding activities that constitute being engaged in a trade or business
in the United States for U.S. federal income tax purposes. Accordingly, the Company cannot assure you that the IRS will not contend,
perhaps successfully, that a our foreign subsidiary is engaged in a trade or business in the United States or is subject to more
U.S. income tax than it currently incurs. A foreign corporation deemed to be so engaged would be subject to U.S. federal income
tax, as well as branch profits tax, on its income that is treated as effectively connected with the conduct of that trade or business
unless the corporation is entitled to relief under an applicable tax treaty.
We could become subject
to income tax in one or more countries, including the United States, as a result of activities performed by it, adverse developments
or changes in law, contrary conclusions by the relevant tax authorities or other causes. The imposition of any of these income
taxes could materially reduce the combined company's post-tax returns available for distributions on, and consequently the
value of, Company common shares.
An investor may be subject to adverse
U.S. federal income tax consequences in the event the Internal Revenue Service ("IRS") were to disagree with the U.S.
federal income tax consequences described herein.
We have not sought
a ruling from the IRS as to any U.S. federal income tax consequences described herein. The IRS may disagree with the descriptions
of U.S. federal income tax consequences contained herein, and its determination may be upheld by a court. Any such determination
could subject an investor or our company to adverse U.S. federal income tax consequences that would be different than those described
herein. Accordingly, each prospective investor is urged to consult a tax advisor with respect to the specific tax consequences
of the acquisition, ownership and disposition of our ordinary shares, rights, and warrants, including the applicability and effect
of state, local, or non-U.S. tax laws, as well as U.S. federal tax laws.
61
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking
statements, including, without limitation, in the sections captioned "
Description of Business
," "
Risk
Factors
," and "
Management's Discussion and Analysis of Financial Condition and Plan of Operations
,"
and elsewhere. Any and all statements contained in this Report that are not statements of historical fact may be deemed forward-looking
statements. Terms such as "may," "might," "would," "should," "could,"
"project," "estimate," "pro-forma," "predict," "potential," "strategy,"
"anticipate," "attempt," "develop," "plan," "help," "believe,"
"continue," "intend," "expect," "future," and terms of similar import (including
the negative of any of the foregoing) may be intended to identify forward-looking statements. However, not all forward-looking
statements may contain one or more of these identifying terms. Forward-looking statements in this Report may include, without limitation,
statements regarding (i) the plans and objectives of management for future operations, (ii) a projection of income (including income/loss),
earnings (including earnings/loss) per share, capital expenditures, dividends, capital structure or other financial items, (iii)
our future financial performance, including any such statement contained in a discussion and analysis of financial condition by
management or in the results of operations included pursuant to the rules and regulations of the Securities and Exchange Commission
("SEC"), (iv) estimates of our future revenue, expenses, capital requirements and our need for financing, and (v) the
assumptions underlying or relating to any statement described in points (i), (ii), (iii), or (iv) above.
The forward-looking statements are not meant
to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon
our current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks
and uncertainties and other influences, many of which we have no control over. Actual results and the timing of certain events
and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties.
Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially
from expected or desired results may include, without limitation:
●
our
ability to meet anticipated clinical trial commencement, enrollment and completion dates and regulatory filing dates for our product
candidates and to move new development candidates into the clinic;
●
the occurrence of adverse safety events with our product candidates;
●
the costs associated with our research, development, manufacturing, commercialization and other activities;
●
the conduct, timing and results of preclinical and clinical studies of our product candidates, including that preclinical data and early-stage clinical data may not be replicated in later-stage clinical studies;
●
the adequacy of our capital resources and the availability of additional funding;
●
patent protection and third-party intellectual property claims;
●
risks
related to key employees, markets, economic conditions, health care reform, prices and reimbursement rates; and
●
other
risks and uncertainties, including those listed under the section title "
Risk Factors
."
Readers are cautioned not to place undue
reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. We disclaim
any obligation to update the forward-looking statements contained in this Report to reflect any new information or future events
or circumstances or otherwise, except as required by law.
Readers should read this Report in conjunction
with the discussion under the caption "
Risk Factors
," our financial statements and the related notes thereto
in this Report, and other documents which we may file from time to time with the SEC.
62
USE OF PROCEEDS
We estimate that we
will receive net proceeds from this Offering of up to $
[●]
million, based on an assumed price to the public in this
Offering of $
[●]
, the midpoint of the price range set forth on the cover page of this prospectus, after deducting
underwriting discounts and commissions and estimated offering expenses.
Use of net proceeds
Fund preclinical and clinical development :
Abeinostat clinical development and outsourced manufacturing
approximately
                                                                                                US$ [●]
XP-105 clinical development
approximately
                                                                                     US$ [●]
XP-102 clinical development
approximately
                                                                                     US$ [●]
Fund Other non-Lead Projects under Development, general research and development activities, working capital and other general corporate activities
approximately
                                                                                     US$ [●]
As
of the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds from this Offering.
The amounts and timing of our actual expenditures may vary significantly from our expectations depending upon numerous factors,
including the progress of our research, development and commercialization efforts, the progress of our preclinical trials, and
our operating costs and capital expenditures. Drug discovery and development in the pharmaceutical industry is characterized by
significant risks and uncertainties inherent in the research, clinical development and regulatory approval process. These uncertainties
make it difficult for us to estimate the costs to conduct our research and development and complete our preclinical trials. Accordingly,
we will retain broad discretion in the allocation of the net proceeds of this Offering, and we reserve the right to change the
allocation of use of these proceeds as a result of contingencies such as the progress and results of our preclinical trials and
our research and development activities, the results of our commercialization efforts, competitive developments and our manufacturing
requirements. In addition, when and if the opportunity arises, we may use a portion of the proceeds to license, acquire or invest
in complementary businesses, products, or technologies. In order to license, acquire or invest in complementary businesses, products
or technologies, we may need to curtail our development of our Other Projects under Development described above, or enter into
agreements allowing others to obtain rights for further development of one or more of our drug and device candidates earlier than
anticipated. We currently have no commitments or agreements to acquire any such businesses, products or technologies, and we cannot
determine with certainty which, if any, of the programs above might be affected should we enter into any such commitments
.
The net proceeds from
this offering, together with our cash and marketable securities, will not be sufficient for us to fund any of our product candidates
through regulatory approval, and we will need to raise additional capital to complete the development of our product candidates.
We may satisfy our future cash needs through the sale of equity securities, debt financings, working capital lines of credit, corporate
collaborations or license agreements, grant funding, through interest income earned on cash balances or a combination of one or
more of these sources. This expected use of net proceeds from this offering represents our intentions based upon our current plans
and business conditions, which could change in the future as our plans and business conditions evolve. The amounts and timing of
our actual expenditures may vary significantly depending on numerous factors, including the progress of our development, the status
of and results from different preclinical and clinical trials, as well as any collaborations that we may enter into with third
parties for our programs, and any unforeseen cash needs. As a result, our management will retain broad discretion over the allocation
of the net proceeds. We cannot specify with certainty all of the particular uses for the net proceeds to be received upon the closing
of this offering.
63
DIVIDEND POLICY
We have never paid our
holders of Common Stock any cash dividends, and currently intend to retain future earnings, if any, to finance the expansion of
its business.  As a result, we do not anticipate paying any cash dividends on our Common Stock in the foreseeable future as
we intend to retain any earnings for use in our business. Any future determination to pay dividends to the holders of our Common
Stock will be at the discretion of our Board of Directors.
64
CAPITALIZATION
The following table
sets forth our cash and cash equivalents and capitalization as of March 31, 2019. Such information is set forth on the following
basis:
●
on
an actual basis;
●
on
a pro forma basis; and
●
as adjusted basis to give effect to the sale and issuance
of  [●] shares of Common Stock by us in this offering, based upon the receipt by us of the estimated net proceeds
from this offering at an assumed public offering price of $[●] per share, the last reported sale price of our Common Stock
on The Nasdaq Stock Market on [●], 2019, and after deducting the estimated underwriting discounts and commissions and estimated
offering expenses payable by us and the application of the net proceeds from this offering as described in "Use of Proceeds."
You should consider
this table in conjunction with "Description of Securities" on page 159 and our financial statements and the notes to
those financial statements included elsewhere in this prospectus.
As
of March 31, 2019
Actual
Pro Forma
Pro Forma
As Adjusted
(1)
Cash, cash equivalents and marketable securities
$
[●]
[●]
[●]
Shareholders' equity:
Share capital:
[[●]
[●]
[●]
[●]
Additional paid-in capital
-
[●]
[●]
Accumulated earnings/(deficit)
[●]
[●]
[●]
Total shareholders' equity(deficit)
[●]
[●]
[●]
Total capitalization
$
[●]
[●]
$
[●]
(1)
Each $1.00 increase (decrease) in the assumed public offering
price of $[●] per share, which is the last reported sale price of our shares of common stock on The Nasdaq Stock Market
on [●], 2019, would increase (decrease) our cash, cash equivalents and marketable securities, total shareholders'
equity and total capitalization by approximately $[●] million, assuming that the number of shares offered by us, as set
forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions
payable by us. Each increase (decrease) of 1,000,000 shares in the number of shares offered by us would increase (decrease) the
amount of our cash, cash equivalents and marketable securities, total shareholders' equity and total capitalization by approximately
$[●] million, assuming a public offering price of $[●] per share, which is the last reported sale price of our shares
on The Nasdaq Stock Market on [●], 2019, after deducting estimated underwriting discounts and commissions payable by us.
The as adjusted information discussed above is illustrative only and will adjust based on the actual initial price to the public
and other terms of this offering determined at pricing.
65
DILUTION
If you purchase shares of common stock in
this offering, assuming no value is attributed to the Representative's Warrants, you will experience dilution to the extent
of the difference between the price per share you pay in this offering and the net tangible book value per share of our shares
of common stock immediately after this offering. The net tangible book value of our shares of common stock on March 31, 2019 was
$[   ] million, or $[  ] per share. Net tangible book value per share is equal to the amount of consolidated total assets, less intangible
assets, goodwill and consolidated total liabilities, divided by number of shares of common stock outstanding. Such calculation
does not reflect any dilution associated with the exercise of the Representative's Warrants.
After giving effect to the assumed sale by
us of an aggregate of [  ] shares of common stock in this offering at an assumed public offering price of $[  ] per share, after deducting
the underwriting discount and estimated offering expenses payable by us and assuming no value is attributed to the Representative's
Warrants, our as adjusted net tangible book value as of March 31, 2019 would have been $[  ] million, or $[  ] per share.
This represents an immediate increase in
net tangible book value of $[  ] per share to existing stockholders and an immediate dilution of $[  ] per share to new investors purchasing
shares of common stock in this offering. The following table illustrates this per share dilution assuming no value is attributed
to the Representative's Warrants:
Assumed public offering price per share
$
[  ]
Net tangible book value per share as of March 31, 2019
$
[  ]
As adjusted net tangible book value per share as of March 31, 2019 after giving effect to this offering
$
[  ]
Dilution per share to investors participating in this offering
$
[  ]
Each $0.50
increase (decrease) in the assumed public offering price of $[  ] per share would increase (decrease) our as adjusted net
tangible book value after this offering by $[  ] million, or $[  ] per share, and the dilution per share to new investors by $[  ]
per share, assuming that the number of shares of common stock offered by us, as set forth above, remains the same and after
deducting the underwriting discount and estimated offering expenses payable by us. We may also increase or decrease the
number of shares of common stock we are offering from the number of shares of common stock set forth above. An increase
(decrease) of 500,000 shares of common stock in the number of shares of common stock offered by us from the number of shares
of common stock set forth above would increase (decrease) our as adjusted net tangible book value after this offering by $[  ]
million, or $[  ] per share, and the dilution per share to new investors by $[  ] per share, assuming that the public offering
price remains the same and after deducting the underwriting discount and estimated offering expenses payable by us. The
information discussed above is illustrative only and will adjust based on the actual public offering price, the actual number
of shares of common stock that we offer in this offering, and other terms of this offering determined at pricing.
The number of shares of common stock reflected
in the discussion and table above is based on [  ] shares of common stock issued and outstanding as of March 31, 2019 and excludes
certain shares (See "Capitalization").
66
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis
should be read together with our financial statements and the related notes appearing elsewhere in this prospectus. This discussion
contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. See "Cautionary
Note Regarding Forward-Looking Statements and Industry Data" for a discussion of the uncertainties, risks and assumptions
associated with these statements. Actual results and the timing of events could differ materially from those discussed in our forward-looking
statements as a result of many factors, including those set forth under "Risk Factors" and elsewhere in this prospectus.
Special
Note Regarding Forward-Looking Statements
This prospectus includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934 that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially
from those expected and projected. All statements, other than statements of historical fact included in this prospectus including,
without limitation, statements in this "Management's Discussion and Analysis of Financial Condition and Results of
Operations" regarding the Company's financial position, business strategy and the plans and objectives of management
for future operations, are forward-looking statements. Words such as "expect," "believe," "anticipate,"
"intend," "estimate," "seek" and variations and similar words and expressions are intended
to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but
reflect management's current beliefs, based on information currently available. A number of factors could cause actual events,
performance or results to differ materially from the events, performance and results discussed in the forward-looking statements.
For information identifying important factors that could cause actual results to differ materially from those anticipated in the
forward-looking statements, please refer to the Risk Factors section of this prospectus. The Company's securities filings
can be accessed on the EDGAR section of the SEC's website at
www.sec.gov
. Except as expressly required by applicable
securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as
a result of new information, future events or otherwise.
Overview
Prior to the consummation
of the Business Combination with Xynomomic Pharmaceuticals, Inc., a Delaware corporate ("
Xynomic
") on
May 15, 2019, we were a blank check company formed for the purpose of acquiring, engaging in a share exchange, share reconstruction
and amalgamation, purchasing all or substantially all of the assets of, entering into contractual arrangements, or engaging in
any other similar business combination with one or more businesses or entities. As a result of the Business Combination, we now
are a clinical stage biopharmaceutical company that discovers and develops innovative small molecule drug candidates for the treatment
of cancer in humans. Our approach is to focus on drug candidates that target both hematological malignancies and solid tumors.
Our lead drug candidate is abexinostat, an orally dosed, hydroxamic acid-based small molecule histone deacetylase ("
HDAC
")
inhibitor. Our other clinical stage drug candidate is XP-105, an orally bioavailable kinase inhibitor, which inhibits both raptor-mTOR
complex 1 and rictor-mTOR complex 2. In addition, Xynomic has several pre-clinical oncology drug candidates in its pipeline. Among
these drug candidates, XP-102 (also known as BI 882370), a selective RAF inhibitor, is the closest to clinical testing. The following
is a summary of our product development pipeline:
67
We have not completed
any clinical trials since its inception. With respect to the pipeline programs referenced in the above figure, all of the completed
clinical trials of abexinostat were conducted by or on behalf of either Pharmacyclics LLC ("
Pharmacyclics
")
or Servier Laboratories and the one completed clinical trial of XP-105 was conducted by or on behalf of Boehringer Ingelheim International
GmbH ("
Boehringer Ingelheim
" or "
BII
"
). We have obtained exclusive rights
to use all the data generated in these previously completed clinical trial.
●
Abexinostat
– our most advanced
drug candidate, abexinostat, has been evaluated in 18 Phase 1/2 clinical trials for lymphoma and solid tumors. In February 2017,
Xynomic entered into a license agreement with Pharmacyclics for the worldwide exclusive rights to develop and commercialize abexinostat
for all human and non-human diagnostic, prophylactic, and therapeutic uses. Since its in-licensing of abexinostat, Xynomic has
started enrolling patients in clinical trials for three different indications: (1) in follicular lymphoma, as a monotherapy, (2)
in renal cell carcinoma, in combination with pazopanib, and (3) in multiple solid tumors, in combination with Keytruda
®
.
In addition, Xynomic plans to initiate four clinical trials of abexinostat in the next six months.
●
XP-105
(also known as BI 860585)
– In December 2018, Xynomic entered into a license agreement with Boehringer Ingelheim for the worldwide exclusive rights
to develop and commercialize XP-105 (also known as BI 860585) for all human and non-human diagnostic, prophylactic, and therapeutic
uses. Prior to this license, BII had completed one Phase 1 clinical trial for solid tumors. Xynomic plans to initiate two clinical
trials of XP-105 in late 2019.
●
Pre-Clinical Programs
– In
addition, Xynomic has several pre-clinical oncology drug candidates in its pipeline. Among these drug candidates, XP-102 (also
known as BI 882370), a selective RAF inhibitor to which Xynomic obtained a worldwide exclusive license from Boehringer Ingelheim,
is the closest to clinical testing.
Business Combination:
On September 12, 2018,
Bison Capital Acquistiion Corp., our processor at that time ("
Bison
") entered into an Agreement and Plan
of Merger (the "
Merger Agreement
") with (i) Xynomic; (ii) Bison Capital Merger Sub Inc., a Delaware corporation
("
Merger Sub
") (iii) Mark Xu ("
Stockholder Representative
"), solely in his
capacity as the Stockholder Representative thereunder.
On March 21, 2019, Bison's
stockholders approved the following items: (i) an amendment to the Bison's Amended and Restated Memorandum of Association
and Articles of Association extending the date by which Bison must consummate its initial business combination and the date for
cessation of operations of Bison if Bison has not completed an initial business combination from March 23, 2019 to June 24, 2019
or such earlier date as determined by the Board of Directors of Bison and (ii) an amendment (the "
Amendment to Trust
Agreement
") to the Trust Agreement (the "
Trust Agreement
") between Bison and the trust
agent extending the date on which to commence liquidation of the Trust Account in accordance with the Trust Agreement, as amended
by the Amendment to Trust Agreement, from March 23, 2019 to June 24, 2019.
On May 15, 2019 (the
"
Closing Date
"), Bison consummated the previously announced business combination (the "
Business
Combination
") following a special meeting of shareholders held on May 14, 2019 (the "
Special Meeting
")
where the shareholders of Bison, which, prior to the consummation of the Business Combination, domesticated as a Delaware corporation
and, immediately thereafter known as "Xynomic Pharmaceuticals Holdings, Inc.", considered and approved, among other
matters, a proposal to adopt the Merger Agreement.
Pursuant to the Merger
Agreement, among other things, Merger Sub merged with and into Xynomic, with Xynomic continuing as the surviving entity
and a wholly-owned subsidiary of the Company (the "
Merger
" and the "
Surviving Company
").
The merger became effective on May 15, 2019.
On May 14, 2019, prior
to the consummation of the Business Combination, Bison continued out of the British Virgin Islands and domesticated as a Delaware
corporation (the "
Domestication
"). As a result, Bison is no longer a company incorporated in the British
Virgin Islands.
At the Closing Date,
pursuant to the Backstop Agreement dated May 1, 2019 entered into by and between Bison and Yinglin Mark Xu, Mr. Xu togher
with his assignee Bison Capital Holding Company Limited, purchased from the Company 755,873 shares of common stock at a price of
$10.15 per share for a total consideration of $7,672,112 (the "
Backstop Shares
" and "
Backstop
Subscription
"). As a result of Backstop Subscription, Bison had at least $7,500,001 of net tangible assets remaining
at the Closing after giving effect to the redemption of any Ordinary Shares by the public shareholders in connection with the Business
Combination.
At the Closing Date,
each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective Time was automatically converted
into the right to receive, on a pro rata basis, the Closing Consideration Shares (as defined below) and the Earnout Shares (as
defined below), and each option to purchase Xynomic stock that was outstanding immediately prior to the Effective Time was assumed
by the Company and automatically converted into an option to purchase shares of common stock of the Company.
68
At the closing, pursuant
to the Merger Agreement, all Xynomic stockholders received a number of newly issued shares of Company common stock equal to the
Closing Merger Consideration divided by $10.15 per share (the "
Closing Consideration Shares
"). The Closing
Merger Consideration equals to (a) $350,000,000, minus (i) the amount of Xynomic's closing indebtedness, plus (ii) the amount
of Xynomic's closing cash, minus (iii) the amount of Xynomic's transaction expenses, plus (iv) certain closing tax
assets, plus (v) the amount, if any, by which Xynomic's closing working capital exceeds an agreed upon target amount of working
capital, minus (vi) the amount, if any, by which such target amount of working capital exceeds Xynomic's closing working
capital.
In addition to the Closing
Consideration Shares, Xynomic stockholders received an additional 9,852,216 shares of common stock in aggregate (the "
Earnout
Shares
" and, together with the Closing Consideration Shares, the "
Merger Consideration Shares
").
As a result, the Company issued 42,860,772 common shares as in aggregate Merger Consideration Shares to shareholders of Xynomic
immediately prior to the closing (the "
Sellers
").
Pursuant to the Merger
Agreement, 1,285,822 shares were deposited into an escrow account (the "
Escrow Account
") to serve as
security for, and the exclusive source of payment of, the Company's indemnity rights under the Merger Agreement and any
excess of the estimated Closing Merger Consideration over the final Closing Merger Consideration amount determined post-Closing.
As a result of the Business
Combination, the Sellers, as the former shareholders of Xynomic, became the controlling shareholders of the Company and Xynomic
became a subsidiary of the Company. The Business Combination was accounted for as a reverse merger, wherein Xynomic is considered
the acquirer for accounting and financial reporting purposes.
Prior to the Business
Combination, we were a "shell company" (as such term is defined in Rule 12b-2 under the Securities Exchange Act of
1934, as amended). As a result of the Business Combination, we have ceased to be a "shell company" and will continue
the existing business operations of Xynomic as a publicly traded company under the name "Xynomic Pharmaceuticals Holdings,
Inc."
Nasdaq Listing Compliance
On May 15, 2019, we
received written notice from the staff of The NASDAQ Stock Market LLC ("
Nasdaq
") indicating that the
Staff had determined to delist the Company's securities from Nasdaq based upon the Company's non-compliance with Nasdaq
Listing Rules 5505(a)(3) and 5515(a)(4), which require a minimum of 300 round lot holders of common stock and 400 round lot holders
of common stock purchase warrants for initial listing on The Nasdaq Capital Market. The Staff's determination also cited
the Company's non-compliance with the minimum $5 million in stockholders' equity requirement, as set forth in Nasdaq
Listing Rule 5505(b)(1)(A).
Upon request, a hearing
before the Panel was scheduled on July 11, 2019 and our request for hearing has stayed any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to the Company by
the Panel. We intend to pursue certain actions including this Offering to increase the number of round lot holders of its common
stock as well as increase its stockholders' equity as soon as practicable to meet the applicable listing requirements; however,
there can be no assurances that the Company will be able to do so within the period of time that may be granted by the Panel.
Unit Offering
On
or about July 10, 2019, we entered into certain Securities Purchase Agreement (the "Unit SPA") with certain "accredited
investors" as defined in Rule 501(a) of Regulation D as promulgated under the Securities Act (the "Unit Purchasers"),
pursuant to which we agreed to sell to such Unit Purchasers an aggregate of approximate USD$10 million of units (the "Units")
of the Company, at a purchase price of USD$3.80 per Unit (subject to adjustment) (the "Unit Offering"). Each Unit consists
of one share of Common Stock and one-half warrant (the "Unit Warrant"). Each whole Unit Warrant can be exercised to
purchase one share of Common Stock at $7.00 per share and shall expire in three (3) years of the issuance, and have the rights
and preference set forth in certain warrant agreement. Furthermore, the Unit SPA provides, among other terms, a maximum offering
in an aggregate of $15 million with the first closing of a minimum of $5 million upon delivery of the closing conditions set forth
in the Unit SPA, provided that no closing shall occur after September 30, 2019 subject to certain exception.
The
Units, the shares of Common Stock underlying the Units (the "Unit Shares"), the Unit Warrants issued in the Offering,
and shares of Common Stock issuable upon exercise of the Unit Warrants (the "Unit Warrant Shares"), are exempt from
the registration requirements of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D.
The
proceeds of this Unit Offering will be used for working capital and general corporate purposes.
The
Unit SPA also contains customary representation and warranties of the Company and the Unit Purchasers, indemnification obligations
of the Company, termination provisions, and other obligations and rights of the parties. Additionally, we anticipate that the Unit
Purchasers will enter into a lock-up agreement at the closing pursuant to which that they would agree not to sell or otherwise
transfer or dispose the Units, Unit Shares, Unit Warrants, or Unit Warrant Shares during the six-month period commencing on the
earlier of the effective date of a registration statement in connection with the first follow-on public offering after the date
of the Unit SPA or the issuance date of the Units.
The
Form of the Unit SPA and the Form of the Unit Warrants are filed as Exhibits 10.22 and 10.23 to this prospectus, respectively;
and such documents are incorporated herein by reference. The foregoing is only a brief description of the material terms of the
Unit SPA and the Unit Warrants, and does not purport to be a complete description of the rights and obligations of the parties
thereunder and is qualified in its entirety by reference to such exhibits.
69
Xynomic's
Management's Discussion And Analysis Of Financial Condition And Results Of Operations
Since inception in 2016, Xynomic's
operations have focused on organizing and staffing the company, business planning, raising capital, in-licensing drug candidates,
identifying kinase drug targets and potential drug candidates, establishing its intellectual property, producing drug substance
and drug product materials for use in clinical trials and pre-clinical studies, and conducting clinical trials and pre-clinical
studies. Xynomic does not have any drugs approved for sale, has not generated any revenue from product sales to date, and it will
not generate any product revenue until it receives approval from the FDA or equivalent foreign regulatory bodies to begin selling
its pharmaceutical product candidates. Developing pharmaceutical products is a lengthy and expensive process. Even assuming that
Xynomic does not encounter any unforeseen safety or other issues during the course of developing its product candidates, Xynomic
does not expect to complete the development of a product candidate in several years, if ever. To date, almost all of Xynomic's
development expenses have been incurred on its product candidates: abexinostat, XP-102, XP-103, XP-104, and XP-105.
From inception through March 31, 2019, Xynomic
has raised an aggregate of $26.5 million of gross proceeds to fund its operations, of which $0.5 million was from the issuance
of Angel Preferred Shares, $4.3 million was from the issuance of Series A-1 Preferred Shares, $2.5 million was from convertible
notes, $1.4 million was from advances from a Series B shareholder, $0.9 million was from short-term loan provided by Shanghai Jingshu
Venture Capital Center, $2.4 million was from financing provided by Yinglin Mark Xu, and $17 million was from issuance of Redeemable
Convertible Series B Preferred Shares, including the conversion of convertible notes of US$2.5 million.
Since
inception, Xynomic has incurred operating losses. Xynomic's net losses were $618,930 and $14,144,555
for
the three months ended March 31, 2018 and 2019, respectively. As of March 31, 2019, Xynomic had accumulated deficit of $48,467,724
.
Xynomic expects to incur significantly higher expenses and operating losses over the next several years in connection with its
ongoing activities, as Xynomic:
●
continues pre-clinical and clinical development of
its programs;
●
in-licenses and subsequently develops additional oncology
drug candidates;
●
continues to discover, validate, and develop additional
drug candidates;
●
maintains, expands, and protects its intellectual property
portfolio;
●
hires additional research, development, and business
personnel;
●
if abexinostat is successfully approved for commercialization,
incurs additional costs associated with filing marketing authorization applications and establishing sales and marketing infrastructure
for abexinostat in the U.S., China, and other territories; and
●
incurs additional costs associated with operating as
a public company following the closing of the business combination with Bison (defined below).
70
Financial Position
Since Xynomic have
not generated any revenues from product sales, substantial additional financing will be required to continue to fund its research
and development activities. No assurance can be given that any such financing will be available when needed or that our research
and development efforts will be successful.
Xynomic ability to
fund operations is based on our ability to attract investors and Xynomic's ability to borrow funds on reasonable economic
terms. Historically, the Group has relied principally on equity financing and shareholder's
borrowings to fund its operations and business development. The Group's ability to continue as a going concern is dependent
on management's ability to successfully execute its business plan, which includes generating revenues after drug marketing,
controlling operating expenses, as well as, continuing to obtain additional equity financing. On April 3, 2018, the Group issued
convertible notes to Northern Light Venture Capital V, Ltd., and Bo Tan and received proceeds of US$2,500,000, which were converted
into 776,633 Series B Preferred Shares in August 2018. Further in August 2018, the Group raised US$17 million by issuance of 5,281,101
Series B Preferred Shares to certain investors, including the conversion of convertible notes of US$2.5 million. On September 12,
2018, the Group entered into an Agreement and Plan of Merger (the "Merger Agreement") with Yinglin Mark Xu, Bison Capital
Acquisition Corp., a NASDAQ listed company, ("Bison" and after the consummation of the Business Combination, sometimes
referred to as "Company"), a Special Purpose Acquisition Company listed in Nasdaq, and Bison Capital Merger Sub Inc.
("Merger Sub"). Pursuant to the Merger Agreement, among other things, Merger Sub will merge with and into Xynomic,
with Xynomic continuing as the surviving entity and a wholly-owned subsidiary of Bison (the "Merger" and the "Surviving
Company"). On March 21, 2019, Bison's stockholders approved the following items: (i) an amendment to the Bison's
Amended and Restated Memorandum of Association and Articles of Association extending the date by which Bison must consummate its
initial business combination and the date for cessation of operations of Bison if Bison has not completed an initial business combination
from March 23, 2019 to June 24, 2019 or such earlier date as determined by the Board of Directors of Bison and (ii) an amendment
(the "Amendment to Trust Agreement") to the Trust Agreement (the "Trust Agreement") between Bison and Continental
extending the date on which to commence liquidation of the Trust Account in accordance with the Trust Agreement, as amended by
the Amendment to Trust Agreement, from March 23, 2019 to June 24, 2019. The Company completed the business combination with Bison
on May 15, 2019. The Group also plans to attract institutional investors following the business combination. Further, the Group
can adjust the pace of its clinical development and patient recruitment and control the operating expenses of the Group.
The Group currently does not have any commitments
to obtain additional funds except to the private placement and this Offering that the Company is contemplating; and may be unable
to obtain sufficient funding in the future on acceptable terms, if at all. If the Group cannot obtain the necessary funding, it
will need to delay, scale back or eliminate some or all of its research and development programs to: commercialize potential products
or technologies that it might otherwise seek to develop or commercialize independently; consider other various strategic alternatives,
including another merger or sale of the Group; or cease operations. If the Group engages in collaborations, it may receive lower
consideration upon commercialization of such products than if it had not entered into such arrangements or if it entered into such
arrangements at later stages in the product development process.
The Group has prepared
its financial statements assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction
of liabilities in the normal course of business. The Group has incurred recurring losses from operations since inception. The Group
incurred a net loss of US$14,144,555 for the three months ended March 31, 2019. Further, as of March 31, 2019, the Group had net
current liabilities (current assets less current liabilities) of US$19,345,343 and accumulated deficit of US$48,467,724. The Group's
ability to continue as a going concern is dependent on its ability to raise capital to fund its current research and development
activities and future business plans. Additionally, volatility in the capital markets and general economic conditions in the United
States may be a significant obstacle to raising the required funds. These factors raise substantial doubt about its ability to
continue as a going concern. The financial statements included herein do not include any adjustments that might be necessary should
the Group be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements,
adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications
used.
Operations of the Group are subject to certain
risks and uncertainties including various internal and external factors that will affect whether and when the Group's product
candidates become approved drugs and how significant their market share will be, some of which are outside of the Group's
control. The length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage
of the drug approval process will materially affect the Group's financial condition and future operations.
Financial Operations Overview of Xynomic
Organization
Xynomic was incorporated on August 24, 2016,
in Wyoming and was re-domiciled to Delaware on April 3, 2018. As of March 31, 2019, Xynomic has one wholly owned subsidiary in
China, Xynomic Pharmaceuticals (Nanjing) Co., Ltd., which has two wholly owned subsidiaries, namely Xynomic Pharmaceuticals (Zhongshan)
Co., Ltd. and Xynomic Pharmaceuticals (Shanghai) Co., Ltd. Xynomic consolidates its financial statements in accordance with U.S. GAAP.
71
Revenue
To date, Xynomic has not generated any revenue.
In the future, Xynomic will seek to generate revenue from drug sales and potential strategic relationships. Assuming Xynomic commences
abexinostat's pivotal clinical trials in FL, one ongoing in the U.S. and Europe and another expected in China and such trials
generate satisfactory efficacy and safety data to a commercialization approval, the earliest time Xynomic would seek to commercialize
abexinostat in any region is 2021.
Expenses
Research and Development Expenses
Xynomic's research and development
expenses include:
●
upfront and milestone payments to Xynomic's licensors
associated with the in-licensing of global exclusive rights to abexinostat, XP-102 and XP-105;
●
the cost of discovery and development of Xynomic's
pre-clinical product candidates XP-103 and XP-104;
●
employee-related expenses including salaries, benefits
and bonuses;
●
direct research and development expenses incurred under
arrangements with third parties such as contract research organizations ("CROs"), contract manufacturing organizations,
and consultants;
●
the cost of lab supplies and acquiring, developing,
and manufacturing pre-clinical study materials; and
●
other operating costs.
Research and development costs are
recognized as expenses as incurred. Costs for certain activities are recognized based on an evaluation of the progress to completion
of specific tasks. Non-refundable advance payments for goods or services to be received in the future for use in research and development
activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services
are performed.
The successful development of Xynomic's
drug candidates is subject to substantial risks and uncertainties, which make the nature, timing, and costs of the efforts associated
with the development of these drug candidates, as well as the timing or amount of any potential net cash inflows from these drug
candidates, difficult to estimate. These risks and uncertainties include without limitation, risks and uncertainties associated
with:
●
establishing an appropriate safety profile with IND-enabling
toxicology studies;
●
successful enrollment in, and completion of clinical
trials;
●
receipt of marketing approvals from applicable regulatory
authorities;
●
establishing commercial manufacturing capabilities
or making arrangements with third-party manufacturers;
●
obtaining and maintaining patent and trade secret protection
and regulatory exclusivity for Xynomic's drug candidates;
●
commercializing the drug candidates, if and when approved,
whether alone or in collaboration with others; and
●
the acceptable safety profile of the drugs following
approval.
72
A change in the outcome of any of these variables
with respect to the development of any of Xynomic's drug candidates would significantly change the costs and timing associated
with the development of that drug candidate.
Research and development activities are central
to Xynomic's business model. Drug candidates in later stages of clinical development generally have higher development costs
than those in earlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical
trials. Xynomic expects research and development costs to increase significantly in the foreseeable future as its drug candidate
development programs progress. Xynomic, however, does not believe that it is possible at this time to accurately project total
program-specific expenses through commercialization. There are numerous factors associated with the successful commercialization
of any of Xynomic's drug candidates, including future trial design and various regulatory requirements, many of which cannot
be determined with accuracy at this time based on Xynomic's stage of development. Additionally, future commercial and regulatory
factors beyond Xynomic's control will impact Xynomic's clinical development programs and plans.
A significant portion
of Xynomic's research and development costs have been external costs, predominantly incurred for abexinostat. Xynomic's
internal research and development costs are primarily personnel-related costs and supply costs.
General and Administrative Expenses
General and administrative
expenses consist primarily of salaries, and other related costs for personnel in executive, finance, accounting, business
development, legal, and human resources functions, and share-based compensation expenses. Other significant costs include rent,
legal fees relating to patent and corporate matters, and fees for accounting and consulting services.
Xynomic anticipates that its general and
administrative expenses will increase in the future to support continued research and development activities, including the expansion
of Xynomic's ongoing clinical trials, the initiation of additional clinical trials, and increased costs of operating as a
public company. The last one will likely include costs for audit, legal, regulatory, and tax-related services, director and officer
insurance premiums, and investor relations costs.
Critical Accounting Policies and Estimates of Xynomic
We believe that the
following accounting policies are the most critical to aid you in fully understanding and evaluating this "Management's
Discussion and Analysis of Financial Condition and Results of Operation."
73
Share-based Compensation
The Group granted share options to its selected
employee and non-employee consultants.
Share-based awards granted to employees with service
conditions attached are measured at the grant date fair value and are recognized as an expense using graded vesting method over
the requisite service period, which is generally the vesting period. The forfeitures are accounted when they occur.
In June 2018, the FASB issued ASU No. 2018-07, Compensation
- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"). The new
guidance largely aligns the accounting for share-based awards issued to employees and nonemployees. Existing guidance for employee
awards will apply to non-employee share-based transactions with limited exceptions. Xynomic adopted this guidance on January 1,
2019.
Share-based awards granted to non-employees are measured
at the grant date fair value. When no future services are required to be performed by the non-employee in exchange for an award
of equity instruments, the cost of the award is expensed on the grant date.
Option-pricing models are adopted
to measure the value of awards at each grant date. The determination of fair value is affected by the share price as well as assumptions
relating to a number of complex and subjective variables, including but not limited to the expected share price volatility, actual
and projected employee and non-employee share option exercise behavior, risk-free interest rates and expected dividends. The use
of the option-pricing model requires extensive actual employee and non-employee exercise behavior data for the relative probability
estimation purpose, and a number of complex assumptions.
Redeemable Convertible Preferred Shares
In January 2017, 24,435,379 Redeemable
Convertible Angel Preferred Shares ("Angel Preferred Shares") were issued to the founder of Xynomic, Mr. Yinglin Mark
Xu, for consideration of US$500,000.
In February 2017, Xynomic entered
into a Preferred Share Purchase Agreement ("SPA") with certain investors, pursuant to which 12,147,500 Redeemable
Convertible Series A-1 Preferred Shares ("Series A-1 Preferred Shares") were issued for consideration of US$4,300,000.
On June 4, 2018, Xynomic entered
into a shares purchase agreement with certain investors, pursuant to which a total of 5,281,101 Redeemable Convertible Series B
Preferred Shares ("Series B Preferred Shares") were to be issued for an aggregated cash consideration of US$17,000,000.
On August 16, 2018, the Series B Preferred Shares were issued and US$17,000,000 was received, including the conversion of convertible
notes of US$2.5 million.
The Group has classified the
Angel Preferred Shares, the Series A-1 Preferred Shares and Series B Preferred Shares (collectively "Preferred Shares")
as mezzanine equity in the consolidated balance sheets since they are contingently redeemable at the option of the holders or upon
the occurrence of an event that is not solely within the control of the issuer.
The Group has determined that
conversion and redemption features embedded in the Angel Preferred Shares and the Series A-1 Preferred shares are not required
to be bifurcated and accounted for as a derivative.
The Group has determined that
there was a beneficial conversion feature attributable to Series B Preferred Shares, as the initial effective conversion price
of the Series B Preferred Shares was lower than the fair value of the ordinary shares at the commitment date. The intrinsic value
of the beneficial conversion feature was greater than the proceeds allocated to the Series B Preferred Shares. The amount of the
discount assigned to the beneficial conversion feature is limited to the amount of the proceeds allocated to the Series B Preferred
Shares. The intrinsic value of the beneficial conversion feature was recorded as additional paid-in capital with a corresponding
discount against Series B Preferred Shares issued, which resulted in an initial carrying amount of zero.
The Group accretes changes in the redemption value over the period from the date of issuance to the earliest
redemption date of the security using the interest method. As the initial carrying amount of Series B Preferred Shares is zero,
the Group amortizes the discount using the straight-line method. The accretion is recorded against retained earnings, or in the
absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital has been exhausted,
additional charges are recorded by increasing the accumulated deficit.
74
Limited Operating History; Need for
Additional Capital
We have no assurance that future financing
will be available to us on acceptable terms, or at all.  If financing is not available on satisfactory terms, we may
be unable to continue, develop or expand our operations.  Equity financing could result in additional dilution to existing
shareholders.
If we are unable to raise additional capital
to maintain our operations in the future, we may be unable to carry out our full business plan or we may be forced to cease operations.
The following discussion and analysis should be read in conjunction with the unaudited financial statements
of the Company for years ended December 31, 2018 and 2017 and unaudited financial statements for the periods ended March 31, 2019
and 2018 and accompanying notes that appear in this prospectus and the financial statements included in this Registration Statement.
Results of Operations of Xynomic
The following table
summarizes Xynomic's results of operations for the years ended December 31, 2017, and 2018:
For the Year Ended
December 31,
2017
2018
Operating expenses:
Research and development
$
4,321,247
$
25,159,602
General and administrative
884,980
3,049,353
General and administrative to related parties
248,737
362,336
Total operating expenses
5,454,964
28,571,291
Loss from operations
5,454,964
28,571,291
Other income
Investment income
-
16,541
Total other income, net
-
16,541
Interest expenses to a related party
-
32,874
Loss from operations before income tax benefit
5,454,964
28,587,624
Income tax
-
-
Net loss
$
5,454,964
$
28,587,624
75
Research and Development
Expense
Research and development
expense was $4.3 million for the year ended December 31, 2017 and research and development expense for the year ended
December 31, 2018 increased significantly to $25.2 million.
Research and development expense for the
year ended 2017 was mainly comprised of the following items:
●
$3.8 million upfront payments to Xynomic's
licensors in accordance to licensing agreements of abexinostat and XP-102;
●
$0.5 million payments to clinical development costs
associated with abexinostat;
Research and development
expense for the year ended December 31, 2018 was mainly comprised of the following items:
●
$18.5 million payments to clinical development costs
associated with abexinostat;
●
$1.0 million payments to external IND-enabling pre-clinical
and toxicology studies as well as the commencement of manufacturing activities for XP-102.
●
$3.5 million milestone payments of license fee for
abexinostat.
●
$1.0 million upfront payments of license fee for XP-105.
General
and Administrative Expense
General and administrative
expense was primarily attributable to the following:
●
Office leases and business travel expenses;
●
personnel costs; and
●
professional fees including external legal fees, external
auditing fees, corporate communications, and public relations costs.
Xynomic expects that
its general and administrative expense will increase in future periods as Xynomic expands its operations and incurs additional
costs in connection with being a public company. These increases will likely include legal, auditing, and filing fees, additional
insurance premiums, and general compliance and consulting expenses.
Other
Income
During the year ended
December 31, 2018, Xynomic earned income of $16,541 (investment income from short-term investments).
76
The following table
summarizes Xynomic's results of operations for the three months ended March 31, 2018 and 2019:
For the Three Months Ended
March 31,
2018
2019
Operating expenses:
Research and development
$
466,402
$
5,324,310
General and administrative
103,475
8,779,249
General and administrative to related parties
49,053
25,908
Total operating expenses
618,930
14,129,467
Loss from operations
618,930
14,129,467
Interest expenses to a related party
-
15,088
Loss from operations before income tax benefit
618,930
14,144,555
Income tax
-
-
Net loss
$
618,930
$
14,144,555
Research and Development
Expense
Research and development expense
was $5.32 million for the three months ended March 31, 2019, compared to research and development expense of $466,402 for the same
period in 2018, representing an increase of $4,857,908 or 1,042%. The substantial increase was mainly due to the increase of the
clinical development costs associated with abexinostat, and payment to commence of manufacturing activities of XP-102 as provided
in the breakdowns below.
Research and development expense
for the three months ended March 31, 2018 was mainly comprised of the following items:
●
$396,838 payments to clinical development costs associated
with abexinostat and XP-102;
●
$62,874 payroll expenses to research and development
staff.
Research and development expense for the
three months ended March 31, 2019 was mainly comprised of the following items:
●
$3.82 million clinical development costs associated
with abexinostat;
●
$0.60 million external IND-enabling pre-clinical and
toxicology studies for XP-102.
●
$0.46 million payments of research and development
staff costs.
General and Administrative
Expense
General and administrative expense was $8.78 million
for the three months ended March 31, 2019, compared to general and administrative expense of $103,475 for the same period
in 2018, representing an increase of $8.68 million or 8,384%. The substantial increase was mainly due to the $7.68 million expense
related to the options Xynomic issued to an employee and a consultant.
Variance of other general and administrative
expenses was primarily attributable to our expanded operation in the three months ended March 31, 2019 compared to the same period
of year 2018, and mainly due to the following in addition to the expense related to the options abovementioned:
●
professional fees including external legal fees, external
auditing fees, corporate communications, and public relations costs increased $0.47 million during the three months ended March
31,2019 when compared to the same period in year 2018 due to the merger transaction with BCAC.
●
there were $0.07 million listing fees including NASDAQ
fee, etc. incurred in the three months ended March 31, 2019 while there was no such fee in the same period of year 2018;
●
we incurred $0.03 million consulting service fee during
the three months ended March 31, 2019;
●
personnel salaries and employee benefits increased
$0.18 million during the three months ended March 31, 2019 compared to that in the three months ended March 31, 2018;
77
●
Xynomic's agreements some Contract Research Organizations
and Contract Manufacture Organizations include terms that interests for overdue invoices. $222,999 interest expenses was accrued
for the three months ended March 31, 2019 due to the invoices that were not paid by the due dates.
Xynomic expects that its general and administrative
expense will increase in future periods as Xynomic expands its operations and incurs additional costs in connection with being
a public company. These increases will likely include legal, auditing, and filing fees, additional insurance premiums, and general
compliance and consulting expenses.
Interest Expense to a Related
Party
Xynomic Nanjing accrued interest expense
of US$15,088 for the advance from Zhongshan Bison for the three months ended March 31, 2019. There was no such loan or interest
in the three months ended March 31, 2018.
Liquidity and Capital Resources
For fiscal years ended December 31, 2018
Sources of Liquidity
From inception through
December 31, 2018, the Group has financed its operations to date primarily through gross proceeds of $21.8 million from
private placements of preferred shares, and proceeds of $4.3million from debt financing. As of December 31, 2018, the Group
had cash of $4,746,370.
From inception through
December 31, 2018, Xynomic Pharmaceuticals (Nanjing) Co., Ltd. borrowed $0.9 million from Shanghai Jingshu Venture Capital
Center per a loan agreement signed in April 2018 and repaid in August 2018; Xynomic Pharmaceuticals (Nanjing) Co., Ltd. borrowed
$1.4 million from Zhongshan Bison Healthcare Investment Limited (Limited Partnership) per a loan agreement signed in May 2018
and has repaid $0.3 million in August 2018; the Group borrowed $2.0 million from Yinglin Mark Xu per a bridge loan agreement
signed in August 2017; and the Group in aggregate raised $21.8 million through equity financing. The Group, on a consolidated
basis, had $3,153,088 in outstanding principal and interest under the aforementioned loan agreements as of December 31, 2018.
The Group's recurring
losses from operations since inception and the net current liabilities (current assets less current liabilities) as of December
31, 2018 raise substantial doubt about its ability to continue as a going concern. The Group's ability to fund operations
is based on its ability to attract investors and its ability to borrow funds on reasonable economic terms.
The Group also plans
to attract institutional investors following the business combination. Further, the Group can adjust the pace of its clinical development
and patient recruitment and control the operating expenses of the Group.
The Group currently
does not have any commitments to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable
terms, if at all. If the Group cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all
of its research and development programs to: commercialize potential products or technologies that it might otherwise seek to develop
or commercialize independently; consider other various strategic alternatives, including another merger or sale of the Group; or
cease operations. If the Group engages in collaborations, it may receive lower consideration upon commercialization of such products
than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the product development
process.
The Group has prepared
its financial statements assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction
of liabilities in the normal course of business. The Group has incurred recurring losses from operations since inception. The Group
incurred a net loss of US$5,454,964 and US$28,587,624 for the years ended December 31, 2017 and 2018, respectively. Further as
of December 31, 2018, the Group had net current liabilities (current assets less current liabilities) of US$12,621,823 and accumulated
deficit of US$34,323,169. The Group's ability to continue as a going concern is dependent on its ability to raise capital
to fund its current research and development activities and future business plans. Additionally, volatility in the capital markets
and general economic conditions in the United States may be a significant obstacle to raising the required funds. These factors
raise substantial doubt about its ability to continue as a going concern. The financial statements included herein do not include
any adjustments that might be necessary should the Group be unable to continue as a going concern. If the going concern basis were
not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities,
the reported expenses and the balance sheet classifications used.
Operations of the Group
are subject to certain risks and uncertainties including various internal and external factors that will affect whether and when
the Group's product candidates become approved drugs and how significant their market share will be, some of which are outside
of the Group's control. The length of time and cost of developing and commercializing these product candidates and/or failure
of them at any stage of the drug approval process will materially affect the Group's financial condition and future operations.
78
Cash Flows
The following table
provides information regarding Xynomic's cash flows for the periods reported:
For the year
ended
December 31,
2017
For the year
ended
December 31,
2018
Net cash used in operating activities
$
(5,362,778
)
$
(14,723,189
)
Net cash used in investing activities
(2,044
)
(129,351
)
Net cash provided by financing activities
5,465,166
19,570,965
Effect of foreign exchange rate changes on cash
—
(72,399
)
Net increase in cash and cash equivalents
$
100,344
$
4,646,026
Net Cash Used in Operating Activities
The use of cash in
all periods resulted primarily from Xynomic's net losses adjusted for non-cash charges and changes in components of
working capital. Net cash used in operating activities was $5,362,778, and $14,723,189 for the years ended December 31, 2017
and 2018, respectively. The net cash used in operating activities in 2017 was mainly due to the upfront payment for abexinostat
according to the Exclusive License Agreement with Pharmacyclics amounted to $3.5 million and $0.3 million for XP-102 to
Boehringer Ingelheim International GmbH ("
Boehringer Ingelheim
" or "
BII"
). The net cash
used in operating activities in 2018 include the first milestone payment to AbbVie for abexinostat in the amount of $3.5 million.
The payment for contract research organizations ("
CROs
") and contract manufacture organizations ("
CMOs
")
was approximately $0.36 million and $7.5 million for the year ended December 31, 2017 and 2018, respectively. The
other cost was approximately $1.2 million and $3.7 million for the year ended December 31, 2017 and 2018, respectively.
Net Cash Used in Investing Activities
Net cash used in investing
activities was $2,044 and $129,351 for the year ended December 31, 2017 and 2018, respectively. The net cash used in investing
activities in 2018 is mainly due to the purchase of properties and equipment to be used in research and development activities.
Net Cash Provided by Financing Activities
Net cash provided by
financing activities was $5,465,166 and $19,570,965 for the year ended December31, 2017 and 2018, respectively. Net cash provided
by financing activities during 2017 was primarily from our issuance of $4.8 million of preferred shares to certain investors
and $630,585 debt financing provided by Yinglin Mark Xu. Net cash provided by financing activities during the year ended December 31,
2018 was primarily from $14.5 million Series B convertible preferred shares issued, $2.5 million convertible notes issued,
$1.4 million advance from Zhongshan Bison Healthcare Investment Limited (Limited Partnership) and $1.4million financing provided
by Yinglin Mark Xu.
For The Three Months ended March 31,
2019
Sources of Liquidity
From inception through March 31, 2019, the
Group has financed its operations primarily through gross proceeds of $21.8 million from private placements of preferred shares,
and proceeds of $4.7 million from debt financing. As of March 31, 2019, the Group had cash of $1,049,561.
From inception through March 31, 2019, Xynomic
Pharmaceuticals (Nanjing) Co., Ltd. borrowed $0.9 million from Shanghai Jingshu Venture Capital Center pursuant to a loan agreement
signed in April 2018 and repaid such loan in August 2018; Xynomic Pharmaceuticals (Nanjing) Co., Ltd. borrowed $1.4 million from
Zhongshan Bison Healthcare Investment Limited (Limited Partnership) pursuant to a loan agreement signed in May 2018 and has repaid
$1.0 million as of March 31, 2019; the Group borrowed $2.4 million from Yinglin Mark Xu pursuant to a bridge loan agreement
signed in August 2017. The Group, on a consolidated basis, had $2.87 million in outstanding principal and interest under the aforementioned
loan agreements as of March 31, 2019.
The Group's recurring losses from
operations since inception and the net current liabilities (current assets less current liabilities) as of March 31, 2019 raise
substantial doubt about its ability to continue as a going concern. The Group's ability to fund operations is based on its
ability to attract investors and its ability to borrow funds on reasonable economic terms.
79
On May 15, 2019, Xynomic closed a merger
(the "Closing"), pursuant to certain Agreement and Plan of Merger (as amended, the "Merger Agreement"),
dated as of September 12, 2018, entered into by and among by and among (i) Bison Capital Acquisition Corp., a British Virgin Islands
company to be domesticated to Delaware immediately prior to the Merger ("Bison", sometimes is referred as "XYN"
posting the Merger); (ii) Bison Capital Merger Sub Inc., a Delaware corporation ("Merger Sub") (iii) Xynomic; and (iv)
Yinglin Mark Xu ("Stockholder Representative"), solely in his capacity as the Stockholder Representative thereunder,
among other things, Merger Sub merged with and into Xynomic, with Xynomic continuing as the surviving entity and a wholly-owned
subsidiary of Bison, which then changed its name to "Xynomic Pharmaceuticals Holdings, Inc." (the "Merger"
and "XYN").
On the same day, XYN received written notice
from the staff of the NASDAQ Stock Market LLC ("Nasdaq") indicating that the Staff had determined to delist its securities
from NASDAQ based upon the non-compliance with the requirement of a minimum of 300 round lot holders of and 400 round lot holders
of purchase warrants and the requirement of the minimum US$5 million in stockholders' equity. XYN intends to request a hearing
before the Nasdaq Hearings Panel (the "Panel"), and such request will stay any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to XYN by the Panel.
XYN intends to pursue certain actions to increase the number of round lot holders of its common stock and warrants as well as increase
its stockholders' equity as soon as practicable to meet the applicable listing requirements; however, there can be no assurances
that XYN will be able to do so within the period of time that may be granted by the Panel.
The Group also plans to attract institutional
investors following the business combination. Further, the Group can adjust the pace of its clinical development and patient recruitment
and control the operating expenses of the Group.
The Group currently does not have any commitments
to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable terms, if at all. If the
Group cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its research and development
programs to: commercialize potential products or technologies that it might otherwise seek to develop or commercialize independently;
consider other various strategic alternatives, including another merger or sale of the Group; or cease operations; or its securities
may be delisted from Nasdaq. If the Group engages in collaborations, it may receive lower consideration upon commercialization
of such products than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the
product development process.
The Group has prepared its financial statements
assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities
in the normal course of business. The Group has incurred recurring losses from operations since inception. The Group incurred a
net loss of US$14,144,555 for the three months ended March 31, 2019. Further, as of March 31, 2019, the Group had net current liabilities
(current assets less current liabilities) of US$19,345,343 and accumulated deficit of US$48,467,724. The Group's ability
to continue as a going concern is dependent on its ability to raise capital to fund its current research and development activities
and future business plans. Additionally, volatility in the capital markets and general economic conditions in the United States
may be a significant obstacle to raising the required funds. These factors raise substantial doubt about its ability to continue
as a going concern. The financial statements included herein do not include any adjustments that might be necessary should the
Group be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements,
adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications
used.
Operations of the Group are subject to certain
risks and uncertainties including various internal and external factors that will affect whether and when the Group's product
candidates become approved drugs and how significant their market share will be, some of which are outside of the Group's
control. The length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage
of the drug approval process will materially affect the Group's financial condition and future operations.
80
Cash Flows
The following table provides information
regarding Xynomic's cash flows for the periods reported:
For the three months ended
March 31,
2018
2019
Net cash used in operating activities
$
(551,510
)
$
(3,268,589
)
Net cash used in investing activities
-
(92,367
)
Net cash provided by/(used in) financing activities
466,934
(333,142
)
Effect of foreign exchange rate changes on cash
(2,711
)
Net decrease in cash and cash equivalents
$
(84,576
)
$
(3,696,809
)
Net Cash Used in Operating
Activities
The use of cash in all periods resulted
primarily from Xynomic's net losses adjusted for non-cash charges and changes in components of working capital. Net cash
used in operating activities was $551,510, and $3,268,589 for the three months ended March 31, 2018 and 2019, respectively. The
net cash used in operating activities in the three months ended March 31, 2018 was mainly due to the payments to Contract Manufacture
Organizations of $273,349, payments of $78,225 to Contract Research Organizations for the research and development of abexinostat,
and $33,417 payment for patent maintenance. The net cash used in operating activities in the three months ended March 31, 2019
was mainly due to the payments to Contract Manufacture Organizations of $257,060, payments of $1,671,201 to Contract Research Organizations
for the research and development of abexinostat, payments of $339,930 to professional service providers such as lawyers and
accountants, $496,218 payments for staff salaries.
Net Cash Used in Investing
Activities
Net cash used in investing activities was
$0 and $92,367 for the three months ended March 31, 2018 and 2019, respectively. The net cash used in investing activities
in 2019 is mainly due to the purchase of properties and equipment to be used in research and development activities.
Net Cash Provided by/(used
in) Financing Activities
Net cash provided by financing activities
was $466,934 for the three months ended March 31, 2018 and net cash used in financing activities was $333,142 for the three months
ended March 31, 2019. Net cash provided by financing activities during three months ended March 31, 2018 was primarily from $498,222
advance from a shareholder Yinglin Mark Xu. Net cash used in financing activities during the three months ended March 31, 2018
was primarily due to a $747,189 repayment of the advance from a Series B shareholder Zhongshan Bison Healthcare Investment Limited
(Limited Partnership), which was offset by $412,961 advance from a shareholder Mr.Yinglin Mark Xu.
Funding Requirements
Xynomic expects its expenses to increase
in connection with its ongoing activities, particularly as Xynomic continues the research and development of, initiates clinical
trials of, and seeks marketing approval for, its drug candidates. In addition, if Xynomic obtains marketing approval for any of
its drug candidates, Xynomic expects to incur significant commercialization expenses related to drug sales, marketing, manufacturing,
and distribution to the extent that such sales, marketing, and distribution are not the responsibility of potential collaborators.
Furthermore, as a public reporting company, Xynomic starts to incur additional costs associated with operating as a public company.
Accordingly, Xynomic may need to obtain substantial additional funding in connection with its continuing operations. If Xynomic
is unable to raise capital when needed, or is unable to raise capital on favorable terms, Xynomic would be forced to delay, reduce,
or eliminate its research and development programs or future commercialization efforts.
Xynomic's future capital requirements
will depend on many factors, including:
●
the scope, progress, results, and costs of drug discovery,
pre-clinical development, laboratory testing, and clinical trials for Xynomic's drug candidates;
●
the scope, prioritization, and number of Xynomic's
research and development programs;
●
the costs, timing, and outcome of regulatory review
of Xynomic's drug candidates;
●
Xynomic's ability to establish and maintain collaborations
on favorable terms, if at all;
●
the achievement of milestones or occurrence of other
developments that trigger payments under any collaboration agreements Xynomic currently has and may have in the future;
●
the extent to which Xynomic is obligated to reimburse,
or entitled to reimbursement of, clinical trial costs under future collaboration agreements, if any;
81
●
the costs of preparing, filing, and prosecuting patent
applications, maintaining and enforcing Xynomic's intellectual property rights, and defending intellectual property-related
claims;
●
the extent to which Xynomic acquires or in-licenses
other drug candidates and technologies;
●
the costs of securing manufacturing arrangements for
commercial production; and
●
the costs of establishing, or contracting for, sales
and marketing capabilities if Xynomic obtains regulatory approvals to market its drug candidates.
Identifying potential drug candidates and
conducting pre-clinical testing and clinical trials is a time-consuming, expensive, and uncertain process that takes many years
to complete, and Xynomic may never generate the necessary data or results required to obtain marketing approval and achieve drug
sales. In addition, Xynomic's drug candidates, if approved, may not achieve commercial success. Xynomic's commercial
revenues, if any, will be derived from sales of drugs that Xynomic does not expect to be commercially available for quite a few
years, if at all. Accordingly, Xynomic will need to continue to rely on additional financing to achieve its business objectives.
Adequate additional financing may not be available to Xynomic on acceptable terms, or at all.
Until such time, if ever, as Xynomic can
generate substantial drug revenues, Xynomic expects to finance its cash needs through a combination of equity offerings, debt financings,
collaborations, strategic alliances, and licensing arrangements.
If Xynomic raises funds through collaborations,
strategic alliances, or licensing arrangements with third parties, Xynomic may have to relinquish valuable rights to its future
revenue streams, research programs, or drug candidates or to grant licenses on terms that may not be favorable to Xynomic. If Xynomic
is unable to raise additional funds through equity or debt financings when needed, Xynomic may be required to delay, limit, reduce,
or terminate its drug development or future commercialization efforts or grant rights to develop and market drug candidates that
Xynomic would otherwise prefer to develop and market itself.
Contractual Obligations
The following table summarizes Xynomic's
significant contractual obligations as of payment due date by period at December 31, 2018:
Total
Less
than
1 Year
1 to 3 Years
3 to 5 Years
More
than
5 years
Debt repayments (1)
$
3,153,088
$
3,153,088
—
—
—
(1)
Consists
of payment obligations for loan agreement with Yinglin Mark Xu and Zhongshan Bison Healthcare Investment Limited (Limited Partnership).
As of December 31, 2018, Xynomic had $2,008,936 in outstanding principal under the agreement with Yinglin Mark Xu and $1,144,152
outstanding principal and interest under the agreement with Zhongshan Bison Healthcare Investment Limited (Limited Partnership).
Xynomic also have obligations to make future
payments to third party licensors that become due and payable on the achievement of certain development, regulatory and commercial
milestones. This includes milestone payments associated with Xynomic's license agreements. Possible future payments under
Xynomic's license arrangements include up to $10.5 million in payments related to abexinostat, up to $ 17.7 million related
to XP-102, and up to $18 million related to XP-105. Xynomic have not included these commitments on our balance sheet or in the
table above because the commitments are cancellable if the milestones are not completed and achievement and timing of these obligations
are not fixed or determinable.
Xynomic enters into agreements in the normal
course of business with CROs for clinical trials and clinical supply manufacturing and with vendors for pre-clinical research studies,
synthetic chemistry, and other services and products for operating purposes. Xynomic has not included these payments in the table
of contractual obligations above since the contracts are cancelable at any time by Xynomic, generally upon 30 days prior written
notice to the vendor.
Off-Balance Sheet Arrangements
Xynomic did not have,
during the periods presented, and Xynomic does not currently have, any off-balance sheet arrangements, as defined under applicable
Securities and Exchange Commission rules.
Quantitative and Qualitative Disclosures
about Market Risk
Xynomic is exposed to
market risks related to changes in interest rates. Xynomic's primary exposure to market risks is interest rate sensitivity,
which is affected by changes in the general level of U.S. interest rates.
Xynomic is also exposed
to market risk related to changes in foreign currency exchange rates. Xynomic contracts with vendors that are located in Asia and
Europe, which are denominated in foreign currencies. Xynomic is subject to fluctuations in foreign currency rates in connection
with these agreements. Xynomic does not currently hedge its foreign currency exchange rate risk. As of December 31, 2018,
Xynomic had $2.25million liabilities denominated in foreign currencies.
Inflation generally
affects Xynomic by increasing its labor costs and clinical trial costs. Xynomic does not believe that inflation had a material
effect on its business, financial condition, or results of operations since its inception.
82
Bison's Management's Discussion And Analysis Of Financial Condition And Results Of Operations
Bison was a blank check
company incorporated in the British Virgin Islands on October 7, 2016 formed for the purpose of a Business Combination.
Bison's Sponsor
Bison's sponsor,
Bison Capital Holding Company Limited, founded in 2013, is an alternative investment company that invests in high growth opportunities
in the media/entertainment, financial services and healthcare industries. Its investment strategy focus on identifying undervalued
assets, bringing strategic resources and relationships to portfolio companies and generating new growth opportunities to realize
appreciation under improved growth and valuation metrics.
Results of Operations
Bison has neither engaged
in any operations nor generated any revenues to date. Bison's only activities from inception to March 31, 2019 were organizational
activities and those necessary to prepare for the Initial Public Offering and private placement and the identification and evaluation
of prospective candidates for a Business Combination and activities in connection with the proposed acquisition of Xynomic. Since
the completion of Bison's Initial Public Offering, Bison has not generated any operating revenues and will not generate such
revenues until after the completion of Bison's Business Combination. Bison generates non-operating income in the form of
interest income on cash and marketable securities held after the Initial Public Offering. Bison incurs expenses as a result of
being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence and transaction
expenses.
For the year ended December
31, 2018, Bison had a net income of $266,626, which consists of interest income on marketable securities held in the Trust Account
of $1,121,740, offset by operating costs of $835,928 and unrealized losses on marketable securities held in the Trust Account of
$19,186. For the three months ended March 31, 2019, Bison had a net income of $140,102, which consists of interest income on marketable
securities held in the Trust Account of $347,210, offset by operating costs of $204,521 and an unrealized loss on marketable securities
held in the Trust Account of $2,587.
For the year ended December 31, 2017, Bison
had a net loss of $41,260, which consists of operating costs of $365,215 and unrealized losses on marketable securities held in
the Trust Account $17,269, offset by interest income on marketable securities held in the Trust Account of $341,224.For the three
months ended March 31, 2018, Bison had a net income of $75,434, which consists of $220,841 of interest income on marketable securities
held in the Trust Account, offset by operating costs of $125,916 and an unrealized loss on marketable securities held in the Trust
Account of $19,491.
Liquidity and Capital Resources
On June 23, 2017, Bison
consummated the initial public offering (the "Initial Public Offering") of 5,250,000 units (the "Units"),
at a price of $10.00 per Unit, generating gross proceeds of $52,500,000. Simultaneously with the closing of the Initial Public
Offering, Bison consummated the sale of 388,750 private units (the "Private Units"), to Bison's sponsor and EarlyBirdCapital,
and their designees, generating gross proceeds of $3,887,500 (the "Private Placement").
On June 28, 2017, the
underwriters elected to fully exercise their over-allotment option to purchase 787,500 additional Units (the "Over-allotment
Units") at a purchase price of $10.00 per Unit, generating gross proceeds of $7,875,000. In addition, simultaneously with
the sale of the Over-Allotment Units, Bison consummated the sale of an additional 43,312 private units (the "Over-Allotment
Private Units") at $10.00 per unit, generating gross proceeds of $433,125.
A total of $61,884,375
of the net proceeds from the Initial Public Offering and the Private Placement (including the sale of the Over-Allotment Units
and the Over-Allotment Private Units) were deposited in the Trust Account. Bison incurred costs in the aggregate amount of $2,250,189
related to Initial Public Offering including $1,811,250 of underwriting fees and $438,939 of other costs.
As of December 31,
2018, Bison had $122,615 of cash held outside the Trust Account, available for working capital purposes. In addition, as of December
31, 2018, Bison had $164,893 of accounts payable and accrued expenses.As of March 31, 2019, Bison had $3,210 of cash held outside
the Trust Account, available for working capital purposes. In addition, as of March 31, 2019, Bison had $227,799 of accounts payable
and accrued expenses.
83
As of December 31, 2018,
Bison had marketable securities held in the Trust Account of $63,310,884, consisting of U.S Treasury bills with a maturity of 180
days or less. Interest income earned on the balance in the Trust Account may be available to Bison to pay taxes. Through December
31, 2018, Bison did not withdraw any funds from the interest earned on the Trust Account.
As of March 31, 2019,
Bison had marketable securities held in the Trust Account of $8,477,530, consisting of U.S Treasury bills with a maturity of 180
days or less. Interest income earned on the balance in the Trust Account may be available to Bison to pay taxes. Through March
31, 2019, Bison did not withdraw any funds from the interest earned on the Trust Account. As a result of the shareholders approval
to extend the time for which Bison is required to consummate a Business Combination, an aggregate of 5,234,420 shares were redeemed
and Bison paid cash in the aggregate amount of $55,177,977 to redeeming shareholders from the Trust Account.
As of December 31, 2018,
the sponsor loaned Bison an aggregate of $600,000 in order to finance transaction costs in connection with a Business Combination.
As of December 31, 2018, the Sponsor has loaned Bison an aggregate of $600,000. Bison's Sponsor has also committed to provide
an additional $200,000 in loans to the Company. The Company has drawn down the entire $600,000 as of the date of this Form 10-K.
The loans will become due upon the consummation of a business combination and carry no interest. $500,000 of the loans are evidenced
by two promissory notes issued by us, which are convertible, in whole or in part, at the Sponsor's discretion, upon the consummation
of the Business Combination, into the private units, at a price of $10.00 per private unit.
As of March 31, 2019,
the Bison Capital loaned Bison an aggregate of $610,000 in order to finance transaction costs in connection with a Business Combination.
$500,000 of the loans are evidenced by promissory notes issued by us, which are non-interest bearing, unsecured, payable in cash
or convertible, in whole or in part, at Bison Capital's discretion, upon the consummation of the Business Combination into
the private units, at a price of $10.00 per private unit. $110,000 of the loans are non-interest bearing, unsecured and will become
due upon the consummation of a business combination. Bison Capital has also committed to provide an additional $190,000 in
loans to the Company. Any additional loans will be evidenced by a promissory note, will be non-interest bearing, unsecured and
will only be repaid upon the completion of a Business Combination.
For the year ended December
31, 2018, cash used in operating activities amounted to $687,473. Net income of $266,626 was affected by interest earned on marketable
securities held in the Trust Account of $1,121,740, which is not available to the Company except for the payment of its tax obligations,
and an unrealized loss on marketable securities held in Bison's Trust Account of $19,186. Changes in operating assets and
liabilities provided $148,455 of cash for operating activities. For the three months ended March 31, 2019, cash used in operating
activities amounted to $129,405. Net income of $140,102 was affected by interest earned on marketable securities held in the Trust
Account of $347,210 and an unrealized loss on marketable securities held in Bison's Trust Account of $2,587. Changes in operating
assets and liabilities provided $75,116 of cash for operating activities.
For the year ended December
31, 2017, cash used in operating activities amounted to $376,076, resulting primarily from a net loss of $41,260, interest earned
on cash and marketable securities held in the Trust Account of $341,224 which is not available to the Company except for the payment
of its tax obligations and an unrealized loss on marketable securities held in Bison's Trust Account of $17,269. Changes
in operating assets and liabilities used $10,861 of cash for operating activities. For the three months ended March 31, 2018,
cash used in operating activities amounted to $67,209, resulting primarily from interest earned on marketable securities held in
the Trust Account of $220,841 offset by net income of $75,434 and an unrealized loss on marketable securities held in Bison's
Trust Account of $19,491. Changes in operating assets and liabilities provided $58,707 of cash for operating activities.
Bison intended to
use the net proceeds of the Initial Public Offering, including the funds held in the Trust Account, to pay Bison's expenses
relating thereto, including a fee payable to EarlyBirdCapital for its services in connection with Bison's Business Combination
upon the consummation of such Business Combination in an amount equal to 3% of the gross proceeds of the Initial Public Offering,
or $1,940,869, which will be reduced by an amount equal to 2% of the dollar amount, or $1,293,913 of purchases of Bison's
ordinary shares by investors introduced to Bison by Bison's sponsor, officers, directors or their respective affiliates
following announcement by Bison of the Business Combination, where such investors hold the purchased ordinary shares through the
vote on such business combination and do not seek conversion of their shares in connection with such proposed business combination;
provided, however, that the fee will not be reduced by more than $500,000. The remaining proceeds held in the Trust Account, as
well as any other net proceeds not expended, will be used as working capital to finance the operations of the target business.
Such working capital funds could be used in a variety of ways including continuing or expanding the target business' operations,
for strategic acquisitions and for marketing, research and development of existing or new products. Such funds could also be used
to repay any operating expenses or finders' fees which Bison had incurred prior to the completion of Bison's Business
Combination if the funds available to Bison outside of the Trust Account were insufficient to cover such expenses.
84
Bison has used the funds
held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence on prospective
target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives
or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete
a Business Combination.
Bison had sufficient funds to meet the expenditures required for operating Bison's business through
May 15, 2019, the consummation date of the Business Combination with Xynomic. Additionally, Bison's sponsor has provided
additional loans in a total amount of $610,000 to support Bison's operation. Such loans are evidenced by promissory notes.
Upon consummation of the Business Combination, $500,000 of loans were converted into additional Private Units at a price of $10.00
per unit.
Off-balance sheet financing arrangements
Bison has no obligations,
assets or liabilities which would be considered off-balance sheet arrangements. Bison does not participate in transactions that
create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which
would have been established for the purpose of facilitating off-balance sheet arrangements. Bison has not entered into any off-balance
sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or
purchased any non-financial assets.
Contractual obligations
Bison does not have
any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities other than an agreement to
pay Bison's sponsor a monthly fee of $5,000 for office space, utilities and secretarial support provided to the Company.
Bison began incurring these fees on June 23, 2017 and will continue to incur these fees monthly until the earlier of the completion
of the Business Combination.
Critical Accounting Policies
The preparation of financial
statements and related disclosures in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of
contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported.
Actual results could materially differ from those estimates. Bison has identified the following critical accounting policies:
Ordinary shares subject to redemption
Bison accounts for Bison's
ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification ("ASC")
Topic 480 "Distinguishing Liabilities from Equity." Ordinary shares subject to mandatory redemption are classified
as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that
feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain
events not solely within Bison's control) are classified as temporary equity. At all other times, ordinary shares are classified
as shareholders' equity. Bison's ordinary shares feature certain redemption rights that are considered to be outside
of Bison's control and subject to occurrence of uncertain future events. Accordingly, ordinary shares subject to possible
redemption are presented at redemption value as temporary equity, outside of the shareholders' equity section of Bison's
balance sheet.
Net income (loss) per ordinary share
Bison applies the two-class
method in calculating earnings per share. Ordinary shares subject to possible redemption which are not currently redeemable and
are not redeemable at fair value, have been excluded from the calculation of basic net income (loss) per ordinary share since such
shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. Bison's net income is adjusted
for the portion of income that is attributable to ordinary shares subject to redemption, as these shares only participate in the
earnings of the Trust Account and not Bison's income or losses
.
Recent accounting pronouncements
Management does not
believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material
effect on the Company's condensed consolidated financial statements.
85
BUSINESS
Overview
The Industry
The biotechnology industry focuses on developing breakthrough products and technologies to combat various
types of diseases through pre-clinical research, clinical development, and efficient industrial manufacturing process. Such industry
is an important business sector in the world's economies and plays a key role in human health. Biotechnology companies
generally require large amounts of capital investment for their research & development activities.  It may take up to
tens of years to develop and commercialize a new drug or a new medical device.
Business Overview
We are a clinical
stage biopharmaceutical company that discovers and develops innovative small molecule drug candidates for the treatment of cancer
in humans.
Our lead drug candidate
is abexinostat, an orally dosed, hydroxamic acid-based small molecule histone deacetylase ("HDAC") inhibitor.
In February 2017, Xynomic entered into a license agreement with Pharmacyclics LLC ("Pharmacyclics"), a subsidiary of
AbbVie Inc. ("AbbVie"), for the worldwide exclusive rights to develop and commercialize abexinostat for all human and
non-human diagnostic, prophylactic, and therapeutic uses.
Abexinostat is a pan-HDAC inhibitor that inhibits HDACs 1, 2, 3, 6, and 10. HDAC enzymes can affect a number of cell functions,
including the viability of cancer cells, by regulating the acetylation of both histone and non-histone substrates. Thus, HDACs
have become a therapeutic target for various types of cancers. Prior to granting the license to Xynomic, Pharmacyclics and its
partners evaluated abexinostat in 18 Phase 1/2 clinical trials for lymphoma and solid tumors. As a result of the license, Xynomic
has obtained exclusive rights to use the data generated in the 18 previously completed clinical trials. The data from many of these
trials have also been published by the investigators in scientific journals.
In December 2018, Xynomic
entered into a license agreement with Boehringer Ingelheim for the worldwide exclusive rights to develop and commercialize XP-105 (also
known as BI 860585) for all human and non-human diagnostic, prophylactic, and therapeutic uses. XP-105 is an orally bioavailable
mTORC1/2 kinase inhibitor, which inhibits both raptor-mammalian target of rapamycin ("mTOR") complex 1 (known
as mTORC1) and rictor-mTOR complex 2 (known as mTORC2). Prior to this license, Boehringer Ingelheim International GmbH ("Boehringer
Ingelheim" or "BII") had completed one Phase 1 clinical trial for solid tumors. As a result of the license, Xynomic
has obtained exclusive rights to use all the data generated in this Phase 1 clinical trial.
On-Going Clinical Trials of Abexinostat
Since its in-licensing of
abexinostat, Xynomic has started enrolling patients in clinical trials for three different indications: (1) in renal cell carcinoma
("
RCC
"), in combination with pazopanib, (2) in follicular lymphoma ("
FL
"), as a monotherapy,
(3)in mantle cell lymphoma("MCL") and diffuse large B–cell lymphoma("DLBCL"), in combination with
imbruvica, and (4) in multiple solid tumors, in combination with Keytruda
®
.
Abexinostat, in combination with Pazopanib,
in Renal Cell Carcinoma (XYN-602)
Xynomic is investigating abexinostat, in combination with pazopanib, in a Phase 3 trial as the first-line or
second-line treatment of RCC, head-to-head against pazopanib as a monotherapy. RCC is the most common type of kidney
cancer in adults (Source:
Robert J. Motzer, Sam Bhayani, et al. (2017) Kidney Cancer, Version 2.2017. Journal of the National
Comprehensive Cancer Network. 2017; 15(6): 804-834
). This trial will enroll approximately 390 patients globally with locally
advanced or metastatic RCC and will be conducted in the U.S., six European countries, China, and South Korea. Based on discussion
of trial design with the FDA prior to study initiation in an EOP2/Pre-Phase 3 Meeting held on March 16, 2018, Xynomic
believes the trial has potential to support approval in the U.S. In March 2019 the U.S. FDA granted Fast Track designation to abexinostat,
in combination with pazopanib, as a first- or second-line treatment of RCC. For further detail, see below in the section entitled
"— Abexinostat — Ongoing Clinical Studies."
Abexinostat as a monotherapy in Follicular Lymphoma
(XYN-601)
Xynomic is
conducting a Phase 2 trial to test abexinostat as a single agent, in patients with relapsed or refractory
("
R/R
") FL, the second most common form of lymphoma in the U.S. and Europe
(Source:
https://www.cancer.net/cancer-types/lymphoma-non-hodgkin/subtypes
). Designed as a single arm trial, this
trial will enroll approximately 120 patients in the U.S. and Europe who have undergone at least three lines of
therapy to test abexinostat as a fourth line monotherapy. Based on discussion of trial design with the FDA in a
pre-IND meeting held on April 18, 2018, we believe the trial has potential to support accelerated approval in the
U.S. For further detail, see below in the section entitled "— Abexinostat — Ongoing Clinical
Studies."
86
Abexinostat,
in combination with Imbruvica
®
(ibrutinib), in Relapsed/Refractory Mantle Cell Lymphoma ("r/r MCL")
or Relapsed/Refractory Diffuse Large B-cell Lymphoma ("r/r DLBCL")
The fourth study is
a Phase 1/2 clinical trial of abexinostat, in combination with Imbruvica
®
, in patients with r/r MCL or r/r DLBCL
at Memorial Sloan Kettering Cancer Center (MSK). This trial will enroll approximately 40 patients to assess the safety and efficacy
of the combination in patients with r/r MCL or r/r DLBCL. This trial will also explore the biologic predictors of response and
resistance to dual B-cell receptor (BCR) and histone deacetylase (HDAC) inhibition. Janssen Biotech, Inc. ("Janssen")
is providing ibrutinib as part of the study, with Xynomic providing abexinostat and funding support for the trial being conducted
at MSK. Researchers at MSK are testing whether abexinostat/ibrutinib combo could potentially improve response rates and duration
of responses in r/r MCL patients, subject to the assessment upon the completion of the trial. For further detail, see below in
the section entitled "— Abexinostat — Ongoing Clinical Studies."
Abexinostat, in combination with Keytruda
®
,
in Multiple Solid Tumors (XYN-604)
The third study is a
Phase 1b trial of abexinostat, in combination with Keytruda
®
, in patients with multiple solid tumors with prior
progression on Keytruda
®
or other checkpoint inhibitor ("
CPI
") treatments. In this trial,
Xynomic will explore dose escalation/expansion of abexinostat in combination with Keytruda
®
. Xynomic plans to enroll
approximately 42 patients in the U.S in this Phase 1b trial and expects to complete this trial in approximately 2 years. For further
detail, see below in the section entitled "— Abexinostat — Ongoing Clinical Studies."
Planned Clinical Trials with Abexinostat and
XP-105
Planned Clinical
Trials with Abexinostat
.
Xynomic plans to initiate the following four clinical trials of abexinostat in the third quarter of 2019:
●
a Phase 1/2 clinical trial of abexinostat, in combination
with a marketed CDK4/6 inhibitor, in patients with certain subtypes of breast cancer. This trial will enroll approximately 50
patients in the U.S.
●
a Phase 2 clinical trial of abexinostat, as a single
agent, in patients with R/R FL in China. This trial will enroll approximately 81 patients in China and is independent from the
ongoing trial in the U.S., Europe and China. Designed as a single arm trial, Xynomic's Phase 2 trial will enroll patients
who have undergone at least two lines of therapy to test abexinostat as a third line monotherapy. Based on written communications
Xynomic had with the Center of Drug Evaluation (the "
CDE
") of the China National Medical Products Administration
in September 2018, Xynomic believes that the data from this planned Phase 2 trial has potential to support approval in China.
●
a Phase 2 clinical trial of abexinostat, as a single
agent, in patients with R/R DLBCL in China. This trial will enroll approximately 144 patients in China and is independent from
the planned abexinostat/Imbruvica trial in the U.S. Designed as a single arm trial, Xynomic's Phase 2 trial will enroll
patients who have undergone at least two lines of therapy to test abexinostat as a third line monotherapy. Based on written communications
Xynomic had with the CDE of the China National Medical Products Administration in September 2018, Xynomic believes that the data
from this planned Phase 2 trial has potential to support approval in China.
Planned Clinical
Trials with XP-105
.
Xynomic is only
two years behind competiting drug candidates being developed by major multinational pharmaceuticals companies and plans to initiate
a phase clinical trial soon. One will be a single arm Phase 2 trial, combining XP-105 with paclitaxel against breast cancer
which we expect to initiate in the third quarter of 2019. This trial will be conducted primarily in China.
87
Pre-Clinical Programs
In addition, Xynomic
has several pre-clinical oncology drug candidates in its pipeline. Among these drug candidates, XP-102 (also known as
BI 882370), a selective pan-RAF inhibitor to which Xynomic obtained a worldwide exclusive license from BII, is the closest to clinical
testing.
Figure 1 — Xynomic's Pipeline
Xynomic has not completed
any clinical trials since its inception. With respect to the pipeline programs referenced in the above figure, all of the completed
clinical trials of abexinostat were conducted by or on behalf of either Pharmacyclics or Servier Laboratories and the one completed
clinical trial of XP-105 was conducted by or on behalf of BII.
Consummation of the Business Combination
As disclosed on a current
report on
Form 8-K
filed with the SEC on May 15, 2019, on May 15, 2019 (the "
Closing Date
"), Bison Capital
Acquisition Corp., our predecessor at that time ("
Bison
"), consummated the previously announced business
combination (the "
Business Combination
") following a special meeting of shareholders held on May 14,
2019 (the "
Special Meeting
") where the shareholders of Bison, which, prior to the consummation of the
Business Combination, domesticated as a Delaware corporation and, immediately thereafter known as "Xynomic Pharmaceuticals
Holdings, Inc.", considered and approved, among other matters, a proposal to adopt that certain Agreement and Plan of Merger
(as amended, the "
Merger Agreement
"), dated as of September 12, 2018, entered into by and among by and
among (i) Bison; (ii) Bison Capital Merger Sub Inc., a Delaware corporation ("
Merger Sub
") (iii) Xynomic
Pharmaceuticals, Inc., a Delaware corporation ("
Xynomic
"); and (iv) Yinglin Mark Xu ("
Stockholder
Representative
"), solely in his capacity as the Stockholder Representative thereunder.
Pursuant to the Merger
Agreement, among other things, Merger Sub merged with and into Xynomic, with Xynomic continuing as the surviving entity
and a wholly-owned subsidiary of the Company (the "
Merger
" and the "
Surviving Company
").
The merger became effective on May 15, 2019.
On May 14, 2019, prior
to the consummation of the Business Combination, Bison continued out of the British Virgin Islands and domesticated as a Delaware
corporation (the "
Domestication
"). As a result, Bison is no longer a company incorporated in the British
Virgin Islands.
88
At the Closing Date,
pursuant to the Backstop Agreement dated May 1, 2019 entered into by and between Bison and Yinglin Mark Xu, Mr. Xu togher
with his assignee Bison Capital Holding Company Limited, purchased from the Company 755,873 shares of common stock at a price of
$10.15 per share for a total consideration of $7,672,112 (the "
Backstop Shares
" and "
Backstop
Subscription
"). As a result of Backstop Subscription, Bison had at least $7,500,001 of net tangible assets remaining
at the Closing after giving effect to the redemption of any Ordinary Shares by the public shareholders in connection with the Business
Combination.
At the Closing Date,
each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective Time was automatically converted
into the right to receive, on a pro rata basis, the Closing Consideration Shares (as defined below) and the Earnout Shares (as
defined below), and each option to purchase Xynomic stock that was outstanding immediately prior to the Effective Time was assumed
by the Company and automatically converted into an option to purchase shares of common stock of the Company.
At the closing, pursuant
to the Merger Agreement, all Xynomic stockholders received a number of newly issued shares of Company common stock equal to the
Closing Merger Consideration divided by $10.15 per share (the "
Closing Consideration Shares
"). The Closing
Merger Consideration equals to (a) $350,000,000, minus (i) the amount of Xynomic's closing indebtedness, plus (ii) the amount
of Xynomic's closing cash, minus (iii) the amount of Xynomic's transaction expenses, plus (iv) certain closing tax
assets, plus (v) the amount, if any, by which Xynomic's closing working capital exceeds an agreed upon target amount of working
capital, minus (vi) the amount, if any, by which such target amount of working capital exceeds Xynomic's closing working
capital.
In addition to the
Closing Consideration Shares, Xynomic stockholders received an additional 9,852,216 shares of common stock in aggregate (the "
Earnout
Shares
" and, together with the Closing Consideration Shares, the "
Merger Consideration Shares
").
As a result, the Company issued 42,860,772 common shares as in aggregate Merger Consideration Shares to shareholders of Xynomic
immediately prior to the closing (the "
Sellers
").
Pursuant to the Merger
Agreement, 1,285,822 shares were deposited into an escrow account (the "
Escrow Account
") to serve as
security for, and the exclusive source of payment of, the Company's indemnity rights under the Merger Agreement and any excess
of the estimated Closing Merger Consideration over the final Closing Merger Consideration amount determined post-Closing.
As a result of the
Business Combination, the Sellers, as the former shareholders of Xynomic, became the controlling shareholders of the Company and
Xynomic became a subsidiary of the Company. The Business Combination was accounted for as a reverse merger, wherein Xynomic is
considered the acquirer for accounting and financial reporting purposes.
Prior to the Business
Combination, we were a "shell company" (as such term is defined in Rule 12b-2 under the Securities Exchange Act of
1934, as amended). As a result of the Business Combination, we have ceased to be a "shell company" and will continue
the existing business operations of Xynomic as a publicly traded company under the name "Xynomic Pharmaceuticals Holdings,
Inc."
Nasdaq Listing Compliance
On May 15, 2019, we
received written notice from the staff of The NASDAQ Stock Market LLC ("
Nasdaq
") indicating that the
Staff had determined to delist the Company's securities from Nasdaq based upon the Company's non-compliance with Nasdaq
Listing Rules 5505(a)(3) and 5515(a)(4), which require a minimum of 300 round lot holders of common stock and 400 round lot holders
of common stock purchase warrants for initial listing on The Nasdaq Capital Market. The Staff's determination also cited
the Company's non-compliance with the minimum $5 million in stockholders' equity requirement, as set forth in Nasdaq
Listing Rule 5505(b)(1)(A).
Upon request, a hearing
before the Panel was scheduled on July 11, 2019 and our request for hearing has stayed any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to the Company by
the Panel. We intend to pursue certain actions including this Offering to increase the number of round lot holders of its common
stock as well as increase its stockholders' equity as soon as practicable to meet the applicable listing requirements; however,
there can be no assurances that the Company will be able to do so within the period of time that may be granted by the Panel.
89
Unit Offering
On
or about July 10, 2019, we entered into certain Securities Purchase Agreement (the "Unit SPA") with certain "accredited
investors" as defined in Rule 501(a) of Regulation D as promulgated under the Securities Act (the "Unit Purchasers"),
pursuant to which we agreed to sell to such Unit Purchasers an aggregate of approximate USD$10 million of units (the "Units")
of the Company, at a purchase price of USD$3.80 per Unit (subject to adjustment) (the "Unit Offering"). Each Unit consists
of one share of Common Stock and one-half warrant (the "Unit Warrant"). Each whole Unit Warrant can be exercised to
purchase one share of Common Stock at $7.00 per share and shall expire in three (3) years of the issuance, and have the rights
and preference set forth in certain warrant agreement. Furthermore, the Unit SPA provides, among other terms, a maximum offering
in an aggregate of $15 million with the first closing of a minimum of $5 million upon delivery of the closing conditions set forth
in the Unit SPA, provided that no closing shall occur after September 30, 2019 subject to certain exception.
The
Units, the shares of Common Stock underlying the Units (the "Unit Shares"), the Unit Warrants issued in the Offering,
and shares of Common Stock issuable upon exercise of the Unit Warrants (the "Unit Warrant Shares"), are exempt from
the registration requirements of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D.
The
proceeds of this Unit Offering will be used for working capital and general corporate purposes.
The
Unit SPA also contains customary representation and warranties of the Company and the Unit Purchasers, indemnification obligations
of the Company, termination provisions, and other obligations and rights of the parties. Additionally, we anticipate that the Unit
Purchasers will enter into a lock-up agreement at the closing pursuant to which that they would agree not to sell or otherwise
transfer or dispose the Units, Unit Shares, Unit Warrants, or Unit Warrant Shares during the six-month period commencing on the
earlier of the effective date of a registration statement in connection with the first follow-on public offering after the date
of the Unit SPA or the issuance date of the Units.
The Form of the Unit SPA and the Form of the Unit Warrants are filed as Exhibits 10.22 and 10.23 to this
prospectus, respectively; and such documents are incorporated herein by reference. The foregoing is only a brief description of
the material terms of the Unit SPA and the Unit Warrants, and does not purport to be a complete description of the rights and obligations
of the parties thereunder and is qualified in its entirety by reference to such exhibits.
Business Strategy
Xynomic's business
strategy has been designed to enable Xynomic to achieve its mission of developing and commercializing innovative drug products
in the field of oncology. The key tenets of our strategy include the following:
Build an oncology
franchise to maximize value.
Oncology is Xynomic's therapeutic focus. According to data published
by EvaluatePharma
®
, oncology was the top therapy area in the global pharmaceutical market with sales of $93.7 billion
in 2016, or 11.7% of the market (Source:
http://info.evaluategroup.com/rs/607-YGS-364/images/wp16.pdf
). This number is projected
to grow to $192.2 billion in 2022, highlighting the rapid growth in this market. The strong and sustainable growth of the
oncology market is mainly driven by three factors:
●
cancer remains one of the leading causes of natural
deaths worldwide;
●
there are a high degree of unmet medical needs in
oncology; and
●
oncology drugs that have obtained regulatory approval have
demonstrated commercial success for numerous pharma companies.
Capitalize on
our expertise to develop a pipeline of small molecule, oral, targeted drug candidates.
Xynomic's
core scientific team has many years of experience in research, development and manufacturing of small molecule, oral, targeted
drug candidates against cancer and other diseases. This expertise as Xynomic's core strength will continue to be leveraged
as Xynomic expands its pipeline. According to a 2015 IMS study, targeted therapies make up approximately 87% of the late-phase oncology
pipelines under development worldwide. Thus, Xynomic's focus on targeted drug candidates aligns with this global trend in
oncology treatments. Oral dosage represents another recent trend in oncology medication as oral dosage has been shown to significantly
improve patient compliance and quality of life.
Strategically
in-license global rights to late stage drug candidates.
Xynomic's lead drug candidate abexinostat was
licensed from Pharmacyclics. Prior to Xynomic's acquisition of the global exclusive license, Pharmacyclics had tested abexinostat
on approximately 600 patients globally and had assembled a large amount of potentially valuable clinical data on safety and efficacy,
which, subject to the outcome of further clinical trials, potentially could enable Xynomic to launch the product in the U.S.,
China, EU and other key markets. Xynomic's ability to obtain global licenses on assets from multinational pharmaceutical
companies such as AbbVie and BII is a result of our management's extensive network within the global biopharmaceutical industry
and deal making and deal execution expertise. Xynomic will continue to leverage this competitive advantage to access top-quality drug
candidates for in-licensing and co-development opportunities, and potential future co-marketing partnerships.
90
Build a strong
internal research and development team to enrich the pipeline.
In addition to its in-licensing strategy,
Xynomic has built a team of researchers with expertise in epigenetics and kinase inhibition, which could enable Xynomic to potentially
discover new mechanisms of action ("
MOA
"), potentially design innovative molecules around these MOAs, and potentially
move promising molecules to clinical testing.
Utilize
global resources to lower cost and improve efficiency.
With its presence in both the U.S. and China, Xynomic can
potentially leverage high-quality, low-cost global resources to efficiently develop our pipeline. Xynomic keeps core
competencies such as research, clinical development management and business development in house, while outsourcing
commoditized activities such as small-molecule manufacturing and clinical study management to reputable vendors. This
hybrid model potentially allows Xynomic to access efficient resources globally, manage investment in redundant
infrastructure, and secure a more favorable return on investment. Xynomic has established a vigorous vendor selection process
to ensure that it receives the highest quality and compliance level at a reasonable cost. For instance, abexinostat's
active pharmaceutical ingredient ("
API
") and finished dosage formulation are manufactured in Europe,
whereas its pivotal clinical trials are managed by top multinational contract research organizations, or CROs such as PPD
Development, LP ("
PPD
") and Parexel International (IRL) Ltd. ("
Parexel
").
Capture potential
lower research and development costs, better access to patient pool and growing market in China.
In
addition to their years of professional training and industry experience in the U.S., the Xynomic founders have significant personal
and professional experience in China, the second largest pharmaceutical market in the world. Building on this, Xynomic is well
positioned to capitalize on China, both as a potential market for Xynomic's oncology drugs and a location for lower research
and development costs and better access to patient pools. Pursuant to recent regulatory reform in China, China's drug approval
process has been enhanced to make it more similar to those of other developed countries. This will further allow Xynomic to potentially
leverage our resources in China to develop products for the U.S. and the rest of the world.
Market Opportunity
The American Cancer
Society estimates that approximately 1,735,350 million new cancer cases will be diagnosed in the U.S. in 2018, and there will
be approximately 609,640 cancer deaths. According to a report published by Allied Market Research, the global market for cancer
therapeutics was valued at $81.2 billion in 2016 and is projected to reach $178.9 billion by 2023, at a CAGR of 11.9%
from 2017-2023. This growth will be driven by factors such as development of novel cancer therapeutics and an increase in cancer
awareness and availability of oncology drugs in developing markets. Specifically, the global market size for FL is expected to
reach $4.1 billion by 2023, for RCC, $4.7 billion, for certain solid tumors treated by Keytruda
®
, $8.0 billion,
for breast cancer, $20.0 billion and for DLBCL, $14.4 billion. According to a September 2018 report by WHO's International
Agency for Research on Cancer, among females, breast cancer is the most commonly diagnosed cancer, whereas colorectal cancer is
the 2
nd
among females and the 3
rd
among males. According to IMS and iHealthcareanalyst, drugs treating
breast cancers and rectal cancers are expected to generate annual revenue of approximately $25.4 billion by 2023.
Abexinostat
Abexinostat is an innovative,
orally dosed, broad spectrum, hydroxamic acid-based small molecule HDAC inhibitor. Studies published in medical journals have documented
promising anti-tumor activity in vitro and in vivo. Clinical development of abexinostat began in July 2005. It has been evaluated
by Pharmacyclics and its partners in a total of 18 Phase 1/2 clinical trials for lymphoma and solid tumors. Pursuant to a February
2017 license agreement with Pharmacyclics, Xynomic has obtained the exclusive worldwide rights to develop and commercialize abexinostat
for all human and non-human diagnostic, prophylactic, and therapeutic uses. As a result of the license, Xynomic has obtained exclusive
rights to use all the data generated in the previously completed clinical trials listed below in Figure 2. The data from many
of these trials have also been published by the investigators in scientific journals.
91
Figure 2 – Summary of Completed
Clinical Trials on Abexinostat
Based on the results
from these early studies, Xynomic believes that abexinostat may offer a more active and potentially less toxic treatment option
for cancer with a wider therapeutic index. When used in combination with other cancer therapeutics, abexinostat may also have synergistic
anti-tumor activity in tumor cells.
Currently Xynomic
is conducting three clinical trials of abexinostat: (1) as a single agent in patients with FL (XYN-601), (2) in combination
with pazopanib in patients with RCC (XYN-602),  (3) in combination with Keytruda
®
in patients with multiple
solid tumors (XYN-604), and (4) combination with Imbruvica
®
, in patients with r/r MCL or r/r DLBCL.
Background of
HDAC Inhibitors
Abexinostat is an oral
inhibitor of HDAC enzymes, which are well-validated drug targets in various disease areas including cancer. These enzymes control
several vital cellular processes, such as transcription, cell cycle progression, protein transport and degradation, and their activity
is often dysregulated (namely, impaired) in cancer. Typically the major function of these enzymes is controlling gene expression,
namely, whether genes are turned "on" or "off" via epigenetic mechanisms. In cancer, HDACs are often differentially
expressed from normal cells, resulting in gene expression changes that favor a tumor's ability to multiply, to avoid apoptosis
(namely, programmed cell death) or to become resistant to chemotherapy. Treatment with HDAC inhibitors has been show to reverse
these changes, resulting in cancer cell death in vitro (namely, in cultured cells) and tumor growth inhibition in vivo (namely,
in animals) at non-toxic concentrations. The following diagram illustrates HDAC inhibitors' mechanism of action.
92
Figure 3 – HDAC Inhibitors'
Mechanism of Action
Multiple inhibitors
of HDACs have been approved by the U.S. FDA for treatment of hematologic malignancies. It is believed that HDAC inhibitors induce
histone hyperacetylation and can cause cell death. The first drug in this class to gain approval from FDA was Vorinostat (Zolinza
®
,
Merck), which is approved to treat cutaneous T-cell lymphoma ("
CTCL
") in patients that have failed two previous
therapies. Another HDAC inhibitor, Romidepsin (Istodax
®
, Celgene) is approved to treat CTCL and peripheral T-cell
lymphoma ("
PTCL
"). Additionally, belinostat (Beleodaq
®
, Spectrum) was approved in 2014 for the
treatment of patients with R/R T-cell lymphoma and panobinostat (Farydak
®
, Novartis) was approved in 2015 for the
treatment of multiple myeloma.
In addition to overt
anti-tumor activities described above, HDAC inhibitors are known to have the ability to reverse resistance to some cancer therapies
such as vascular endothelial growth factor ("
VEGF
") inhibitors and CPIs via epigenetic modification. Resistance
to approved cancer therapies is a major problem in cancer treatment. Tumors can find ways to modify their genes to become resistant.
One such process is called "epigenetics", where genes are turned on and off, but the sequence of DNA is not altered.
For certain cancers, a group of investigators at University of California San Francisco ("UCSF") reported that adding
an HDAC inhibitor to an approved cancer therapy can prevent or reverse such resistance. See "
Information about Xynomic
— Abexinostat — On Going Clinical Studies of Abexinostat — Abexinostat, in combination with Pazopanib, in Renal
Cell Carcinoma (XYN-602) — Preliminary Results of Combining Abexinostat and Pazopanib in RCC.
The underlying mechanism
is complex and not fully understood, and it often varies depending on the cancer type. For example, when RCC and certain other
solid tumors are treated with VEGF inhibitors such as pazopanib, resistance can be caused by, among other factors, hypoxia-driven,
HDAC-mediated overexpression and post-translational stabilization of hypoxia-inducible factor ("
HIF
")-1α.
HDAC inhibitors can potentially downregulate HIF-1α and VEGF expression via epigenetic mechanism, thus recapturing response
to pazopanib. When combined with CPIs, HDAC inhibitors have been shown to counteract the mechanisms of resistance to CPIs.
Key Findings
of Prior Trials on Abexinostat
Unique Pharmacokinetic
Profile
.
In a Phase 1 trial
sponsored by Servier (CL1-78454-001), abexinostat was rapidly absorbed following oral administration, and a maximal plasma concentration
was achieved within 0.5 to 1 hour. The terminal elimination half-life, which is the time required for the body to eliminate half
of the administered dose, was calculated to be approximately 4 hours. In other orally administered HDAC inhibitors, it takes similar
or relatively longer time to achieve the maximal plasma concentration: about two hours for Vorinostat (Volinza
®
,
Merck) and Panobinostat (Farydac
®
, Novartis) and about four hours for Chidamide (Epidaza
®
, Chipscreen).
At the same time, the terminal elimination half-life was estimated to be approximately 37 hours for Panobinostat and approximately
17 hours for Chidamide, significantly longer than abexinostat's approximately 4 hours of terminal elimination half-life
(Vorinostat showed a shorter terminal elimination half-life of approximately 2 hours). Pharmacokinetic modeling suggested that
optimal oral dosing schedule for abexinostat may be twice daily four hours apart. Based on these data, Xynomic plans to leverage
pharmacokinetics profile of abexinostat, combined with its potential dosage regimen, and explore abexinostat's potential
as a less toxic treatment option for cancer.
93
CL1-78454-001 was an
open-label, non-randomized, dose-escalation, Phase 1 portion of a Phase 1/2 study. The Phase 2 portion of this Phase 1/2 study
is known as PCYC-1401. The primary objective of the Phase 1 was to assess safety and tolerability, and determine the recommended
Phase 2 dose and optimal administration schedule of abexinostat in patients with R/R B-cell lymphoma or chronic lymphocytic leukemia
("CLL"). Secondary objectives included pharmacokinetics, pharmacodynamics, and tumor response. Between February 2010
and June 2011, oral abexinostat 30, 45, or 60 mg/m2 was administered twice daily on 35 patients with R/R Hodgkin's Lymphoma
("HL") or Non-Hodgkin Lymphoma ("NHL") (including FL and DLBCL) and CLL. Two dose-limiting toxicities occurred
at 60 mg/m2 twice daily in each of the three dosing schedules (one Grade 3 febrile neutropenia; five Grade 4 thrombocytopenia).
Grade 3 or above adverse events ("AEs") included thrombocytopenia (31% Grade 3, and 26% Grade 4), which was found reversible
after stop dosing. Grade 3 or above AEs are generally serious adverse events ("SAEs").
Preliminary Safety
Data
.
Safety of a drug candidate
is measured in terms of the frequency and severity of the occurrences of AEs in a clinical study. The number of treatment-emergent
adverse events ("TEAEs"), includes all events emerging during the treatment that were either absent before the treatment
or worsen relative to the state before the treatment. TEAEs may or may not related to the study drug.
Depending on the severity
of AEs, they are categorized into Grade 1 through 5. Grade 1 AEs are AEs with mild symptoms that do not need medical intervention.
Grade 2 AEs are moderate AEs that require minimal, local or non-invasive intervention. Grade 3 AEs are severe or medically significant
but not immediately life-threatening AEs either that require hospitalization or prolong existing hospitalization, or that are disabling,
or that limit self care abilities. Grade 4 AEs are AEs that result in life-threatening consequences and involve urgent intervention.
Grade 5 AEs are deaths related to adverse events.
Safety of a drug candidate
is also characterized by occurrences of SAE (Serious Adverse Event), which is defined as any AE that results in death; is life-threatening;
requires hospitalization or prolongation of existing hospitalization; results in permanent or significant disability/dysfunction;
results in congenital anomaly/birth defect, or leads to other important medical events. Grade 3 and above AEs are generally SAEs.
Preliminary safety
data from clinical trials PCYC-0403 and PCYC-1401 (measured in Grade 3 & 4 AE occurrence percentage among the trial subjects)
are listed in the figure below.
PCYC-0403 was a Phase
1/2 multicenter, open-label, dose-escalation study of abexinostat sponsored by Pharmacyclics. The study enrolled 55 total patients,
of which 25 patients with any lymphoma subtype participated in the Phase 1 portion of the study. The Phase 2 study included 16
patients with FL and 14 patients with MCL. Patients received abexinostat capsules orally twice daily (approximately 4–6 hours
apart) at 30, 45, and 60 mg/m2. Two four-week dosing cycle schedules were used: 5 days per week for the first 3 weeks [Days 1–5,
8–12, 15–19]) and an alternative dosing schedule, 7 days every other week [Days 1–7, 15–21]). Treatment
was continued until progressive disease or unacceptable toxicity. Serious AEs or SAEs were reported in 11 subjects (36.7%) overall,
in 6 subjects with FL and in 5 subjects with MCL. The TEAEs, which include AEs related to the study drug as well as other AEs emerging
during the treatment, were nausea (60%), fatigue (60%), diarrhea (50%), thrombocytopenia (47%), cough (43%), vomiting (33%), constipation
(33%), anemia (26.70%), headache (27%), edema peripheral (23%), neutropenia (23%), sinusitis (23%), decreased appetite (23%) and
dyspepsia (23%). Grade 3 and above AEs include thrombocytopenia (20%), neutropenia (13%), anemia (3%), arthralgia (7%), fatigue
(17%) and diarrhea (3%).
94
PCYC-1401 was the Phase
2 portion of a Phase 1/2 study originally sponsored by Servier and later by Pharmacyclics. This Phase 2 study enrolled 100 patients
with R/R NHL or CLL, including 18 FL patients, 17 DLBCL patients, 16 MCL patients, 18 T-CL patients, 15 MZL and other subtypes
patients and 16 CLL/LL patients. Patients were given oral abexinostat at 80 mg twice a day four hours apart for 14 days of a 3-week
cycle, and treatment was continued until progressive disease or unacceptable toxicity. TEAEs were reported in 98% of patients,
which were thrombocytopenia (88%), diarrhea (47%), anemia (38%), nausea (36%), neutropenia (35%), asthenia (35%), decreased appetite
(33%), vomiting (20%), constipation (14%), pyrexia (14%), fatigue (13%), muscle spasms (11%) and weight decreased (10%). It was
reported that 88% patients experienced Grade 3 or above AEs, which were thrombocytopenia (80%), neutropenia (28%), anemia (22%),
asthenia (6%), pneumonia (6%), hypokalemia (5%), febrile neutropenia (3%), abdominal pain (3%), diarrhea (3%) and renal failure
chronic (3%).  There were 5 deaths in the study, but the investigators did not find any of them to be related to treatment.
Figure 4 – Abexinostat and Approved
HDACs
†
Grade 3 and 4 AE %
Investigators in the
PCYC-1401 Phase 2 study attributed the difference in the toxicity profiles of abexinostat between PCYC-0403 and PCYC-1401 to the
differences in dosing schedules used. Abexinostat, when administered on a 2-weeks-on/1-week-off schedule in PCYC-1401, was associated
with higher rates of grade 3 or over hematologic events. In contrast, the 1-week-on / 1-week-off schedule used in PCYC-0403 was
associated with lower rates of high-grade hematologic toxicities.
Preliminary Efficacy
Data.
Preliminary efficacy of abexinostat were evaluated in the PCYC-1401 Phase 2 study and the PCYC-0403 Phase 2 study. The 
primary endpoint of the PCYC-0403 Phase 2 study and the primary endpoint of the PCYC-1401 Phase 2 study were both objective response
rate ("
ORR
"), which is the proportion of patients in whom a complete response or a partial response, as defined
by standard disease-specific criteria for the applicable disease category, is observed. In both trials, patients with NHL (including
FL) were evaluated for clinical response with the International Working Group Revised Response Criteria for Malignant Lymphoma.
Under such response criteria, "complete response" is defined as complete disappearance of all detectable clinical evidence
of disease and disease-related symptoms and "partial response" is defined as regression (i.e. reduction) of measurable
disease and no new sites, which includes requirements such as at least a 50% decrease in sum of the product of the diameters of
up to six of the largest dominant nodes or nodal masses.
Under the same response
criteria, the PCYC-0403 Phase 2 trial showed 64% ORR in FL with a week-on-week-off dosing schedule (among 14 FL patients, 1 complete
response (7%) and 8 partial responses (57%)). The PCYC-1401 Phase 2 trial showed a 56% ORR in FL with a 2-weeks-on-1-week-off dosing
schedule (among 16 FL patients, 1 complete response (6%) and 8 partial responses (50%)). The PCYC-1401 Phase 2 study also showed
31% ORR in DLBCL (among 16 DLBCL patients, 1 complete response (6%) and 4 partial responses (25%)).
95
Ongoing Clinical
Studies of Abexinostat
Xynomic is conducting
four ongoing clinical trials and plans to start several additional trials in 2019. Xynomic pays for all the trials and supplies
abexinostat free of charge. Janssen will supply Imbruvica to be used in the combination trial free of charge. The pazopanib supply
agreement with Novartis is under negotiation. For all potentially pivotal trials, Xynomic retains qualified CROs such as PPD and
Parexel to manage the operational details, including managing and interacting with hospitals and physicians. For non-pivotal trials,
Xynomic manages the operational details and works directly with hospitals such as University of California at San Francisco and
Memorial Sloan Kettering Cancer Center and the physicians.
Abexinostat, in combination
with Pazopanib, in Renal Cell Carcinoma (XYN-602)
Xynomic is also investigating
the use of abexinostat, in combination with pazopanib, to treat patients with RCC, which is the most common type of kidney cancer
in adults. While pazopanib and other VEGF-targeting agents have shown significant clinical activity in multiple tumor types, resistance
to pazopanib almost universally results. A team of investigators at UCSF conducted a Phase 1b open-label trial of abexinostat in
combination with pazopanib in heavily pre-treated patients with RCC. In the trial, this combination therapy resulted in 10.5 months
of median DOR, or duration of response, in patients who experienced pazopanib-refractory RCC.
Pazopanib and Treatment
Resistance
. Pazopanib is a molecular targeted therapy for treating RCC, one of the standards of care currently available. Pazopanib
belongs to a class of drugs known as VEGF tyrosine kinase inhibitor. It works by decreasing the blood supply to the cancer tumor
to slow tumor growth. However, it is found that proangiogenic, VEGF-driven tumors adapt to the presence of angiogenesis inhibitors,
thus functionally evading the therapeutic effect and leading to treatment resistance. Resistance to pazopanib after treatment is
common.
HDAC Inhibitors'
Synergistic Effect and Potential to Reverse Treatment Resistance.
It has been found that combining pazopanib and HDAC inhibitors
could have synergistic effect in inhibiting activities of a variety of VEGF-driven tumors. The addition of HDAC inhibitors to pazopanib-resistant
cancer cell lines in cell biology studies and mouse models also showed effect in reversing resistance. One of the implicated mechanisms
is that the overexpression is driven by hypoxia and mediated by HDAC. HIF-1α, a potent proangiogenic factor, could directly
regulate VEGF expression and perform post-translational stabilization function. As a result, HDAC inhibition significantly downregulates
HIF-1α protein expression in hypoxic conditions.
Rationale for Combining
Abexinostat with Pazopanib.
It has been hypothesized that HDAC inhibitors could enhance pazopanib's activities and reversing
pazopanib's treatment resistance. In addition, abexinostat is a pan-HDAC inhibitor with favorable pharmacokinetic profile
and no drug-drug interactions are expected when abexinostat is combined with pazopanib because abexinostat and pazopanib have different
metabolic pathways (pazopanib predominantly via CYP3A4 and abexinostat via glucuronidation). A combination of the general observation
in HDAC inhibitors and certain properties demonstrated by abexinostat led to the initiation of a Phase 1b trial of abexinostat
plus pazopanib in patients with advanced solid tumor malignancies, with an expansion cohort in RCC.
Preliminary Results
of Combining Abexinostat and Pazopanib in RCC
. The initial trial conducted by UCSF was designed as a Phase 1b, open-label,
dose-escalation/expansion trial of abexinostat in combination with pazopanib. 51 patients with RCC were enrolled, including 30
with one or more lines of prior VEGF-targeting therapy. A key objective was to test the hypothesis that epigenetic modification
with HDAC inhibition may provide the means to recapture response and reverse resistance to pazopanib in RCC and other solid tumor
malignancies.
96
In this study, patient
treatment responses and disease progressions were evaluated in accordance with the Response Evaluation Criteria in Solid Tumors,
Version 1.1 (the "RECIST"). Under the RECIST guideline:
●
Complete Response, or CR, is defined as disappearance of all target lesions and any pathological lymph nodes (whether target or non-target) must have reduction in short axis to <10 mm.
●
Partial Response, or PR, means at least a 30% decrease in the sum of diameters of target lesions, taking as reference the baseline sum diameters.
●
Objective Response Rate, or ORR, is the proportion of patients with confirmed CR or confirmed PR.
●
Progressive Disease (PD), or disease progression, means at least a 20% increase in the sum of diameters of target lesions, taking as reference the smallest sum on study (this includes the baseline sum if that is the smallest on study) as well as an absolute increase of at least 5 mm or the appearance of one or more new lesions.
●
Stable Disease (SD), or disease stabilization, means neither sufficient shrinkage to qualify for PR nor sufficient increase to qualify for disease progression.
●
Objective Response means confirmed CR or confirmed PR.
●
Progression Free Survival, or PFS, is defined as the time from first study drug intake date to the earlier of the first date of radiological PD or death date (due to any reason)).
●
Overall Survival (OS) is defined as the time from the date of first study drug intake to the date of death (due to any reason)).
●
Duration of Response (DOR) is defined as the time from the first date of objective response to first date of radiological PD.
Of the 51 patients investigated,
43 had measurable diseases and were evaluable for response, five patients withdrew their consent for reasons other than progression
before first tumor assessment, and three patients were removed as a result of dose-limiting toxicity in cycle one. Nine patients
(21%) achieved objective tumor response: RCC (n = 6), thyroid cancer (n = 2), and mesothelioma (n = 1). Among the 10 patients who
had experienced disease progression on prior pazopanib monotherapy, seven (70%) had tumor regressions while participating in the
trial. Of 28 patients who were evaluable for response with prior progression on one or more VEGF-targeting therapies, 19 (68%)
experienced tumor regressions on combination study treatment, including six patients (21%) with an objective tumor response. Patients
had a median DOR of 9.1 months (range, 1.2 to ≥ 44 months) and clinical benefit rate, which is defined as the percentage of
patients showed complete response and partial response plus stable disease over a six-month period over all patients was observed
in 16 of 43 patients, or 37%. Overall, eight patients experienced disease stabilization or tumor response for >12 months, including
five patients who remain on study treatment. The majority of patients with a response greater than six months had experienced disease
progression on prior VEGF-targeting therapy. The figure below summarizes the ORR, clinical benefit rate, tumor regression rate
(which is calculated as the percentage of patients whose tumors shrunk on treatments over all patients), and median DOR.
Figure 5 – Preliminary Efficacy
Data of Abexinostat-Pazopanib Combination
against VEGFi-Refractory Solid
Tumors
The preliminary results
from the trial conducted by the UCSF investigators demonstrated a 27% ORR in the heavily pre-treated patients with RCC, compared
to the 10% ORR reported for pazopanib (as a monotherapy), in treating treatment naive RCC patients (i.e. patients who have never
received RCC treatment before). Note that this comparison is not based on a head-to-head trial, therefore the data derived from
these separate clinical studies may not be comparable and would not form a basis for claiming superiority of abexinostat in marketing.
97
Overall, 524 TEAEs were
reported in 49 patients (96.1%). Fatigue was the most common AE reported (76.5% patients), followed by diarrhea (49% patients),
anorexia (49% patients), and nausea (45.1% patients).
Grade 3 and above AEs
were fatigue (16%), thrombocytopenia (16%), neutropenia (10%), anemia (10%), diarrhea (10%), and elevated AST/ALT (4%) and hypertension
(2%). There were no episodes of febrile neutropenia or clinically significant bleeding. There were no treatment-related Grade 5
AEs. There were five deaths, all of which were attributed to disease progression.
Possible Mechanistic
Explanation.
Mechanistically speaking, the putative mechanism of action via epigenetically mediated downregulation of HIF-1α
and VEGF expression is supported by pharmacodynamic analyses. Downregulation of plasma VEGF levels—a direct transcriptional
target of HIF-1α—was significantly correlated with induction of peripheral blood mononuclear cells histone acetylation,
a validated biomarker of HDAC inhibition. HDAC2 is the central HDAC enzyme that directly regulates VEGF expression via binding
to its promoter; inhibition of HDAC2 suppresses VEGF expression and angiogenesis. The differential mechanism of cellular localization
and function may explain why expression of HDAC2, and not HDAC6, was strongly associated with durable treatment responses in this
Phase 1b trial.
Current Development
Activities and Plan
. In July 2018, Xynomic began enrolling patients in a Phase 3 trial to test abexinostat in combination with
pazopanib as the first-line or second-line treatments of RCC, head-to-head against pazopanib as a monotherapy. Patients will receive
pazopanib by mouth daily on Days 1 to 28 of each treatment cycle and will receive 80 mg of abexinostat or placebo by mouth twice
daily (BID), 4 hours apart, on Days 1 to 4, 8 to 11, and 15 to 18 of every 28-day cycle. This Phase 3 trial, initiated on September
5, 2018, is designed as a global trial and will be conducted in the U.S., six European countries, China and South Korea. This trial
will enroll approximately 390 patients globally with locally advanced or metastatic RCC. The trial objectives include measurements
of PFS, as the primary endpoint, ORR, DOR and OS, and incidence and severity of AEs and other safety parameters. This Phase 3 trial
is being managed by Parexel. The first patient was dosed on October 10, 2018 and Xynomic expects to complete this trial in approximately
4 years. Based on discussion of trial design with the FDA prior to study initiation in an EOP2/Pre-Phase 3 Meeting held on March
16, 2018, Xynomic believes the trial has potential to support approval in the U.S. In addition, Xynomic has been granted the Fast
Track designation for RCC by the US FDA in March 2019.
98
The following is a summary
of major potentially pivotals trials, including abexinostat and its combination with pazopanib:
Figure 6 –Potentially
Pivotal Trials
Abexinostat as a
monotherapy in FL (XYN-601)
FL is the second most
common subtype of non-Hodgkin's lymphoma. HDAC plays important roles in tumor initiation, promotion, and progression. It
has been shown that HDACs are significantly over-expressed in the tumor cells of FL. As an HDAC inhibitor, Xynomic believes that
abexinostat has the ability to remodel the chromatin, thus enabling certain silenced genes (tumor suppressor genes, such as p53,
p21, Bak) to become re-activated while simultaneously silencing certain oncogenes (such as HER2, Raf-1, VEGF, Telomerase). In this
process, normal cells are generally not being affected. For this reason, Xynomic is testing whether abexinostat could be a suitable
therapeutic agent against FL by inhibiting the over-expression of HDACs in the tumor cells of FL.
In the PCYC-0403 Phase
2 study, a total of 30 patients were enrolled, 16 of which are patients with FL. The primary objective of this Phase 2 trial was
ORR. Data from this trial involving showed durable complete and partial responses. Overall, ORR was 64% (9/14) for the 14 evaluable
FL patients (or 56% (9/16) for intent-to-treat FL patients). These responses appear to be durable, with a 20.5 months median PFS.
PFS, or progression free survival, means the time period from first study drug intake to tumor progression or death from any cause,
as measured under the applicable response criteria, in this case, the International Working Group Revised Response Criteria for
Malignant Lymphoma. Abexinostat was given orally twice daily at 45mg/m2 on a 4-week cycle for 7 days/week every other week, i.e.
week-on-week-off.
99
Figure 7 –
Significantly Improved Progression-Free Survival
The PCYC-1401 Phase
2 trial used 2-weeks-on-1-week-off dosing. In this study, 16 patients with FL showed an ORR of 56%, measured under the same response
criteria as used in the PCYC-0403 Phase 2 trial. The overall observed safety profile of all patients in the PCYC 1401 Phase 2 trial
(2-weeks-on-1-week-off dosing) was not as good as the week-on-week-off trial in PCYC-0403 Phase 2 study. See "
Information
about Xynomic — Abexinostat— Key Findings of Prior Trials on Abexinostat— Preliminary Safety Data.
"
Based on the clinical
results from the two independent studies described above, in July 2018, Xynomic started enrolling patients in a Phase 2 trial to
test abexinostat as a fourth-line monotherapy of FL. Designed as a single arm trial, this trial will enroll approximately 120 patients
in the U.S., Europe and China with R/R FL who have undergone at least three lines of therapy. Patients will receive 80 mg (4 ×
20 mg tablets) abexinostat twice daily, orally, 4 hours apart for 7 days in a "one week on, one week off" schedule
(on Days 1 to 7 and Days 15 to 21 of each 28-day cycle). Trial objectives include measurement of ORR, as the primary endpoint,
DOR
, PFS,
OS
, and incidence and severity of AEs and other safety parameters. Based on discussion of trial design
with the FDA in a pre-IND meeting held on April 18, 2018, Xynomic believes the trial has potential to support accelerated approval
in the U.S. This Phase 2 trial is being managed by PPD Development, LP ("PPD") and is expected to be completed in approximately 3 years.
100
Abexinostat, in
combination with Imbruvica
®
, in R/R DLBCL or R/R MCL
Mantle Cell Lymphoma
(MCL).
MCL has an annual incidence of approximately 6,500 in G7 countries, according to DR/Decision Resources, LLC.
Ibrutinib has been approved by the FDA for relapsed MCL and has response rates of
60-70% and median duration of response of 18 months. Abexinostat as a mono therapy has been shown to have response rate of 15.4%
(7.7% complete response and 7.7% partial response) in r/r MCL patients. Researchers at MSK are testing whether abexinostat/ibrutinib
combo could potentially improve response rates and duration of responses in r/r MCL patients, subject to the assessment upon the
completion of the trial.
Diffuse Large B-Cell
Lymphoma (DLBCL).
DLBCL is the most common aggressive non-Hodgkin's lymphoma (NHL) subtype according to the Leukemia
& Lymphoma Society (LLS). Researchers at MSK have shown preclinical data demonstrating that dual targeting of Bruton's
tyrosine kinase (BTK) in the BCR pathway with ibrutinib and inhibition of MyD88-driven NF-kB activation with a HDAC inhibitor lead
to synergistic anti-lymphoma activity in MyD88 mutated, ABC-subtype DLBCL both in vitro and in vivo.
Rationale for Combining
Abexinostat with Imbruvica
®
.
Imbruvica
®
is an innovative BTK inhibitor. When Imbruvica
®
is used in combination with abexinostat, pre-clinical data have demonstrated that dual targeting of BTK in the BCR pathway
with Imbruvica
®
and inhibition of MyD88-driven NF-kB activation with a HDAC inhibitor results in synergistic anti-lymphoma
activity in MyD88 mutated, ABC-subtype DLBCL, both in vitro and in vivo.
It is suggested that
mechanistically, when Imbruvica
®
inhibits BTK in the BCR pathway, it leads to decreased NF-kB activation and, when
the HDAC inhibitor inhibits STAT3, it leads to down-regulation of MyD88 expression, thereby decreasing TLR signaling and NF-kB
activation, as illustrated in Figure 8 below.
Figure 8
– Illustration of Mechanism of Action of the BTKi-HDACi Combo
Source: Zhijian Liu
et al., J Immunol 184: 244-54, 2010
Current Development
Activities and Plan
.
Xynomic has dosed the
first patient in a Phase 1/2 trial that combines abexinostat with Imbruvica in patients with R/R DLBCL or R/R MCL in partnership
with Janssen and Memorial Sloan Kettering Cancer Center ("
MSKCC
"). This trial will enroll approximately 40 patients
to assess the safety and efficacy of the combination in patients with r/r MCL or r/r DLBCL. The primary purposes of this trial
are to determine dose limiting toxicities associated with this combination therapy, evaluate adverse and serious adverse drug reactions
associated with this combination therapy, and obtain preliminary efficacy measures including ORR, DOR, PFS, and OS. This trial
will also explore the biologic predictors of response and resistance to dual BCR and HDAC inhibition. Janssen is providing Imbruvica
®
as part of the collaboration, with Xynomic providing abexinostat and financial support for the trial. The trial will be conducted
by investigators at MSKCC.
101
Abexinostat, in combination
with Keytruda
®
, in Multiple Solid Tumors (XYN-604)
Xynomic is also investigating
abexinostat in combination with Keytruda
®
, a humanized antibody used in cancer immunotherapy, for the treatment
of multiple solid tumors. Keytruda
®
is an IgG4 isotype antibody that blocks a protective mechanism of cancer cells,
and allows the immune system to destroy those cancer cells.
Immunotherapy
.
Immunotherapy is a type of cancer treatment that boosts the body's immune system function to fight cancer. It uses substances
made by the body or in a laboratory to improve or restore immune system function. Immunotherapy may work by stopping or slowing
the growth of cancer cells or stopping cancer from spreading to other parts of the body or helping the immune system work better
at destroying cancer cells. Normally, the immune system is capable of recognizing and eliminating tumor cells; tumors, however,
are sometimes able to evade the immune response through alteration of regulatory checkpoint pathways. One of these pathways is
driven by programmed cell death protein 1, or PD-1, a receptor that is expressed on immune T-cells. The immune system responds
to the cancer by blocking these pathways with specific antibodies called immune CPIs. Once the immune system is able to find and
respond to the cancer, it can stop or slow cancer growth.
Rationale for Combining
Abexinostat with Keytruda
®
. Keytruda
®
is a CPI, which blocks the PD-1 receptor signaling axis
in patients with advanced solid tumors. Keytruda
®
, while effective, has significant limitations including low ORR
(~20%) and drug resistance issues. Epigenetic modifying agents such as HDAC inhibitors have been reported to have the potential
to counteract some of the mechanisms of resistance to CPI treatment. Among various changes observed in the microenvironment include
up-regulation of PD-L1 expression, down-regulation of forehead box P3 regulatory T cells, induction of effector T cells expressing
interferon-gamma, among other mechanisms.
Current Development
Activities and Plan
. On July 25, 2018, Xynomic initiated a Phase 1b clinical trial of abexinostat, in combination with Keytruda®,
in patients with multiple solid tumors. In this Phase 1b trial, dose escalation/expansion of abexinostat in combination with Keytruda®
will be explored in patients with prior progression on Keytruda® or other CPI treatments. In dose escalation, two dose levels
of abexinostat will be evaluated in combination with Keytruda®. Following determination of the maximally tolerated and recommended
Phase 2 dose of abexinostat, dose expansion will proceed in two parallel cohorts (n = 15 patients each): (A) patients with primary
resistance to prior anti-PD-1/PD-L1 treatment, defined as disease progression within six months of starting prior CPI treatment
without an objective response, and (B) patients with acquired resistance, defined as treatment duration on prior CPI treatment
for greater than six months with evidence of clinical benefit (tumor regression or disease stabilization) with subsequent disease
progression. Standardized review of scans obtained before and during prior treatment with CPI will be used to assign cohort. Enrollment
in the two patient cohorts will proceed in parallel. Xynomic plans to enroll approximately 42 patients in the U.S.
Planned Clinical
Trials of Abexinostat
In addition to the
three ongoing clinical trials discussed above, Xynomic intends to initiate the following three clinical trials in the next six
months.
Abexinostat, in
combination with a marketed cyclin-dependent kinase ("CDK") 4/6 inhibitor, in certain subtypes of breast cancer
.
Xynomic is also planning to combine abexinostat with a marketed CDK4/6 inhibitor against certain subtypes of breast cancer (Phase
1/2). Studies of genes and pathways affected by HDAC inhibitor treatment suggest a deregulation of CDK inhibitors, leading to the
hypothesis that combinational therapeutic treatment of HDAC inhibitors with inhibitors of specific CDK may represent a new therapeutic
approach to the treatment of breast cancer. This Phase 1/2 trial, estimated to be completed in approximately 3 years, will enroll
approximately 50 patients to explore potential clinical benefits for breast cancer of synergistic relationships between HDAC and
CDK inhibitors.
Abexinostat as a
monotherapy against R/R FL in China
. Xynomic plans to conduct a clinical trial using abexinostat as a monotherapy against R/R
FL in China. Xynomic will test abexinostat in China using a slightly different approach since very few FL patients in China have
been through three or more lines of treatment. Instead of testing patients who have been through three or more lines of treatment,
Xynomic will conduct a trial on patients in China who have been through two or more lines of treatment. This trial will enroll
approximately 81 patients and patient enrollment is expected to be completed in approximately 1.5 years. Based on written communication
Xynomic had with the CDE in September 2018, Xynomic believes that the data from this planned Phase 2 trial has potential to support
approval in China. On December 21, 2018, Xynomic submitted investigational new drug application to the CDE. CDE will review this
application within 60 business days and if Xynomic does not receive negative feedback from the CDE within such 60 business days,
Xynomic can proceed to start this trial, per CDE guideline. In addition to and before the planned data analysis upon completion
of this trial, upon collecting data from the first 37 patients, Xynomic will conduct an interim data analysis. Should the interim
data demonstrate superior therapeutic effect over pre-determined benchmark, such analysis could potentially lead to an earlier
submission of a New Drug Application to the CDE.
Abexinostat
as a monotherapy against R/R DLBCL in China
. Xynomic plans to conduct a clinical trial using abexinostat as a monotherapy against
R/R DLBCL in China. A Phase 2 trial conducted by Dr. Vincent Ribrag and others showed a 31% ORR when abexinostat was used as a
single agent against DLBCL. Based on these data and the fact that DLBCL has a much higher prevalence in China than in the west,
Xynomic decides to test abexinostat as a single agent against DLBCL in China. Xynomic plans to enroll approximately 144 patients
who have been through two or more lines of treatment. This trial will have a single arm and will use ORR as the primary end point.
Based on written communication Xynomic had with the CDE in September 2018, Xynomic believes that the data from this planned Phase
2 trial has potential to support approval in China. On December 21, 2018, Xynomic submitted investigational new drug application
to the CDE. CDE will review the application within 60 business days and if Xynomic does not receive negative feedback from the
CDE within such 60 business days, Xynomic can proceed to start this trial, per CDE guideline. In addition to and before the planned
data analysis upon completion of this trial, upon collecting data from the first 85 patients, Xynomic will conduct an interim data
analysis. Should the interim data demonstrate superior therapeutic effect over pre-determined benchmark, such analysis could potentially
lead to an earlier submission of a New Drug Application to the CDE.
102
Figure 9 – Abexinostat as a monotherapy
against R/R DLBCL in China
XP-105 and Development Strategies for XP-105
Background of mTOR Inhibitors
mTOR, or mammalian
target of rapamycin, is a serine/threonine-specific protein kinase. mTOR acts as a "master regulator" of human
protein synthesis by integrating a number of signaling pathways. It helps normal cells sense nutrients and control cell proliferation
and metabolism. However, in many forms of cancer, mTOR also reprograms cells to aberrantly divide, invade and metastasize.
mTOR regulates cellular
metabolism, growth, and proliferation by forming and signaling through two protein complexes, mTORC1 and mTORC2.
The following figure illustrates different mTOR inhibitors' mechanism of action.
Figure 10 – mTOR Inhibitors'
Mechanism of Action
103
Mechanism of action of mTOR inhibitors.
Abbreviations: IRS-1, insulin receptor substrate 1; PI3K, phosphatidylinositol-3-kinase; AKT, protein kinase B; mTOR, mammalian
target of rapamycin; PTEN, phosphatase and tensin homologue; S6K1, S6 kinase 1; 4E-BP1, eIF4E-binding protein 1.
The most established,
first generation mTOR inhibitors are so-called "rapalogs" (rapamycin and its analogs), including temsirolimus
(Torisel
®
, Pfizer) and everolimus (Afinitor
®
, Novartis), which have shown tumor responses and approved
as treatments against certain tumor types. However, rapalogs only showed modest clinical activity against various tumors, which
has been attributed to their partial inhibition of mTORC1 signaling, the lack of mTORC2 inhibition and/or rapid re-activation of
pathway signaling (pAKT) via release of negative feedback.
The second generation
of mTOR inhibitors inhibit both mTORC1 and PI3K. The PI3K and mTORC1 dual inhibitors inhibit both upstream and downstream of Protein
kinase B (PKB) (also known as AKT), thus avoiding the negative feedback loops that occur with rapalogs. This class of inhibitors
displays generally more potent apoptotic activity than rapalogs, but safety and toxicity might be a potential drawback as off-target
effects might occur.
The third generation
mTOR inhibitors, such as XP-105 (BI 860585), are those mTOR inhibitors that block the activities of both mTOR complexes (i.e. mTORC1
and mTORC2). In preclinical studies, these inhibitors displayed higher anti-proliferative and pro-apoptotic activity as well as
more complete inhibition of mTORC1 outputs compared with rapalogs. The toxicity and safety is expected to be better than those
of the 2nd generation of mTOR inhibitors. Compounds with dual inhibiting characteristics, such as XP-105, sapanisertib (codenamed
INK128) and AZD-2014 have entered clinical trials as potential anti-tumor therapies.
Key Findings of Prior Trial
Phase 1 Clinical
Trial of XP-105
.
In September 2013, BII initiated a Phase 1 trial on XP-105 (the "
NCT01938846 Trial
"),
aiming to determine the maximum tolerated dose ("MTD") of XP-105 as a single agent or combined with exemestane or paclitaxel
in patients with advanced solid tumors. This study had three treatment arms, all in 28-day cycles. In Arm A, XP-105 was tested
as a single-agent on 41 patients at dosing levels from 5 to 300 mg/day. In Arm B, XP-105 in combination with fixed-dose exemestane
at 25 mg/day was tested on 25 patients at dosing levels from 40 to 220 mg/day. In Arm C, XP-105 in combination with paclitaxel
at 60 or 80 mg/m2/week was tested on 24 patients at dosing levels from 80 to 160 mg/day. MTD was defined as the highest dose at
which less than one out of six patients experience a dose-limiting toxicity (DLT) during cycle 1. Platelet-rich plasma was used
as a surrogate tissue for target engagement; lysates were analyzed via ELISA. Treatment was continued unless progressive disease
or unacceptable toxicity. The disease control rate, including complete response, partial response plus stable disease, in phase
1 are 58% in combination with paclitaxel, 28% in combination with exemestane, and 20% as monotherapy.
104
Preliminary Safety
Data
.
Preliminary safety data from the NCT01938846 Trial (measured in Grade and AE occurrence percentage among the trial
subjects) for each of the three arms is listed in the figures below.
Figure 11 – Arm A XP-105 as a Single
Agent
Treatment Related AEs Summary
(n = 41 patients)*
* No treatment related Grade 5 AE was reported in Arm A
105
Figure 12 – Arm B XP-105 in
Combination with Exemestane
Treatment Related AEs Summary (n = 25
patients)*
*
No treatment related Grade 4 or 5 AEs were reported in Arm B.
Figure 13 – Arm C XP-105 in Combination
with Paclitaxel
Treatment Related AEs Summary
(n = 24 patients)
106
In Arm A, 5 patients
(12.2%) had an AE leading to death, with none of the events considered related to the study treatment. 22 patients (53.7%) were
reported with an SAE, the most frequent of which comprised malignant neoplasm progression (4 patients, 9.8%), central nervous system
metastases (2 patients, 4.9%) and general physical health deterioration (2 patients, 4.9%). 13 patients (31.7%) were reported with
AEs leading to treatment discontinuation. In Arm B, 4 patients (16.0%) had an AE leading to death, with none considered related
to the study treatment. 10 patients (40.0%) were reported with an SAE, the most frequent of which comprised malignant neoplasm
progression (2 patients, 8.0%). 9 patients (36.0%) were reported with AEs leading to treatment discontinuation. In Arm C, no patient
had an AE leading to death. 13 patients (54.2%) were reported with an SAE, the most frequent of which comprised decreased appetite,
dehydration and pulmonary embolism (each 2 patients, 8.3%). 13 patients (54.2%) were reported with AEs leading to treatment discontinuation.
In this Phase 1 study,
MTD was determined to be 220 mg/day for XP-105 monotherapy. At MTD, AEs were mostly mild or moderate and reversible, and consistent
with the mode of action of the compound. MTD was also determined for the combination with exemestane or with paclitaxel. Preliminary
PK analysis showed a dose proportional PK profile up to 220 mg, with no food effect or drug interaction with exemestane or paclitaxel.
Preliminary Efficacy
Data
.
In the NCT01938846 Trial, preliminary efficacy studies were conducted in varied tumor types with XP-105 as the
single agent and in combination with other therapies in patients heavily pre-treated or progressing on rapalogs, using the Response
Evaluation Criteria In Solid Tumors criteria, or RECIST, version 1.1. Complete or partial responses, as defined under the RECIST,
were observed with the combinations in ER
+
breast cancer (including a patient who progressed on mTORC1 inhibitor with
IGF1-R mAb
+
exemestane), uterine carcinoma, and bladder cancer. In Arm A (X-105 as a single agent), disease control
rate (i.e. the percentage of patients showed objective (complete or partial) response or disease stabilization) was 19.5% (no objective
response, 8 stable diseases). In Arm B (X-105 combined with exemestane), disease control rate was 28.0% (4 partial responses, or
16.0%; 3 stable diseases, or 12.0%). In patients treated with XP-105 and paclitaxel (Arm C), objective response was reported for
5 patients (20.8%; 1 complete response and 4 partial responses); stable disease was reported for 9 patients (37.5%).
In Arm C the median duration of objective response was 5.29 months (25th percentile 3.65 months, 75th percentile 9.30
months) and the median duration of disease control (objective response plus stable disease) was 7.46 months (25th percentile
7.10 months, 75th percentile 11.14 months).
Preliminary biomarker
analysis (for target engagement) in platelet-rich plasma collected in the NCT01938846 Trial provided evidence that tolerable doses
(i.e. 120-220 mg) of XP-105 may lead to inhibition of both mTORC1 and mTORC2 signaling. In the high dose group (120-220 mg) in
Arm A, reduced pAKT/AKT and p4E-BP1/4E-BP1 ratios (up to ~50%) within 3 hours after dosing were observed and such reduced ratios
lasted up to 24 hours; for the low dose group (5-80 mg), no strong trend for inhibition of pAKT and p4E-BP1 was observed. Patients
in Arm B were given oral XP-105 combined with exemestane. Patients in Arm C were given oral XP-105 combined with paclitaxel. In
both Arm B and C, a trend consistent with what was observed in Arm A for pAKT/AKT was observed in all analyzed dose groups; no
similar trend for inhibition of p4E-BP1/4E-BP1 was observed.
XP-105 Development Strategies
XP-105 in Combination
with Chemotherapy
.
Preclinical data generated by BII in tumor xenograft models showed that the combination of XP-105
with standard-of-care chemotherapeutic agents such as pegylated liposomal doxorubicin, paclitaxel, cisplatin, etoposide, topotecan
and docetaxel could enhance tumor growth inhibition and induction of tumor regressions. In ovarian cancer, pre-clinical studies
have shown that XP-105, together with pegylated liposomal doxorubicin, resulted in tumor regressions and prolongs growth control.
Similarly, in small cell lung cancer, pre-clinical studies have shown that XP-105, combined with cisplatin/etoposide (first-line
standard-of-care) or paclitaxel (second-line standard-of-care), resulted in tumor regressions.
In Arm C of the NCT01938846
Trial where patients were treated with XP-105 and paclitaxel, a chemotherapy agent, objective response was reported for 5 patients
(20.8%; 1 complete response and 4 partial responses); disease control was reported for 14 patients (58.3%). The median
duration of objective response was 5.29 months (25th percentile 3.65 months, 75th percentile 9.30 months) and the median
duration of disease control was 7.46 months (25th percentile 7.10 months, 75th percentile 11.14 months).
Based on the pre-clinical
studies and clinical trial data generated by BII, Xynomic plans to design and conduct a Phase 2 clinical trial of XP-105 in combination
with paclitaxel to test the safety and efficacy of such combination in metastatic breast cancer patients. This trial will apply
a dosage regimen based on the data from the NCT01938846 Trial.
107
XP-105 in Combination
with Targeted Agents
.
Pre-clinical studies conducted by BII demonstrated the combination potential of XP-105 with novel
agents targeting endocrine signaling, cell cycle, integrin signaling, growth factor receptor signaling and angiogenesis. Certain
combinations have shown enhanced effect in vitro and/or tumor growth inhibition and induction of tumor regressions in vivo.  In
a colorectal cancer model, pre-clinical studies have shown that XP-105, combined with XP-102 (formerly known as BI 882370), resulted
in enhanced tumor growth control. In an HR
+
breast cancer model, pre-clinical studies have shown that XP-105 together
with letrozole (Aromatase inhibitor) or palbociclib (CDK4/6 inhibitor) resulted in tumor regressions and prolonged growth control.
Similar pre-clinical studies have shown that XP-105, combined with BI 853520 (FAK inhibitor), resulted in enhanced tumor growth
control in an ovarian cancer model.
Based on the pre-clinical
data generated by BII, Xynomic plans to design and conduct a Phase 1b clinical trial to assess the efficacy, safety, and tolerability
of combination of XP-105/ XP-102 (formerly known as BI 882370) in advanced cancer patients harboring BRAF V
600E
mutation.
This study will enroll patients with metastatic colorectal cancer with BRAF V
600E
mutation. If the results demonstrate
that such combination is feasible, Xynomic will further test the efficacy, safety, and tolerability of triplet regimen of XP-105/XP-102/cetuximab
in this patient population.
Xynomic will actively seek additional therapeutic
opportunities for XP-105 in areas with unmet medical needs.
Pre-Clinical Drug Candidates
Xynomic's development
pipeline also includes pre-clinical drug candidates: XP-102 (also known as BI 882370), XP-103 and XP-104.
XP-102 (BI 882370)
XP-102 is a second
generation potent and selective pan-RAF inhibitor that binds to the DFG-out (inactive) conformation of the BRAF kinase. It is an
oral small molecule drug candidate that Xynomic is developing for the potential treatment of colorectal cancer, melanoma, non-small
cell lung cancer, hairy cell leukemia, and potentially other cancer types. Xynomic obtained patent ownership and worldwide exclusive
licenses to XP-102 for all human and non-human diagnostic, prophylactic, and therapeutic uses, including therapeutic uses targeting
hematological and solid tumors, from Boehringer Ingelheim.
Background of BRAF
Inhibitor.
Hyperactivation of the MAPK signaling pathway due to increased transducer expression (based on focal gene amplification)
or higher intrinsic activity (due to gain-of-function point mutations, deletions, or chromosomal rearrangements) contributes to
the pathogenesis of a wide range of solid tumors as well as hematologic malignancies. Nevertheless, marketed first generation BRAF
inhibitors such as vemurafenib and dabrafenib often lead to progression of skin lesions. Furthermore, majority of patients treated
with combination therapy of RAF-MEK inhibitors still develop secondary resistance over the course of a few months of treatment.
In contrast to dabrafenib,
a marketed first generation BRAF inhibitor, X-ray crystallography has shown that XP-102 binds to the ATP binding site of the kinase
positioned in the "DFG-out" conformation, enabling an aromatic T-stacking interaction that may contribute to the high
cellular activity of XP-102. In addition, XP-102 was tested in multiple mouse models of BRAF-mutant colorectal cancer ("
CRC
")
and melanomas and at 25 mg/kg twice daily showed superior anti-tumor activity compared with dabrafenib, trametinib, or vemurafenib,
a marketed BRAF inhibitor in both the Colo-205
V600V/E
model and HT-29
V600V/E
model. In a drug resistance
model, XP-102 in combination with trametinib resulted in more pronounced regressions, and resistance was not observed during five
weeks of second-line therapy. In terms of preliminary safety data, a pilot study in rats (up to 60 mg/kg daily for two weeks) did
not uncover significant toxicity in terms of clinical chemistry, hematology, pathology, and toxicogenomics. These pre-clinical
data indicate the potential feasibility of developing novel compounds that provide an improved therapeutic window compared with
first-generation BRAF inhibitors, resulting in more pronounced and long-lasting pathway suppression and thus improved anti-tumor
activity.
Recent Pre-Investigaional
New Drug ("IND") Meeting with U.S. FDA for XP-102.
On June 12, 2019, Xynomic held a pre-IND meeting with the U.S.
FDA for the XP-102. The FDA addressed Xynomic's questions related to chemistry, manufacturing, and controls ("CMC"),
nonclinical and clinical protocol, and provided valuable advice on overall clinical development plan to advance XP-102. The FDA
also provides advice on regulatory strategies that will support the XP-102 clinical development. Xynomic is on track to file this
IND application in the second half of 2019.
108
XP-103
Internally discovered by Xynomic, XP-103 is a dual inhibitor of tropomyosin receptor kinases, or TRK,
and Fra-1 enzymes currently in lead optimization stage. The global patent of XP-103 has been filed in December 2018.
XP-104
Internally discovered by Xynomic, XP-104 is a rearranged during transcription, or RET, inhibitor being
investigated for use against multiple tumors, especially tumors that have developed resistance against other targeted therapies.
Xynomic is in preparation to initiate animal studies.The global patent of XP-104 has been filed in September 2018. The animal studies
of XP-104 is under preparation and in discussion with contract research organizations. Xynomic plans to launch the animal studies
of XP-104 in the second half of 2019.
Intellectual Property
Exclusive License
Agreement with Pharmacyclics Relating to Abexinostat
On February 23, 2017,
Xynomic entered into a license agreement with Pharmacyclics LLC ("
Pharmacyclics
"), a subsidiary of AbbVie Inc.
("
AbbVie
"). Under this license agreement, Xynomic obtained an exclusive worldwide license or sublicense under
certain patents and know-how to exploit, make, import, use, sell, research, develop, commercialize, register, manufacture, and
export abexinostat. This worldwide exclusive license covers all human and non-human diagnostic, prophylactic, and therapeutic uses
of abexinostat, including therapeutic uses targeting hematological and solid tumors. Xynomic also obtained the right to grant sublicenses
to its affiliates and other third parties subject to Pharmacyclics' prior written consent. In connection with the license,
Pharmacyclics also assigned to Xynomic certain of its clinical supply agreements, which obligates Xynomic to supply abexinostat
to patients who are continuing on previously started trials. Pursuant to the license agreement with Pharmacyclics, Xynomic has
obtained the full worldwide decisional power with respect to development of the licensed products, while Pharmacyclics agreed to
wind up and close all clinical trials it sponsored prior to the effective time of the license agreement. Xynomic is obligated to
use commercially reasonable efforts to develop, obtain and maintain regulatory approvals for, and commercialize at least one licensed
product for use in the United States and certain other major market countries. Pharmacyclics initially obtained the intellectual
property rights to abexinostat per an assignment agreement dated April 7, 2006 by and between Pharmacyclics and Celera Genomics,
a business unit of Applera Corporation (the "
Celera Assignment Agreement
"). Xynomic agrees to meet obligations
of Pharmacyclics under the Celera Assignment Agreement relating to the development, manufacture and commercialization of abexinostat
(including reporting obligations) and prosecution, maintenance and enforcement of the Applera intellectual property covering abexinostat.
Under the terms of
the agreement with Pharmacyclics, Xynomic made an upfront payment of $3,500,000 to Pharmacyclics, in two installments: (i) first
an amount equal to $2,000,000 within 10 business days after the effective date, and (ii) second, an amount equal to $1,500,000
within 60 business days of the effective date. Xynomic may be required to make milestone payments of up to $14,000,000 to Pharmacyclics
for the achievement of certain development and regulatory milestone events. In addition, Xynomic will pay Pharmacyclics royalties
at a percentage rate in the high-teens on the net sales of the licensed products in the licensed territory (namely, worldwide)
during each calendar year during the royalty term. The royalty term commences from the first commercial sale and lasts until the
expiration of the last-to-expire Pharmacyclics patent covering the licensed product or the exploitation thereof, on a product-by-product
and country-by-country basis. The abexinostat tosylate composition of matter patent is expected to expire on March 3, 2034 in the
United States, Europe, China, and Japan.The license agreement with Pharmacyclics will remain in effect until the expiration of
the royalty term and may be early terminated by either party for the other party's uncured material breach, bankruptcy, insolvency,
or similar event. Pharmacyclics has the right to terminate the agreement if Xynomic challenges Pharmacyclics' patents or
fails its diligent obligations to develop or commercialize the licensed product pursuant to the license agreement with Pharmacyclics.
In addition, Xynomic may terminate this agreement for convenience with advance written notice to Pharmacyclics. In the event this
license agreement is terminated for any reason other than Pharmacyclics' material breach, Xynomic will be responsible for continuing,
at its cost for up to six months, to conduct clinical studies it conducts at the termination and transfer the control of the clinical
studies to Pharmacyclics. If such transfer is expressly prohibited by a regulatory authority, Xynomic will continue to conduct
such clinical studies to completion, at Xynomic's cost.
109
Exclusive License
Agreement with BII Relating to XP-105 (BI 860585)
On December 20, 2018,
Xynomic entered into a licensing agreement with Boehringer Ingelheim International GmbH ("
Boehringer Ingelheim
"
or "
BII"
). Pursuant to the agreement with BII, BII (i) granted Xynomic a worldwide, exclusive, royalty-bearing,
and non-transferrable license to certain licensed patents and the related know-how controlled by BII or its affiliates to develop,
manufacture, use and commercialize the compound known as BI 860585, a phase 2 ready mTORC1/2 inhibitor, and the products containing
XP-105; and (ii) agreed to assign to Xynomic the licensed patents after BII receives certain milestone payment from Xynomic. The
worldwide exclusive license covers the use of XP-105 in diagnosis, prevention or treatment of any and all diseases or conditions
in human or animals. Xynomic is entitled to sublicense its rights to any of its affiliates or third parties upon prior notice to
BII, except that sublicense to any third party with respect to the United States and China shall obtain prior written consent of
BII (which shall not be unreasonably withheld). Under the agreement, BII retains an exclusive, cost-free, perpetual, worldwide,
transferrable and sublicenseable (in multiple tiers) right to use the licensed patents and licensed know-how to the extent those
are also necessary to exploit other compounds and products and not only specifically related to XP-105 and/or the licensed product.
Under the agreement,
Xynomic is obligated to use commercially reasonable efforts to achieve or cause its sublicensees to achieve certain development
milestones and to commercialize the licensed products. BII committed not to develop (not including pre-clinical research activities)
or commercialize any chemical entities covered under the licensed patents for any oncology indications worldwide during the term
of the agreement without prior written consent of Xynomic. In the event that Xynomic commences clinical trials or commercializes
any product that modulates the same target (mTOR) as its primary mechanism of action and is developed for the same indication as
XP-105 or licensed product under the agreement, BII shall be entitled to take certain actions with respect to amending the license
it has granted to Xynomic under the agreement with BII.
Under the terms of
the agreement with BII, Xynomic will make an upfront payment of $1,000,000 to BII. In addition, Xynomic may be required to make
milestone payments up to $17,000,000 to BII for the achievement of certain development milestone events. Xynomic will pay to BII
tiered royalties at percentage rates in high-teens up to 20%, subject to certain royalty reductions, on the global annual net sales
of licensed products on a product-by-product and country-by-country basis during the royalty term. Royalty term commences from
the first commercial sale of such licensed product in such country until the later of (i) the date on which such licensed product
is no longer covered by a valid claim of the licensed patents, (ii) the expiration of regulatory exclusivity of the licensed product
in such country in the indication, or (iii) the tenth anniversary of the first launch of the respective licensed product in the
country in the indication (provided the licensed know-how is still proprietary, or such licensed know-how is no longer proprietary
owing to a breach of Xynomic's confidentiality obligations). The composition-of-matter patent is expected to expire on August
6, 2031 in the United States and on January 25, 2031 in China, Japan, Germany, France, United and certain other European countries.
The agreement with
BII will remain in effect until the expiration of the royalty term on a product-by-product and country-by-country basis and may
be earlier terminated by either party for the other party's uncured material breach. Xynomic has the right to terminate the
agreement for convenience with prior written notice to BII. BII also has the right to terminate the agreement if Xynomic directly
or indirectly challenges the validity of the licensed patents in the legal proceeding.
110
Exclusive License
Agreement with BII Relating to BI 882370
On August 16, 2017,
Xynomic entered into a patent assignment and licensing agreement with BII. Pursuant to the agreement with BII, BII (i) assigned
to Xynomic its patents/patent applications covering XP-102, known as BI 882370, a 2nd-generation pan-RAF inhibitor; and (ii) granted
Xynomic a worldwide, exclusive, royalty-bearing, and non-transferable license to all know-how controlled by BII or its affiliates
necessary for, or specifically related to, the discovery, development, manufacture, commercialization, or use of XP-102 and any
family compound. The worldwide exclusive license covers the use of XP-102 in diagnosis, prevention, or treatment of any and all
diseases or condition in human or animals. Xynomic is entitled to sublicense its rights to any of its affiliates upon prior notice
to BII and to sublicense its rights to any third party in the United States and China with prior written consent of BII (which
shall not be unreasonably withheld). Under the agreement, BII retains an exclusive, cost-free, perpetual, worldwide, transferrable
and sublicenseable (in multiple tiers) right to use the assigned patents and assigned invention solely for BII's and its
affiliates' internal pre-clinical research purposes.
Xynomic is obligated
to use commercially reasonable efforts to achieve or cause its sublicensees to achieve certain pre-clinical and clinical development
milestones and to commercialize the licensed products in the licensed field. In the event that Xynomic commences clinical trials
or commercializes any product that modulates the same target (B-raf) as its primary mechanism of action and is developed for the
same indication as the licensed product under the agreement, BII will be entitled to take certain actions with respect to amending
the license it has granted to Xynomic under the agreement with BII.
Under the terms of
the patent assignment and licensing agreement with BII, Xynomic made an upfront payment of $300,000 to BII. In addition, Xynomic
may be required to make milestone payments up to $17,700,000 to BII for the achievement of certain development milestone events.
Xynomic will pay to BII tiered royalties in the high-teens up to 20%, subject to certain royalty reductions, on net sales of licensed
products on a product-by-product and country-by-country basis, during the royalty term. Royalty term commences from the first commercial
sale of such licensed product in such country until the later of (i) the date on which such licensed product is no longer covered
by a valid claim of the assigned patents and assigned invention, (ii) the expiration of regulatory exclusivity of the licensed
product in such country, or (iii) the tenth anniversary of the first launch of the respective licensed product in the country,
provided the licensed know-how is still proprietary, or such licensed know-how is no longer proprietary owing to a breach of its
confidentiality obligations. The abexinostat tosylate composition of matter patent is expected to expire on March 3, 2034 in the
United States, Europe, China, and Japan.
The patent assignment
and licensing agreement with BII will remain in effect until the expiration of the royalty term on a product-by-product and country-by-country
basis and may be earlier terminated by either party for the other party's uncured material breach. Xynomic has the right
to terminate the agreement for convenience with prior written notice to BII. BII also has the right to terminate the agreement
if Xynomic directly or indirectly challenges the validity of the assigned patents in any legal proceeding.
Patents
and Other Intellectual Property
Xynomic actively seeks
to aggressively protect the proprietary technology that is important to its business, including pursuing patents that cover its
product candidates and compositions, their methods of use, and the processes for their manufacture, as well as any other relevant
inventions and improvements that are commercially important to the development of its business. Xynomic also relies on trade secrets
and other know-how that may be important to the development of its business.
Xynomic's patent
portfolio is composed of issued patents and patent applications in the major territories, including the U.S., Europe, Brazil, Japan,
China, Canada, India, and Australia, and includes patents and patent applications that Xynomic owns as well as licenses from other
parties. These patents and patent applications cover various aspects of Xynomic's product candidate pipeline.
For abexinostat, as
of the date of this prospectus, Xynomic has an exclusive license to 19 issued U.S. patents, three pending U.S. patent applications,
122 issued foreign patents, and 71 pending foreign patent applications. The Pharmacyclics license agreement related to abexinostat
grants Xynomic exclusive, worldwide licenses under a portfolio of patents covering four broad areas: (1) directed to abexinostat,
related compounds and processes for making compounds; pharmaceutical compositions and methods of treating diseases characterized
by inhibition of hydroxamic acid-based small molecule histone deacetylase ("
HDAC
") activities; (2) directed
to salts, crystalline form of the salts and pharmaceutical compositions of abexinostat; methods of treating mammals in need
of HDAC inhibition; (3) combination treatment of using HDAC inhibitors and other therapies; and (4) biomarkers for the identification
of chemosensitivity. Two core families of patents covering abexinostat and crystalline form of abexinostat salts, respectively,
have been granted in the U.S., China, Australia, Europe, Canada, Mexico, Japan, South Korea, New Zealand, Singapore, South Africa,
Taiwan, Ukraine, India, and some other countries or areas. The duration of these patents is through 2024 (2025 in the U.S.) and
2034, respectively.
111
For XP-105, as of the
date of this prospectus, Xynomic has an exclusive license to two issued U.S. patents and 91 issued foreign patents. The BII license
agreement related to XP-105 grants Xynomic exclusive, worldwide licenses under a portfolio of patents covering XP-105, related
compounds and pharmaceutical compositions. The patents covering XP-105 (BI 860585) have been granted in the United States, China,
Japan, Germany, France, United Kingdom and certain other European countries, and the duration of the patents are through January
25, 2031 (August 6, 2031 in the United States).
For XP-102, as of the
date of this prospectus, Xynomic owns one issued U.S. patent, one pending U.S. patent application, and 4 issued foreign patents. The
BII license agreement related to XP-102 grants Xynomic exclusive, worldwide licenses under a portfolio of patents covering XP-102,
related compounds and pharmaceutical compositions. The patents covering XP-102 (BI 882370) have been granted in the U.S., France,
Germany, Japan, and the United Kingdom, and the duration of the patent is through 2032. In addition, a provisional patent application
directed at the crystalline form of salt of XP-102 has been filed in the U.S., on the basis of which a U.S. non-provisional application
and a Patent Cooperation Treaty ("
PCT
") application will be filed by the end of 2018.
Xynomic has filed a
basic compound patent application for XP-104 with China National Intellectual Property Administration, on the basis of which Xynomic
plans to initiate a PCT application by September 2019. Xynomic has filed a basic compound patent application for XP-103 with
China National Intellectual Property Administration, on the basis of which Xynomic plans to initiate a PCT application by December
2019.
Wherever possible,
Xynomic seeks to protect its inventions by filing U.S. patents as well as foreign counterpart applications in select other countries.
Because patent applications in the U.S. are maintained in secrecy for at least 18 months after the applications are filed, and
since publication of discoveries in the scientific or patent literature often lags behind actual discoveries, it cannot be certain
that Xynomic were the first to make the inventions covered by each of its issued or pending patent applications, or that Xynomic
were the first to file for protection of inventions set forth in such patent applications. Xynomic's planned or potential
products may be covered by third-party patents or other intellectual property rights, in which case continued development and marketing
of its products would require a license. Required licenses may not be available to Xynomic on commercially acceptable terms, if
at all. If Xynomic does not obtain these licenses, it could encounter delays in product introductions while it attempts to design
around the patents, or it could find that the development, manufacture, or sale of products requiring such licenses are not possible.
In addition to patent
protection, Xynomic also relies on know-how, trade secrets, and the careful monitoring of proprietary information, all of which
can be difficult to protect. Xynomic seeks to protect some of its proprietary technology and processes by entering into confidentiality
agreements with its employees, consultants, and contractors. These agreements may be breached, Xynomic may not have adequate remedies
for any breach and its trade secrets may otherwise become known or be independently discovered by competitors. To the extent that
its employees or its consultants or contractors use intellectual property owned by others in their work for Xynomic, disputes may
also arise as to the rights in related or resulting know-how and inventions.
Operations
Manufacturing
and Supply
: Xynomic does not own or operate, and currently has no plans to establish, any manufacturing facilities. It
currently relies, and expects to continue to rely, on third parties for the manufacture of its drug candidates for pre-clinical
and clinical testing, as well as for the commercial manufacture of any drugs that it may commercialize. To date, Xynomic has obtained
API and drug substance for abexinostat for its clinical testing from one third-party manufacturer and drug product from another
third party manufacturer. These supply agreements have standard terms and Xynomic is typically invoiced based on time and material
used. For XP-102, Xynomic sources the API, drug substance, and drug product from the same third party manufacturer. Xynomic obtains
its supplies from these manufacturers on a purchase order basis and has long-term supply arrangements in place. Xynomic does not
currently have arrangements in place for redundant supply for API, drug substance, or drug product. For all of its drug candidates,
it intends to identify and qualify additional manufacturers to provide API, drug substance, and drug product prior to submission
of a new drug application to the FDA, a marketing authorization application or
"MMA"
to the European Medicines
Agency, and similar applications to regulatory agencies in other territories.
112
All drug candidates
in Xynomic's current pipeline are compounds of low molecular weight, generally called small molecules. They can be manufactured
in reliable and reproducible synthetic processes from readily available starting materials. The chemistry is amenable to scale-up
and does not require unusual equipment in the manufacturing process. Xynomic plans to continue to develop drug candidates that
can be produced cost-effectively at high quality contract manufacturing facilities.
Equipment:
Xynomic's equipment mainly consists of office
equipment such as personal computers and lab equipment listed as follows.
Serial number
Instrument Name
Model
1
High Performance Liquid Chromatography; (HPLC)
Waters: e2695
2
Rotary Evaporator
R-1001VN
3
Cooling Circulating Pump
DLSB-5/20
4
Vacuum Drying Chamber
DZF-6050
5
Water Circulating Multi-purpose Vacuum Pump
SHZ-95B
6
Rotary-vane Vacuum Pump
2XZ-4
7
Constant Temperature Magnetic Stirrer
MS-H-Pro
8
Ultrasonic Cleaning Machines
KQ5200B
9
Laboratory Wastewater Treatment Equipment
XSYF-500L-D
10
High Purity Nitrogen Generator
TJ30-97
11
Laboratory Glassware
Safety and Risk
Management:
Xynomic's research and development center adopts the highest standard of safety to protect its staff.
As to outsourced research and development, manufacturing, and clinical trials, Xynomic only works with reputable and pre-qualified
contract research organizations ("
CROs
") and contract manufacture organizations ("CMOs") to ensure
the safety of all personnel involved. Furthermore, to manage uncertainty and potential risk in clinical trials, Xynomic has carried
all the required insurance for clinical trials, in addition to customary general corporate liability insurance.
Competition
Xynomic's industry
is highly competitive and subject to rapid and significant technological change, with over 500 companies worldwide developing late-phase
oncology drugs, according to a 2015 IMS study. Its potential competitors include large pharmaceutical and biotechnology companies
and specialty pharmaceutical companies, academic institutions, government agencies, and research institutions. The market for oncology
therapeutics is becoming increasingly competitive. Xynomic's products, however, upon approval, will be focused, at least
initially, on specific oncology indications with high unmet medical need. Key competitive factors affecting the commercial success
of Xynomic's product candidates are likely to be efficacy, safety and tolerability profile, reliability and durability of
response, convenience of dosing, and price and reimbursement.
If abexinostat is approved to treat relapsed or refractory ("R/R") follicular lymphoma ("FL"),
abexinostat will compete with approved therapies including Gilead's Zydelig
®
(a PI3 inhibitor), Bayer's
Aliqopa™, and Roche's Gazyva
®
(an antibody). If abexinostat is approved to treat R/R diffuse large
B-cell lymphoma ("DLBCL"),
abexinostat will compete with Gilead's Yescarta (a CAR-T therapy) and Novartis' Kymriah
®
(a CAR-T therapy).
If it is approved in first-line or second-line RCC, abexinostat, used in combination with pazopanib, will compete with Bristol-Myers
Squibb's Opdivo™/Yervoy
®
(a PD-1 inhibitor and a monoclonal antibody), Pfizer's Sutent
®
,
Novartis' Afinitor
®
(a mTORC inhibitor), Roche's Avastin
®
(a monoclonal antibody) in
combination with interferon alfa, and Novartis' Votrient
®
(generic name pazopanib, a VEGF inhibitor) as a
single agent.
If XP-105, combined
with paclitaxel, is approved to treat breast cancer, it will compete with approved therapies including standard-of-care chemo therapies
such as paclitaxel and targeted agents such as Novartis' Afinitor
®
(a mTORC inhibitor) plus exemestane, Novartis'
Kisqali
®
(a CDK4/6 inhibitor), Roche's Herceptin
®
(a monoclonal antibody), AstraZeneca's
Faslodex
®
(a selective estrogen receptor degrader), and Pfizer's Ibrance
®
(a CDK4/6 inhibitor).
The combination of XP-105 and paclitaxel is superior to our competitors.
113
Figure 14
–
XP-105 Advantages
Xynomic will develop
XP-102, in combination with a marketed MEK inhibitor, to treat colorectal cancer ("CRC") and melanoma, and if it is approved, it will compete with marketed
combination RAF/MEK targeted therapy such as Daiichi-Sankyo and Roche's Zelboraf
®
+ Cotellic
®
,
Novartis' Tafinlar
®
+ Mekinist
®
, and Array BioPharma's Braftovi
™
+ Mektovi
®
.
Properties
Xynomic does not own
any real estate. As of July 10, 2019, Xynomic has leased facilities for its Shanghai headquarters, regional offices, and research
and development center, summarized in the table below.
Xynomic believes that its existing
facilities and other available properties will be sufficient for its needs for the foreseeable future.
Figure 15
–
Leased Facilities
Site
Type of Facility
Size, Square Feet
Lease Expiration Date
Headquarters – Shanghai, China
Office
2,612
3/31/2022
Raleigh, North Carolina, USA
Office
438
8/31/2019
Research and Development Center, Shanghai, China
Lab/Office
5,597
(1)
7/26/2021
Beijing, China
Office
646
7/31/2019
Nanjing, China
Office
1,076
11/15/2020
Zhongshan, China
Office
108
4/30/2020
(1)
Consists
of 3,983 square feet of lab and 1,614 square feet of office.
Employees
As
of the date of this prospectus, we had 24 full-time and 10 part-time employees and consultants. Among the full-time
staff, 8  are based in the U.S. and the rest are based in China. Xynomic's employees are not represented by labor
unions or covered by collective bargaining agreements. We consider our relationship with our employees to be good. All
Xynomic's executive officers listed above other than Yong Cui have entered into an employment agreement or offer letter
with Xynomic or its subsidiary. Yong Cui provides services to Xynomic under a consulting agreement.
114
Employment Agreements
Xynomic
Pharmaceuticals Holdings, Inc., or XYN, our holding company, has  not entered into an employment agreement with our executive
officer including Yinglin Mark Xu, its Chief Executive Officer, Interim Chief Financial Executive Officer and President,
James Jiayuan Tong, its Chief Strategy Officer and Executive Vice President and Jinwei Coco Kou, its Interim Chief Accounting
Officer. It has also entered into indemnification agreements with each of its executive officers, a form of which is attached
as Exhibit 10.20 to this prospectus.
XYN has entered into
a signed offer letter with James Jiayuan Tong, effective on May 15, 2019. Under the terms of the offer letter, Dr. Tong is employed
as the Chief Strategy Officer and Executive Vice President of XYN, reporting to the Chief Executive Officer. Dr. Tong will receive
an annual salary of $0 and is eligible to receive an annual discretional bonus.
Xynomic has entered
into an employment agreement with Yinglin Mark Xu, effective on April 22, 2019. Under the terms of the employment agreement, Mr.
Xu is employed as the Chairman, Chief Executive Officer and President of Xynomic. Mr. Xu will receive an annual salary of $0 and
is eligible to receive an annual discretional bonus. Xynomic or Mr. Xu may terminate the employment at any time for any or no reason
upon giving written notice thirty (30) days in advance to the other party. Upon termination of the employment, Mr. Xu will be entitled
only to payment of his regular salary pro-rated through the termination date. Under the employment agreement, Mr. Xu will be subject
to non-competition and non-solicitation restrictions during his employment and for a period of twelve (12) months thereafter.
Xynomic has entered
into an employment agreement with Wentao Jason Wu, effective on January 1, 2019. Under the terms of the employment agreement, Dr.
Wu is employed as the Chief Operating Officer of Xynomic, reporting to the Chief Executive Officer or such other person as Xynomic
may designate. Dr. Wu will receive an annual salary of $160,008 and is eligible to receive an annual discretional bonus. Xynomic
or Dr. Wu may terminate the employment at any time for any or no reason upon giving written notice thirty (30) days in advance
to the other party. Upon termination of the employment, Dr. Wu will be entitled only to payment of his regular salary pro-rated
through the termination date. Under the employment agreement, Dr. Wu will be subject to non-competition and non-solicitation restrictions
during his employment and for a period of twelve (12) months thereafter.
Xynomic has
entered into an employment agreement with Sophia Paspal, effective on January 16, 2019 and amended on July 1, 2019. Under the
terms of the amended employment agreement, Dr. Paspal is employed as the Chief Development Officer of Xynomic, reporting to
the Chief Operation Officer or such other person as Xynomic may designate. Dr. Paspal will receive an annual salary of
$280,002, with a one-time signing on bonus of $25,000, subject to certain forfeitures as set forth in the employment
agreement. During her employment, Dr. Paspal is eligible to receive an annual discretional bonus targeted at 30% of her base
salary. Xynomic or Dr. Paspal may terminate the employment at any time for any or no reason upon giving written notice thirty
(30) days in advance to the other party. Upon termination of the employment, Dr. Paspal will be entitled only to payment of
her regular salary pro-rated through the termination date. In the event that Xynomic stops operations or is acquired by
another company, Dr. Paspals is entitled to 6-month pay plus health insurance coverage. Under the employment agreement, Dr.
Paspal will be subject to non-competition and non-solicitation restrictions during her employment and for a period of twelve
(12) months thereafter.
Xynomic has entered
into an offer letter with Jinwei Coco Kou, effective on March 19, 2019. Under the terms of the offer letter, Ms. Kou is employed
as the Interim Chief Accounting Officer of Xynomic. During her employment, Ms. Kou is eligible to receive an annual salary of $72,000
plus standard fringe benefits and paid vacation. Ms. Kou is also eligible to receive a performance based year-end bonus.
Dr. Niefang Yu is engaged
by Xynomic Nanjing under the terms of a Cooperative Development Agreement for New Drugs, effective as of May 1, 2018. Under the
terms of the agreement, Dr. Yu is employed on a part-time basis as a senior manager in charge of Xynomic's research and development
center located in Shanghai. Dr. Yu receives a monthly salary of RMB35,000. The agreement also provides for the future grant
of an option to purchase shares of common stock from Xynomic, which has not yet been granted.
Xynomic Zhongshan has
entered into a labor contract with Bing Zhao, effective on March 1, 2019. Under the terms of the labor contract, Bing Zhao
is employed as the Vice President of Xynomic Zhongshan in charge of Greater China Clinical and Regulatory Affairs for a term of
three (3) years. Dr. Zhao will receive a monthly salary of RMB30,000. Prior to the expiration of the term, Dr. Zhao may terminate
the employment for convenience upon thirty (30) days' prior written notice and Xynomic Zhongshan may terminate Dr. Zhao's
employment under certain circumstances, as provided in applicable PRC labor laws. Under a non-competition agreement dated March
1, 2019, Dr. Zhao is subject to non-competition and non-solicitation restrictions during his employment and for a period of twenty-four
(24) months thereafter; provided that he will receive reasonable compensations for the post-employment non-competition and non-solicitation
restrictions.
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Each Named Executive
Officer is also subject to general confidentiality obligations and obligations to assign proprietary property to Xynomic or a subsidiary
of Xynomic in his or her respective confidentiality agreement, consulting agreement or employment agreement.
Pursuant to the Merger
Agreement, certain officers of Xynomic entered into a non-competition and non-solicitation agreement with Xynomic Pharmaceuticals Holdings, Inc. on May 15, 2019,
a form of which is attached as Exhibit 10.19 to this prospectus.
Legal Proceedings
There is no material
litigation, arbitration or governmental proceeding currently pending against us. From time to time we may become involved in legal
proceedings or be subject to claims arising in the ordinary course of its business. Regardless of the outcome, litigation can have
an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
Government Regulation and Product Approvals
Government authorities
in the United States, at the federal, state, and local level, and in other countries and jurisdictions, including China and the
European Union, extensively regulate, among other things, the research, development, testing, manufacture, quality control, approval,
labeling, packaging, storage, recordkeeping, labeling, advertising, promotion, distribution, marketing, post-marketing monitoring
and reporting, and import and export of drug products. The processes for obtaining regulatory approvals in the United States and
in foreign countries and jurisdictions, along with subsequent compliance with applicable statutes and regulations and other regulatory
authorities, require the expenditure of substantial time and financial resources.
Failure to comply with
the applicable regulatory requirements at any time during the product development process, approval process or after approval,
may subject an applicant to administrative or judicial sanctions. These sanctions could include, among other actions, the regulatory
authority's refusal to approve pending applications, withdrawal of an approval, clinical holds, untitled or warning letters,
voluntary product recalls or withdrawals from the market, product seizures, total or partial suspension of production or distribution,
injunctions, disbarment, fines, refusals of government contracts, restitution, disgorgement, or civil or criminal penalties. Any
such administrative or judicial enforcement action could have a material adverse effect on us.
United States Regulation
FDA Approval Process
In the United States,
the FDA regulates drugs under the FFDCA and implementing regulations. These laws and other federal and state statutes and regulations,
govern, among other things, the research, development, testing, manufacture, storage, recordkeeping, approval, labeling, promotion
and marketing, distribution, post-marketing monitoring and reporting, sampling, and import and export of drug products. The process
of obtaining regulatory approvals and the subsequent compliance with applicable federal, state, local, and foreign statutes and
regulations require the expenditure of substantial time and financial resources. Failure to comply with applicable U.S. requirements
may subject a company to a variety of administrative or judicial sanctions, such as clinical holds, FDA refusals to approve pending
regulatory applications, warning or untitled letters, product recalls, product seizures, total or partial suspension of production
or distribution, injunctions, fines, civil penalties, and criminal prosecution.
The process required
by the FDA before a drug may be marketed in the United States generally includes the following:
●
completion
of nonclinical laboratory tests, animal studies, and formulation studies according to GLP or other applicable regulations;
●
submission
to the FDA of an investigational new drug application, or "
IND
," which must become effective before human clinical
trials may begin in the United States;
116
●
performance
of adequate and well-controlled human clinical trials according to GCP to establish the safety and efficacy of the product candidate
for its intended use;
●
submission
to the FDA of an NDA for a new product;
●
satisfactory
completion of an FDA inspection, if conducted, of the facility or facilities where the product candidate is manufactured to assess
compliance with the FDA's cGMP to assure that the facilities, methods, and controls are adequate to preserve the drug product
candidate's identity, strength, quality, purity, and potency;
●
potential
FDA inspection of the nonclinical and clinical trial sites;
●
potential
FDA inspection of clinical trial sponsors and vendors involved in the generation of the data in support of the NDA; and
●
FDA
review and approval of the NDA.
Satisfaction of FDA
pre-market approval requirements typically takes many years and the actual time required may vary substantially based upon the
type, complexity, and novelty of the product candidate or disease. A clinical hold may occur at any time during the life of an
IND and may affect one or more specific trials or all trials conducted under the IND.
Nonclinical tests include
laboratory evaluation of the product candidate's chemistry, formulation, and toxicity, as well as animal studies to assess
the characteristics and potential safety and efficacy of the product candidate. The conduct of the nonclinical tests must comply
with federal regulations and requirements, including GLP. The results of nonclinical testing are submitted to the FDA as part of
an IND along with other information, including information about product candidate's chemistry, manufacturing and controls,
and a proposed clinical trial protocol. Long-term nonclinical tests, such as animal tests of reproductive toxicity and carcinogenicity,
may continue after the IND is submitted. A 30-day waiting period after the submission of each IND is required prior to the commencement
of clinical testing in humans. If the FDA has neither commented on nor questioned the IND within this 30-day period, the clinical
trial proposed in the IND may begin. Clinical trials involve the administration of the investigational product to healthy volunteers
or subjects under the supervision of a qualified investigator. Clinical trials must be conducted: (i) in compliance with federal
regulations; (ii) in compliance with GCP, an international standard meant to protect the rights and health of subjects and to define
the roles of clinical trial sponsors, administrators, and monitors; and (iii) under protocols detailing the objectives of the trial,
the parameters to be used in monitoring safety, and the effectiveness criteria to be evaluated. Each protocol involving testing
on U.S. subjects and subsequent protocol amendments must be submitted to the FDA as part of the IND.
The FDA may order the
temporary or permanent discontinuation of a clinical trial at any time, or impose other sanctions if it believes that the clinical
trial either is not being conducted in accordance with FDA requirements or presents an unacceptable risk to the clinical trial
subjects. The trial protocol and informed consent information for subjects in clinical trials must also be submitted to an ethics
committee/IRB for approval. An ethics committee/IRB may also require the clinical trial at the site to be halted, either temporarily
or permanently, for failure to comply with the ethics committee/IRB's requirements, or may impose other conditions. An IRB
is responsible for protecting the rights of clinical trial subjects and considers, among other things, whether the risks to individuals
participating in the clinical trial are minimized and are reasonable in relation to anticipated benefits. The IRB also approves
the information regarding the clinical trial and the consent form that must be provided to each clinical trial subject or his or
her legal representative and must monitor the clinical trial until completed. Each new clinical protocol and any amendments to
the protocol must be submitted to the FDA for review, and to the IRBs for approval. Protocol detail, among other things, includes
the objectives of the clinical trial, testing procedures, sublease selection and exclusion criteria, and the parameters to be used
to monitor subject safety. The study sponsor may also suspend a clinical trial at any time on various grounds, including a determination
that the subjects are being exposed to an unacceptable health risk.
Clinical trials to
support NDAs for marketing approval are typically conducted in three sequential phases, but the phases may overlap:
●
In
Phase 1, the initial introduction of the product candidate is usually into healthy human subjects, and the product candidate is
tested to assess metabolism, pharmacokinetics, pharmacological actions, side effects associated with increasing doses, and, if
possible, early evidence on effectiveness.
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●
Phase
2 usually involves trials in a limited patient population to determine the effectiveness of the product candidate for a particular
indication, dosage tolerance, and optimal dosage, and to identify common adverse effects and safety risks.
●
If
a product candidate demonstrates evidence of effectiveness and an acceptable safety profile in Phase 2 evaluations, Phase 3 trials
are undertaken to obtain additional information about clinical efficacy and safety in a larger number of subjects, typically at
geographically dispersed clinical trial sites, to permit the FDA to evaluate the overall benefit-risk relationship of the product
candidate and to provide adequate information for the labeling of the product candidate. In most cases, the FDA requires two adequate
and well-controlled Phase 3 clinical trials to demonstrate the efficacy of the product candidate. A single Phase 3 trial may be
sufficient in certain circumstances.
A drug candidate being
studied in clinical trials may be made available for treatment of individual patients, in certain circumstances. Pursuant to the
21st Century Cures Act, or "
Cures Act
," which was signed into law in December 2016, the manufacturer of an investigational
product for a serious disease or condition is required to make available, such as by posting on its website, its policy on evaluating
and responding to requests for individual patient access to such investigational product. In May 2018, the Right to Try Act was
signed into law to establish a new pathway that does not require FDA approval for access to unapproved, investigational treatments
for patients diagnosed with life-threatening diseases or conditions who have exhausted approved treatment options and who are unable
to participate in a clinical trial.
During the development
of a new product candidate, sponsors are given opportunities to meet with the FDA at certain points; specifically, prior to the
submission of an IND, at the end of Phase 2 and before an NDA is submitted. Meetings at other times may be requested. These meetings
can provide an opportunity for the sponsor to share information about the data gathered to date and for the FDA to provide advice
on the next phase of development. Sponsors typically use the meeting at the end of Phase 2 to discuss their Phase 2 clinical results
and present their plans for the pivotal Phase 3 clinical trials that they believe will support the approval of the new product
candidate.
Concurrent with clinical
trials, sponsors usually complete additional animal safety studies and also develop additional information about the chemistry
and physical characteristics of the product candidate and finalize a process for manufacturing commercial quantities of the product
candidate in accordance with cGMP requirements. The manufacturing process must be capable of consistently producing quality batches
of the product candidate and the manufacturer must develop methods for testing the quality, purity, and potency of the product
candidate. Additionally, appropriate packaging must be selected and tested and stability studies must be conducted to demonstrate
that the product candidate does not undergo unacceptable deterioration over its proposed shelf life. After completion of the required
clinical testing, an NDA is prepared and submitted to the FDA. FDA approval of the NDA is required before marketing of the product
may begin in the United States. The NDA must include the results of all nonclinical, clinical, and other testing and a compilation
of data relating to the product candidate's pharmacology, chemistry, manufacture, and controls. The cost of preparing and
submitting an NDA is substantial. The submission of most NDAs is additionally subject to a substantial application user fee, and
the applicant under an approved NDA is also subject to annual product and establishment user fees. These fees are typically increased
annually. On August 3, 2017, Congress passed the FDA Reauthorization Act of 2017, which reauthorizes the various user fees to facilitate
the FDA's product review and oversight.
The FDA has 60 days
from its receipt of an NDA to determine whether the application will be accepted for filing based on the agency's threshold
determination that it is sufficiently complete to permit substantive review. The FDA may refuse to file any NDA that it deems incomplete
or not properly reviewable at the time of submission and may request additional information. In this event, the NDA must be resubmitted
with the additional information and the resubmitted application also is subject to review before the FDA accepts it for filing.
Once the submission is accepted for filing, the FDA begins an in-depth review. The FDA has agreed to certain performance goals
in the review of NDAs. Most such applications for standard review product candidates are reviewed within 10 months of the date
the FDA files the NDA; most applications for priority review product candidates are reviewed within six months of the date the
FDA files the NDA. Priority review can be applied to a product candidate that the FDA determines has the potential to treat a serious
or life-threatening condition and, if approved, would be a significant improvement in safety or effectiveness compared to available
therapies. The review process for both standard and priority review may be extended by the FDA for three additional months to consider
certain late-submitted information, or information intended to clarify information already provided in the submission.
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Among other things,
the FDA reviews an NDA to determine whether the product is safe and effective for its intended use and whether the product candidate
is being manufactured in accordance with cGMP. The FDA may also refer applications for novel product candidates, or product candidates
that present difficult questions of safety or efficacy, to an advisory committee—typically a panel that includes clinicians
and other experts—for review, evaluation, and a recommendation as to whether the application should be approved. The FDA
is not bound by the recommendation of an advisory committee, but it generally follows such recommendations.
Before approving an
NDA, the FDA will typically inspect one or more clinical sites to assure compliance with GCP. Additionally, the FDA may inspect
the facility or the facilities at which the product candidate is manufactured. The FDA will not approve the product candidate unless
it determines that the manufacturing processes and facilities are in compliance with cGMP requirements and adequate to assure consistent
production of the product within required specifications. To assure GCP and cGMP compliance, an applicant must incur significant
expenditures of time, money and effort in the areas of training, record keeping, production, and quality control.
Notwithstanding the
submission of relevant data and information, the FDA may ultimately decide that the NDA does not satisfy the criteria for approval
and deny approval. Data obtained from clinical trials are not always conclusive. The FDA may disagree with Xynomic's trial
design or interpret data from nonclinical studies and clinical trials differently than Xynomic interprets the same data. If the
agency decides not to approve the NDA in its present form, the FDA will issue a complete response letter that describes all of
the specific deficiencies in the application identified by the FDA. The deficiencies identified may be minor, for example, requiring
labeling changes, or major, for example, requiring additional clinical trials. If a complete response letter is issued, the applicant
may either resubmit the NDA, addressing the deficiencies identified in the letter, or withdraw the application. If, or when, those
deficiencies have been addressed to the FDA's satisfaction in a resubmission of the NDA, the FDA will issue an approval letter.
The FDA has committed to reviewing such resubmissions in two or six months depending on the type of information included. An approval
letter authorizes commercial marketing of the drug in the United States with specific prescribing information for specific indications.
Even if a product candidate
receives regulatory approval, the approval may be significantly limited to specific indications and dosages or the indications
for use may otherwise be limited, which could restrict the commercial value of the product. Further, the FDA may require that certain
contraindications, warnings or precautions be included in the product labeling. The FDA may impose restrictions and conditions
on product distribution, prescribing, or dispensing in the form of a risk evaluation and mitigation strategy, or "
REMS
,"
or otherwise limit the scope of any approval. REMS can include medication guides, communication plans for healthcare professionals,
and elements to assure safe use, or "
ETASU
." ETASU can include, but are not limited to, special training or
certification for prescribing or dispensing, dispensing only under certain circumstances, special monitoring, and the use of patient
registries. The requirement for REMS can materially affect the potential market and profitability of the product. In addition,
the FDA may require confirmatory post-marketing trials, sometimes referred to as "Phase 4" clinical trials, designed
to further assess a product's safety and effectiveness, and testing and surveillance programs to monitor the safety of approved
products that have been commercialized.
The FDA may withdraw
a product approval if compliance with regulatory requirements is not maintained or if problems occur after the product reaches
the market. Later discovery of previously unknown problems with a product may result in restrictions on the product's marketing
or even complete withdrawal of the product from the market. Further, the failure to maintain compliance with regulatory requirements
may result in administrative or judicial actions, such as fines, untitled or warning letters, holds on clinical trials, product
seizures, product detention or refusal to permit the import or export of products, refusal to approve pending applications or supplements,
restrictions on marketing or manufacturing, injunctions or consent decrees, or civil or criminal penalties, or may lead to voluntary
product recalls.
Foreign Clinical Studies to Support
an IND or NDA
The FDA will accept
as support for an IND or NDA a well-designed, well-conducted, non-IND foreign clinical trial if it was conducted in accordance
with GCP and the FDA is able to validate the data from the trial through an on-site inspection, if necessary. A sponsor or applicant
who wishes to rely on a non-IND foreign clinical trial must submit supporting information to the FDA to demonstrate that the trial
conformed to GCP.
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Regulatory applications
based solely on foreign clinical data meeting these criteria may be approved if the foreign data are applicable to the U.S. population
and U.S. medical practice, the trials have been performed by clinical investigators of recognized competence, and the data may
be considered valid without the need for an on-site inspection by FDA or, if FDA considers such an inspection to be necessary,
FDA is able to validate the data through an on-site inspection or other appropriate means. Failure of an application to meet any
of these criteria may result in the application not being approvable based on the foreign data alone.
Disclosure of Clinical Trial Information
Sponsors of clinical
trials of FDA-regulated products are required to register and disclose certain clinical trial information. Information related
to the product, patient population, phase of investigation, trial sites and investigators, and other aspects of the clinical trial
is then made public as part of the registration. Sponsors are also obligated to disclose the results of their clinical trials after
completion. Disclosure of the results of these trials can be delayed in certain circumstances for up to two years after the date
of completion of the trial. Competitors may use this publicly available information to gain knowledge regarding the progress of
development programs. In addition, failure to submit required clinical trial registration and/or results information may result
in FDA regulatory actions, including the issuance of a Notice of Noncompliance, civil money penalties, injunction, and/or criminal
prosecution.
Expedited Development and Review Programs
The FDA has various
programs, including Fast Track Designation, Priority Review Designation, Accelerated Approval Program and Breakthrough Therapy
Designation, which are intended to expedite or simplify the process for reviewing product candidates. Even if a product candidate
qualifies for one or more of these programs, the FDA may later decide that the product candidate no longer meets the conditions
for qualification or that the time period for FDA review or approval will be lengthened. Generally, product candidates that are
eligible for these programs are those for serious or life-threatening conditions, those with the potential to address unmet medical
needs and those that offer meaningful benefits over existing treatments. For example, Fast Track Designation is a process designed
to facilitate the development and expedite the review of product candidates to treat serious or life-threatening diseases or conditions
and fill unmet medical needs. Priority Review Designation is designed to give a product candidate that treats a serious condition
and, if approved, would provide a significant improvement in safety or effectiveness, an initial review within eight months as
compared to a standard review time of within 10 months of the date the FDA files the NDA.
Although Fast Track
Designation and Priority Review Designation do not affect the standards for approval, the FDA will attempt to facilitate early
and frequent meetings with a sponsor of a Fast Track Designation product candidate and expedite review of the application for a
Priority Review Designation product candidate.
In the Food and Drug
Administration Safety and Innovation Act, or "
FDASIA
," which was signed into law in July 2012, the U.S. Congress
encouraged the FDA to utilize innovative and flexible approaches to the assessment of product candidates under the Accelerated
Approval Program. The law required the FDA to issue related guidance and also promulgate confirming regulatory changes. In May
2014, the FDA published a final Guidance for Industry titled "Expedited Programs for Serious Conditions—Drugs and Biologics,"
which provides guidance on the FDA programs that are intended to facilitate and expedite development and review of new product
candidates as well as threshold criteria generally applicable to concluding that a product candidate is a candidate for these expedited
development and review programs.
The FDA may grant accelerated
approval to a product for a serious or life-threatening disease or condition that provides meaningful therapeutic advantage to
patients over existing treatments based upon a determination that the product has an effect on a surrogate endpoint that is reasonably
likely to predict clinical benefit. Products approved under the Accelerated Approval Program must meet the same statutory standards
for safety and effectiveness as those granted traditional approval.
In addition to the
Fast Track Designation, Priority Review Designation, and Accelerated Approval Programs discussed above, the FDA also provided guidance
on a new program for Breakthrough Therapy Designation, established by FDASIA to subject a new category of product candidates to
expedited approval. A sponsor may seek Breakthrough Therapy Designation of a product candidate if the product candidate is intended,
alone or in combination with one or more other therapeutics, to treat a serious or life-threatening disease or condition, and preliminary
clinical evidence indicates that the product candidate may demonstrate substantial improvement over existing therapies on one or
more clinically significant endpoints, such as substantial treatment effects observed early in clinical development. A request
for Breakthrough Therapy Designation should be submitted concurrently with, or as an amendment to, an IND, but ideally no later
than the end of Phase 2 meeting.
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Accelerated Approval
Program
Under the accelerated
approval provisions of the FFDCA and the FDA's implementing regulations, the FDA may grant accelerated approval to a product
for a serious or life-threatening disease or condition that provides meaningful therapeutic advantage to patients over existing
treatments based upon a determination that the product has an effect on a surrogate endpoint that is reasonably likely to predict
clinical benefit. Products approved under the Accelerated Approval Program must meet the same statutory standards for safety and
effectiveness as those granted traditional approval.
The Accelerated Approval
Program is most often used in settings in which the course of a disease is long and an extended period of time is required to measure
the intended clinical benefit of a product, while the effect on the surrogate endpoint occurs more rapidly. The FDA will not grant
approval under the Accelerated Approval Program to products that meet standards for traditional approval.
The evidence to support
the determination that an endpoint is reasonably likely to predict clinical benefit may include epidemiological, pathophysiological,
therapeutic, pharmacologic, or other evidence developed using biomarkers, for example, or other scientific methods or tools. The
FDA considers all relevant evidence and may consult external experts, as needed. Important factors for the agency's consideration
include the disease process and the relationship between the drug's effect and the disease process.
As part of the Accelerated
Approval Program, the FDA may require one or more confirmatory post-marketing trials to verify and describe the anticipated effect
or clinical benefit of Xynomic's products. Typically, clinical benefit is verified when post-marketing clinical trials show
that the drug provides a clinically meaningful positive therapeutic effect, that is, an effect on how a patient feels, functions,
or survives. The FDA may require that any confirmatory post-marketing trial be initiated or substantially underway prior to the
submission of an application under the Accelerated Approval Program. And, if such confirmatory post-marketing trial fails to confirm
the drug's clinical profile or risks and benefits, the FDA may withdraw its approval of the drug. The FDA may also withdraw
the approval if other evidence demonstrates that the product is not safe or effective. All promotional materials for product candidates
approved under the Accelerated Approval Program are subject to prior review by the FDA. The FDA has issued labeling instructions
specific to the program. For example, if a drug is approved based on a surrogate endpoint under the program, its labeling should
include a succinct description of the limitations of usefulness of the drug and any uncertainty about anticipated clinical benefits.
False or misleading promotional materials may also lead to expedited withdrawal of approval.
Patent Term Restoration
and Marketing Exclusivity
After approval, owners
of relevant drug patents may apply for up to a five-year patent extension under the Drug Price Competition and Patent Term Restoration
Act of 1984, referred to as the Hatch-Waxman Act. The allowable patent term extension is calculated as half of the product's
testing phase—the time between IND and NDA submission—and all of the review phase—the time between NDA submission
and approval, up to a maximum of five years. The time can be shortened if the FDA determines that the applicant did not pursue
approval with due diligence. The total patent term after the extension may not exceed 14 years.
For patents that might
expire during the application phase, the patent owner may request an interim patent extension. An interim patent extension increases
the patent term by one year and may be renewed up to four times. In no event will the interim patent extensions be longer than
the extension that would be obtained under the normal patent term extension provisions. The director of the U.S. Patent and Trademark
Office must determine that approval of the product candidate covered by the patent for which a patent extension is being sought
is likely. Interim patent extensions are not available for a product candidate for which an NDA has not been submitted.
121
Market exclusivity
provisions under the FFDCA also can delay the submission or the approval of certain applications. The FFDCA provides a five-year
period of non-patent marketing exclusivity within the United States to the first applicant to gain approval of an NDA for a new
chemical entity. A product candidate is a new chemical entity if the FDA has not previously approved any other new product candidate
containing the same active moiety, which is the molecule or ion responsible for the action of the product candidate substance.
During the exclusivity period, the FDA may not accept for review an abbreviated new drug application, or "
ANDA
,"
or a 505(b)(2) NDA submitted by another company for another version of such product candidate where the applicant does not own
or have a legal right of reference to all the data required for approval. An application, however, may be submitted after four
years if it contains a certification of patent invalidity or non-infringement. The FFDCA also provides three years of marketing
exclusivity for an NDA, 505(b)(2) NDA or supplement to an approved NDA if new clinical investigations, other than bioavailability
studies, that were conducted or sponsored by the applicant are deemed by the FDA to be essential to the approval of the application,
for example, for new indications, dosages, or strengths of an existing product candidate. This three-year exclusivity covers only
the conditions associated with the new clinical investigations and does not prohibit the FDA from approving ANDAs for product candidates
containing the original active agent. Five-year and three-year exclusivity will not delay the submission or approval of a full
NDA. An applicant submitting a full NDA, however, would be required to conduct or obtain a right of reference to all of the nonclinical
studies and adequate and well-controlled clinical trials necessary to demonstrate safety and effectiveness.
Post-marketing
Requirements
Once an approval is
granted, the FDA may withdraw the approval if compliance with regulatory requirements is not maintained or if problems occur after
the product reaches the market. Later discovery of previously unknown problems with a product may result in restrictions on the
product or even complete withdrawal of the product from the market. After approval, some types of changes to the approved product,
such as adding new indications, manufacturing changes, and additional labeling claims, are subject to further FDA review and approval.
In addition, the FDA may under some circumstances require testing and surveillance programs to monitor the effect of approved products
that have been commercialized, and the FDA under some circumstances has the power to prevent or limit further marketing of a product
based on the results of these post marketing programs.
Xynomic's drugs,
pursuant to FDA approvals, are subject to continuing regulation by the FDA, including, among other things:
●
record-keeping
requirements;
●
reporting
of adverse experiences associated with the product;
●
providing
the FDA with updated safety and efficacy information;
●
therapeutic
sampling and distribution requirements;
●
notifying
the FDA and gaining its approval of specified manufacturing or labeling changes;
●
registration
and listing requirements; and
●
complying
with FDA promotion and advertising requirements, which include, among other things, standards for direct-to-consumer advertising,
restrictions on promoting products for uses or in patient populations that are not described in the product's approved labeling,
limitations on industry-sponsored scientific and educational activities, and requirements for promotional activities involving
the internet.
Manufacturers, their subcontractors, and
other entities involved in the manufacture and distribution of Xynomic's drugs, if approved, are required to register their
establishments with the FDA and certain state agencies and are subject to periodic unannounced inspections by the FDA and some
state agencies for compliance with cGMP, including data integrity requirements, and other laws. The FDA periodically inspects manufacturing
facilities to assess compliance with ongoing regulatory requirements, including cGMP, which impose extensive procedural, substantive,
and record-keeping requirements upon Xynomic and third-party manufacturers engaged by it if its drugs are approved. In addition,
changes to the manufacturing process are strictly regulated, and, depending on the significance of the change, may require FDA
approval before being implemented. FDA regulations would also require investigation and correction of any deviations from cGMP
and impose reporting and documentation requirements upon Xynomic and its third-party manufacturers. Accordingly, manufacturers
must continue to expend time, money, and effort in the area of production and quality control to maintain compliance with cGMP
and other aspects of regulatory compliance. Failure to comply with the statutory and regulatory requirements can subject a manufacturer
to possible legal or regulatory actions, such as warning letters, suspension of manufacturing, seizures of products, injunctive
actions, or other civil penalties.
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In addition, drug manufacturers
in the United States must comply with applicable provisions of the Drug Supply Chain Security Act and provide and receive product
tracing information, maintain appropriate licenses, ensure they only work with other properly licensed entities, and have procedures
in place to identify and properly handle suspect and illegitimate products.
New Legislation
and Regulations
From time to time,
legislation is drafted, introduced, and passed in Congress that could significantly change the statutory provisions governing the
testing, approval, manufacturing, and marketing of products regulated by the FDA. In addition to new legislation, FDA regulations
and policies are often revised or interpreted by the agency in ways that may significantly affect Xynomic's business and
its drugs. It is impossible to predict whether further legislative changes will be enacted or whether FDA regulations, guidance,
policies, or interpretations will be changed or what the effect of such changes, if any, may be.
Other U.S. Healthcare
Laws and Compliance Requirements
In the United States,
Xynomic's activities are potentially subject to regulation by various federal, state, and local authorities in addition to
the FDA, including but not limited to, the Centers for Medicare and Medicaid Services, or "
CMS
," other divisions
of the U.S. Department of Health and Human Services (such as the Office of Inspector General and the Health Resources and Service
Administration), the U.S. Department of Justice, or the "
DOJ
," and individual U.S. Attorney offices within the
DOJ, and state and local governments. For example, sales, marketing, and scientific/educational grant programs may have to comply
with the anti-fraud and abuse provisions of the Social Security Act, the false claims laws, the privacy and security provisions
of the HIPAA, and similar state laws, each as amended, as applicable.
The federal Anti-Kickback
Statute prohibits, among other things, any person or entity, from knowingly and willfully offering, paying, soliciting, or receiving
any remuneration, directly or indirectly, overtly or covertly, in cash or in kind, to induce or in return for purchasing, leasing,
ordering, or arranging for the purchase, lease, or order of any item or service reimbursable, in whole or in part, under Medicare,
Medicaid, or other federal healthcare programs. The term remuneration has been interpreted broadly to include anything of value.
The Anti- Kickback Statute has been interpreted to apply to arrangements between therapeutic product manufacturers on one hand
and prescribers, purchasers, and formulary managers on the other. There are a number of statutory exceptions and regulatory safe
harbors protecting some common activities from prosecution. The exceptions and safe harbors are drawn narrowly and practices that
involve remuneration that may be alleged to be intended to induce prescribing, purchasing, or recommending may be subject to scrutiny
if they do not qualify for an exception or safe harbor. Failure to meet all of the requirements of a particular applicable statutory
exception or regulatory safe harbor does not make the conduct per se illegal under the Anti-Kickback Statute. Instead, the legality
of the arrangement will be evaluated on a case-by-case basis based on a cumulative review of all of its facts and circumstances.
There has also been some discussion of potential changes to the regulatory safe harbor involving discounts, but such proposals
have not yet been released. Xynomic's practices may not in all cases meet all of the criteria for protection under a statutory
exception or regulatory safe harbor.
Additionally, the intent
standard under the Anti-Kickback Statute was amended by the PPACA, as amended by the Health Care and Education Reconciliation Act
of 2010, to a stricter standard such that a person or entity no longer needs to have actual knowledge of the statute or specific
intent to violate it in order to have committed a violation. In addition, the PPACA codified case law that a claim including items
or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes
of the federal FCA (discussed below).
123
The federal false claims
and civil monetary penalty laws, including the FCA, which imposes significant penalties and can be enforced by private citizens
through civil qui tam actions, prohibit any person or entity from, among other things, knowingly presenting, or causing to be presented,
a false or fraudulent claim for payment to, or approval by, the federal healthcare programs, including Medicare and Medicaid, or
knowingly making, using, or causing to be made or used a false record or statement material to a false or fraudulent claim to the
federal government. A claim includes "any request or demand" for money or property presented to the U.S. government.
For instance, historically, pharmaceutical and other healthcare companies have been prosecuted under these laws for allegedly providing
free product to customers with the expectation that the customers would bill federal programs for the product. Other companies
have been prosecuted for causing false claims to be submitted because of the companies' marketing of the product for unapproved,
off-label, and thus generally non-reimbursable, uses.
HIPAA created additional
federal criminal statutes that prohibit, among other things, knowingly and willfully executing, or attempting to execute, a scheme
to defraud or to obtain, by means of false or fraudulent pretenses, representations, or promises, any money or property owned by,
or under the control or custody of, any healthcare benefit program, including private third-party payors, willfully obstructing
a criminal investigation of a healthcare offense, and knowingly and willfully falsifying, concealing, or covering up by trick,
scheme, or device, a material fact or making any materially false, fictitious, or fraudulent statement in connection with the delivery
of or payment for healthcare benefits, items, or services. Like the Anti-Kickback Statute, the PPACA amended the intent standard
for certain healthcare fraud statutes under HIPAA such that a person or entity no longer needs to have actual knowledge of the
statute or specific intent to violate it in order to have committed a violation.
Also, many states have
similar, and typically more prohibitive, fraud and abuse statutes or regulations that apply to items and services reimbursed under
Medicaid and other state programs, or, in several states, apply regardless of the payor. Additionally, to the extent that its drugs
may in the future be sold in a foreign country, Xynomic may be subject to similar foreign laws.
Xynomic may be subject
to data privacy and security regulations by both the federal government and the states in which it conducts its business. HIPAA,
as amended by the HITECH and its implementing regulations, imposes requirements relating to the privacy, security, and transmission
of individually identifiable health information. Among other things, HITECH makes HIPAA's privacy and security standards
directly applicable to business associates, independent contractors, or agents of covered entities that receive or obtain protected
health information in connection with providing a service on behalf of a covered entity. HITECH also created four new tiers of
civil monetary penalties, amended HIPAA to make civil and criminal penalties directly applicable to business associates, and gave
state attorneys general new authority to file civil actions for damages or injunctions in federal courts to enforce HIPAA and seek
attorneys' fees and costs associated with pursuing federal civil actions. In addition, many state laws govern the privacy
and security of health information in specified circumstances, many of which differ from each other in significant ways, are often
not pre-empted by HIPAA, and may have a more prohibitive effect than HIPAA, thus complicating compliance efforts.
Xynomic expects that
its drugs, if approved, may be eligible for coverage under Medicare, the federal health care program that provides health care
benefits to the aged and disabled and that, in part, covers certain pharmaceutical products that are medically necessary to treat
a beneficiary's health condition. In addition, Xynomic's drugs, if approved, may be covered and reimbursed under other
government programs, such as Medicaid, and subject to certain pricing requirements, such as under the 340B Drug Pricing Program.
The Medicaid Drug Rebate Program requires pharmaceutical manufacturers to enter into and have in effect a national rebate agreement
with the Secretary of the Department of Health and Human Services as a condition for states to receive federal matching funds for
the manufacturer's outpatient drugs furnished to Medicaid patients. Under the 340B Drug Pricing Program, the manufacturer
must extend discounts to entities that participate in the program. As part of the requirements to participate in these government
programs, many pharmaceutical manufacturers must calculate and report certain price reporting metrics to the government, such as
average manufacturer price, or "
AMP
," and best price.
Additionally, the federal
Physician Payments Sunshine Act, or the "
Sunshine Act
," within the PPACA, and its implementing regulations,
require that certain manufacturers of drugs, devices, and biological and medical supplies for which payment is available under
Medicare, Medicaid, or the Children's Health Insurance Program (with certain exceptions) report annually to CMS information
related to certain payments or other transfers of value made or distributed to physicians and teaching hospitals, or to entities
or individuals at the request of, or designated on behalf of, the physicians and teaching hospitals and to report annually certain
ownership and investment interests held by physicians and their immediate family members. In addition, many states also govern
the reporting of payments or other transfers of value, many of which differ from each other in significant ways, are often not
pre-empted, and may have a more prohibitive effect than the Sunshine Act, thus further complicating compliance efforts.
124
In order to distribute
products commercially, Xynomic must comply with state laws that require the registration of manufacturers and wholesale distributors
of drug and biological products in a state, including, in certain states, manufacturers and distributors who ship products into
the state even if such manufacturers or distributors have no place of business within the state. Some states also impose requirements
on manufacturers and distributors to establish the pedigree of product in the chain of distribution, including some states that
require manufacturers and others to adopt new technology capable of tracking and tracing product as it moves through the distribution
chain. Several states have enacted legislation requiring pharmaceutical and biotechnology companies to establish marketing compliance
programs, file periodic reports with the state, make periodic public disclosures on sales, marketing, pricing, clinical trials,
and other activities, and/or register their sales representatives, as well as to prohibit pharmacies and other healthcare entities
from providing certain physician prescribing data to pharmaceutical and biotechnology companies for use in sales and marketing,
and to prohibit certain other sales and marketing practices. All of Xynomic's activities are potentially subject to federal
and state consumer protection and unfair competition laws.
Ensuring business arrangements
with third parties to comply with applicable healthcare laws and regulations is a costly endeavor. If Xynomic's operations
are found to be in violation of any of the federal and state healthcare laws described above or any other current or future governmental
regulations that apply to it, Xynomic may be subject to penalties, including without limitation, civil, criminal, and/or administrative
penalties, damages, fines, disgorgement, individual imprisonment, exclusion from participation in government programs, such as
Medicare and Medicaid, injunctions, private "qui tam" actions brought by individual whistleblowers in the name of the
government, refusal to allow Xynomic to enter into government contracts, contractual damages, reputational harm, administrative
burdens, diminished profits and future earnings, additional reporting obligations and oversight if Xynomic becomes subject to a
corporate integrity agreement or other agreement to resolve allegations of non-compliance with these laws, and the curtailment
or restructuring of Xynomic's operations, any of which could adversely affect Xynomic's ability to operate its business
and its results of operations.
Coverage, Pricing,
and Reimbursement
Significant uncertainty
exists as to the coverage and reimbursement status of Xynomic's drugs, if approved. In the United States and in foreign markets,
sales of Xynomic's drugs, if and when it receives regulatory approval for commercial sale, will depend, in part, on the extent
to which third-party payors provide coverage and establish adequate reimbursement levels for such products. In the United States,
third-party payors include federal and state healthcare programs, private managed care providers, health insurers, and other organizations.
Adequate coverage and reimbursement from governmental healthcare programs, such as Medicare and Medicaid in the United States,
and commercial payors are critical to new product acceptance.
Xynomic's ability
to commercialize its drugs successfully also will depend in part on the extent to which coverage and reimbursement for these products
and related treatments will be available from government health administration authorities, private health insurers and other organizations.
Government authorities and third-party payors, such as private health insurers and health maintenance organizations, decide which
therapeutics they will pay for and establish reimbursement levels. Coverage and reimbursement by a third-party payor may depend
upon a number of factors, including the third-party payor's determination that use of a therapeutic is:
●
a
covered benefit under its health plan;
●
safe,
effective, and medically necessary;
●
appropriate
for the specific patient;
●
cost-effective;
and
●
neither
experimental nor investigational.
125
We cannot be sure that reimbursement
will be available for its drugs and, if coverage and reimbursement are available, what the level of reimbursement will be. Coverage
may also be more limited than the indications for which the product is approved by the FDA or comparable foreign regulatory authorities.
Reimbursement may impact the demand for, or the price of, its drugs, if approved.
Third-party payors
are increasingly challenging the price, examining the medical necessity, and reviewing the cost-effectiveness of medical products,
therapies, and services, in addition to questioning their safety and efficacy. Obtaining reimbursement for Xynomic's drugs
may be particularly difficult because of the higher prices often associated with branded drugs and drugs administered under the
supervision of a physician. Xynomic may need to conduct expensive pharmacoeconomic studies in order to demonstrate the medical
necessity and cost-effectiveness of its drugs, in addition to the costs required to obtain FDA approvals. Its drugs may not be
considered medically necessary or cost-effective. Obtaining coverage and reimbursement approval of a product from a government
or other third-party payor is a time-consuming and costly process that could require Xynomic to provide to each payor supporting
scientific, clinical, and cost effectiveness data for the use of its drugs on a payor-by-payor basis, with no assurance that coverage
and adequate reimbursement will be obtained. A payor's decision to provide coverage for a product does not imply that an
adequate reimbursement rate will be approved. Further, one payor's determination to provide coverage for a product does not
assure that other payors will also provide coverage for the product. Adequate third-party reimbursement may not be available to
enable Xynomic to maintain price levels sufficient to realize an appropriate return on Xynomic's investment in product development.
In addition, prices for drugs may be reduced by mandatory discounts or rebates required by government healthcare programs or private
payors and by any future relaxation of laws that presently restrict imports of drugs from countries where they may be sold at lower
prices than in the United States. It is difficult to predict how Medicare coverage and reimbursement policies will be applied to
Xynomic's drugs in the future and coverage and reimbursement under different federal healthcare programs are not always consistent.
If reimbursement is not available or is available only at limited levels, Xynomic may not be able to successfully commercialize
its drugs.
Different pricing and
reimbursement schemes exist in other countries. In the European Union, governments influence the price of pharmaceutical products
through their pricing and reimbursement rules and control of national health care systems that fund a large part of the cost of
those products to consumers. Some jurisdictions operate positive and negative list systems under which products may only be marketed
once a reimbursement price has been agreed. To obtain reimbursement or pricing approval, some of these countries may require the
completion of clinical trials that compare the cost effectiveness of a particular product candidate to currently available therapies.
Other member states allow companies to fix their own prices for medicines, but monitor and control company profits. The downward
pressure on health care costs has become intense. As a result, increasingly high barriers are being erected to the entry of new
products. In addition, in some countries, cross- border imports from low-priced markets exert a commercial pressure on pricing
within a country.
The marketability of
Xynomic's drugs, if approved, for commercial sale may suffer if the government and third-party payors fail to provide adequate
coverage and reimbursement. In addition, emphasis on managed care, the increasing influence of health maintenance organizations,
and additional legislative changes in the United States has increased, and Xynomic expects will continue to increase, the pressure
on healthcare pricing. The downward pressure on the rise in healthcare costs in general, particularly prescription medicines, medical
devices and surgical procedures and other treatments, has become very intense. Coverage policies and third-party reimbursement
rates may change at any time. Even if favorable coverage and reimbursement status is attained for one or more products for which
Xynomic receives regulatory approval, less favorable coverage policies and reimbursement rates may be implemented in the future.
Healthcare Reform
In the United States
and some foreign jurisdictions, there have been, and continue to be, several legislative and regulatory changes and proposed changes
regarding the healthcare system that could prevent or delay marketing approval of product candidates, restrict or regulate post-approval
activities, and affect the ability to profitably sell product candidates for which marketing approval is obtained. Among policy
makers and payors in the United States and elsewhere, there is significant interest in promoting changes in healthcare systems
with the stated goals of containing healthcare costs, improving quality, and/or expanding access. In the United States, the pharmaceutical
industry has been a particular focus of these efforts and has been significantly affected by major legislative initiatives.
126
For example, the PPACA
has substantially changed healthcare financing and delivery by both governmental and private insurers. Among the PPACA provisions
of importance to the pharmaceutical and biotechnology industries, in addition to those otherwise described above, are the following:
●
an
annual, nondeductible fee on any entity that manufactures or imports certain specified branded prescription drugs and biologic
agents apportioned among these entities according to their market share in some government healthcare programs that began in 2011;
●
an
increase in the statutory minimum rebates a manufacturer must pay under the Medicaid Drug Rebate Program, retroactive to January
1, 2010, to 23.1% and 13% of the average manufacturer price for most branded and generic drugs, respectively, and capped the total
rebate amount for innovator drugs at 100% of AMP;
●
a
new Medicare Part D coverage gap discount program, in which manufacturers must currently agree to offer 50%, which will change
to 70% starting in 2019 due to subsequent legislation, point-of-sale discounts off negotiated prices of applicable brand drugs
to eligible beneficiaries during their coverage gap period, as a condition for the manufacturers' outpatient drugs to be
covered under Medicare Part D;
●
an
extension of manufacturers' Medicaid rebate liability to covered drugs dispensed to individuals who are enrolled in Medicaid
managed care organizations;
●
an
expansion of eligibility criteria for Medicaid programs by, among other things, allowing states to offer Medicaid coverage to
additional individuals beginning in 2014 and by adding new mandatory eligibility categories for individuals with income at or
below 133% of the federal poverty level, thereby potentially increasing manufacturers' Medicaid rebate liability;
●
an
expansion of the entities eligible for discounts under the 340B Drug Discount Program;
●
a
new Patient-Centered Outcomes Research Institute to oversee, identify priorities in, and conduct comparative clinical effectiveness
research, along with funding for such research;
●
an
expansion of healthcare fraud and abuse laws, including the FCA and the Anti-Kickback Statute, new government investigative powers,
and enhanced penalties for noncompliance;
●
a
new methodology by which rebates owed by manufacturers under the Medicaid Drug Rebate Program are calculated for drugs that are
inhaled, infused, instilled, implanted, or injected;
●
requirements
to report certain financial arrangements with physicians and teaching hospitals;
●
a
requirement to annually report certain information regarding drug samples that manufacturers and distributors provide to physicians;
●
the
establishment of a Center for Medicare Innovation at CMS to test innovative payment and service delivery models to lower Medicare
and Medicaid spending, potentially including prescription drug spending, that began on January 1, 2011; and
●
a
licensure framework for follow on biologic products.
There have been legal
and judicial, Congressional, and political challenges to certain aspects of the PPACA, as well as recent efforts by the Trump administration
to repeal and replace certain aspects of the PPACA. Since January 2017, President Trump has signed executive orders and other directives
designed to delay, circumvent, or loosen certain requirements mandated by the PPACA. Furthermore, each chamber of Congress has
put forth multiple bills designed to repeal or repeal and replace portions of the PPACA. The federal income tax law includes a
provision repealing, effective January 1, 2019, the tax-based shared responsibility payment imposed by the PPACA on certain individuals
who fail to maintain qualifying health coverage for all or part of a year that is commonly referred to as the "individual
mandate." Additionally, on January 22, 2018, President Trump signed a continuing resolution on appropriations for fiscal
year 2018 that delayed the implementation of certain PPACA-mandated fees, including the so called "Cadillac" tax on
certain high cost employer-sponsored insurance plans, the annual fee imposed on certain health insurance providers based on market
share, and the medical device excise tax on nonexempt medical devices. Further, the Bipartisan Budget Act of 2018 among other things,
amends the PPACA, effective January 1, 2019, to close the coverage gap in most Medicare drug plans, commonly referred to as the
"donut hole." Congress may consider other legislation that would alter other aspects of the PPACA.
Xynomic anticipates
that the PPACA, if substantially maintained in its current form, will continue to result in additional downward pressure on coverage
and the reimbursement that it receives for its drugs, and could seriously harm Xynomic's business. Any reduction in reimbursement
from Medicare and other government programs may result in a similar reduction in payments from private payors. The implementation
of cost containment measures or other healthcare reforms may prevent Xynomic from being able to generate revenue, attain profitability,
or commercialize its drugs. Such reforms could have an adverse effect on anticipated revenues from product candidates that Xynomic
may successfully develop and for which it may obtain regulatory approval and may affect its overall financial condition and ability
to develop product candidates.
127
Further legislation
or regulation could be passed that could harm Xynomic's business, financial condition, and results of operations. Other legislative
changes have been proposed and adopted since the PPACA was enacted. For example, in August 2011, President Obama signed into law
the Budget Control Act of 2011, which, among other things, created the Joint Select Committee on Deficit Reduction to recommend
to Congress proposals in spending reductions. The Joint Select Committee on Deficit Reduction did not achieve a targeted deficit
reduction of at least $1.2 trillion for fiscal years 2012 through 2021, triggering the legislation's automatic reduction
to several government programs. This includes aggregate reductions to Medicare payments to providers of up to 2% per fiscal year,
which went into effect beginning on April 1, 2013, and will stay in effect through 2027 unless additional Congressional action
is taken.
Additionally, there
has been increasing legislative, regulatory, and enforcement interest in the United States with respect to specialty drug pricing
practices. Specifically, there have been several recent U.S. Congressional inquiries and proposed federal legislation and regulations
designed to, among other things, bring more transparency to drug pricing, reduce the cost of prescription drugs under Medicare,
review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies
for drugs. At the federal level, the Trump administration's budget proposal for fiscal year 2019 contains further drug price
control measures that could be enacted during the 2019 budget process or in other future legislation, including, for example, measures
to permit Medicare Part D plans to negotiate the price of certain drugs under Medicare Part B, to allow some states to negotiate
drug prices under Medicaid, and to eliminate cost sharing for generic drugs for low-income patients. In addition, for example,
in October 2018, HHS released a proposed rule that would require manufacturers to disclose the price of their drugs in direct-to-consumer
advertising. It is not yet clear whether this proposal will be changed or finalized. While any proposed measures may require authorization
through additional legislation to become effective, Congress and the Trump administration have each indicated that it will continue
to seek new legislative and/or administrative measures to control drug costs. At the state level, individual states in the United
States are increasingly passing legislation and implementing regulations designed to control pharmaceutical and biological product
pricing, including price or patient reimbursement constraints, discounts, restrictions on certain product access and marketing
cost disclosure and transparency measures. For example, in September 2017, the California State Assembly approved SB17, which requires
pharmaceutical companies to notify health insurers and government health plans at least 60 days before any scheduled increases
in the prices of their products if they exceed certain thresholds over a two-year period, and further requiring pharmaceutical
companies to explain the reasons for such increase. Effective in 2016, Vermont passed a law requiring certain manufacturer identified
by the state to justify their price increases. These transparency laws may affect Xynomic's business and ability to profit
from its drugs, if approved.
The Foreign Corrupt
Practices Act
The Foreign Corrupt
Practices Act, or the "
FCPA
," prohibits any U.S. individual or business from paying, offering, or authorizing
payment or offering of anything of value, directly or indirectly, to any foreign official, political party, or candidate for the
purpose of influencing any act or decision of the foreign entity in order to assist the individual or business in obtaining or
retaining business. The FCPA also obligates companies whose securities are listed in the United States to comply with accounting
provisions requiring Xynomic to maintain books and records that accurately and fairly reflect all transactions of the corporation,
including international subsidiaries, and to devise and maintain an adequate system of internal accounting controls for international
operations.
Additional Regulations
In addition to the
foregoing, state and federal laws regarding environmental protection and hazardous substances, including the Occupational Safety
and Health Act, the Resource Conservancy and Recovery Act, and the Toxic Substances Control Act, affect Xynomic's business.
These and other laws govern Xynomic's use, handling, and disposal of various biological, chemical, and radioactive substances
used in, and wastes generated by, Xynomic's operations. If Xynomic's operations result in contamination of the environment
or expose individuals to hazardous substances, Xynomic could be liable for damages and governmental fines. Xynomic believes that
it is in material compliance with applicable environmental laws and that continued compliance therewith will not have a material
adverse effect on Xynomic's business. Xynomic cannot predict, however, how changes in these laws may affect Xynomic's
future operations.
128
Xynomic is also subject
to numerous federal, state and local laws relating to such matters as safe working conditions, manufacturing practices, environmental
protection, and fire hazard control. Xynomic may incur significant costs to comply with such laws and regulations now or in the
future.
Chinese Regulation
Regulatory Authorities
In
China, the National
Medical
Products Administration of China (the "
NMPA
,"
formerly known as CFDA)
is the agency under the State Council that monitors and supervises the administration of pharmaceutical
products, medical appliances and equipment, food (including food additives and health food), and cosmetics. The primary responsibilities
of the NMPA include:
●
monitoring
and supervising the administration of pharmaceutical products, medical appliances, and equipment as well as food, health food,
and cosmetics in the PRC;
●
formulating
administrative rules and policies concerning the supervision and administration of the food, health food, cosmetics, and pharmaceutical
industry;
●
evaluating,
registering and approving of new drugs, generic drugs, imported drugs, and traditional Chinese medicine;
●
approving
and issuing permits for the manufacture and export/import of pharmaceutical products and medical appliances and equipment and
approving the establishment of enterprises to be engaged in the manufacture and distribution of pharmaceutical products; and
●
examining
and evaluating the safety of food, health food, pharmaceutical products, and cosmetics and handling significant accidents involving
these products.
The National Health
Commission is an authority at the ministerial level under the State Council and is primarily responsible for national public health.
Drug Administration
Laws and Regulations
The PRC Drug Administration
Law as promulgated in 1984 and the Implementing Measures of the PRC Drug Administration Law as promulgated in 1989 have laid down
the legal framework for the establishment of pharmaceutical manufacturing enterprises and pharmaceutical trading enterprises and
for the administration of pharmaceutical products. The PRC Drug Administration Law also regulates the packaging, trademarks, and
advertisements of pharmaceutical products in the PRC.
According to the current
PRC Drug Administration Law, no pharmaceutical products may be produced in China without a pharmaceutical production license. A
local manufacturer of pharmaceutical products must obtain a pharmaceutical production license from one of NMPA's provincial
level branches in order to commence production of pharmaceuticals. Prior to granting such license, the relevant government authority
will inspect the manufacturer's production facilities, and decide whether the sanitary conditions, quality assurance system,
management structure, and equipment within the facilities have met the required standards.
Examination and Approval of NDA
According to the current
Administrative Measures for Drug Registration, the approval of a new drug in China requires the following steps:
●
Pre-clinical
testing including in vitro laboratory evaluation, as well as in vivo animal studies, of the drug candidate conducted to assess
the potential safety and efficacy of the drug candidate. Pre-clinical testing must be conducted in compliance with applicable
regulations relating to non-clinical tests;
129
●
Upon
completion of pre-clinical testing of the drug candidate, application for registration and clinical trials of the new drug candidate
should be submitted to the Center of Drug Evaluation (the "
CDE
") of the NMPA, which will arrange for pharmaceutical,
clinical, or other professionals to conduct a technical review on the application materials and request for supplemental materials
and explanations, if necessary. After completion of the technical review, the CDE will issue an opinion and submit such opinion
to the NMPA, along with the applicant's application materials;
●
After
receiving the technical opinion from the CDE, the NMPA will assess whether to grant the approval for conducting clinical trial
on the new drug candidate.
●
As
of May 1, 2017, the clinical trial approval can be directly issued by the CDE on behalf of the NMPA according to The Decision
on Adjusting the Examination and Approval procedures for Some Administrative Examination and Approval Items on Drug promulgated
by the NMPA. This delegation of authority can shorten the approval timeline for the approval of a clinical trial application.
●
After
obtaining the approval for conducting clinical trial, the applicant may proceed with the relevant clinical trial, which is generally
conducted in three phases for a new drug candidate under the Registration Measures, at institutions with appropriate qualification:
○
Phase
1 is the first stage of testing in human subjects and is designed to test the safety, side effects, optimal dose, and formulation
method of the drug candidate. The primary objective is to determine toxicity and maximum tolerated dose and/or recommended Phase
2 dose;
○
Phase
2 refers to the clinical trial stage to continue the safety assessments started in Phase 1 trial of the drug candidate. The main
purpose, however, is to determine the preliminary efficacy and/or whether its effect on the human subjects is significant enough
to warrant further study; and
○
Phase
3 refers to the clinical trial stage to verify clinical effectiveness, and the purpose is to test and determine the clinical effectiveness
and safety of the drug candidate used on patients with targeted indication, to evaluate its benefits and risks and, eventually,
to provide sufficient basis for review of the drug candidate's registration application.
●
After
the completion of the relevant clinical trials, the applicant will submit its application for registration and manufacturing of
the new drug, clinical study report, and the relevant supporting documents to the CDE;
●
After
receiving the application materials, the CDE will arrange for pharmaceutical, clinical, or other professionals to conduct a technical
review on the application materials and request for supplemental materials and explanations, if necessary. After completion of
the technical review and if all the requirements are complied with, the CDE will report so to the Certification Center of the
NMPA and notify the applicant that it may apply to the Certification Center of the NMPA for a manufacturing site inspection;
●
The
applicant should apply to the Certificate Center of the NMPA for a manufacturing site inspection within six months after receiving
the notice from the CDE;
●
The
Certification Center will arrange an on-site inspection of the facilities for the mass production of the new drug within 30 days
after the application from the applicant to confirm the feasibility of the manufacturing process. The Certification Center will
prepare an inspection report within 10 days after the production site inspection and submit the report to the CDE;
●
The
medicine examination institute will examine the sample(s) under the reviewed medicine standards, prepare a report after completing
the examination, and submit the report to the CDE. A copy of the report will be available to the applicant; and
●
The
CDE will form a comprehensive opinion based on the technical opinion previously received, the report on manufacturing site inspection
and the result of sample examination, and submit the comprehensive opinion and the application materials to the NMPA. If all the
regulatory requirements are satisfied, the NMPA will grant a New Drug Certificate and a drug registration number. All pharmaceutical
products that are produced in China must bear drug registration numbers issued by the NMPA.
In July 2016, the NMPA
released the revised Administrative Measures for Drug Registration (Draft for Comments) to seek comments from the public, which
as compared to the current Administrative Measures for Drug Registration, includes the following key highlights:
●
Encourage
innovation in new drug development;
130
●
Broaden
the definition of applicants for marketing authorization from "domestic institutions" to "domestic entities"
to cover both drug research and development institutions and academic research institutions;
●
On-site
inspections and sample taking are not compulsory prerequisites for NMPA approval, and the NMPA may determine whether to take such
steps based on the results of regulatory review of drug registration applications;
●
Clinical
trials can be conducted in the sequence of Phase 1, 2, and 3, or in flexible manners based on the characteristics and applicability
of drugs and existing information; and
●
The
NMPA should establish a priority review system.
Although there is no
definitive timeline for the official enactment of the revised Administrative Measures for Drug Registration (Draft for Comments),
it embodies a regulatory trend of promoting drug innovation, accelerating the drug registration process and setting forth higher
quality and technical requirements.
Special Examination and Approval for
Domestic Category 1 Drugs
According to the Administrative
Measures for Drug Registration, drug registration applications are divided into three different types, namely: (i) Domestic New
Drug Application, (ii) Domestic Generic Drug Application, and (iii) Imported Drug Application.
Drugs fall into one
of three general types divided by working mechanism, namely chemical medicine, biological product, or traditional Chinese or natural
medicine. Under the Administrative Measures for Drug Registration, a Category 1 drug refers to a new drug that has never been marketed
in any country, and is eligible for special review or fast track approval by the NMPA.
In March 2016, the
NMPA issued the Reform Plan for Registration Category of Chemical Medicine, or the "
Reform Plan
," which would
reclassify drug applications. Under the Reform Plan, Category 1 drugs refer to new drugs that have not been marketed anywhere in
the world. Improved new drugs that are not marketed anywhere in the world fall into Category 2. Generic drugs, that have equivalent
quality and efficacy to the originator's drugs have been marketed abroad but not yet in China, fall into Category 3. Generic
drugs, which have equivalent quality and efficacy to the originator's drugs and have been marketed in China, fall into Category
4. Category 5 drugs are drugs which have already been marketed abroad, but are not yet approved in China. Category 1 drugs and
Category 5 drugs can be registered through the Domestic New Drug Application and the Imported Drug Application procedures under
the Administrative Measures for Drug Registration, respectively.
According to the Special
Examination and Approval Provisions, the NMPA conducts special examination and approval for new drug registration applications
when:
(1)
the
effective constituent of drug extracted from plants, animals, minerals, among other things, as well as the preparations thereof
have never been marketed in China, and the material medicines and the preparations thereof are newly discovered;
(2)
the
chemical raw material medicines as well as the preparations thereof and the biological product have not been approved for marketing
home and abroad;
(3)
the
new drugs are for treating AIDS, malignant tumors, and rare diseases, among other things, and have obvious advantages in clinic
treatment; or
(4)
the
new drugs are for treating diseases with no effective methods of treatment.
The Special Examination
and Approval Provisions provide that the applicant may file for special examination and approval at the clinical trial application
stage if the drug candidate falls within items (1) or (2). The provisions provide that, for drug candidates that fall within items
(3) or (4), the application for special examination and approval cannot be made until filing for production. Xynomic believes that
its current drug candidates fall within items (2) (3) and (4) above. Therefore, Xynomic may file an application for special examination
and approval at the CTA stage, which may enable it to pursue a more expedited path to approval in China and bring therapies to
patients more quickly.
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Fast Track Approval for Clinical Trial
and Registration of Domestic Category 1 Drugs
In February 2016, the
NMPA released the Opinions on Priority Review and Approval for Resolving Drug Registration Applications Backlog, or the "
Priority
Review Opinions
," which further clarified that a fast track clinical trial approval or drug registration pathway will
be available to the following drugs:
●
the
following drugs with distinctive clinical benefits:
(1)
registration
of innovative drugs not sold within or outside China;
(2)
registration
of innovative drug transferred to be manufactured locally in China;
(3)
registration
of drugs using advanced technology, innovative treatment methods, or having distinctive treatment advantages;
(4)
CTAs
for drugs with patent expiry within three years, and manufacturing authorization applications for drugs with patent expiry within
one year;
(5)
concurrent
applications for new drug clinical trials which are already approved in the United States or European Union, or concurrent drug
registration applications for drugs which have applied to the competent drug approval authorities for marketing authorization
and passed such authorities' onsite inspections in the United States or European Union and are manufactured using the same
production line in China;
(6)
traditional
Chinese medicines (including ethnic medicines) with clear position in prevention and treatment of serious diseases; and
(7)
registration
of new drugs listed in national major science and technology projects or national key research and development plans;
●
drugs
with distinctive clinical benefits for the prevention and treatment of the following diseases: HIV, phthisis, viral hepatitis,
orphan diseases, cancer, children's diseases, and generic and prevalent diseases in elders.
All of Xynomic's
drug candidates are expected to be classified as Category 1. Xynomic also believes that all of its current clinical stage drug
candidates would be drugs with distinctive clinical benefits for the prevention and treatment of cancer. Therefore, Xynomic believes
that it could potentially be entitled to the fast track clinical trial approval or drug registration pathway under the Priority
Review Opinions.
Other China Drug
Development, Review, and Approval Regulations
Good laboratories
practice certification for nonclinical research
PRC's Good Laboratories
Practice of Preclinical Laboratory was promulgated in 2003 and the Administrative Measures for Certification of Good Laboratory
Practice of Preclinical Laboratory was adopted in 2007. According to the Administrative Measures for Certification of Good Laboratory
Practice of Preclinical Laboratory, the NMPA decides whether an institution is qualified for undertaking pharmaceutical nonclinical
research upon the evaluation of the institution's organizational administration, personnel, laboratory equipment and facilities,
and its operation and management of nonclinical pharmaceutical projects. If all requirements are met, a GLP Certification will
be issued by the NMPA and published on the NMPA's website.
Animal testing permits
Under the Regulations
for the Administration of Affairs Concerning Experimental Animals, performing experimentation on animals requires a Certificate
for Use of Laboratory Animals. Applicants must satisfy the following conditions:
●
laboratory
animals must be qualified and sourced from institutions that have Certificates for Production of Laboratory Animals;
●
the
environment and facilities for the animals' living and propagating must meet state requirements;
●
the
animals' feed and water must meet state requirements;
●
the
animals' feeding and experimentation must be conducted by professionals, specialized and skilled workers, or other trained
personnel;
●
the
management systems must be effective and efficient; and
●
the
applicable entity must follow other requirements as stipulated by Chinese laws and regulations.
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Drug clinical practice
certification and compliance with GCP
Under the Circular
on Measures for Certification of Drug Clinical Practice (Trial), the NMPA and the National Health Commission of the PRC decide
whether an institution is qualified for undertaking pharmaceutical clinical trials upon the evaluation of the institution's
organizational administration, its research personnel, its equipment and facilities, its management system, and its standard operational
rules. If all requirements are met, a GCP Certification will be issued by the NMPA and the result will be published on the NMPA's
website.
The conduct of clinical
trials must adhere to the GCP and the protocols approved by the ethics committees of each study site. Since 2015, the NMPA has
strengthened the enforcement against widespread data integrity issues associated with clinical trials in China. To ensure authenticity
and reliability of the clinical data, the NMPA mandates applicants of the pending drug registration submissions to conduct self-inspection
and verification of their clinical trial data. Based on the submitted self-inspection results, the NMPA also regularly launches
onsite clinical trial audits over selected applications and reject those found with data forgery.
Pilot plan for the
marketing authorization holder system
The State Council issued
the Pilot Plan for the Drug Marketing Authorization Holder Mechanism on May 26, 2016, which provides a detailed pilot plan for
the marketing authorization holder system, or the "
MAH System
," for drugs in 10 provinces in China. Under the
MAH System, domestic drug research and development institutions and individuals in the piloted regions are eligible to be holders
of drug registrations without having to become drug manufacturers. The marketing authorization holders may engage contract manufacturers
for manufacturing, provided that the contract manufacturers are licensed and GMP-certified, and are also located within the piloted
regions.
Drugs qualified for
the MAH System are:
●
new
drugs (including Category 1 and 2 drugs under the Reform Plan) approved after the implementation of the MAH System;
●
generic
drugs approved as Category 3 or 4 drugs under the Reform Plan;
●
previously
approved generics that have passed the equivalence assessments against originator drugs; and
●
previously
approved drugs whose licenses were held by drug manufacturers originally located within the piloted regions, but have been moved
out of the piloted regions due to corporate mergers or other reasons.
Administrative
Protection and Monitoring Periods for New Drugs
According to the Administrative
Measures for Drug Registration, the Implementing Regulations of the Drug Administration Law and the Reform Plan, the NMPA may,
for the purpose of protecting public health, provide for an administrative monitoring period of five years for Category 1 new drugs
approved to be manufactured, commencing from the date of approval, to continually monitor the safety of those new drugs.
During the monitoring
period of a new drug, the NMPA will not accept other applications for new drugs containing the same active ingredient. This renders
an actual five-year exclusivity protection for Category 1 new drugs. The only exception is that the NMPA will continue to handle
any application if, prior to the commencement of the monitoring period, the NMPA has already approved the applicant's clinical
trial for a similar new drug. If such application conforms to the relevant provisions, the NMPA may approve such applicant to manufacture
or import the similar new drug during the remainder of the monitoring period.
Drug Technology
Transfer Regulations
PRC's Administrative
Regulations for Technology Transfer Registration of Drugs regulate the registration process of drug technology transfer, which
includes application for, and evaluation, examination, approval, and monitoring of, drug technology transfer. Drug technology transfer
refers to the transfer of drug production technology by the owner to a drug manufacturer and the application for drug registration
by the transferee according to the provisions in the new regulations. Drug technology transfer includes new drug technology transfer
and drug production technology transfer.
133
Conditions for the
application for new drug technology transfer
Applications for new
drug technology transfer may be submitted prior to the expiration date of the monitoring period of the new drugs with respect to
drugs with new drug certificates only or drugs with new drug certificates and drug approval numbers. For drugs with new drug certificates
only and not yet in the monitoring period, or drug substances with new drug certificates, applications for new drug technology
transfer should be submitted prior to the respective expiration date of the monitoring periods for each drug registration category
set forth in the new regulations and after the issue date of the new drug certificates.
Conditions for the
application of drug production technology transfer
Applications for drug
production technology transfer may be submitted if the transferor holds new drug certificates or both new drug certificates and
drug approval numbers, and the monitoring period has expired or there is no monitoring period; or with respect to drugs without
new drug certificates, both the transferor and the transferee are legally qualified drug manufacturing enterprises, one of which
holds over 50% of the equity interests in the other, or both of which are majority-owned subsidiaries of the same drug manufacturing
enterprise. With respect to imported drugs with imported drug licenses, the original applicants for the imported drug registration
may transfer these drugs to domestic drug manufacturing enterprises.
The provincial food
and drug administration where the transferee is located is responsible for examining application materials for technology transfer
and organizing inspections on the production facilities of the transferee. Food and drug control institutes are responsible for
testing three batches of drug samples. The CDE should further review the application materials, provide technical evaluation opinions
and form a comprehensive evaluation opinion based on the site inspection reports and the testing results of the samples. The NMPA
should determine whether to approve the application according to the comprehensive evaluation opinion of the CDE.
Permits and Licenses
for Manufacturing of Drugs
In China, a pharmaceutical
manufacturing enterprise must first obtain a Pharmaceutical Manufacturing Permit issued by the relevant pharmaceutical administrative
authorities at the provincial level where the enterprise is located. Each Pharmaceutical Manufacturing Permit is effective for
a period of five years. Any enterprise holding a Pharmaceutical Manufacturing Permit is subject to review by the relevant regulatory
authorities on an annual basis. The enterprise is required to apply for renewal of such permit within six months prior to its expiry
and will be subject to reassessment by the issuing authorities.
In addition to a Pharmaceutical
Manufacturing permit, the manufacturing enterprise must also obtain a business license from the administrative bureau of industry
and commerce at the local level after it has obtained the requisite Pharmaceutical Manufacturing Permit.
China has adopted the
Guidelines on GMP, which set forth detailed requirements for the manufacture of sterile drugs, drug/substances/APIs, biologics,
blood products, and traditional Chinese medicines. The Notice on the Overall Implementation and Supervision of Accreditation of
Good Manufacturing Practices Certificates of Pharmaceuticals requires all manufacturers of pharmaceuticals to apply for GMP certificates.
The GMP certificate is valid for a term of five years and an application for renewal must be submitted six months prior to its
expiration date. The NMPA and its provincial branches are authorized to monitor the continued compliance of pharmaceutical manufacturers,
for example, by a follow-up inspection of implementation of the GMP requirements. Failure to continuously comply with the statutory
requirements may lead to rectification orders imposed on the manufacturers. Penalties for breach of GMP compliance can vary depending
on the degree of seriousness. Administrative sanctions range from a rectification notice to monetary fines, suspension of production
and business operation, and revocation of the pharmaceutical manufacturing permit and the Pharmaceutical GMP Certificate.
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Coverage and Reimbursement
Historically, most
Chinese healthcare costs have been borne by patients out-of-pocket, which has limited the growth of more expensive pharmaceutical
products. In recent years, however, the number of people covered by government and private insurance has increased. The PRC government
has announced a plan to give every person in China access to basic healthcare by year 2020.
Reimbursement under the
National Medical Insurance Program
Under the PRC's
national medical insurance program, all employers in urban cities are required to enroll their employees in the basic medical insurance
program and the insurance premium is jointly contributed by the employers and employees. The State Council promulgated Guiding
Opinions of the State Council about the Pilot Urban Resident Basic Medical Insurance on July 10, 2007, under which urban residents
of the pilot district, rather than urban employees, may voluntarily join Urban Resident Basic Medical Insurance.
The Notice Regarding
the Tentative Measures for the Administration of the Scope of Medical Insurance Coverage for Pharmaceutical Products for Urban
Employee provides that a pharmaceutical product listed in the Medical Insurance Catalogue must be clinically needed, safe, effective,
reasonably priced, easy to use, available in sufficient quantity, and must meet the following requirements: (i) it is set forth
in the Pharmacopoeia of the PRC; (ii) it meets the standards promulgated by the NMPA; and (iii) if imported, it is approved by
the NMPA for import.
Factors that affect
the inclusion of a pharmaceutical product in the Medical Insurance Catalogue include whether the product is consumed in large volumes
and commonly prescribed for clinical use in the PRC and whether it is considered to be important in meeting the basic healthcare
needs of the general public.
The PRC Ministry of
Human Resources and Social Security, together with other government authorities, has the power to determine the medicines included
in the National Reimbursement Drug List (the "
NRDL
"). In February 2017, the PRC Ministry of Human Resources
and Social Security released the 2017 NRDL. The 2017 NRDL expands its scope and covers 2,535 drugs in total, including 339 drugs
that are newly added. The 2017 NRDL reflects an emphasis on innovative drugs and drugs that treat cancer and other serious diseases.
For instance, most of the innovative chemical drugs and biological products approved in China between 2008 and the first half of
2016 have been included in the 2017 NRDL or its candidate list.
Medicines included
in the NRDL are divided into two parts, Part A and Part B. Provincial governments are required to include all Part A medicines
listed on the NRDL in their provincial Medical Insurance Catalogue, but have the discretion to adjust upwards or downwards by no
more than 15% from the number of Part B medicines listed in the NRDL. As a result, the contents of Part B of the provincial Medical
Insurance Catalogues may differ from region to region in the PRC.
Patients purchasing
medicines included in Part A of the NRDL are entitled to reimbursement of the entire amount of the purchase price. Patients purchasing
medicines included in Part B of the NRDL are required to pay a certain percentage of the purchase price and obtain reimbursement
for the remainder of the purchase price. The percentage of reimbursement for Part B medicines differs from region to region in
the PRC.
The total amount of
reimbursement for the cost of medicines, in addition to other medical expenses, for an individual participant under the national
medical insurance program in a calendar year is capped at the amounts in such participant's individual account under such
program. The amount in a participant's account varies, depending on the amount of contributions from the participant and
his or her employer.
National List
of Essential Drugs
Under the current PRC
regulations, county-level hospitals, county-level Chinese medicine hospitals, rural clinics, and community clinics, shall store
up and use drugs listed in National List of Essential Drugs. The drugs listed in National List of Essential Drugs shall be purchased
by centralized tender process and shall be subject to the price control by NDRC. Remedial drugs in the National List of Essential
Drugs are all listed in the Medical Insurance Catalogue and the entire amount of the purchase price of such drugs is entitled to
reimbursement.
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Commercial Insurance
On October 25, 2016,
the State Council and the Communist Party of China jointly issued the Plan for Healthy China 2030 (the "
Plan
").
According to the Plan, the country will establish a multi-level medical security system built around basic medical insurance, with
other forms of insurance supplementing the basic medical insurance, including serious illness insurance for urban and rural residents,
commercial health insurance, and medical assistance. Furthermore, the Plan encourages enterprises and individuals to participate
in commercial health insurance and various forms of supplementary insurance.
Price Controls
Instead of direct price
controls which were historically used in China but abolished in June 2016, the government regulates prices mainly by establishing
a consolidated procurement mechanism, revising medical insurance reimbursement standards, and strengthening regulation of medical
and pricing practices as discussed below.
Centralized Procurement
and Tenders
Under the PRC current
healthcare regulations, medical institutions established by county or higher level government or state-owned enterprises (including
state-controlled enterprises) are required to implement centralized tender procurement of drugs. The Centralized Tender Regulations
and the Centralized Tender Sample Document provide rules for the tender process and negotiations of the prices of drugs, operational
procedures, a code of conduct, and standards or measures of evaluating bids and negotiating prices.
Except for drugs in
the National List of Essential Drugs (the procurement of which shall comply with the relevant rules on National List of Essential
Drugs), certain pharmaceutical products which are under the national government's special control, such as toxic, radioactive
and narcotic drugs, and traditional Chinese medicines, in principle, all drugs used by public medical institutions shall be covered
by the catalogue of drugs subject to centralized procurement.
The centralized tender
process takes the form of public tender operated and organized by provincial or municipal government agencies. The centralized
tender process is in principle conducted once every year in the relevant province or city in China. The bids are assessed by a
committee composed of pharmaceutical and medical experts who will be randomly selected from a database of experts approved by the
relevant government authorities. The committee members assess the bids based on a number of factors, including but not limited
to, bid price, product quality, clinical effectiveness, product safety, qualifications and reputation of the manufacturer, after-sale
services, and innovation. Only pharmaceuticals that have won in the centralized tender process may be purchased by public medical
institutions funded by the governmental or state-owned enterprise (including state-controlled enterprises) in the relevant region.
Other PRC Healthcare
Laws
Advertising of pharmaceutical
products
Pursuant to the Provisions
for Drug Advertisement Examination, which were promulgated on March 13, 2007, and came into effect on May 1, 2007, an enterprise
seeking to advertise its drugs must apply for an advertising approval code. The validity term of an advertisement approval number
for pharmaceutical drugs is one year. The content of an approved advertisement may not be altered without prior approval. Where
any alteration to the advertisement is needed, a new advertisement approval number shall be obtained by submitting a reapplication.
Insert sheet and
labels of pharmaceutical products
According to the Measures
for the Administration of the Insert Sheets and Labels of Drugs effective on June 1, 2006, the insert sheets and labels of drugs
should be reviewed and approved by the NMPA. A drug insert sheet should include the scientific data, conclusions, and information
concerning drug safety and efficacy in order to direct the safe and rational use if drugs. The inner label of a drug should bear
such information as the drug's name, indication or function, strength, dose and usage, production date, batch number, expiry
date and drug manufacturer, and the outer label of a drug should indicate such information as the drug's name, ingredients,
description, indication or function, strength, dose and usage, and adverse reaction.
136
Packaging of pharmaceutical
products
According to the Measures
for The Administration of Pharmaceutical Packaging effective on September 1, 1988, pharmaceutical packaging must comply with the
national and professional standards. If no national or professional standards are available, the enterprise can formulate its own
standards and put into implementation after obtaining the approval of the food and drug administration or bureau of standards at
provincial level. The enterprise shall reapply with the relevant authorities if it needs to change its own packaging standard.
Drugs that have not developed and received approval for packing standards must not be sold or traded in PRC (except for drugs for
the military).
Other Significant
PRC Regulation Affecting Xynomic's Business Activities in China
PRC Regulation of Foreign
Investment
Pursuant to the current
Guidance Catalogue of Industries for Foreign Investment, or the Catalogue, industries listed therein are divided into two categories:
encouraged industries and the industries within the catalogue of special management measures, or the "
Negative List
."
The Negative List is further divided into two subcategories: restricted industries and prohibited industries. Establishment of
wholly foreign-owned enterprises is generally allowed in industries outside of the Negative List. Under the current Catalogue,
the manufacture of pharmaceutical products falls in the encouraged industries for foreign investments.
Under PRC law, the
establishment of a wholly foreign-owned enterprise is subject to the approval of, or the requirement for record filing with, the
Ministry of Commerce of the People's Republic of China (the "
MOFCOM
") or its local counterparts and the
wholly foreign owned enterprise must register with the competent administrative bureau of industry and commerce. Xynomic has duly
obtained the approvals from the MOFCOM or its local counterparts for its interest in its wholly-owned PRC subsidiaries and completed
the registration of these PRC subsidiaries with the competent administrative bureau of industry and commerce.
PRC Regulation
of Commercial Bribery
Pharmaceutical companies
involved in a criminal investigation or administrative proceedings related to bribery are listed in the Adverse Records of Commercial
Briberies by its provincial health and family planning administrative department. Pursuant to the Provisions on the Establishment
of Adverse Records of Commercial Briberies in the Medicine Purchase and Sales Industry which became effective on March 1, 2014,
provincial health and family planning administrative departments formulate the implementing measures for establishment of Adverse
Records of Commercial Briberies. If a pharmaceutical company is listed in the Adverse Records of Commercial Briberies for the first
time, their production is not required to be purchased by public medical institutions. A pharmaceutical company will not be penalized
by the relevant PRC government authorities merely by virtue of having contractual relationships with distributors or third-party
promoters who are engaged in bribery activities, so long as such pharmaceutical company and its employees are not utilizing the
distributors or third party promoters for the implementation of, or acting in conjunction with them in, the prohibited bribery
activities. In addition, a pharmaceutical company is under no legal obligation to monitor the operating activities of its distributors
and third-party promoters, and will not be subject to penalties or sanctions by relevant PRC government authorities as a result
of failure to monitor their operating activities.
PRC Regulation
of Product Liability
Under current PRC law,
manufacturers and vendors of defective products in the PRC may incur liability for loss and injury caused by such products. Pursuant
to the General Principles of the Civil Law of the PRC, a defective product which causes property damage or physical injury to any
person may subject the manufacturer or vendor of such product to civil liability for such damage or injury. Pursuant to the Product
Quality Law, manufacturers who produce defective products may be subject to civil or criminal liability and have their business
licenses revoked. Under the Law of the PRC on the Protection of the Rights and Interests of Consumers, all business operators must
comply with this law when they manufacture or sell goods and/or provide services to customers and shall pay high attention to protect
the customers' privacy and strictly keep it confidential any consumer information they obtain during the business operation.
In addition, in extreme situations, pharmaceutical product manufacturers and operators may be subject to criminal liability if
their goods or services lead to the death or injuries of customers or other third parties.
137
PRC Tort Law
Under the Tort Law
of the PRC, if damages to other persons are caused by defective products due to the fault of a third party, such as the parties
providing transportation or warehousing, the producers and the sellers of the products have the right to recover their respective
losses from such third parties. If defective products are identified after they have been put into circulation, the producers or
the sellers shall take remedial measures such as issuance of a warning, recall of products, among other things, in a timely manner.
The producers or the sellers shall be liable under tort if they fail to take remedial measures in a timely manner or have not made
efforts to take remedial measures, thus causing damages. If the products are produced or sold with known defects, causing deaths
or severe adverse health issues, the infringed party has the right to claim punitive damages in addition to compensatory damages.
PRC Regulation
of Intellectual Property Rights
China has made substantial
efforts to adopt comprehensive legislation governing intellectual property rights, including patents, trademarks, copyrights, and
domain names.
Patents
Under the PRC Patent
Law, patents in China fall into three categories: invention, utility model, and design. An invention patent is granted to a new
technical solution proposed in respect of a product or method or an improvement of a product or method. A utility model is granted
to a new technical solution that is practicable for application and proposed in respect of the shape, structure, or a combination
of both of a product. A design patent is granted to the new design of a certain product in shape, pattern, or a combination of
both and in color, shape, and pattern combinations aesthetically suitable for industrial application.
Under the PRC Patent
Law, the term of patent protection starts from the date of application. Patents relating to invention are effective for 20 years,
and utility models and designs are effective for 10 years from the date of application. The PRC Patent Law adopts the principle
of "first-to-file" system, which provides that where more than one person files a patent application for the same invention,
a patent will be granted to the person who files the application first.
Existing patents can
become narrowed, invalid, or unenforceable due to a variety of grounds, including lack of novelty, creativity, and deficiencies
in patent application. In China, a patent must have novelty, creativity, and practical applicability. Under the PRC Patent Law,
novelty means that before a patent application is filed, no identical invention or utility model has been publicly disclosed in
any publication in China or overseas or has been publicly used or made known to the public by any other means, whether in or outside
of China, nor has any other person filed with the patent authority an application that describes an identical invention or utility
model and is recorded in patent application documents or patent documents published after the filing date. Creativity means that,
compared with existing technology, an invention has prominent substantial features and represents notable progress, and a utility
model has substantial features and represents any progress. Practical applicability means an invention or utility model can be
manufactured or used and may produce positive results. Patents in China are filed with the State Intellectual Property Office,
or "
SIPO
." Normally, the SIPO publishes an application for an invention patent within 18 months after the filing
date, which may be shortened at the request of applicant. The applicant must apply to the SIPO for a substantive examination within
three years from the date of application.
The PRC Patent Law
provides that, for an invention or utility model completed in China, any applicant (not just Chinese companies and individuals),
before filing a patent application outside of China, must first submit it to the SIPO for a confidential examination. Failure to
comply with this requirement will result in the denial of any Chinese patent for the relevant invention. This added requirement
of confidential examination by the SIPO has raised concerns by foreign companies who conduct research and development activities
in China or outsource research and development activities to service providers in China.
138
Patent
enforcement
Infringement
liability will be imposed on any person who use patented technology without permission from owners of patents, forges other person's
patents, or engages in other patent infringement acts. Serious offences such as forgery of patents may be subject to criminal
penalties.
When
a dispute arises out of infringement of the patent owner's patent right, Chinese law requires that the parties first attempt
to settle the dispute through mutual consultation. If the dispute, however, cannot be settled through mutual consultation, the
patent owner, or an interested party who believes the patent is being infringed, may either file a civil legal suit or file an
administrative complaint with the relevant patent administration authority. A Chinese court may issue a preliminary injunction
upon the patent owner's or an interested party's request before instituting any legal proceedings or during the proceedings.
Damages for infringement are calculated as the loss suffered by the patent holder arising from the infringement, and if the loss
cannot be determined, the damages for infringement shall be calculated as the benefit gained by the infringer from the infringement.
If it is difficult to ascertain damages in this manner, damages may be determined by using a reasonable multiple of the license
fee under a contractual license. Statutory damages may be awarded in the circumstances where the damages cannot be determined
by the above mentioned calculation standards. The damage calculation methods shall be applied in the aforementioned order. Generally,
the patent owner has the burden of proving that the patent is being infringed. If the owner of an invention patent for manufacturing
process of a new product, however, alleges infringement of its patent, the alleged infringer has the burden of proof.
Medical
patent compulsory license; Exempted Unlicensed Activities
According
to the PRC Patent Law, for the purpose of public health, the SIPO may grant a compulsory license for manufacturing patented drugs
and exporting them to countries or regions covered under relevant international treaties to which PRC has acceded.
Under
the PRC Patent Law, none of following circumstances would be deemed an infringement of the patent rights:
●
any
    person who uses, promises to sell, sells, or imports any patented product or product directly obtained in accordance with
    the patented methods after such product is sold by the patent owner or by its licensed entity or individual;
●
any
    person who has manufactured an identical product, has used an identical method, or has made necessary preparations for manufacture
    or use prior to the date of patent application and continues to manufacture such product or use such method only within the
    original scope;
●
any
    foreign transportation facility that temporarily passes through the territory, territorial waters, or territorial airspace
    of China and uses the relevant patents in its devices and installations for its own needs in accordance with any agreement
    concluded between China and that country to which the foreign transportation facility belongs, or any international treaty
    to which both countries are party, or on the basis of the principle of reciprocity;
●
any
    person who uses the relevant patents solely for the purposes of scientific research and experimentation; or
●
any
    person who manufactures, uses, or imports patented drug or patented medical equipment for the purpose of providing information
    required for administrative approval, or manufactures, uses or imports patented drugs or patented medical equipment for the
    abovementioned person.
If
patented drugs, however, are utilized on the ground of exemptions for unauthorized manufacture, use, sale or import of patented
drugs prescribed in PRC Patent Law, such patented drugs cannot be manufactured, used, sold, or imported for any commercial purposes
without authorization granted by the patent owner.
Trade
secrets
Under
the PRC Anti-Unfair Competition Law, business persons are prohibited from infringing others' trade secrets by: (1) obtaining
the trade secrets from the legal owners or holders by any unfair methods such as theft, solicitation or coercion; (2) disclosing,
using, or permitting others to use the trade secrets obtained illegally under item (1) above; or (3) disclosing, using, or permitting
others to use the trade secrets, in violation of any contractual agreements or any requirements of the legal owners or holders
to keep such trade secrets in confidence. The term "trade secrets" means technical and business information that is
unknown to the public that has utility and may create business interests or profits for its legal owners or holders, and is maintained
as a secret by its legal owners or holders.
139
If
a third party knows or should have known of the above-mentioned illegal conduct but nevertheless obtains, uses, or discloses trade
secrets of others, the third party may be deemed to have committed a misappropriation of the others' trade secrets.
Trademarks
and domain names
The
PRC Trademark Law and its implementation rules protect registered trademarks. The PRC Trademark Office of State Administration
of Industry and Commerce is responsible for the registration and administration of trademarks throughout the PRC. The Trademark
Law has adopted a "first-to-file" principle with respect to trademark registration.
Domain
names are protected under the Administrative Measures on the Internet Domain Names. The Ministry of Industry and Information Technology
is the main regulatory body responsible for the administration of PRC internet domain names. Xynomic has registered the domain
name xynomicpharma.com.
PRC
Regulation of Labor Protection
Under
the Labor Law of the PRC, the PRC Employment Contract Law, and the Implementing Regulations of the Employment Contract Law, employers
must establish a comprehensive management system to protect the rights of their employees, including a system governing occupational
health and safety to provide employees with occupational training to prevent occupational injury, and employers are required to
truthfully inform prospective employees of the job description, working conditions, location, occupational hazards, and status
of safe production as well as remuneration and other conditions as requested by the Labor Contract Law of the PRC.
Pursuant
to the Law of Manufacturing Safety of the PRC, manufacturers must establish a comprehensive management system to ensure manufacturing
safety in accordance with applicable laws, regulations, national standards, and industrial standards. Manufacturers not meeting
relevant legal requirements are not permitted to commence their manufacturing activities.
Pursuant
to the Administrative Measures Governing the Production Quality of Pharmaceutical Products, manufacturers of pharmaceutical products
are required to establish production safety and labor protection measures in connection with the operation of their manufacturing
equipment and manufacturing process.
Pursuant
to applicable PRC laws, rules, and regulations, employers are required to contribute, on behalf of their employees, to a number
of social security funds, including funds for basic pension insurance, unemployment insurance, basic medical insurance, work-related
injury insurance, and maternity insurance. If an employer fails to make social insurance contributions timely and in full, the
social insurance collecting authority will order the employer to make up outstanding contributions within the prescribed time
period and impose a late payment fee at the rate of 0.05% per day from the date on which the contribution becomes due. If such
employer fails to make the overdue contributions within such time limit, the relevant administrative department may impose a fine
equivalent to one to three times the overdue amount.
Regulations
Relating to Foreign Exchange Registration of Offshore Investment by PRC Residents
Pursuant
to SAFE Circular 37 and its implementation guidelines, PRC residents (including PRC institutions and individuals) must register
with local branches of SAFE in connection with their direct or indirect offshore investment in an overseas special purpose vehicle,
or "
SPV
," directly established or indirectly controlled by PRC residents for the purposes of offshore investment
and financing with their legally owned assets or interests in domestic enterprises, or their legally owned offshore assets or
interests.
140
Such
PRC residents are also required to amend their registrations with SAFE when there is a change to the basic information of the
SPV, such as changes of a PRC resident individual shareholder, the name or operating period of the SPV, or when there is a significant
change to the SPV, such as changes of the PRC individual resident's increase or decrease of its capital contribution in
the SPV, or any share transfer or exchange, merger, or division of the SPV. Failure to comply with the registration procedures
set forth in the Circular 37 may result in restrictions being imposed on the foreign exchange activities of the relevant onshore
company, including the payment of dividends and other distributions to its offshore parent or affiliate, the capital inflow from
the offshore entities and settlement of foreign exchange capital, and may also subject relevant onshore company or PRC residents
to penalties under PRC foreign exchange administration regulations.
Regulations
Relating to Employee Stock Incentive Plan
In
accordance with the Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in
Stock Incentive Plans of Overseas Publicly Listed Companies, and relevant rules and regulations, PRC citizens or non-PRC citizens
residing in China for a continuous period of not less than one year, who participate in any stock incentive plan of an overseas
publicly listed company, subject to a few exceptions, are required to register with SAFE through a domestic qualified agent, which
could be a PRC subsidiary of such overseas listed company, and complete certain procedures. Xynomic's employees who are
PRC citizens or who reside in China for a continuous period of not less than one year and who participate in its stock incentive
plan will be subject to such regulation. In addition, the State Administration of Taxation, or referred as SAT, has issued circulars
concerning employee share options or restricted shares. Under these circulars, employees working in the PRC who exercise share
options, or whose restricted shares vest, will be subject to PRC individual income tax, or the "
IIT
." The PRC
subsidiaries of an overseas listed company have obligations to file documents related to employee share options or restricted
shares with relevant tax authorities and to withhold IIT of those employees related to their share options or restricted shares.
If the employees fail to pay, or the PRC subsidiaries fail to withhold, their IIT according to relevant laws, rules and regulations,
the PRC subsidiaries may face sanctions imposed by the tax authorities or other PRC government authorities.
Regulations
Relating to Dividend Distribution
The
principal regulations governing distribution of dividends paid by wholly foreign-owned enterprises include:
●
Company
    Law of the PRC (1993), as amended in 1999, 2004, 2005, 2013, and 2018;
●
Foreign
    Investment Enterprise Law of the PRC (1986), as amended in 2000 and 2016; and
●
Administrative
    Rules under the Foreign Investment Enterprise Law (1990), as amended in 2001 and 2014.
Under
these laws and regulations, foreign-invested enterprises in China may pay dividends only out of their accumulated profits, if
any, determined in accordance with PRC accounting standards and regulations. In addition, a wholly foreign-owned enterprise in
China is required to set aside at least 10.0% of its after-tax profit based on PRC accounting standards each year to its general
reserves until the accumulative amount of such reserves reach 50% of its registered capital. These reserves are not distributable
as cash dividends. The foreign-invested enterprise has the discretion to allocate a portion of its after-tax profits to staff
welfare and bonus funds. A PRC company is not permitted to distribute any profits until any losses from prior fiscal years have
been offset. Profits retained from prior fiscal years may be distributed together with distributable profits from the current
fiscal year.
Regulations
Relating to Foreign Exchange
Under
the Foreign Exchange Administration Regulations, payments of current account items, such as profit distributions and trade and
service-related foreign exchange transactions can be made in foreign currencies without prior approval from SAFE by complying
with certain procedural requirements. However, approval from or registration with appropriate government authorities is required
where RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of
foreign currency-denominated loans.
141
Other
PRC National and Provincial Laws and Regulations
The
PRC legal and regulatory systems are constantly evolving at the national, provincial, and municipal levels. Xynomic and its business
may become subject to changing regulations under many other laws and regulations administered by governmental authorities. For
example, regulations control the confidentiality of patients' medical information and the circumstances under which patient
medical information may be released for inclusion in Xynomic's databases, or released by Xynomic to third parties. These
laws and regulations governing both the disclosure and the use of confidential patient medical information may become more restrictive
in the future.
European
Union / Rest of World Government Regulation
In
addition to regulations in the United States and China, Xynomic will be subject to a variety of regulations in other jurisdictions
governing, among other things, clinical trials and any future commercial sales and distribution of its drugs. Whether or not Xynomic
obtains FDA approval to market its drugs, it must obtain the requisite approvals from regulatory authorities in foreign jurisdictions
prior to the commencement of clinical trials or marketing of the products in those countries.
Even
if a product obtains FDA marketing approval, most foreign jurisdictions require that the investigational product undergo national
requirements related to clinical trials and authorization processes, similar to those in the United States. With respect to clinical
trials, certain countries outside of the United States have a similar process that requires the submission of a clinical trial
application, much like the IND, prior to the commencement of human clinical trials. In the European Union, for example, before
starting a clinical trial, a valid request for authorization must be submitted by the sponsor to the competent authority of the
EU Member State(s) in which the sponsor plans to conduct the clinical trial, as well as to independent national Ethics Committee(s).
A clinical trial may commence only once the relevant Ethics Committee(s) has (have) issued a favorable opinion and the competent
authority of the EU Member State(s) concerned has (have) not informed the sponsor of any grounds for non-acceptance. Failure to
comply with the EU requirements may subject a company to the rejection of the request and the prohibition to start a clinical
trial. Clinical trials conducted in the European Union (or used for MMA in the European Union) must be conducted in accordance
with applicable laws, GCP and GMP rules, International Conference on Harmonization of Technical Requirements for Registration
of Pharmaceuticals for Human Use guidelines and be consistent with ethical principles. EU Member State inspections are regularly
conducted to verify the sponsor's compliance with applicable rules. The sponsor is required to record and report to the
relevant national competent authorities (and to the Ethics Committee) information about suspected serious unexpected adverse reactions.
The
authorization of a clinical trial may be suspended or revoked by EU Member States in their territory if the conditions in the
request for an authorization are no longer met, or if an EU Member State has information raising doubts about the safety or scientific
validity of the clinical trial. Various penalties exist in EU Member States for non-compliance with the clinical trial rules and
related requirements, for example with respect to data protection and privacy. If Xynomic or its potential collaborators fail
to comply with applicable EU regulatory requirements, Xynomic may also be subject to damage compensation and civil and criminal
liability. The way clinical trials are conducted in the European Union will undergo a major change when the new EU Clinical Trial
Regulation (Regulation 536/2014) comes into application in 2019. It will overhaul the current system of approvals for clinical
trials in the EU. Specifically, the new regulation, which will be directly applicable in all EU member states, aims at simplifying
and streamlining the approval of clinical trials in the EU. For instance, the new Clinical Trials Regulation provides for a streamlined
application procedure using a single entry point and strictly defined deadlines for the assessment of clinical trial applications.
As
in the United States, no medicinal product may be placed on the EU market unless a marketing authorization has been issued. Medicinal
products may be authorized in different ways in the EU, depending on certain criteria: the national authorization procedure (namely,
via the EU Member States' national authorization procedure, which later allows for application via the mutual-recognition
procedure), the centralized authorization procedure (namely, at EU level), or the decentralized authorization procedure (i.e.,
authorization of a product that is not yet authorized in the EU, which can simultaneously be authorized in several EU Member States).
Products submitted for approval via the national procedure must follow the national authorization procedures, which vary from
Member State to Member State. Products submitted for approval via the centralized procedure (only available for certain products
and indications) are assessed by the Committee for Medicinal Products for Human Use, or "
CHMP
," a committee
within the European Medicines Agency. The CHMP assesses, inter alia, whether a medicine meets the necessary quality, safety, and
efficacy requirements and whether it has a positive risk-benefit balance. Under the centralized procedure, the maximum timeframe
for the evaluation of an
MMA
is 210 days, excluding clock stops when additional information or written or oral explanation
is to be provided by the applicant in response to questions of the CHMP. Accelerated evaluation may be granted by the CHMP in
exceptional cases, when a medicinal product is of major interest from the point of view of public health and, in particular, from
the viewpoint of therapeutic innovation. If the CHMP accepts such a request, the time limit of 210 days will be reduced to 150
days, but it is possible that the CHMP may revert to the standard time limit for the centralized procedure if it determines that
it is no longer appropriate to conduct an accelerated assessment. Products submitted for approval via the decentralized procedure,
as for the mutual-recognition procedure, must first undergo an assessment performed by one Member State, or reference Member State,
which another Member State may approve.
142
Various
penalties and sanctions exist in different EU Member States for non-compliance with the EU marketing authorization procedure.
In addition, for centrally authorized products the European Commission may also impose financial penalties on the holders of marketing
authorizations if they fail to comply with certain obligations in connection with the authorizations as well as pharmacovigilance
rules. If Xynomic or its potential collaborators fail to comply with applicable EU or other foreign regulatory requirements, Xynomic
may be subject to, among other things, fines, suspension or withdrawal of regulatory approvals, product recalls, seizure of products,
operating restrictions and criminal prosecution.
Coverage
and reimbursement status of its drugs, if approved, are provided for by the national laws of EU Member States. The requirements
may differ across the EU Member States. Also at EU Member State level, actions have been taken to enact transparency laws regarding
payments between pharmaceutical companies and health care professionals.
The
EU General Data Protection Regulation and Member State implementing legislation may also apply to health-related and other personal
information obtained outside of the United States. Xynomic may be required to put in place additional mechanisms to ensure compliance
with the new EU data protection rules.
For
other countries outside of the European Union, such as countries in Eastern Europe, Latin America, or Asia, the requirements governing
the conduct of clinical trials, product licensing, pricing, and reimbursement vary from country to country. In all cases, again,
the clinical trials must be conducted in accordance with GCP and the applicable regulatory requirements. The requirements and
process governing the conduct of clinical trials, product licensing, pricing, and reimbursement also vary from country to country.
143
MANAGEMENT
The
following table lists the names, ages and positions as of the date of the prospectus of the individuals who serve as executive
officers and directors of the Company after the consummation of the Business Combination:
Name
Age
Position
Yinglin
    Mark Xu
48
Chairman,
    Chief Executive Officer, Interim Chief Financial Officer and President
Wentao
    Jason Wu
52
Chief
    Operating Officer
Tingzhi
    Qian
40
Executive
    Director
Jiayuan
    James Tong
45
Chief
    Strategy Officer, Executive Vice President, and Executive Director
Sophia Paspal
48
Chief Development Officer
Jinwei
    Coco Kou
38
Interim
    Chief Accounting Officer
Charles
    Vincent Prizzi
44
Independent
    Director
Thomas
    Folinsbee
51
Independent
    Director
Richard
    Peidong Wu
54
Independent
    Director
Adam
    Inglis
40
Independent
    Director
Set
forth below is certain biographical information regarding each of our directors and executive officers as of the date of this
prospectus.
Mr.
Y. Mark Xu
is Chairman, Chief Executive Officer, Interim Chief Financail Officer and Preseident of XYN and the co-Founder,
Chairman, Chief Executive Officer and President of Xynomic. From 2009-2016, Mr. Xu served as the Greater China General Manager
of Trout Group, a leading global investor relations and strategic advisory firm servicing the life sciences industry. From 2005-2007,
Mr. Xu co-founded Bridge Labs, which was later acquired by Pharmaron Holdings. From 2007-2009, Mr. Xu co-founded Pacific Biopharma
Group, which merged with Pharmacyclics, Inc., structured as a strategic investment, in 2009. Through these two ventures, Mr. Xu
helped generate significant return on investment for co-founders and investors. Prior to 2005, Mr. Xu held various positions in
the U.S. at leading multinational corporations, including Berlex Laboratories (a Schering AG company), McKesson Corporation, Stanford
Research Institute International, BAS, and UL. Mr. Xu holds a MBA from Stanford University, a MS in Chemistry from Purdue University
and a BA in Chemistry (
Magna Cum Laude
) from Hanover College.
Dr.
W. Jason Wu
is Chief Operating Officer of XYN and Xynomic. From 2009-2015, Dr. Wu served as a Senior Consultant for Humphris
Industrials Group, a leading CRO company based in China and US servicing mainly the China pharmaceutical and biotech industries.
From 2004-2009, Dr. Wu was the Head of Research & Development Center of American Oriental Bioengineering, a public company
listed on NYSE. From 2002-2004, Dr. Wu worked as Business Development Director at Hutchison Medpharma, an early stage pharmaceutical
development company based in Hong Kong and Shanghai. Prior to 2002, Dr. Wu held various positions in the U.S at leading multinational
pharmaceutical companies including Eli Lilly and Merck. Dr. Wu holds a PhD from Purdue University and a MBA from Indiana University.
Mr.
Tingzhi Qian
is a director of XYN. He is also the CEO and Founding Partner of Prosperico Ventures, a private equity fund specialized
in the healthcare and biopharmaceutical industries. Since the founding of Prosperico Ventures in 2014, Mr. Qin has led and completed
more than 40 investments, including equity investment in Xynomic Pharmaceuticals, Inc. From 2008-2013, Mr. Qian served as Director
of Global Investments & Strategies of Fosun Group and played a leading role in the leverage buyout of Alma Lasers (2013) as
well as in the investment and restructuring of United Family Hospitals and Chindex (2010). From 2004 to 2008, Mr. Qian worked
as a strategy consultant at Accenture and ADL in China, after serving in managerial functions at GSK Bio and Nestle in Europe.
Mr. Qian holds a Master in Management from HEC Paris, a MS in Biochemical Engineering from Ecole Polytech Clermont-Ferrand and
a BS in Genetics from Fudan University.
Dr.
James Jiayuan Tong
is Chief Strategy Officer, Executive Vice President and a director of XYN and a director of Xynomic.
He was the Chief Executive Officer and a director of Bison until the consummation of the Business Combination. Since October 2015,
Dr. Tong has served as a Partner of our sponsor. Dr. Tong has served as a Venture Partner at Delta Capital, a venture capital
and early growth investment firm, since September 2015. From December 2014 until September 2015, Dr. Tong worked as an advisor
to Delta Capital. From 2010 to November 2014, he worked as Chief Financial Officer at Tianyin Pharmaceutical Co., Inc., a U.S.
public company that manufactures and sells biopharmaceutical herbal medicines, branded generics and other pharmaceuticals in Asia.
From 2008 to 2010, Dr. Tong worked as Vice President in the investment banking department at Roth Capital, an investment banking
firm headquartered in Newport Beach, CA. In 2007, Dr. Tong was a biotech equity research analyst for Rodman & Renshaw. In
2006, Dr. Tong was principal investigator at the Grass Foundation Laboratory at the Marine Biological Laboratory, Woods Hole,
MA. From 2002 to 2005, Dr. Tong was a Postdoctoral Research Fellow at Center for Molecular Medicine and Mitochondrial Genetics
at the University of California, Irvine focusing on Neurofibromatosis, cognitive disorders and longevity research. Dr. Tong graduated
from Peking University Healthcare Center with a Medical Degree in 1996 and from Stony Brook University and Cold Spring Harbor
Laboratory with a Doctor of Philosophy degree majored in Neurobiology and Behavior in 2002.
Dr. Sophia Paspal
is the Chief Development Officer of Xynomic Pharmaceuticals, Inc. From 2017 to January 2019, Dr. Paspal worked at Capricor
Therapeutics, Inc. and Cellics Therapeutics, Inc., holding the same title. From 2015 to 2017 Dr. Paspal worked as the Director
of Regulatory Affairs, Oncology, at Halozyme Therapeutics Inc. From 2014 to 2015 Dr. Paspal worked as Associate Director of Regulatory
Affairs, Neurology, for Dart NeuroScience LLC. Prior to 2014, Dr. Paspal worked for companies such as Shire PLC, Allergan, Inc.,
and Pfizer in developing and implementing regulatory strategies and obtaining and maintaining regulatory approvals. Dr. Paspal
holds Regulatory Affairs Certification (RAC) and Drug Development Certification from Temple University RA and QA Program. Dr. Paspal
holds a Bachelor of Science in Chemistry and Ph.D. in Pharmaceutics from the University of Minnesota, Twin Cities in Minnesota.
144
Ms. Jinwei Coco
Kou
is the Interim Chief Accounting Officer, overseeing all accounting functions such as ledger accounts, financial statements,
and cost control systems. Ms. Kou has extensive experience in internal controls, multinational operations and corporate finance
of high-tech companies. From 2017-2018, Ms. Kou was the Chief Financial Officer at Salion Food Condiment Company Limited, a company
listed on Hong Kong Stock Exchange. From 2008-2016, she was a Managing Director at Marcum Bernstein & Pinchuk LLP ("Marcum
Bernstein"). Prior to joining Marcum Bernstein, from 2005-2008, Ms. Kou worked for Deloitte Touche Tohmatsu. Ms. Kou is a
CPA in both the U.S. and China. Ms. Kou holds a Bachelor's and a Master's degree in Economics, both from Peking University,
majoring in Finance and Risk Management and Insurance, respectively. Ms. Kou obtained an Executive MBA degree jointly awarded by
Columbia Business School, London Business School and Hong Kong University Business School.
Mr.
Charles Vincent Prizzi
is one of our independent directors. Mr. Prizzi has been the Vice President for Development and
Community Relations and a member of the senior administrative team at Cold Spring Harbor Laboratory, a world-renowned cancer and
neuroscience research institution based in New York since February 2000. Mr. Prizzi has also served as one of Cold Spring Harbor's
liaisons to Accelerate Long Island, an organization composed of leading research institutions to strengthen Long Island's
regional biotechnology cluster since May 2012. Mr. Prizzi has also served on the charity boards of Save the Children – Long
Island Chapter, the Cold Spring Harbor Education Foundation, the Long Island University Alumni Board, the Thomas Hartman Foundation
for Parkinson's Research, and the Don Monti Memorial Cancer Research Foundation. Mr. Prizzi received both his Master of
Business Administration and Bachelor of Science from Long Island University, where he was honored with the Outstanding Alumni
Award. He received the Special Humanitarian Award from the Sons of Italy in America Grand Lodge of New York in 2007 and the "
40
Under 40
" Award by Long Island Business News in 2013.
Mr.
Thomas Folinsbee, CFA
, is one of our independent directors. Mr. Folinsbee is Director of Corporate Development of 3SBio Inc.'s
strategic investment division with a focus on sourcing business development opportunities in Canada, Australia, and Japan, including
licensing, distribution, and M&A. Mr. Folinsbee joined 3SBio, a biotechnology company, in 2009 to manage 3SBio's investor
relations activities and was a member of the management group which delisted 3SBio from Nasdaq in May 2013 and relisted it on the
Hong Kong Stock Exchange in June 2016. In addition, since 2011, Mr. Folinsbee has worked with the board of directors of Hisanaga
Seisakusho Co. Ltd., a Japanese company, where he helped launch Hisanaga's sales platform in India and designed a business
intelligence system to support a corporate turnaround. Mr. Folinsbee has over 25 years of experience as a financial and securities
professional. In 2001, Mr. Folinsbee established Optivest Systems Ltd., and developed proprietary research databases to support
institutional investment strategies. In 2006, Mr. Folinsbee joined BNP Paribas' Asian Execution Services desk where he helped
institutional investors implement statistical arbitrage strategies and post-trade analytics. In 2008, he rejoined Macquarie Equities
(Hong Kong) Limited in its Alternative Strategies Division where he packaged long-short trading strategies in collaboration with
the equity research platform. Mr. Folinsbee had previously been at Macquarie from 1998 to 2001. Mr. Folinsbee graduated in 1990
from McGill University with a Bachelor of Commerce degree with concentrations in finance and international business (with distinction).
Mr.
Richard Peidong Wu
is one of our independent directors and Chairman of the Audit Committee (as defined below). Mr. Wu has
been Chief Financial Officer of Airmedia Group Inc., a Nasdaq-listed outdoor media group (stock ticker: AMCN) with multiple operating
units and more than 600 employees since May 2014. Mr. Wu is responsible for the accounting, finance, and operational decisions
for Airmedia Group Inc. He has lead strategies, investment, budgeting, reporting, auditing, regulatory filing, and board meetings.
Prior to joining Airmedia Group Inc., Mr. Wu served as the lead of legal and compliance at Nokia Siemens Networks (China) Limited,
from April 2012 until April of 2014, where he oversaw the legal and compliance operations consisting of 12 legal entities and
20,000 employees. From January 2010 to March 2012, Mr. Wu served as a Senior Vice President and Chief Financial Officer for Vimicro
International Corporation, (Nasdaq: VIMC) that designs, develops, and markets mixed-signal semiconductor products and system-level
solutions. When at VIMC, Mr. Wu was responsible for finance, control, legal, and investor relations. From January 20 to December
2009, Mr. Wu was President of Dragon Bay Capital, LLC, a China-focused financial advisory and management consulting firm specializing
in IPO preparation, fund raise, M&A, restructuring, turnaround, pre-auditing, compliance, and corporate governance. From May
1996 to December 1999, Mr. Wu was a Senior Finance Management for Motorola, Inc. Mr. Wu received his MBA in Finance and Accounting
from the University of Pennsylvania, the Wharton School, in May of 1995. He received his Master of Justice Administration from
Indiana University in May 1994. He earned his Master of Law from China University of Political Science and Law in July 1987 and
his Bachelor of Arts from Zhengzhou University in July 1985. Mr. Wu is also a licensed lawyer of China.
Mr.
Adam Inglis
is one of our independent directors. serves as Associate Vice President of corporate strategy at Beacon Health
Options, Inc., effective November 2018, where he is responsible for growth, new ventures and product development. From September
2013 to November 2018, Mr. Inglis served as the Vice President of client management at Provant Health focusing on revenue
retention and growth. From July 2010 to September 2013, he served as a health and benefits consultant to corporate clients for
Mercer Consulting providing guidance on health and benefit strategies. Mr. Inglis graduated in 2001 with a BA from
Hobart College with a double major in Public Policy and Psychology.
Family
Relationships
There
are no family relationships among the executive officers and directors of the Company.
145
Legal
Proceedings
Involvement
in Certain Legal Proceedings
During
the past ten years, none of our current directors, executive officers, promoters, control persons, or nominees has been:
●
the
subject of any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer
either at the time of the bankruptcy or within two years prior to that time;
●
convicted
in a criminal proceeding or is subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
●
subject
to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or
any Federal or State authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement
in any type of business, securities or banking activities;
●
found
by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated
a federal or state securities or commodities law.
●
the
subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently
reversed, suspended or vacated, relating to an alleged violation of (a) any Federal or State securities or commodities law or
regulation; (b) any law or regulation respecting financial institutions or insurance companies including, but not limited to,
a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist
order, or removal or prohibition order; or (c) any law or regulation prohibiting mail or wire fraud or fraud in connection with
any business entity; or
●
the
subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization
(as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29)
of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary
authority over its members or persons associated with a member.
Board
of Directors
We
currently have three executive directors Yinglin Mark Xu, Tingzhi Qian, James Jiayuan Tong and four independent directors: Charles
Prizzi, Thomas Folinsbee, and Richard Wu, and Adam Inglis.
Director
Independence
Nasdaq
listing standards require that a majority of our board of directors be independent as long as we are not a controlled company.
We anticipate that a majority of our board of directors will be independent as of the Closing. An "
independent director
"
is defined under the Nasdaq rules generally as a person other than an officer or employee of the company or its subsidiaries or
any other individual having a relationship which in the opinion of the company's board of directors, would interfere with
the director's exercise of independent judgment in carrying out the responsibilities of a director. Our board of directors
has determined that Messrs. Charles Prizzi, Thomas Folinsbee, Richard Wu, and Adam Inglis are "
independent directors
"
as defined in the Nasdaq listing standards and applicable SEC rules. Our independent directors will have regularly scheduled meetings
at which only independent directors are present.
146
Leadership
Structure and Risk Oversight
Committees
of the Board of Directors
The
standing committees of our board of directors currently consists of an Audit Committee and a Compensation Committee, and after
the Business Combination will also consist of a Nominating and Corporate Governance Committee. Each of the committees will report
to the board of directors as they deem appropriate and as the board may request.
Audit
Committee
After
the Closing, assuming the approval of the Director Election Proposal, we will have an audit committee of the board of directors.
Messrs. Charles Prizzi, Thomas Folinsbee, and Richard Wu serve as members of our audit committee. Mr. Richard Wu serves as chairman
of the audit committee. Under the Nasdaq listing standards and applicable SEC rules, we are required to have three members of
the audit committee all of whom must be independent. Messrs. Charles Prizzi, Thomas Folinsbee, and Richard Wu are independent.
Each
member of the audit committee is financially literate and our board of directors has determined that Mr. Wu qualifies as an "
audit
committee financial expert
" as defined in applicable SEC rules.
Compensation
Committee
After
the Closing, assuming the approval of the Director Election Proposal, we will have a compensation committee of the board of directors.
The members of our Compensation Committee are Messrs. Charles Prizzi, Thomas Folinsbee, and Richard Wu. Mr. Prizzi serves as chairman
of the Compensation Committee.
Corporate
Governance and Nominating Committee
Upon
the Closing, assuming the approval of the Director Election Proposal, our Corporate Governance and Nominating Committee will consist
of Messrs. Charles Prizzi, Thomas Folinsbee, and Richard Wu, with Richard Wu serving as the chairman of the Corporate Governance
and Nominating Committee.
Our
Corporate Governance and Nominating Committee will be responsible for, among other matters: (1) identifying individuals qualified
to become members of our board of directors, consistent with criteria approved by our board of directors; (2) overseeing the organization
of our board of directors to discharge the board's duties and responsibilities properly and efficiently; (3) identifying
best practices and recommending corporate governance principles; and (4) developing and recommending to our board of directors
a set of corporate governance guidelines and principles applicable to us.
We
anticipate that each of the members of our Corporate Governance and Nominating Committee will be independent under the applicable
Nasdaq listing standards. Prior to the Meeting, our board of directors will adopt a written charter for the Corporate Governance
and Nominating Committee, which is attached hereto as
Annex G
.
Code
of Ethics
We
have adopted a code of conduct and ethics applicable to our directors, officers, and employees in accordance with applicable federal
securities laws.
Director
Compensation
Our Compensation Committee
will determine the annual compensation to be paid to the members of our board of directors by July 31, 2019.
147
EXECUTIVE
COMPENSATION
Executive
and Director Compensation Of Xynomic
Summary
Compensation Table
The
table below sets forth the annual compensation paid by Xynomic during the fiscal years ended December 31, 2018, December 31, 2017,
and December 31, 2016, to the principal executive officer and the next two most highly-compensated executive officers (the "
Named
Executive Officers
").
Name
    and Principal Position
Fiscal
Year
Salary
($)
Bonus
($)
Stock
awards
($)
Option
awards
($)
Non-equity
incentive plan
compensation
($)
Nonqualified
Deferred
compensation
earnings
($)
All
    Other
Compensation
($)
Total
($)
Yinglin Mark Xu,
2018
-
-
-
-
-
-
0
0
Chairman,
    CEO
2017
-
-
-
-
-
-
0
0
&
    President
2016
-
-
-
-
-
-
0
0
Ying
    Zhang,
2018
192,826.91
16,600.00
-
-
-
-
0
209,426.91
VP
    of Global
2017
125,346.68
-
-
-
-
-
0
125,346.68
Strategic
    Sourcing
2016
-
-
-
-
-
-
0
0
Wentao
    Jason Wu,
2018
137,546.17
9,735.00
-
-
-
-
0
147,281.17
Chief
    Operating
2017
100,135.90
-
-
-
-
-
0
100,135.90
Officer
2016
-
-
-
-
-
-
0
0
Yong Cui,
2018
246,092.00
-
-
-
-
-
0
246,092.00
VP of Chemistry,
2017
69,960.00
-
-
-
-
-
0
69,960.00
Manufacturing, and Controls
    (CMC) and Director
2016
-
-
-
-
-
-
0
0
148
Narrative
Disclosure to Summary Compensation Table
For
2016, no compensation was provided to the Named Executive Officers by Xynomic.
For
2017, the only compensation provided to the Named Executive Officers were base salaries.
For
2018, the compensation provided to the Named Executive Officers were base salaries and bonuses.
Base
Salary and Bonus
.
Base salaries and bonuses are generally set at levels deemed necessary to attract and retain
individuals with superior talent commensurate with their relative expertise and experience.
Employment
Agreements
.
XYN has entered into
a signed offer letter with James Jiayuan Tong, effective on May 15, 2019. Under the terms of the offer letter, Dr. Tong is employed
as the Chief Strategy Officer and Executive Vice President of XYN, reporting to the Chief Executive Officer. Dr. Tong will receive
an annual salary of $0 and is eligible to receive an annual discretional bonus.
Xynomic has entered
into an employment agreement with Yinglin Mark Xu, effective on April 22, 2019. Under the terms of the employment agreement, Mr.
Xu is employed as the Chairman, Chief Executive Officer and President of Xynomic. Mr. Xu will receive an annual salary of $0 and
is eligible to receive an annual discretional bonus. Xynomic or Mr. Xu may terminate the employment at any time for any or no reason
upon giving written notice thirty (30) days in advance to the other party. Upon termination of the employment, Mr. Xu will be entitled
only to payment of his regular salary pro-rated through the termination date. Under the employment agreement, Mr. Xu will be subject
to non-competition and non-solicitation restrictions during his employment and for a period of twelve (12) months thereafter.
Xynomic has entered
into an employment agreement with Wentao Jason Wu, effective on January 1, 2019. Under the terms of the employment agreement, Dr.
Wu is employed as the Chief Operating Officer of Xynomic, reporting to the Chief Executive Officer or such other person as Xynomic
may designate. Dr. Wu will receive an annual salary of $160,008 and is eligible to receive an annual discretional bonus. Xynomic
or Dr. Wu may terminate the employment at any time for any or no reason upon giving written notice thirty (30) days in advance
to the other party. Upon termination of the employment, Dr. Wu will be entitled only to payment of his regular salary pro-rated
through the termination date. Under the employment agreement, Dr. Wu will be subject to non-competition and non-solicitation restrictions
during his employment and for a period of twelve (12) months thereafter.
Xynomic has
entered into an employment agreement with Sophia Paspal, effective on January 16, 2019 and updated on July 1, 2019. Under the
terms of the updated employment agreement, Dr. Paspal is employed as the Chief Development Officer of Xynomic, reporting to
the Chief Operation Officer or such other person as Xynomic may designate. She is responsible for such duties as Xynomic may
from time-to-time assign. Dr. Paspal will receive an annual salary of $280,002, with a one-time signing on bonus of $25,000,
subject to certain forfeitures as set forth in the employment agreement. During her employment, Dr. Paspal is eligible to
receive an annual discretional bonus targeted at 30% of her base salary. Xynomic or Dr. Paspal may terminate the employment
at any time for any or no reason upon giving written notice thirty (30) days in advance to the other party. Upon termination
of the employment, Dr. Paspal will be entitled only to payment of her regular salary pro-rated through the termination date.
In the event that Xynomic stops operations or is acquired by another company, Dr. Paspals is entitled to 6-month pay plus
health insurance coverage. Under the employment agreement, Dr. Paspal will be subject to non-competition and non-solicitation
restrictions during her employment and for a period of twelve (12) months thereafter.
Xynomic has entered
into an offer letter with Jinwei Coco Kou, effective on March 19, 2019. Under the terms of the offer letter, Ms. Kou is employed
as the Interim Chief Accounting Officer of Xynomic. During her employment, Ms. Kou is eligible to receive an annual salary of $72,000
plus standard fringe benefits and paid vacation. Ms. Kou is also eligible to receive a performance based year-end bonus.
Dr.
Niefang Yu is engaged by Xynomic Nanjing under the terms of a Cooperative Development Agreement for New Drugs, effective as of
May 1, 2018. Under the terms of the agreement, Dr. Yu is employed on a part-time basis as a senior manager in charge of Xynomic's
research and development center located in Shanghai. Dr. Yu receives a monthly salary of RMB35,000. The agreement also provides
for the future grant of an option to purchase shares of common stock from Xynomic, which has not yet been granted.
Xynomic
Zhongshan has entered into a labor contract with Bing Zhao, effective on March 1, 2019. Under the terms of the labor contract,
Bing Zhao is employed as the Vice President of Xynomic Zhongshan in charge of Greater China Clinical and Regulatory Affairs for
a term of three (3) years. Dr. Zhao will receive a monthly salary of RMB30,000. Prior to the expiration of the term, Dr. Zhao
may terminate the employment for convenience upon thirty (30) days' prior written notice and Xynomic Zhongshan may terminate
Dr. Zhao's employment under certain circumstances, as provided in applicable PRC labor laws. Under a non-competition agreement
dated March 1, 2019, Dr. Zhao is subject to non-competition and non-solicitation restrictions during his employment and for a
period of twenty-four (24) months thereafter; provided that he will receive reasonable compensations for the post-employment non-competition
and non-solicitation restrictions.
149
Each
Named Executive Officer is also subject to general confidentiality obligations and obligations to assign proprietary property
to Xynomic or a subsidiary of Xynomic in his or her respective confidentiality agreement, consulting agreement or employment agreement.
Pursuant
to the Merger Agreement, certain officers of Xynomic will enter into a non-competition and non-solicitation agreement with the
combined entity upon the Closing of the Business Combination, a form of which is attached as Exhibit 10.11 to Amendment No.5 to
Form S-4 filed on May 1, 2019.
Long
Term Incentives.
As of December 31, 2018, none of the Named Executive Officers held equity compensation awards. Xynomic
has, however, obtained shareholder approval of the Xynomic 2018 Equity Incentive Plan in August 2018. At the Closing of the Merger,
the combined entity following the Merger will assume and adopt the Xynomic 2018 Equity Incentive Plan. Each outstanding Xynomic
option as of the Closing shall be assumed by the combined entity and automatically converted into an option to purchase common
shares of the combined entity, subject to the terms and conditions as set forth in the Xynomic Stock Incentive Plan. Please refer
to disclosure regarding "Incentive Plan Proposal" for the terms of the Xynomic 2018 Equity Incentive Plan and additional
information. On January 21, 2019, Xynomic awarded Ying Zhang an option to purchase 100,000 shares of common stock from Xynomic
at the exercise price of $1.00 per share and subject to customary vesting terms pursuant to the Xynomic 2018 Equity Incentive
Plan.
Outstanding Equity Awards at 2017
and 2018 Fiscal Year-End
As
of December 31, 2017 and 2018, none of the Named Executive Officers held equity compensation awards.
Potential Payments upon Termination
or Change in Control
As of December 31,
2018, no Named Executive Officer had a contractual or other entitlement to severance or other payments upon termination or a change
in control.
Compensation of Directors
Xynomic did not have
non-employee directors in 2018 and 2017.
Individuals who served as
directors during 2018 and 2017 and who were also employed by Xynomic did not receive any additional compensation for their service
as a director during 2018 and 2017, but did receive compensation in their capacity as employees in 2017. For additional discussion
of this compensation, see "
Certain Relationships and Related Party Transactions — Xynomic Related Person Transactions
."
Executive
Compensation of Bison
Until
May 15, 2019, Bison paid its sponsor a total of $5,000 per month for office space, utilities, and secretarial and administrative
services. We believe that such fees are at least as favorable as we could have obtained from an unaffiliated third party for such
services. Except as set forth above, no compensation was paid or will be paid to our executive officers, directors, or any of
their respective affiliates, prior to or in connection with the consummation of our Business Combination. Additionally, these
individuals were reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying
potential target businesses and performing due diligence on the Business Combination. Our independent directors reviewed on a
quarterly basis all payments that were made to our officers, directors, or our or their affiliates.
150
Grants
of Plan-Based Awards and Outstanding Equity Awards at Fiscal Year-End
No
plan-based awards or equity awards are granted by the end of fiscal year 2018.
Employment
Agreements
Bison
did not have any written employment agreements with any of our directors and officers except certain indemnification agreements
with certain directors as of December 31, 2018.
Retirement/Resignation
Plans
Bison
did not have any plans or arrangements in place regarding the payment to any of our executive officers following such person's
retirement or resignation as of December 31, 2018.
Director
Compensation
Bison
paid its independent directors an annual retainer in an aggregate amount of $38,400 (to be prorated for a partial term), payable
in arrears commencing on the first anniversary of the IPO and ending on May 15, 2018.
From
inception to December 31, 2018, the Company has paid $38,400 in director's fees. We reimburse each director for reasonable
travel expenses related to such director's attendance at board of directors and committee meetings.
Executive
Compensation Following Consummation of the Business Combination
Overview
We
intend to develop an executive compensation program that is consistent with its existing compensation policies and philosophies,
which is designed to align compensation with our business objectives and the creation of shareholder value, while enabling us
to attract, motivate, and retain individuals who contribute to the long-term success of the Company.
Decisions
on the executive compensation program will be made by the Compensation Committee following the Closing. The following discussion
is based on the present expectations as to the executive compensation program to be adopted by the Compensation Committee. The
executive compensation program actually adopted will depend on the judgment of the members of the Compensation Committee and may
differ from that set forth in the following discussion.
We
anticipate that decisions regarding executive compensation will reflect our belief that the executive compensation program must
be competitive in order to attract and retain our executive officers. We anticipate that the Compensation Committee will seek
to implement our compensation policies and philosophies by linking a significant portion of our executive officers' cash
compensation to performance objectives and by providing a portion of their compensation as long-term incentive compensation in
the form of equity awards.
We
anticipate that compensation for our executive officers will have three primary components: base salary, an annual cash incentive
bonus, and long-term incentive compensation in the form of stock-based awards.
Base
Salary
It
has been our historical practice to assure that base salary is fair to the executive officers, competitive within the industry,
and reasonable in light of our cost structure. Following the completion of the Business Combination, our Compensation Committee
will determine base salaries and manage the base salary review process, subject to existing employment agreements.
151
Annual
Bonuses
The
Company intends to use annual cash incentive bonuses for the executive officers to tie a portion of their compensation to financial
and operational objectives achievable within the applicable fiscal year. The Company expects that, near the beginning of each
year, the Compensation Committee will select the performance targets, target amounts, target award opportunities, and other term
and conditions of annual cash bonuses for the executive officers, subject to the terms of any employment agreement. Following
the end of each year, the Compensation Committee will determine the extent to which the performance targets were achieved and
the amount of the award that is payable to the executive officers.
Stock-Based
Awards
Immediately
prior to the consummation of the Busienss Combiantion, Bison did not have any stock-based awards in place, while Xynomic has an
Employee Stock Option Plan ("
ESOP
"), which grants select executives, employees, and advisors options to acquire
Xynomic's stock at significant discount to its fair market value. These options typically have a four-year vesting schedule,
with 25% shares vested on the first anniversary day of the grant date, and 1/48 shares vested every month thereafter. No shares
were issued under the ESOP before December 31, 2018. On May 15, 2019, XYN assumed and adopted the 2018 Incentive Plan.
Other
Compensation
The
Company expects to continue to offer country-specific employee benefit plans that are customary in the countries where the employee
are based, including medical, dental, 401(k) plans, unemployment benefits, and house funding, in which the executive officers
will participate.
152
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The
following table sets forth information regarding the beneficial ownership of our ordinary shares as of the Closing (taking in
account of the redemption in connection with the Business Combination and automatic exchange of rights into common shares at the
Closing), based on information obtained from the persons named below, with respect to the beneficial ownership of our common shares,
by:
●
each
    person known by us to be the beneficial owner of more than 5% of our outstanding common shares;
●
each
    of our executive officers and directors that beneficially owns our common shares; and
●
all
    our executive officers and directors as a group.
Unless
otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all
common shares beneficially owned by them.
Name and Address of Beneficial Owners (1)
Number of
Shares
%
Peixin Xu (2)
1,574,600
3.40
%
James Jiayuan Tong (3)
391,650
0.85
%
Yinglin Mark Xu (4)
21,009,055
45.40
%
Tingzhi Qian (5) (14) (15)
7,517,707
16.25
%
Wentao Jason Wu (6) (12)
5,612,618
12.13
%
Jinwei Coco Kou (7)
0
-
Adam Inglis (8)
0
-
Charles Vincent Prizzi (9)
0
-
Thomas Folinsbee (10)
0
-
Richard Peidong Wu (11)
0
-
Bison Capital Holding Company Limited (2)
1,574,600
3.40
%
Grand Ascent Group Limited (12)
5,612,618
12.13
%
Bridge Pharm International Inc. (13)
2,547,146
5.50
%
Prosperico Gate I Limited (14)
2,547,138
5.50
%
Dande Lion Limited (15)
4,970,569
10.74
%
Ascender Prosperity Capital Co., Ltd. (16)
2,796,078
6.04
%
Zhongshan Bison Healthcare Investment Limited (Limited Partnership) (17)
1,318,793
2.85
%
All 5% or more beneficial owners, directors and executive officers as a group (nine individuals)
39,874,254
86.17
%
*
Less
    than one percent
(1)
Unless
    otherwise indicated, the business address of each of the individuals is Suite 3306, K. Wah Centre, 1010 Middle Huaihai Road,
    Shanghai 200031, China.
(2)
Fengyun
    Jiang, who has 100% ownership interest in Bison Capital Holding Company Limited and is Peixin Xu's spouse, has voting
    and dispositive power over the shares held by such entity. This amount includes 1,117,725 shares held by Bison Capital Holding
    Company Limited, which is beneficially owned by Fengyun Jiang (100%); Fengyun Jiang has voting and dispositive control over
    the securities held by Bison and disclaims beneficial ownership of the Ordinary Shares owned by Bison Capital Holding Company
    Limited, except to the extent of his pecuniary interest in such company. Mr. Xu was the Chairman of Bison but resigned at
    the Closing.
(3)
Dr.
    Tong is Chief Strategy Officer and a director.
(4)
Mr. Yinglin
    Mark Xu is the Chairman, Chief Executive Officer, President, and Interim Chief Financial Officer.
(5)
Mr.
    Tingzhi Qian is a director of Xynomic. Mr. Qian holds the shares through his control of Prosperico Gate I Limited and Dande
    Lion Limited.
(6)
Mr.
    Wentao Jason Wu is the Chief Operating Officer.
(7)
Ms.
    Kou is the Interim Chief Accounting Officer.
153
(8)
Mr.
    Adam Inglis is an independent director.
(9)
Mr.
    Charles Prizzi is an independent director and Chairman of the Compensation Committee.
(10)
Mr.
    Thomas Folinsbee is an independent director of Xynomic.
(11)
Mr.
    Richard Peidong Wu is an independent director and Chairman of the Audit Committee and the Corporate Governance and Nominating
    Committee.
(12)
Grand
    Ascent Group Limited is a healthcare focused advisory company incorporated under the laws of Hong Kong. The address of
    its business office is Unit 826, Ocean Centre, Harbour City, 5 Canton Road, TST, KLN, Hong Kong. The person having voting,
    dispositive or investment powers over Grand Ascent Group Limited is Ms. Yimei Zhang
.
Ms. Zhang is the close
    family member of Dr. Wentao Jason Wu and due do this relationship, we deem that Dr. Wu controls and/or has substantial influence
    on the disposition rights and voting rights of shares included herein
(13)
Bridge
    Pharm International Inc. is a healthcare focused advisory company incorporated under the laws of The British Virgin Islands.
    The address of its business office is Suite 1-301, Banxia Road, Pudong New District, Shanghai, China. The person having voting,
    dispositive or investment powers over Bridge Pharm International Inc. is Ms. Yanli Luo.
(14)
Prosperico
    Gate I Limited is an exempted company 100% and directly owned by Prosperico Healthcare Fund I, LP, which is a healthcare focused
    investment fund in the form of exempted limited partnership with no US-investors incorporated under the laws of the Cayman
    Islands. The address of the company is P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205,
    Cayman Islands. The person having voting, dispositive or investment powers over Prosperico Gate I Limited is Mr. Tingzhi
    Qian.
(15)
DandeLion
    Limited is an exempted company 100% and ultimately owned by Mr. Tingzhi Qian incorporated under the laws of The Cayman Islands.
    The address of the company is P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205, Cayman
    Islands. The person having voting, dispositive or investment powers over Dande Lion Limited is Mr. Tingzhi Qian.
(16)
Ascender
    Prosperity Capital Co., Ltd. is a healthcare focused investment company incorporated under the laws of The Cayman Islands.
    The address of the company is P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205, Cayman
    Islands. The person having voting, dispositive or investment powers over Ascender Prosperity Capital Co., Ltd. is Mr.
    Qi Jun Chen
.
(17)
Zhongshan
    Bison Healthcare Investment Limited (Limited Partnership) is a healthcare focused venture capital and private equity investment
    company incorporated under the laws of Zhongshan, Guangdong Province, China. The address of its business office is B609-610,
    21st Century Tower, No. 40 Liangmaqiao Road, Chaoyang District, Beijing 100016, China. The people having voting, dispositive
    or investment powers over Zhongshan Bison Healthcare Investment Limited are 5 members of its investment committee.
154
Certain
Relationships and Related Party Transactions
Xynomic Related Person Transactions
Following
the consummation of the Business Combination, on May 15, 2019, Xynomic Pharmaceuticals Holdings, Inc. issued 55,000 shares of
Common Stock and 25,000 private warrants to Bison's Sponsor, Bison Capital Holding Company Limited, upon conversion of $500,000
working capital loan owed to the sponsor.
At
the closing of the Business Combination, pursuant to the Backstop Agreement dated May 1, 2019 entered into by and between Bison
and Yinglin Mark Xu, together with his assignee Bison Capital Holding Company Limited, has purchased from the Company 755,873
shares of common stock at a price of $10.15 per share for a total consideration of $7,672,112 (the "
Backstop Shares
"
and "
Backstop Subscription
"). As a result of Backstop Subscription, Bison had at least $7,500,001 of
net tangible assets remaining at the Closing after giving effect to the redemption of any Ordinary Shares by the public shareholders
in connection with the Business Combination.
Yinglin Mark Xu Bridge Loan
On August 15, 2017,
Xynomic entered into a Bridge Loan Agreement with Yinglin Mark Xu, its Chairman, Chief Executive Officer, and President, and an
Amended Bridge Loan Agreement dated August 31, 2017. Under the agreement, Yinglin Mark Xu agreed to periodically provide loans
to fund Xynomic's daily operation. No security is required in connection with provision of the loan. As of December 31, 2018
and March 31, 2019, Yinglin Mark Xu has provided multiple loans to Xynomic in the aggregate amount of $2,008,936 and US$2,441,776,
respectively. No principal or interest has been paid under the Bridge Loan Agreement and the Amended Bridge Loan Agreement.
Eigenbridge Consulting Agreement
Xynomic entered into
a contractor agreement with Eigenbridge, Inc., or "Contractor," a company affiliated with Yong Cui, on February 26,
2017, pursuant to which Contractor agrees to provide specialized advisory services to Xynomic. The initial term of this agreement
is from February 27, 2017, to December 31, 2017. The term shall be automatically extended on a month-to-month basis unless and
until the work is completed or Contractor provides 30 days' prior written notice to Xynomic, provided that Xynomic may terminate
this agreement at any time for any reason. The contractor agreement provides for an hourly rate of $240 for the service provided
by Contactor and reimbursements for travel, living, entertainment, or other costs of Contractor if these activities were pre-approved
by Xynomic. This Agreement is governed by the laws of the State of California.
Advances from and interest payable
to a shareholder
On May 2, 2018,
as one of the potential investors of Series B financing, Zhongshan Bison Healthcare Investment Limited (Limited Partnership) ("Zhongshan
Bison") entered into a loan agreement with Xynomic Pharmaceuticals (Nanjing) Co., Ltd. ("Xynomic Nanjing"). On
May13, 2018, Zhongshan Bison made an advance of RMB9,435,000 (equivalent to US$1,425,959) to fund the operations and business development
of Xynomic Nanjing. Zhongshan Bison is entitled to withdraw the advance within 5 business days after Zhongshan Bison paid the first
investment of Series B financing, or if current shareholders and investors fail to subscribe shares of the Series B financing within
6 months.
On August 16,
2018, Zhongshan Bison became one of the Series B Preferred Shareholders.
On August 23,
2018, Xynomic Nanjing entered into a termination agreement for the advance from Zhongshan Bison. Xynomic Nanjing is required to
a) repay RMB1,800,000 of the advance from Zhongshan Bison within 2 days after signing the agreement; and b) repay the remaining
RMB7,635,000 of the advance from Zhongshan Bison and interest accrued at annual interest rate of 8% from signing the agreement
within six months from the date of the termination agreement.
On August 23,
2018, Xynomic Nanjing repaid RMB1,800,000 (equivalent to US$262,743) of the advance from Zhongshan Bison. As of December 31,
2017 and 2018, the advance from Zhongshan Bison was nil and US$1,112,455, respectively.
On January 21, 2019,
Xynomic Nanjing repaid RMB5,064,000 (equivalent to US$747,189) of the advance from Zhongshan Bison. On February 20, 2019, Zhongshan
Bison agreed to extend the due date of the remaining advance of RMB2,571,000 (US$383,097) and all accrued interest to April 15,
2019. On April 12, 2019, Zhongshan Bison agreed to further extend the due date of the remaining advance of RMB2,571,000 (US$383,097)
and all accrued interest to June 30, 2019. On June 30, 2019, the due date was further extended to September 15, 2019.
Xynomic Nanjing accrued
interest expense of US$32,874 and US$15,088 for the advance from Zhongshan Bison for the year ended December 31, 2018 and for
the three months ended March 31, 2019, respectively. The interest payable to Zhongshan Bison was US$31,697 and US$47,583 as of
December 31, 2018 and as of March 31, 2019, respectively.
155
Shanghai Jingshu Loan
On April 10, 2018,
Xynomic Pharmaceuticals (Nanjing) Co., Ltd. borrowed RMB 6.0 million from Shanghai Jingshu Venture Capital Center, or "Shanghai
Jingshu," one
of the Company's shareholders, for its research and operation. The loan bears no interest and has a term of the shorter of
(i) 183 days after the date of the loan agreement, or (ii) 20 business days after Xynomic receives in full the investment amount
from Shanghai Jingshu in connection with the Series B financing, at which time all principal shall be due. All the outstanding
amount under the loan was paid in full on August 2, 2018.
Bridge Pharm Services
Bridge Pharm International
Inc., or "Bridge Pharm," a shareholder of Xynomic, provided consulting service including business development, screening
and selection of contract research organizations ("CROs") and contract manufacturing organizations, and scouting and
reference of key scientific and managerial talents to Xynomic group companies. Xynomic group companies paid a total contract amount
of $295,021 to Bridge Pharm in June 2017 for a 20-month service. Xynomic recognized expense of $178,777 in 2017 and $116,244 in
2018. In 2017, Xynomic issued 3,000,010 ordinary shares for a cash consideration of $300 to Bridge Pharm, for the financial advisory
services in connection with Series A-1 Preferred Shares issuance. Xynomic has accounted the difference between the consideration
received and the fair value of these ordinary shares as redeemable preferred share issuance cost, which was recorded as a reduction
of the carrying amount of the redeemable preferred share.
Bison
Related Person Transactions
In
December 2016, we issued an aggregate of 1,437,500 Founder Shares to our Initial Shareholders for an aggregate purchase price
of $25,000 in cash, or approximately $0.017 per share. On June 19, 2017, the number of Founder Shares issued under the original
subscription agreement was increased by way of the sub-division of each of the then existing Founder Shares on a 1.05 for 1 basis,
resulting in the total number of Founder Shares becoming 1,509,375. The Founder Shares are identical to the shares sold in the
IPO, except that (1) the Founder Shares are subject to certain transfer restrictions as set forth in a certain share escrow agreement,
(2) the Founder Shares were purchased pursuant to an exemption from the registration requirements of the Securities Act and will
become tradable only after certain conditions are met or the resale of the Founder Shares is registered under the Securities Act,
in addition to in accordance with the terms of the share escrow agreement, and (3) the Initial Shareholders have agreed (i) to
waive their redemption rights with respect to any shares in connection with the consummation of Business Combination and (ii)
to waive their liquidation rights with respect to their Founder Shares and private shares if the Company fails to complete a Business
Combination within June 24, 2019 or such earlier date as determined by Bison's board of directors (the "Combination
Period"). All of the Founder Shares were placed in escrow with Continental Stock Transfer & Trust Company, as escrow
agent, at the time of our IPO.
Additionally,
subject to certain limited exceptions, the Initial Shareholders have agreed not to transfer, assign, or sell any of the Founder
Shares (except to certain permitted transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) one year
after the date of the consummation of a Business Combination or (ii) the date on which the closing price of the Company's
ordinary shares equals or exceeds $12.50 per share (as adjusted for stock splits, stock dividends, reorganizations, and recapitalizations)
for any 20 trading days within any 30-trading day period commencing after a Business Combination, and with respect to the remaining
50% of the Founder Shares, upon one year after the date of the consummation of a Business Combination, or earlier, in each case,
if, subsequent to a Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange, or other similar
transaction which results in all of the Company's shareholders having the right to exchange their ordinary shares for cash,
securities, or other property.
Simultaneously
with the consummation of the IPO, our Sponsor, Bison Capital Holding Company Limited, and EarlyBirdCapital purchased an aggregate
of 388,750 private units (or an aggregate purchase price of $3,887,500), of which 362,500 private units were purchased by Bison
Capital Holding Company Limited and 26,250 private units were purchased by EarlyBirdCapital. In addition, on June 28, 2017, the
Company consummated the sale of an additional 43,312 Placement Units at a price of $10.00 per Unit, of which 39,375 private units
were purchased by Bison Capital Holding Company Limited and 3,937 private units were purchased by EarlyBirdCapital, generating
gross proceeds of $433,125. The proceeds from the sale of the private units were added to the net proceeds from the IPO held in
the Trust Account.
The
private units are identical to the Units sold in the IPO, except that (i) Bison Capital Holding Company Limited and EarlyBirdCapital
have agreed not to transfer, assign, or sell any of the private units until after the completion of a Business Combination, subject
to certain exceptions, (ii) the private units (including underlying securities) were purchased pursuant to an exemption from the
registration requirements of the Securities Act and will become tradable only after certain conditions are met or the resale of
the private units is registered under the Securities Act, and (iii) the warrants included in the private units (the "Private
Warrants") are non-redeemable and may be exercised on a cashless basis, in each case so long as they continue to be held
by our Sponsor or EarlyBirdCapital or their permitted transferees. However, the holders have agreed (a) to vote their private
shares (representing the ordinary shares underlying the private units) and any public shares in favor of a Business Combination,
(b) not to propose or vote in favor of an amendment to the Previous Charter, prior to and unrelated to a Business Combination,
to affect the substance or timing of the Company's obligation to redeem all public shares if it cannot complete a Business
Combination within the Combination Period, unless the Company provides public shareholders an opportunity to redeem their public
shares, (c) not to redeem any shares included in the private units (the "Private Shares") into the right to receive
cash from the Trust Account in connection with a shareholder vote to approve a Business Combination, and (d) not to participate
in any liquidating distribution upon winding up if a Business Combination is not consummated.
We
have agreed to pay our Sponsor $5,000 per month for office space, utilities, and secretarial and administrative services, as we
may require from time to time. We believe, based on rents and fees for similar services in the Beijing area, that the fee charged
by our Sponsor is at least as favorable as we could have obtained from an unaffiliated person.
156
Other
than the $5,000 per-month administrative fee as described above, the $38,400 annual retainer payments to our independent directors
as described below and reimbursement of any out-of-pocket expenses incurred in connection with activities on our behalf such as
identifying potential target businesses and performing due diligence on suitable business combinations, no compensation or fees
of any kind, including finder's fees, consulting fees, or other similar compensation, will be paid to our Sponsor, officers,
directors, or to any of their respective affiliates, prior to or with respect to our initial business combination (regardless
of the type of transaction that it is). Our independent directors review on a quarterly basis all payments that were made to our
Sponsor, officers, directors, or our or their affiliates and are responsible for reviewing and approving all related party transactions
as defined under Item 404 of Regulation S-K, after reviewing each such transaction for potential conflicts of interests and other
improprieties.
We
pay each of our independent directors an annual retainer of $38,400 (to be prorated for a partial term), payable in arrears commencing
on the first anniversary of the closing of the IPO and ending on the earlier of the consummation of our initial business combination
and our liquidation.
Prior
to our IPO, our Sponsor advanced to us an aggregate of $159,304 and loaned to us $300,000 to cover expenses related to such offering.
We repaid these advances and loan from the proceeds of our IPO not placed in the trust account.
In addition, in order
to finance transaction costs in connection with an intended initial business combination, our Sponsor or an affiliate of our Sponsor
or our officers and directors may, but are not obligated to, loan us funds as may be required. If we consummate our initial business
combination, we would repay such loaned amounts. In the event that the initial business combination does not close, we may use
a portion of the offering proceeds held outside the trust account to repay such loaned amounts but no proceeds from our trust
account would be used for such repayment. Such loans would be evidenced by promissory notes. The notes of $500,000 of loans have
been converted upon consummation of our business combination into additional private units at a price of $10.00 per unit at the
lender's discretion (which, for example, would result in the holders being issued 55,000 private shares if $500,000 of notes
were so converted since the 50,000 private rights included in the private units would result in the issuance of an additional
5,000 private shares upon the Closing, as well as 50,000 warrants to purchase 25,000 Company common shares).
After
our initial business combination, members of our management team who remain with us may be paid consulting, management, or other
fees from the combined company with any and all amounts being fully disclosed to our shareholders, to the extent then known, in
the proxy solicitation materials, as applicable, furnished to our shareholders. It is unlikely the amount of such compensation
will be known at the time of a shareholder meeting held to consider our initial business combination, as applicable, as it will
be up to the directors of the post-combination business to determine executive and director compensation.
All
ongoing and future transactions between us and any member of our management team or his or her respective affiliates will be on
terms believed by us at that time, based upon other similar arrangements known to us, to be no less favorable to us than are available
from unaffiliated third parties. It is our intention to obtain estimates from unaffiliated third parties for similar goods or
services to ascertain whether such transactions with affiliates are on terms that are no less favorable to us than are otherwise
available from such unaffiliated third parties. If a transaction with an affiliated third party were found to be on terms less
favorable to us than with an unaffiliated third party, we would not engage in such transaction.
Pursuant
to a registration rights agreement we entered into on June 19, 2017, our Initial Shareholders and EarlyBirdCapital and their permitted
transferees can demand that we register the Founder Shares, the private units and underlying securities, and any securities issued
upon conversion of working capital loans. The holders of the majority of the Founder Shares are entitled to demand that we register
these shares at any time commencing three months prior to the first anniversary of the consummation of our initial business combination.
The holders of the private units (or underlying securities) are entitled to demand that we register these securities at any time
after we consummate our initial business combination. In addition, the holders have certain "
piggy-back
" registration
rights on registration statements filed after the consummation of our initial business combination.
157
On
May 2, 2018, as one of the potential investors of Series B financing, Zhongshan Bison Healthcare Investment Limited (Limited Partnership)
("
Zhongshan Bison
") entered into an agreement with Xynomic Nanjing. On May 13, 2018, Zhongshan Bison made an
advance of RMB9,435,000 (equivalent to US$1,425,959) to fund the operations and business development of Xynomic Nanjing. Zhongshan
Bison is entitled to withdraw the advance within 5 business days after Zhongshan Bison paid the first investment of Series B financing,
or if current shareholders and investors fail to subscribe shares of the Series B financing within 6 months.
On
June 4, 2018, Xynomic entered into a share purchase agreement with certain investors (including Zhongshan Bison), pursuant to
which a total of 5,281,101 Convertible Series B Preferred Shares ("
Series B Preferred Shares
") were to be issued
for an aggregated cash consideration of US$17,000,000. On August 16, 2018, the Series B Preferred Shares were issued and the US$17,000,000
were received.
On
August 16, 2018, Zhongshan Bison became one of the Series B Preferred Shareholders.
On
August 23, 2018, Xynomic Nanjing entered into a termination agreement for the advance from Zhongshan Bison. Xynomic Nanjing is
required to a) repay RMB1,800,000 of the advance from Zhongshan Bison within 2 days after signing the termination agreement; and
b) repay the remaining RMB7,635,000 of the advance from Zhongshan Bison and interest accrued at annual interest rate of 8% from
signing the engagement agreement within six months from the date of the termination agreement.
On
August 23, 2018, Xynomic Nanjing repaid RMB1,800,000 (equivalent to US$262,743) of the advance from Zhongshan Bison. As of December
31, 2017 and 2018, the advance from Zhongshan Bison was nil and US$1,112,455, respectively.
Zhongshan
Bison is holding 1,553,265 shares of Series B preferred stock of Xynomic representing approximately 2.96% equity interest in Xynomic
immediately prior to the Closing. Mr. Peixin Xu, the Chairman of Bison, is the beneficial owner of 21% of Zhongshan Bison and
his wife owns 100% of Sponsor
.
On
January 21, 2019, Xynomic Nanjing repaid RMB 5,064,000 (equivalent to US$747,189) of the advance from Zhongshan Bison. On February
20, 2019, Zhongshan Bison agreed to extend the repayment date of the remaining advance of RMB2,571,000 (US$380,562) and all accrued
interest to April 15, 2019. On June 30, 2019, the due date was further extended to September 15, 2019.
As of March 31, 2019,
an aggregate of $600,000 were owed by the Company to the Sponsor as working capital loan, among which, $500,000 were evidenced
notes to the Sponsor which have been converted into private units at the Sponsor's discretion at the Closing.
Policies
and Procedures for Related Person Transactions
Effective
upon the Closing, our board of directors will adopt a written related person transaction policy that will set forth the policies
and procedures for the review and approval or ratification of related person transactions. Our policy will require that a "
related
person
" (as defined in paragraph (a) of Item 404 of Regulation S-K) must promptly disclose to our general counsel any
"
related person transaction
" (defined as any transaction that is reportable by us under Item 404(a) of Regulation
S-K in which we are or will be a participant and the amount involved exceeds $120,000 and in which any related person has or will
have a direct or indirect material interest) and all material facts with respect thereto. The general counsel will promptly communicate
such information to our Audit Committee or another independent body of our board of directors. No related person transaction will
be entered into without the approval or ratification of our Audit Committee or another independent body of our board of directors.
It is our policy that directors interested in a related person transaction will recuse themselves from any such vote. Our policy
does not specify the standards to be applied by our Audit Committee or another independent body of our board of directors in determining
whether to approve or ratify a related person transaction, although such determinations will be made in accordance with Delaware
law.
158
DESCRIPTION
OF SECURITIES
Authorized
and Outstanding Stock
Pursuant
to our Current Charter, we are authorized to issue up to 200 million common shares, par value $0.0001 per share and up to 50 million
preferred shares, par value $0.0001 per share. As of the date of this prospectus, we have 46,274,846 shares of Common Stock issued and
outstanding.
Common
Stock
Our
Charter provides that the common stock has identical rights, powers, preferences, and privileges.
Voting
Power
Except
as otherwise required by law or as otherwise provided in any certificate of designation for any series of preferred stock, the
holders of Company common stock possess all voting power for the election of our directors and all other matters requiring shareholder
action. Holders of Company common stock are entitled to one vote per share on matters to be voted on by shareholders.
Dividends
We
have not paid any cash dividends on our common stock to date and do not intend to pay cash dividends following the closing of
this Offering. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if any, capital requirements,
and general financial condition. The payment of any cash dividends is within the discretion of our board of directors at such
time. In addition, our board of directors is not currently contemplating and does not anticipate declaring any stock dividends
in the foreseeable future.
Liquidation,
Dissolution, and Winding Up
In
the event of our voluntary or involuntary liquidation, dissolution, distribution of assets, or winding-up, the holders of the
Company common stock will be entitled to receive an equal amount per share of all of our assets of whatever kind available for
distribution to shareholders, after the rights of the holders of the preferred stock have been satisfied.
Founder
Shares
The
Founder Shares are identical to the public shares sold in the IPO, except that (1) the Founder Shares are subject to certain transfer
restrictions as set forth in certain share escrow agreement, (2) the Founder Shares were purchased pursuant to an exemption from
the registration requirements of the Securities Act and will become tradable only after certain conditions are met or the resale
of the Founder Shares is registered under the Securities Act, in addition to in accordance with the terms of the share escrow
agreement, and (3) the Initial Shareholders have agreed (i) to waive their redemption rights with respect to any shares in connection
with the consummation of business combination and (ii) to waive their liquidation rights with respect to their Founder Shares
and private shares if the Company fails to complete a Business Combination within June 24, 2019 or such earlier date as determined
by Bison's board of directors (the "Combination Period").
Additionally,
subject to certain limited exceptions, the Initial Shareholders have agreed not to transfer, assign, or sell any of the Founder
Shares (except to certain permitted transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) May 15,
2020, or (ii) the date on which the closing price of the Company's ordinary shares equals or exceeds $12.50 per share (as
adjusted for stock splits, stock dividends, reorganizations, and recapitalizations) for any 20 trading days within any 30-trading
day period commencing after a business combination, and with respect to the remaining 50% of the Founder Shares, until May 15,
2020, or earlier, in each case, if, subsequent to a Business Combination, the Company consummates a subsequent liquidation, merger,
stock exchange, or other similar transaction which results in all of the Company's shareholders having the right to exchange
their common shares for cash, securities, or other property.
159
Warrants
There
are currently 3,018,750 public warrants outstanding which were originally sold as part of units in Bison's IPO, 216,031
private warrants outstanding where were originally sold as part of private units in a private place in conjunction with the IPO
and 25,000 private warrants issued in connection of the convertion of $500,000 working capital loan. Each whole warrant entitles
the registered holder to purchase one Company common share at a price of $11.50 per share, subject to adjustment as discussed
below, at any time commencing on the consummation of the Business Combination. However, no public warrants will be exercisable
for cash unless we have an effective and current registration statement covering the Company common shares issuable upon exercise
of the warrants and a current prospectus relating to such common shares. Notwithstanding the foregoing, if a registration statement
covering the Company common shares issuable upon exercise of the public warrants is not effective within 120 days from the closing
of the Business Combination, warrant holders may, until such time as there is an effective registration statement and during any
period when we shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis pursuant
to an available exemption from registration under the Securities Act. If an exemption from registration is not available, holders
will not be able to exercise their warrants on a cashless basis. The warrants will expire five years from the closing of the Business
Combination at 5:00 p.m., New York City time.
The
private warrants are identical to the public warrants except that such private warrants will be exercisable for cash (even if
a registration statement covering the ordinary shares issuable upon exercise of such warrants is not effective) or on a cashless
basis, at the holder's option, and will not be redeemable by us, in each case so long as they are still held by the initial
purchasers or their affiliates.
We
may call the outstanding warrants for redemption (excluding the private warrants but including any warrants already issued upon
exercise of the unit purchase option), in whole and not in part, at a price of $.01 per warrant:
●
at
any time while the warrants are exercisable,
●
upon
not less than 30 days' prior written notice of redemption to each warrant holder,
●
if,
and only if, the reported last sale price of the ordinary shares equals or exceeds $24.00 per share, for any 20 trading days within
a 30 trading day period ending on the third business day prior to the notice of redemption to warrant holders, and
●
if,
and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants
at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until
the date of redemption.
The
right to exercise will be forfeited unless the warrants are exercised prior to the date specified in the notice of redemption.
On and after the redemption date, a record holder of a warrant will have no further rights except to receive the redemption price
for such holder's warrant upon surrender of such warrant.
The
redemption criteria for our warrants have been established at a price which is intended to provide warrant holders a reasonable
premium to the initial exercise price and provide a sufficient differential between the then-prevailing share price and the warrant
exercise price so that if the share price declines as a result of our redemption call, the redemption will not cause the share
price to drop below the exercise price of the warrants.
If
we call the warrants for redemption as described above, our management will have the option to require all holders that wish to
exercise warrants to do so on a "cashless basis." In such event, each holder would pay the exercise price by surrendering
the warrants for that number of ordinary shares equal to the quotient obtained by dividing (x) the product of the number of ordinary
shares underlying the warrants, multiplied by the difference between the exercise price of the warrants and the "fair market
value" (as defined below) by (y) the fair market value. The "fair market value" shall mean the average reported
last sale price of the ordinary shares for the 10 trading days ending on the third trading day prior to the date on which the
notice of redemption is sent to the holders of warrants. Whether we will exercise our option to require all holders to exercise
their warrants on a "cashless basis" will depend on a variety of factors including the price of our ordinary shares
at the time the warrants are called for redemption, our cash needs at such time and concerns regarding dilutive share issuances.
160
The
warrants were issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant
agent, and us. The warrant agreement provides that the terms of the warrants may be amended without the consent of any holder
to cure any ambiguity or correct any defective provision, but requires the approval, by written consent or vote, of the holders
of a majority of the then outstanding warrants in order to make any change that adversely affects the interests of the registered
holders.
The
exercise price and number of ordinary shares issuable on exercise of the warrants may be adjusted in certain circumstances including
in the event of a share dividend, extraordinary dividend or our recapitalization, reorganization, merger or consolidation. However,
the warrants will not be adjusted for issuances of ordinary shares at a price below their respective exercise prices.
The
warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant
agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied
by full payment of the exercise price, by certified or official bank check payable to us, for the number of warrants being exercised.
The warrant holders do not have the rights or privileges of holders of ordinary shares and any voting rights until they exercise
their warrants and receive ordinary shares. After the issuance of ordinary shares upon exercise of the warrants, each holder will
be entitled to one vote for each share held of record on all matters to be voted on by shareholders.
Except
as described above, no public warrants will be exercisable for cash and we will not be obligated to issue common shares unless
at the time a holder seeks to exercise such warrant, a prospectus relating to the common shares issuable upon exercise of the
warrants is current and the common shares have been registered or qualified or deemed to be exempt under the securities laws of
the state of residence of the holder of the warrants. Under the terms of the warrant agreement, we have agreed to use our best
efforts to meet these conditions and to maintain a current prospectus relating to the common shares issuable upon exercise of
the warrants until the expiration of the warrants. However, we cannot assure you that we will be able to do so and, if we do not
maintain a current prospectus relating to the common shares issuable upon exercise of the warrants, holders will be unable to
exercise their warrants and we will not be required to settle any such warrant exercise. If the prospectus relating to the common
shares issuable upon the exercise of the warrants is not current or if the common shares is not qualified or exempt from qualification
in the jurisdictions in which the holders of the warrants reside, we will not be required to net cash settle or cash settle the
warrant exercise, the warrants may have no value, the market for the warrants may be limited and the warrants may expire worthless.
Warrant
holders may elect to be subject to a restriction on the exercise of their warrants such that an electing warrant holder would
not be able to exercise their warrants to the extent that, after giving effect to such exercise, such holder would beneficially
own in excess of 9.8% of the ordinary shares outstanding.
No
fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled
to receive a fractional interest in a share, we will, upon exercise, round up or down to the nearest whole number the number of
ordinary shares to be issued to the warrant holder.
Purchase
Option
We
sold EarlyBirdCapital (and/or its designees) an option to purchase up to 157,500 units at $10.00 per unit. The units issuable
upon exercise of this option are identical to units, if the purchase option is exercised, will be purchased pursuant to an exemption
from the registration requirements of the Securities Act and will become tradable only after certain conditions are met or the
resale of the units is registered under the Securities Act.
161
Our
Transfer Agent and Warrant Agent
The
transfer agent for our ordinary shares, Company common shares, and right and warrant agent for our rights warrants is Continental
Stock Transfer & Trust Company. We have agreed to indemnify Continental Stock Transfer & Trust Company in its roles as
transfer agent and warrant agent, its agents and each of its shareholders, directors, officers, and employees against all claims
and losses that may arise out of acts performed or omitted in that capacity, except for any liability due to any gross negligence
or intentional misconduct of the indemnified person or entity.
Rule
144
Pursuant
to Rule 144, a person who has beneficially owned restricted Company common shares or warrants for at least six months would be
entitled to sell their securities provided that (i) such person is not deemed to have been one of our affiliates at the time of,
or at any time during the three months preceding, a sale and (ii) we are subject to the Exchange Act periodic reporting requirements
for at least three months before the sale and have filed all required reports under Section 13 or 15(d) of the Exchange Act during
the 12 months (or such shorter period as we were required to file reports) preceding the sale.
Persons
who have beneficially owned restricted Company common shares or warrants for at least six months but who are our affiliates at
the time of, or at any time during the three months preceding, a sale, would be subject to additional restrictions, by which such
person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:
●
1%
of the total number of Company common shares then outstanding; or
●
the
average weekly reported trading volume of the Company common shares during the four calendar weeks preceding the filing of a notice
on Form 144 with respect to the sale.
Sales
by our affiliates under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability
of current public information about us.
For
purposes of the six-month holding period requirement of Rule 144, a person who beneficially owns restricted Company common shares
issued pursuant to a cashless exercise of a warrant shall be deemed to have acquired such shares, and the holding period for such
shares shall be deemed to have commenced on the date the warrant was originally issued.
Restrictions
on the Use of Rule 144 by Shell Companies or Former Shell Companies
Rule
144 is not available for the resale of securities initially issued by shell companies (other than business combination related
shell companies) or issuers that have been at any time previously a shell company. However, Rule 144 also includes an important
exception to this prohibition if the following conditions are met:
●
the
issuer of the securities that was formerly a shell company has ceased to be a shell company;
●
the
issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act;
●
the
issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding
12 months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports;
and
●
at
least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status
as an entity that is not a shell company (which, in our case, is likely to occur one year after the filing of the definitive proxy
statement/prospectus relating to the Business Combination).
162
As
of the date of this prospectus, we had 46,273,846 shares of Common Stock outstanding. Of these shares, there are currently
617,560 shares sold in our IPO are freely tradable. All of the 1,509,375 Founder Shares owned by our Sponsor and officer; all
of the 42,860,772 Merger Consideration Shares, all of the 755,873 Backstop Shares, all of the 530,266 Working Capital Shares are
restricted securities under Rule 144, since they were issued in private transactions not involving a public offering.
As
of the date of this prospectus, there are 3,259,781 warrants of Bison outstanding, consisting of 3,018,750 public warrants originally
sold as part of units in Bison's IPO, 216,031 private warrants that were issued to our Sponsor in a private sale concurrently
with the consummation of Bison's IPO and 25,000 private warrnts issued to our Sponsor in connection with the conversion
of a promissory note for working capital in the amount of $500,000. Each warrant is exercisable for one share of our Company common
shares, in accordance with the terms of the warrant agreement governing the warrants.
Registration
Rights
Pursuant
to an amended and restated registration rights agreement we entered into on May 15, 2019,  the shareholders were granted
registration rights that obligate the Company to register for resale under the Securities Act, (1) all or any portion of the 1,509,375
shares of common stock of Bison issued to certain existing investors (the "
Founder Shares
"), (2) 432,063
private units issued by Bison to certain existing investors in conjunction with the consummation of its initial public offering
(the "
Private Units
"), (3) any private units which may be issued by Bison in payment of working capital
loans made to Bison (the "
Working Capital Units
", together with Founder Shares, Private Units, the "
Existing
Registrable Securities
"), (4) the Backstop Shares, and (5) the Merger Consideration Share (the "
Newly
Issued Shares
"). The Backstop Shares, Newly issued Shares and the Existing Registrable Securities and any securities
of Bison issued as a dividend or distribution with respect thereto or in exchange therefor are referred as the "Registrable
Securities". At any time and from time to time on or after (i) the one month anniversary of the Closing with respect to
the Private Units or Working Capital Units, (ii) three months prior to the release of the Founder Shares under the terms of a
certain escrow agreement; (iii) the Closing Date with respect to the Backstop Shares, or (iv) nine months after the Closing with
respect to the Newly Issued Shares, the holders of a majority of (i) all of the Existing Registrable Securities, (ii) all of the
Backstop Shares, or (iii) all of the Newly Issued Shares, calculated on an as-converted basis, may make a written demand for registration
under the Securities Act of all or part of their Registrable Securities, and other holders of the Registrable Securities will
be entitled to join in such demand registration, provided that the Company shall not be obliged to effect more than two demand
registrations in any one year period or more than an aggregate of three demand registrations. In addition, the holders have certain
"
piggy-back
" registration rights on registration statements filed after the consummation of our initial business
combination.
Subject
to certain exceptions, if at any time on or after the Business Combination, the Company proposes to file a registration statement
under the Securities Act with respect to an offering of equity securities, under the Registration Rights Agreement, the Company
shall give written notice of such proposed filing to the holders of the Registrable Securities and offer them an opportunity to
register the sale of such number of Registrable Securities as such holders may request in writing, subject to customary cut-backs.
In
addition, subject to certain exceptions, the holders of a majority of (i) all of the Existing Registrable Securities, (ii) all
of the Backstop Shares, or (iii) all of the Newly Issued Shares, calculated on an as-converted basis, are entitled under the Registration
Rights Agreement to request in writing that the Company register the resale of any or all of such Registrable Securities on Form
S-3 or any similar short-form registration that may be available at such time.
The
Company agrees to use commercially reasonable efforts to effect the registration and sale of such Registrable Securities in accordance
with the registration rights described above as expeditiously as practicable. In addition, the Company agrees to use reasonable
best efforts to cause registration with respect to the Backstop Shares to be declared effective no later than one-hundred and
eighty (180) days following the Business Combination.
Under
the Registration Rights Agreement, the Company agreed to indemnify the holders of Registrable Securities and certain persons or
entities related to them, such as their officers, employees, affiliates, directors, partners, members, attorneys and agents from
and against any expenses, losses, judgments, claims, damages or liabilities resulting from any untrue statement or omission of
a material fact in any registration statement or prospectus pursuant to which the sale of such Registrable Securities was registered
under the Securities Act, unless such liability arose from a misstatement or omission by such selling holder. Each selling holder
of Registrable Securities, including Registrable Securities in any registration statement or prospectus, agreed to indemnify the
Company and certain persons or entities related to the Company, such as its officers and directors and underwriters, against all
losses caused by their misstatements or omissions in those documents.
Listing
of Securities
Our
shares of Common Stock and warrants are currently listed on Nasdaq under the new symbols "XYN" and "XYNPW,"
respectively. The CUSIP numbers for Common Stock and warrants are 98421X102 and 98421X110, respectively.
163
SHARES
ELIGIBLE FOR FUTURE SALE
Future
sales of substantial amounts of our Common Stock, including shares issued upon exercise of outstanding options and warrants, in
the public market after this Offering could adversely affect market prices prevailing from time to time and could impair our ability
to raise capital through the sale of our equity securities.
Upon
the completion of this Offering, based on the number of shares outstanding as of July 10, 2019, we will have
[●]
shares of Common Stock outstanding. Of these outstanding shares, all of the
[●]
shares sold in this Offering
will be freely tradable, except that any shares purchased by our affiliates, as that term is defined in Rule 144 under the Securities
Act, may only be sold in compliance with the limitations described below.
The
remaining outstanding shares will be deemed restricted securities as defined under Rule 144. Restricted securities may be sold
in the public market only if registered or if they qualify for an exemption from registration under Rule 144 or Rule 701 promulgated
under the Securities Act, which rules are summarized below. In addition, all of our shareholders have entered into market standoff
agreements with us or lock-up as further described in "— Lock-Up Agreements" below, under which they agreed
not to sell their shares until certain time or performance metrics have been met. Subject to the provisions of Rule 144 or Rule
701, shares are or will be available for sale in the public market as follows:
●
on
the date of this prospectus,
[●]
shares of Common Stock (including all shares sold in this Offering) are available
for sale in the public market, except for the shares purchased by affiliates which are subject to the volume and other restrictions
of Rule 144 as well as the lock-up agreement restrictions described below;
●
[●]
shares will be eligible for sale on the earliest of (x) May 15, 2020, one year anniversary of the consummation of the Business
Combination, and (z) the date on which the closing sale price of our ordinary shares equals or exceeds $12.50 per share (as adjusted
for share splits, share dividends, reorganizations and recapitalizations) for any twenty trading days within any 30- trading day
period commencing after the Business Combination;
●
[●]
additional shares will become eligible for sale on February 15, 2029, nine months following the consummation of the Business
Combination; and
●
the
remainder of the shares will be eligible for sale in the public market from time to time thereafter, subject in some cases to
the volume and other restrictions of Rule 144, as described below.
Lock-Up
Xynomic stockholders
immediately prior to the Business Combination have agreed to lock up their Merger Consideration Shares until February 15, 2020
(subject to certain exceptions) and our Initial Shareholders have agreed to lock up 50% of the Founder Shares until the earlier
of (a) May 15, 2020, or (b) the date on which the closing price of the Company common shares equals or exceeds $12.50 per share
for any 20 trading days within any 30-trading day period after May 15, 2019 and lock up the remaining 50% of the Founder Shares
until May 15, 2020.
Rule
144
In
general, under Rule 144 as currently in effect, a person who is not deemed to have been one of our affiliates for purposes of
the Securities Act at any time during the 90 days preceding a sale and who has beneficially owned the shares proposed to be sold
for at least six months, including the holding period of any prior owner other than our affiliates, is entitled to sell those
shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with
the public information requirements of Rule 144. If such a person has beneficially owned the shares proposed to be sold for at
least one year, including the holding period of any prior owner other than our affiliates, then that person is entitled to sell
those shares without complying with any of the requirements of Rule 144.
In
general, under Rule 144, as currently in effect, our affiliates or persons selling shares on behalf of our affiliates are entitled
to sell upon expiration of the lock-up agreements described above, within any three-month period beginning 90 days after the date
of this prospectus, a number of shares that does not exceed the greater of:
●
1%
of the number of shares then outstanding, which will equal approximately
[●]
shares immediately after this
offering; or
●
The
average weekly trading volume of the shares during the four calendar weeks preceding the filing of a notice on Form 144 with respect
to that sale.
Sales
under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale
provisions and notice requirements and to the availability of current public information about us.
164
Rule
701
Rule
701 generally allows a shareholder who purchased ordinary shares pursuant to a written compensatory plan or contract and who is
not deemed to have been an affiliate of our company during the immediately preceding 90 days to sell these shares in reliance
upon Rule 144, but without being required to comply with the public information and holding period requirements of Rule 144. Rule
701 also permits affiliates of our company to sell their Rule 701 shares under Rule 144 without complying with the holding period
requirements of Rule 144.
Registration
Rights
We
have granted demand registration rights, rights to participate in offerings that we initiate and Form S-3 registration rights
to certain of our shareholders to sell our ordinary shares. For a further description of these rights, see "Description
of Securities — Registration Rights."
UNDERWRITING
Subject
to the terms and conditions of the underwriting agreement with [●] as the sole representative of the underwriters
("[●]" or the "Representative"), with respect to the shares being offered. [●] is the sole book running
manager for the Offering, located at 405 Lexington Avenue, New York, NY 10174. Subject to the terms and conditions of an underwriting
agreement between us and the Representative, we have agreed to sell to each underwriter named below, and each underwriter named
below has severally agreed to purchase from the Participating Stockholders, on a firm commitment basis, the following
respective number of shares of common stock at a public offering price less the underwriting discounts and commissions set forth
on the cover page of this prospectus:
Underwriter
Number
    of Shares
[●]
Total
The
underwriting agreement provides that the obligations of the underwriters to purchase all of the shares of common stock being offered
to the public is subject to specific conditions, including the absence of any material adverse change in our business or in the
financial markets and the receipt of certain legal opinions, certificates and letters from us, our counsel and the independent
auditors. Subject to the terms of the underwriting agreement, the underwriters will purchase all of the shares being offered to
the public, other than those covered by the over-allotment option described below, if any of these shares are purchased. The Participating
Stockholders in this offering are
[●].
Over-Allotment
Option
The
Participating Stockholders and the Company have granted to the underwriters an option, exercisable not later than 45 days after
the effective date of the registration statement, to purchase up to
[●]
additional shares of common stock (equivalent
to 15% of the total number of shares of Common Stock sold in this Offering) at the public offering price set forth on the cover
of this prospectus, less the underwriting discounts and commissions. The underwriter may exercise this option only to cover over-allotments
made in connection with the sale of the shares of common stock in this offering. To the extent that the underwriter exercise
this option, we will be obligated, pursuant to the option, to sell these additional
shares of common stock to the underwriter to the extent the option is exercised. If any additional shares of common stock are
purchased, the underwriter will offer the additional shares on the same terms as those on which the other shares are being offered
hereunder.
Commission
and Expenses
The
underwriting discounts and commissions are
[●]
% of the public offering price. The Participating Stockholders and
the Company have agreed to pay the underwriters the discounts and commissions set forth below, assuming either no exercise or
full exercise of the underwriters' over-allotment option. We have been advised by [●] that the underwriters propose to
offer the shares to the public at the public offering price set forth on the cover of this prospectus and to dealers at a price
that represents a concession not in excess of $
[●]
per share under the public offering price of $
[●]
per
share. The underwriters may allow, and these dealers may re-allow, a concession of not more than $
[●]
per share
to other dealers. After the offering to the public, the offering price and other selling terms may be changed by the Representative
without changing the Company's proceeds from the underwriters' purchase of the shares
165
The
following table shows the underwriting discounts and commissions payable to the underwriters by us and the Participating Stockholders
in connection with this offering:
Fee Per
Share
(1)
Total Without
Exercise of
Over-Allotment
Total With
Exercise of
Over-Allotment
Public offering price
$
$
$
Discount paid by us
$
$
$
Discount paid by the Participating Stockholders
$
$
$
Expenses payable by us
$
$
$
Expenses payable by the Participating Stockholders
$
$
$
Proceeds, before expenses, to us
$
$
$
Proceeds, before expenses, to the Participating Stockholders
$
$
$
(1)
The
fees do not include the Representative's Warrants or expense reimbursement as described below.
In
addition, we and the Participating Stockholders have agreed to pay [●] for reimbursement of its out-of-pocket expenses it incurs
in connection with this offering to a maximum aggregate expenses allowance of $100,000, including, but not limited to, filing
offering materials with the Financial Industry Regulatory Authority, or FINRA, background checks, "road show" expenses,
costs of book-building, prospectus tracking and compliance software and the fees and disbursements of its counsel, for which we
have paid a $25,000 advance, which will be returned to us to the extent not offset by actual expenses.
We
estimate that expenses payable by the Participating Stockholders and us in connection with the offering of our shares of Common
Stock, including registration, filing and listing fees, printing fees and legal and accounting expenses, but excluding the
underwriting discounts and commissions and the counsel fees and reimbursement provisions referred to above, will
be approximately $
[●]
.
Representative's
Warrants
We
have also agreed to grant to [●] (or its permitted assignees) warrants to purchase a number of our shares equal to an aggregate
of
[●]
% of the total number of shares of Common Stock sold in this offering ("Representative's Warrants").
The Representative's Warrants will have an exercise price equal to 120% of the offering price of the shares of common stock
sold in this offering and may be exercised on a cashless basis. The Representative's Warrants are exercisable commencing
180 days after the effective date of the registration statement related to this offering, and will be exercisable for three years
after the effective date. The Representative's Warrants are not redeemable by us. We have agreed to a one time demand registration
of the shares of common stock underlying the Representative's Warrants for a period of three years from the effective date
of the registration statement related to this offering. The Representative's Warrants also provide for unlimited "piggyback"
registration rights at our expense with respect to the underlying ordinary shares during the three year period commencing
from the effective date of the registration statement related to this offering. The Representative's Warrants and the shares
of common stock underlying the Representative's Warrants have been deemed compensation by FINRA and are therefore subject
to a 180-day lock-up pursuant to Rule 5110(g)(1) of FINRA. The underwriters (or permitted assignees under the Rule) may not sell,
transfer, assign, pledge or hypothecate the Representative's Warrants or the securities underlying the Representative's
Warrants, nor will they engage in any hedging, short sale, derivative, put or call transaction that would result in the effective
economic disposition of the Representative's Warrants or the underlying securities for a period of 12 months from the effective
date of this offering, except to any FINRA member participating in the offering and their bona fide officers or partners. The
Representative's Warrants will provide for adjustment in the number and price of such Representative's Warrants (and
the shares of common stock underlying such Representative's Warrants) in the event of recapitalization, merger or other
structural transaction to prevent mechanical dilution or in the event of a future financing undertaken by us, as permitted by
FINRA Rule 5110(f)(2)(G).
166
Indemnification
We
have agreed to indemnify the underwriter against certain liabilities, including liabilities under the Securities Act and liabilities
arising from breaches of representations and warranties contained in the underwriting agreement, or to contribute to payments
that the underwriter may be required to make in respect of those liabilities.
Lock-up
Agreements
We
and each of our directors, executive officers and affiliates, and certain existing shareholders aggregating at leaset 5.0%
of our outstanding shares have agreed that, subject to certain exceptions, not to offer, issue, sell, contract to sell, encumber,
grant any option for the sale of or otherwise dispose of any shares of our common stock or other securities convertible into or
exercisable or exchangeable for shares of our common stock for a period of 90 days after this offering is completed, without the
prior written consent of [●]. subject to certain limited exceptions, they will not directly or indirectly, without the prior
written consent of the Representative of the underwriters, (1) offer, sell, agree to offer or sell, solicit offers to purchase,
grant any call option or purchase any put option with respect to, pledge, encumber, assign, borrow or otherwise dispose of or
transfer any shares of common stock, warrant to purchase shares of common stock or any other security of the company or any other
entity that is convertible into, or exercisable or exchangeable for, shares of common stock or any other equity security of the
company owned beneficially or otherwise as of the date of this prospectus, which we refer to as relevant securities, or otherwise
publicly disclose the intention to do so, (2) establish or increase any "put equivalent position" or liquidate or
decrease any "call equivalent position" (in each case within the meaning of Section 16 of the Exchange Act) with respect
to any relevant security or otherwise enter into any swap, derivative or other transaction or arrangement that transfers to another,
in whole or in part, any economic consequence of ownership of relevant securities, whether or not such transaction is to be settled
by the delivery of relevant securities, other securities, cash or other consideration, or otherwise publicly disclose the intention
to do so, (3) file or participate in the filing with the SEC of any registration statement or circulate or participate in the
circulation of any preliminary or final prospectus or other disclosure document, in each case with respect to any proposed offering
or sale of relevant securities, or (4) exercise any rights to require registration with the SEC of any proposed offering or sale
of relevant securities.
Zhengqi,
one of the Participating Stockholders, has agreed to enter into a lock-up agreement for a period of 135 days following the date
of this prospectus with respect to that portion of its shares of common stock that are registered in the resale prospectus included
in this registration statement but are not sold in this offering, which Lock-Up Agreement may be waived by [●] to the extent
necessary with respect to any private placements taking place following the closing of this offering and as to which [●] has
been engaged as a placement agent.
Price
Stabilization, Short Positions and Penalty Bids
In
connection with the offering the underwriters may engage in stabilizing transactions, over-allotment transactions, syndicate covering
transactions and penalty bids in accordance with Regulation M under the Exchange Act:
●
Stabilizing
    transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum.
●
Over-allotment
    involves sales by the underwriters of shares of common stock in excess of the number of shares of common stock the underwriters
    are obligated to purchase, which creates a syndicate short position. The short position may be either a covered short position
    or a naked short position. In a covered short position, the number of shares of common stock over-allotted by the underwriters
    is not greater than the number of shares of common stock  that they may purchase in the over-allotment option. In a naked
    short position, the number of shares of common stock involved is greater than the number of shares of common stock in the
    over-allotment option. [●] may close out any covered short position by either exercising their over-allotment option and/or
    purchasing shares of common stock in the open market.
●
Syndicate
    covering transactions involve purchases of shares of common stock in the open market after the distribution has been completed
    in order to cover syndicate short positions. In determining the source of shares of common stock to close out the short position,
    [●] will consider, among other things, the price of shares of common stock available for purchase in the open market as
    compared to the price at which they may purchase shares of common stock through the over-allotment option. If the underwriters
    sell more shares of common stock than could be covered by the over-allotment option, a naked short position, the position
    can only be closed out by buying shares of common stock in the open market. A naked short position is more likely to be created
    if the underwriters are concerned that there could be downward pressure on the price of the shares of common stock in the
    open market after pricing that could adversely affect investors who purchase in the offering.
●
Penalty
    bids permit [●] to reclaim a selling concession from a syndicate member when the shares of common stock originally sold
    by the syndicate member is purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.
167
These
stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market
price of our shares of common stock or preventing or retarding a decline in the market price of our securities. As a result, the
price of our shares of common stock may be higher than the price that might otherwise exist in the open market.
Neither
we nor the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions
described above may have on the price of our shares of common stock. In addition, neither we nor the underwriters make any representation
that the underwriters will engage in these transactions or that any transaction, if commenced, will not be discontinued without
notice.
Electronic
Distribution
This
prospectus in electronic format may be made available on websites or through other online services maintained by [●] or by its
affiliates. The underwriters may agree to allocate a number of shares to underwriters for sale to their online brokerage account
holders. Internet distributions will be allocated by the representatives of the underwriters to underwriters that may make Internet
distributions on the same basis as other allocations. In connection with the offering, the underwriters or syndicate members may
distribute prospectuses electronically. No forms of electronic prospectus other than prospectuses that are printable as Adobe®
PDF will be used in connection with this offering.
The
underwriters have informed us that they do not expect to confirm sales of shares offered by this prospectus to accounts over
which they exercise discretionary authority.
Other
than this prospectus in electronic format, the information on [●]'s website and any information contained in any other
websites maintained by it is not part of this prospectus or the registration statement of which this prospectus forms a part,
has not been approved and/or endorsed by us or [●] in its capacity as an underwriter, and should not be relied upon by investors.
Right
of First Refusal
In
addition, we have agreed to grant to [●], upon the consummation of an offering of at least $15 million in gross proceeds,
for a period of nine (9) months from such closing, the right of first refusal to act as a lead managing underwriter and book runner
or minimally as a co-lead manager and co-book runner and/or co-lead placement agent with at least 80% of the economics for
a two handed deal and 50.0% of the economics for a three handed deal, for any and all future public and private equity, equity-linked
or debt (excluding commercial bank debt) offerings of the Company or any successor to or any subsidiary of the Company, for a
period of twelve (12) months after the commencement of sales of this offering. The Participating Stockholders have also
engaged [●] to act as a placement agent in connection with potential private placements of shares held by them following the
offering.
TAXATION
The
following discussion of British Virgin Islands, PRC and United States federal income tax consequences of an investment in our
ordinary shares is based upon laws and relevant interpretations thereof in effect as of the date of this prospectus, all of which
are subject to change. This discussion does not deal with all possible tax consequences relating to an investment in our ordinary
shares, such as the tax consequences under state, local and other tax laws.
British
Virgin Islands Taxation
The
Company and all dividends, interest, rents, royalties, compensation and other amounts paid by the Company to persons who are not
resident in the BVI and any capital gains realized with respect to any shares, debt obligations, or other securities of the Company
by persons who are not resident in the BVI are exempt from all provisions of the Income Tax Ordinance in the BVI.
No
estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable by persons who are not resident in the
BVI with respect to any shares, debt obligation or other securities of the Company.
All
instruments relating to transfers of property to or by the Company and all instruments relating to transactions in respect of
the shares, debt obligations or other securities of the Company and all instruments relating to other transactions relating to
the business of the Company are exempt from payment of stamp duty in the BVI. This assumes that the Company does not hold an interest
in real estate in the BVI.
There
are currently no withholding taxes or exchange control regulations in the BVI applicable to the Company or its members.
168
People's
Republic of China Taxation
Under
the EIT Law, an enterprise established outside the PRC with "de facto management bodies" within the PRC is considered
a "resident enterprise" for PRC enterprise income tax purposes and is generally subject to a uniform 25% enterprise
income tax rate on its worldwide income. Under the implementation rules to the EIT Law, a "de facto management body"
is defined as a body that has material and substantial management and control over the manufacturing and business operations,
personnel and human resources, finances and properties of an enterprise.
Our
PRC subsidiary and PRC consolidated VIE are companies incorporated under PRC law and, as such, are subject to PRC enterprise income
tax on their taxable income in accordance with the relevant PRC income tax laws. Pursuant to the EIT Law, which became effective
on January 1, 2008 and was amended on February 24, 2017, a uniform 25% enterprise income tax rate is generally applicable to both
foreign-invested enterprises and domestic enterprises, except where a special preferential rate applies. The enterprise income
tax of a PRC resident enterprise is calculated based on the entity's global income as determined under PRC tax laws and
accounting standards. We are subject to VAT at a rate of 6% on the services we provide, less any deductible VAT we have already
paid or borne. We are also subject to surcharges on VAT payments in accordance with PRC law.
In
addition, the Circular 82 issued by the SAT in April 2009 specifies that certain offshore incorporated enterprises controlled
by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or resident
in the PRC: senior management personnel and departments that are responsible for daily production, operation and management; financial
and personnel decision making bodies; key properties, accounting books, company seals, minutes of board meetings and shareholders'
meetings; and half or more of the senior management or directors having voting rights. Further to Circular 82, the SAT issued
the Bulletin No. 45, which took effect in September 2011, to provide more guidance on the implementation of Circular 82. Bulletin
No. 45 provides for procedures and administration details of determination on resident status and administration on post-determination
matters. Borqs Technologies, Inc. is a company incorporated outside the PRC. As a holding company, its key assets are its ownership
interests in its subsidiaries, and its key assets are located, and its records (including the resolutions of its board of directors
and the resolutions of its shareholders) are maintained, outside the PRC. As such, we do not believe that Borqs Technologies,
Inc. meet all of the conditions above or are PRC resident enterprises for PRC tax purposes. For the same reasons, we believe our
other entities outside of China are not PRC resident enterprises either. However, the tax resident status of an enterprise is
subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de
facto management body." There can be no assurance that the PRC government will ultimately take a view that is consistent
with us. If the PRC tax authorities determine that our British Virgin Islands holding company is a PRC resident enterprise for
PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. One example is that a 10% withholding
tax would be imposed on dividends we pay to our non-PRC enterprise shareholders and with respect to gains derived by our non-PRC
enterprise shareholders from transferring our shares and potentially a 20% of withholding tax would be imposed on dividends we
pay to our non-PRC individual shareholders and with respect to gains derived by our non-PRC individual shareholders from transferring
our shares. See "Risk Factors—Risk Related to Doing Business in China—Under the PRC Enterprise Income Tax Law,
we may be classified as a PRC "resident enterprise" for PRC enterprise income tax purposes. Such classification would
likely result in unfavorable tax consequences to us and our non-PRC shareholders and has a material adverse effect on our results
of operations and the value of your investment."
As
a British Virgin Islands holding company, our Hong Kong subsidiary may receive dividends from our PRC subsidiaries. The EIT Law
and its implementing rules provide that dividends paid by a PRC entity to a non-resident enterprise for income tax purposes is
subject to PRC withholding tax at a rate of 10%, subject to reduction by an applicable tax treaty with China. Pursuant to the
Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Prevention
of Fiscal Evasion with respect to Taxes on Income or the Hong Kong Tax Treaty, which became effective on August 21, 2006, a company
incorporated in Hong Kong, such as Borqs Hong Kong, will be subject to withholding income tax at a rate of 5% on dividends it
receives from our PRC subsidiary if it holds a 25.0% or more interest in that particular PRC subsidiary at all times within the
12-month period immediately preceding the distribution of dividends and be a "beneficial owner" of the dividends.
In February 2018, the SAT issued the
Announcement on Issues Relating to Beneficial Owners under Tax Treaties
, or the SAT
Announcement 9, pursuant to which, applicants who intend to prove their status of the "beneficial owner" shall submit
the relevant documents to the relevant tax bureau according to the
Announcement on Issuing the Measures for the Administration
of Non-Resident Taxpayers' Enjoyment of the Treatment under Tax Agreements
and the SAT Announcement 9. "Beneficial
Owners" are residents who have ownership and the right to dispose of the income or the rights and properties giving rise
to the income. These rules also set forth certain adverse factors against the recognition of a "Beneficial Owner",
such as not carrying out substantive business activities. Whether a non-resident enterprise may obtain tax benefits under the
relevant tax treaty will be subject to approval of the relevant PRC tax authority and will be determined by the PRC tax authority
on a case-by-case basis. SAT Announcement 9 further provides that a comprehensive analysis should be made when determining the
beneficial owner status based on various factors that supported by various types of documents including the articles of association,
financial statements, records of cash movements, board meeting minutes, board resolutions, staffing and materials, relevant expenditures,
functions and risk assumption as well as relevant contracts and other information. In August 2015, the SAT promulgated the Administrative
Measures for Non-Resident Taxpayers to Enjoy Treatments under Tax Treaties, or SAT Circular 60, which became effective on November
1, 2015. SAT Circular 60 provides that non-resident enterprises are not required to obtain pre-approval from the relevant tax
authority in order to enjoy the reduced withholding tax rate. Instead, non-resident enterprises may, if they determine by self-assessment
that the prescribed criteria to enjoy the tax treaty benefits are met, directly apply for the reduced withholding tax rate, and
file necessary forms and supporting documents when performing tax filings, which will be subject to post-filing examinations by
the relevant tax authorities. As a result, although our PRC subsidiary, Borqs Beijing, is currently wholly owned by Borqs Hong
Kong, we cannot assure you that we would be entitled to the tax treaty benefits and enjoy the favorable 5.0% rate applicable under
the Hong Kong Tax Treaty on dividends. If Borqs Hong Kong cannot be recognized as the beneficial owner of the dividends to be
paid by our PRC subsidiaries to us, such dividends will be subject to a normal withholding tax of 10% as provided by the EIT Law.
169
On
February 3, 2015, the SAT issued a Public Notice Regarding Certain Enterprise Income Tax Matters on Indirect Transfer of Properties
by Non-Tax Resident Enterprises, or Public Notice 7, where a non-resident enterprise transfers taxable assets, through the offshore
transfer of a foreign intermediate holding company, the non-resident enterprise, being the transferor, maybe subject to PRC enterprise
income tax, if the indirect transfer is considered to be an arrangement which does not have a reasonable commercial purpose to
circumvent enterprise income tax payment obligations. In addition, Public Notice 7 further provides certain criteria on how to
assess reasonable commercial purposes and introduces safe harbor scenarios applicable to internal group restructurings. However,
it also brings challenges to both the foreign transferor and transferee of the indirect transfer as they have to make self-assessment
on whether the transaction should be subject to PRC tax and to file or withhold the PRC tax accordingly. Although it appears that
Public Notice 7 was not intended to apply to share transfers of publicly traded companies if the purchase of the shares and the
sale of the shares both take place in open-market transactions, there is uncertainty as to the application of Public Notice 7.
As a result, we and our non-resident investors may be at risk of being required to file a return and being taxed under Public
Notice 7, and we may be required to expend valuable resources to comply with Public Notice 7 or to establish that we should not
be taxed under Public Notice 7.
On
October 17, 2017, the SAT issued the Announcement on Issues Relating to Withholding at Source of Income Tax of Non-Resident Enterprises,
or Announcement 37, which repealed certain provisions of Public Notice 7. Pursuant to Announcement 37, the income from a property
transfer, as stipulated in the second item under Article 19 of the EIT Law, shall include the income derived from transferring
equity investment assets such as stock equity. The balance of deducting the equity's net value from the total income from
the equity transfer shall be taxable income from the equity transfer.
U.S.
Federal Income Taxation
General
The
following are the material U.S. federal income tax consequences of the acquisition, ownership and disposition of the ordinary
shares and warrants covered by this prospectus. As used in this discussion, references to "we," "us" or
"our" refer to Borqs Technologies, Inc.
The
discussion below of the U.S. federal income tax consequences to "U.S. Holders" will apply to a beneficial owner of
the ordinary shares and warrants that is for U.S. federal income tax purposes:
●
an
individual citizen or resident of the United States;
●
a
corporation (or other entity treated as a corporation) that is created or organized (or treated as created or organized) in or
under the laws of the United States, any state thereof or the District of Columbia;
●
an
estate whose income is includible in gross income for U.S. federal income tax purposes regardless of its source; or
●
a
trust if (i) a U.S. court can exercise primary supervision over the trust's administration and one or more U.S. persons
are authorized to control all substantial decisions of the trust, or (ii) it has a valid election in effect under applicable U.S.
Treasury regulations to be treated as a U.S. person.
A
beneficial owner of the ordinary shares and warrants that is described above is referred to herein as a "U.S. Holder."
If a beneficial owner of the ordinary shares and warrants is not described as a U.S. Holder and is not an entity treated as a
partnership or other pass-through entity for U.S. federal income tax purposes, such owner will be considered a "Non-U.S.
Holder." The material U.S. federal income tax consequences applicable specifically to Non-U.S. Holders are described below
under the heading "Non-U.S. Holders."
This
discussion is based on the Internal Revenue Code of 1986, as amended (the "Code"), its legislative history, Treasury
regulations promulgated thereunder, published rulings and court decisions, all as currently in effect. These authorities are subject
to change or differing interpretations, possibly on a retroactive basis.
This
discussion does not address all aspects of U.S. federal income taxation that may be relevant to any particular holder based on
such holder's individual circumstances. In particular, this discussion considers only holders that purchase ordinary shares
and warrants pursuant to this offering and own and hold the ordinary shares and warrants as capital assets within the meaning
of Section 1221 of the Code, and does not address the potential application of the alternative minimum tax or the U.S. federal
income tax consequences to holders that are subject to special rules, including:
●
financial
institutions or financial services entities;
●
broker-dealers;
170
●
persons
that are subject to the mark-to-market accounting rules under Section 475 of the Code;
●
tax-exempt
entities;
●
governments
or agencies or instrumentalities thereof;
●
insurance
companies;
●
regulated
investment companies;
●
real
estate investment trusts;
●
certain
expatriates or former long term residents of the United States;
●
persons
that actually or constructively own 5% or more of our voting shares (including as a result of ownership of the ordinary shares);
●
persons
that acquired the ordinary shares and warrants pursuant to an exercise of employee options, in connection with employee incentive
plans or otherwise as compensation;
●
persons
    that hold the ordinary shares and warrants as part of a straddle, constructive sale, hedging, conversion or other integrated
    transaction;
●
persons
    whose functional currency is not the U.S. dollar;
●
passive
foreign investment companies; or
●
controlled
foreign corporations.
This
discussion does not address any aspect of U.S. federal non-income tax laws, such as gift or estate tax laws, or state, local or
non-U.S. tax laws or, except as discussed herein, any tax reporting obligations applicable to a holder of the ordinary shares
and warrants. Additionally, this discussion does not consider the tax treatment of partnerships or other pass-through entities
or persons who hold the ordinary shares and warrants through such entities. If a partnership (or other entity classified as a
partnership for U.S. federal income tax purposes) is the beneficial owner of the ordinary shares and warrants, the U.S. federal
income tax treatment of a partner in the partnership generally will depend on the status of the partner and the activities of
the partnership. This discussion also assumes that any distribution made (or deemed made) to a holder in respect of the ordinary
shares and warrants and any consideration received (or deemed received) by a holder in connection with the sale or other disposition
of the ordinary shares and warrants will be in U.S. dollars.
We
have not sought, and will not seek, a ruling from the Internal Revenue Service, (the "IRS"), or an opinion of counsel
as to any U.S. federal income tax consequence described herein. The IRS may disagree with the description herein, and its determination
may be upheld by a court. Moreover, there can be no assurance that future legislation, regulations, administrative rulings or
court decisions will not adversely affect the accuracy of the statements in this discussion.
EACH
PROSPECTIVE INVESTOR IN OUR ORDINARY SHARES AND WARRANTS IS URGED TO CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE PARTICULAR
TAX CONSEQUENCES TO SUCH INVESTOR OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR ORDINARY SHARES AND WARRANTS, INCLUDING
THE APPLICABILITY AND EFFECT OF ANY STATE, LOCAL, AND NON-U.S. TAX LAWS, AS WELL AS U.S. FEDERAL TAX LAWS AND ANY APPLICABLE TAX
TREATIES.
171
Allocation
of Purchase Price between Ordinary Shares and Warrants
For
U.S. federal income tax purposes, each investor must allocate the purchase price paid by such investor pursuant to this offering
between the ordinary shares and the warrants acquired by such investor based on the relative fair market values of each at the
time of issuance. For this purpose, the Company has made no determination of the relative fair market values to be assigned to
the ordinary shares and the warrants, and thus each investor must make his or her own determination of such relative fair market
values. Because there are no authorities that directly address the allocation of purchase price upon the issuance of ordinary
shares together with warrants, no assurance can be given that the IRS or the courts will not challenge a holder's allocation
of purchase price as described herein. Accordingly, each investor is urged to consult its own tax advisors regarding the tax consequences
of an investment pursuant to this Offering.
U.S.
Holders
Taxation
of Cash Distributions Paid on Ordinary Shares
Subject
to the passive foreign investment company ("PFIC") rules discussed below, a U.S. Holder generally will be required
to include in gross income as ordinary income the amount of any cash dividend paid on the ordinary shares. A cash distribution
on the ordinary shares generally will be treated as a dividend for U.S. federal income tax purposes to the extent the distribution
is paid out of our current or accumulated earnings and profits (as determined for U.S. federal income tax purposes). Such dividend
generally will not be eligible for the dividends-received deduction generally allowed to U.S. corporations in respect of dividends
received from other U.S. corporations. The portion of such cash distribution, if any, in excess of such earnings and profits will
be applied against and reduce (but not below zero) the U.S. Holder's adjusted tax basis in the ordinary shares. Any remaining
excess generally will be treated as gain from the sale or other taxable disposition of such ordinary shares.
With
respect to non-corporate U.S. Holders, any such cash dividends may be subject to U.S. federal income tax at the lower applicable
regular long term capital gains tax rate (see "—Taxation on the Disposition of Ordinary Shares and Warrants"
below) provided that (a) the ordinary shares are readily tradable on an established securities market in the United States or,
in the event we are deemed to be a PRC "resident enterprise" under the EIT Law, we are eligible for the benefits of
the Agreement between the Government of the United States of America and the Government of the People's Republic of China
for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income (the "U.S.-PRC Tax
Treaty"), (b) we are not a PFIC, as discussed below, for either the taxable year in which the dividend was paid or the preceding
taxable year, and (c) certain holding period requirements are met. Therefore, if the ordinary shares are not readily tradable
on an established securities market in the United States, and we are not eligible for the benefits of the U.S. – PRC Tax
Treaty, then cash dividends paid by us to non-corporate U.S. Holders will not be subject to U.S. federal income tax at the lower
regular long term capital gains tax rate. Under published IRS authority, ordinary shares are considered for purposes of clause
(a) above to be readily tradable on an established securities market in the United States only if they are listed on certain exchanges,
which presently include Nasdaq. There can be no assurance that the ordinary shares will continue to be listed and traded on Nasdaq
in future periods subsequent to this offering. U.S. Holders should consult their own tax advisors regarding the availability of
the lower rate for any cash dividends paid with respect to the ordinary shares.
If
a PRC income tax applies to any cash dividends paid to a U.S. Holder on the ordinary shares, such tax may be treated as a foreign
tax eligible for a deduction from such holder's U.S. federal taxable income or a foreign tax credit against such holder's
U.S. federal income tax liability (subject to applicable conditions and limitations). In addition, if such PRC tax applies to
any such dividends, such U.S. Holder may be entitled to certain benefits under the U.S.-PRC Tax Treaty, if such holder is considered
a resident of the United States for purposes of, and otherwise meets the requirements of, the U.S.-PRC Tax Treaty. U.S. Holders
should consult their own tax advisors regarding the deduction or credit for any such PRC tax and their eligibility for the benefits
of the U.S.-PRC Tax Treaty.
172
Taxation
on the Disposition of Ordinary Shares and Warrants
Upon
a sale or other taxable disposition of the ordinary shares or warrants, and subject to the PFIC rules discussed below, a U.S.
Holder generally will recognize capital gain or loss in an amount equal to the difference between the amount realized and the
U.S. Holder's adjusted tax basis in such ordinary shares or warrants. U.S. Holder's adjusted tax basis in its ordinary
shares or warrants generally will equal the U.S. Holder's acquisition cost (that is, the portion of the purchase price allocated
to an ordinary share or warrant, as described above under "— Allocation of Purchase Price between Ordinary Shares
and Warrants") reduced by any prior distributions treated as a return of capital. See "— Acquisition of Ordinary
Shares Pursuant to a Warrant" below for a discussion regarding a U.S. Holder's basis in an ordinary share acquired
pursuant to a warrant.
The
regular U.S. federal income tax rate on capital gains recognized by U.S. Holders generally is the same as the regular U.S. federal
income tax rate on ordinary income, except that long term capital gains recognized by non-corporate U.S. Holders generally are
subject to U.S. federal income tax at a maximum regular rate of 20%. Capital gain or loss will constitute long term capital gain
or loss if the U.S. Holder's holding period for the ordinary shares or warrants exceeds one year. The deductibility of capital
losses is subject to various limitations.
If
a PRC income tax applies to any gain from the disposition of the ordinary shares or warrants by a U.S. Holder, such tax may be
treated as a foreign tax eligible for a deduction from such holder's U.S. federal taxable income or a foreign tax credit
against such holder's U.S. federal income tax liability (subject to applicable conditions and limitations). In addition,
if such PRC tax applies to any such gain, such U.S. Holder may be entitled to certain benefits under the U.S.-PRC Tax Treaty,
if such holder is considered a resident of the United States for purposes of, and otherwise meets the requirements of, the U.S.-PRC
Tax Treaty. U.S. Holders should consult their own tax advisors regarding the deduction or credit for any such PRC tax and their
eligibility for the benefits of the U.S.-PRC Tax Treaty.
Additional
Taxes
U.S.
Holders that are individuals, estates or trusts and whose income exceeds certain thresholds generally will be subject to a 3.8%
Medicare contribution tax on unearned income, including, without limitation, dividends on, and gains from the sale or other taxable
disposition of, the ordinary shares or warrants, subject to certain limitations and exceptions. Under applicable regulations,
in the absence of a special election, such unearned income generally would not include income inclusions under the qualified electing
fund ("QEF"), rules discussed below under "Passive Foreign Investment Company Rules," but would include
distributions of earnings and profits from a QEF. U.S. Holders should consult their own tax advisors regarding the effect, if
any, of such tax on their ownership and disposition of the ordinary shares and warrants.
Acquisition
of Ordinary Shares Pursuant to a Warrant
Subject
to the PFIC rules discussed below, a U.S. Holder generally will not recognize gain or loss upon the exercise of a warrant for
cash. An ordinary share acquired pursuant to the exercise of a warrant for cash generally will have a tax basis equal to the U.S.
Holder's tax basis in the warrant, increased by the amount paid to exercise the warrant. It is unclear whether a U.S. Holder's
holding period for the ordinary share will commence on the date of exercise of the warrant or the day following the date of exercise
of the warrant; in either case, the holding period will not include the period during which the U.S. Holder held the warrant.
If a warrant is allowed to lapse unexercised, a U.S. Holder generally will recognize a capital loss equal to such holder's
tax basis in the warrant.
The
tax consequences of a cashless exercise of a warrant are not clear under current tax law. A cashless exercise may be tax-free,
either because the exercise is not a realization event or because the exercise is treated as a recapitalization for U.S. federal
income tax purposes. In either tax-free situation, a U.S. Holder's tax basis in the ordinary shares received generally would
equal the U.S. Holder's tax basis in the warrants. If the cashless exercise was not a realization event, it is unclear whether
a U.S. Holder's holding period for the ordinary shares would be treated as commencing on the date of exercise of the warrant
or the day following the date of exercise of the warrant. If the cashless exercise were treated as a recapitalization, the holding
period of the ordinary shares would include the holding period of the warrants.
173
It
is also possible that a cashless exercise could be treated as a taxable exchange in which gain or loss would be recognized. In
such event, a U.S. Holder could be deemed to have surrendered warrants with an aggregate fair market equal to the exercise price
for the total number of warrants to be exercised. The U.S. Holder would recognize capital gain or loss in an amount equal to the
difference between the fair market value of the warrants deemed surrendered and the U.S. Holder's tax basis in such warrants.
In this case, a U.S. Holder's tax basis in the ordinary shares received would equal the sum of the U.S. Holder's initial
investment in the warrants exercised (i.e., the portion of the U.S. Holder's purchase price allocated to the warrant, as
described above under "— Allocation of Purchase Price between Ordinary Shares and Warrants") and the exercise
price of such warrants. It is unclear whether a U.S. Holder's holding period for the ordinary shares would commence on the
date of exercise of the warrant or the day following the date of exercise of the warrant.
Due
to the absence of authority on the U.S. federal income tax treatment of a cashless exercise, there can be no assurance which,
if any, of the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law.
Accordingly, U.S. Holders should consult their tax advisors regarding the tax consequences of a cashless exercise.
Passive
Foreign Investment Company Rules
A
foreign (i.e., non-U.S.) corporation will be a PFIC if either (a) at least 75% of its gross income in a taxable year of the foreign
corporation, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25%
of the shares by value, is passive income, or (b) at least 50% of its assets in a taxable year of the foreign corporation, ordinarily
determined based on fair market value and averaged quarterly over the year, including its pro rata share of the assets of any
corporation in which it is considered to own at least 25% of the shares by value, are held for the production of, or produce,
passive income. Passive income generally includes dividends, interest, rents and royalties (other than certain rents or royalties
derived from the active conduct of a trade or business), and gains from the disposition of passive assets.
If
we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder
of the ordinary shares or warrants, and, in the case of our ordinary shares, the U.S. Holder did not make a timely QEF election
for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) the ordinary shares, a QEF election
along with a purging election, or a mark-to-market election, each as described below, such holder generally will be subject to
special rules for regular U.S. federal income tax purposes with respect to:
●
any
gain recognized by the U.S. Holder on the sale or other disposition of its ordinary shares or warrants; and
●
any
"excess distribution" made to the U.S. Holder (generally, any distributions to such U.S. Holder during a taxable year
of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder in respect of the
ordinary shares or warrants during the three preceding taxable years of such U.S. Holder or, if shorter, such U.S. Holder's
holding period for the ordinary shares or warrants).
Under
these rules,
●
the
U.S. Holder's gain or excess distribution will be allocated ratably over the U.S. Holder's holding period for the
ordinary shares and warrants;
●
the
amount allocated to the U.S. Holder's taxable year in which the U.S. Holder recognized the gain or received the excess distribution
or to the period in the U.S. Holder's holding period before the first day of our first taxable year in which we qualified
as a PFIC will be taxed as ordinary income;
●
the
amount allocated to other taxable years (or portions thereof) of the U.S. Holder and included in its holding period will be taxed
at the highest tax rate in effect for that year and applicable to the U.S. Holder; and
●
the
interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such other
taxable year of the U.S. Holder.
174
We
have not made a determination as to whether we would be classified as a "passive foreign investment company," or PFIC,
for our preceding taxable year nor can we assure you that we will not be a PFIC for our current taxable year or any future taxable
year. Depending on the amount of cash or cash equivalents we currently hold and the amount of cash we raise in this offering,
which are generally treated as passive assets, and because the calculation of the value of our assets may be based in part on
the value of our ordinary shares, which is likely to fluctuate, we may be a PFIC for any taxable year.
In
general, if we are determined to be a PFIC, a U.S. Holder may avoid the PFIC tax consequences described above with respect to
the ordinary shares (but likely not our warrants) by making a timely QEF election (or a QEF election along with a purging election).
Pursuant to the QEF election, a U.S. Holder will be required to include in income its pro rata share of our net capital gains
(as long term capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not
distributed, in the taxable year of the U.S. Holder in which or with which our taxable year ends if we are treated as a PFIC for
that taxable year. A U.S. Holder may make a separate election to defer the payment of taxes on undistributed income inclusions
under the QEF rules, but if deferred, any such taxes will be subject to an interest charge.
A
U.S. Holder may not make a QEF election with respect to its warrants to acquire our ordinary shares. As a result, if a U.S. Holder
sells or otherwise disposes of such warrants (other than upon exercise of such warrants), any gain recognized generally will be
subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above, if we were
a PFIC at any time during the period the U.S. Holder held the warrants. If a U.S. Holder that exercises such warrants properly
makes a QEF election with respect to the newly acquired ordinary shares (or has previously made a QEF election with respect to
our ordinary shares), the QEF election will apply to the newly acquired ordinary shares, but the adverse tax consequences relating
to PFIC shares, adjusted to take into account the current income inclusions resulting from the QEF election, will continue to
apply with respect to such newly acquired ordinary shares (which generally will be deemed to have a holding period for purposes
of the PFIC rules that includes the period the U.S. Holder held the warrants), unless the U.S. Holder makes a purging election.
The purging election creates a deemed sale of such shares at their fair market value. The gain recognized by the purging election
will be subject to the special tax and interest charge rules treating the gain as an excess distribution, as described above.
As a result of the purging election, the U.S. Holder will have a new basis and holding period in the ordinary shares acquired
upon the exercise of the warrants for purposes of the PFIC rules.
The
QEF election is made on a shareholder-by-shareholder basis and, once made, can be revoked only with the consent of the IRS. A
QEF election may not be made with respect to our warrants. A U.S. Holder generally makes a QEF election by attaching a completed
IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), including
the information provided in a PFIC annual information statement, to a timely filed U.S. federal income tax return for the taxable
year to which the election relates. Retroactive QEF elections generally may be made only by filing a protective statement with
such return and if certain other conditions are met or with the consent of the IRS.
In
order to comply with the requirements of a QEF election, a U.S. Holder must receive certain information from us. Upon request
from a U.S. Holder, we will endeavor to provide to the U.S. Holder no later than 90 days after the request such information as
the IRS may require, including a PFIC annual information statement, in order to enable the U.S. Holder to make and maintain a
QEF election. However, there is no assurance that we will have timely knowledge of our status as a PFIC in the future or of the
required information to be provided.
If
a U.S. Holder has made a QEF election with respect to the ordinary shares, and the special tax and interest charge rules do not
apply to such ordinary shares (because of a timely QEF election for our first taxable year as a PFIC in which the U.S. Holder
holds (or is deemed to hold) such ordinary shares or a QEF election, along with a purge of the PFIC taint pursuant to a purging
election, as described below), any gain recognized on the sale or other taxable disposition of such ordinary shares generally
will be taxable as capital gain and no interest charge will be imposed. As discussed above, for regular U.S. federal income tax
purposes, U.S. Holders of a QEF generally are currently taxed on their pro rata shares of the QEF's earnings and profits,
whether or not distributed. In such case, a subsequent distribution of such earnings and profits that were previously included
in income generally should not be taxable as a dividend to such U.S. Holders. The adjusted tax basis of a U.S. Holder's
ordinary shares in a QEF will be increased by amounts that are included in income, and decreased by amounts distributed but not
taxed as dividends, under the above rules. Similar basis adjustments apply to property if by reason of holding such property the
U.S. Holder is treated under the applicable attribution rules as owning ordinary shares in a QEF.
175
Although
a determination as to our PFIC status will be made annually, an initial determination that we are a PFIC generally will apply
for subsequent years to a U.S. Holder who held the ordinary shares or warrants while we were a PFIC, whether or not we meet the
test for PFIC status in those subsequent years. A U.S. Holder who makes the QEF election discussed above for our first taxable
year as a PFIC in which the U.S. Holder holds (or is deemed to hold) the ordinary shares, however, will not be subject to the
PFIC tax and interest charge rules discussed above with respect to such ordinary shares. In addition, such U.S. Holder will not
be subject to the QEF inclusion regime with respect to such ordinary shares for any of our taxable years that end within or with
a taxable year of the U.S. Holder and in which we are not a PFIC. On the other hand, if the QEF election is not effective for
each of our taxable years in which we are a PFIC and during which the U.S. Holder holds (or is deemed to hold) the ordinary shares,
the PFIC rules discussed above will continue to apply to such ordinary shares unless the holder files on a timely filed U.S. federal
income tax return (including extensions) a QEF election and a "purging election" to recognize under the rules of Section
1291 of the Code any gain that it would otherwise recognize if the U.S. Holder sold the ordinary shares for their fair market
value on the "qualification" date. The qualification date is the first day of our tax year in which we qualify as
a QEF with respect to such U.S. Holder. The purging election can only be made if such U.S. Holder held the ordinary shares on
the qualification date. A purging election generally creates a deemed sale of such ordinary shares at their fair market value.
The gain recognized by the purging election generally will be subject to the special tax and interest charge rules treating the
gain as an excess distribution, as described above. As a result of the purging election, the U.S. Holder generally will increase
the adjusted tax basis in its ordinary shares by the amount of gain recognized and will also have a new holding period in its
ordinary shares for purposes of the PFIC rules.
Alternatively,
if a U.S. Holder, at the close of its taxable year, owns ordinary shares in a PFIC that are treated as marketable stock, the U.S.
Holder may make a mark-to-market election with respect to such ordinary shares for such taxable year. If the U.S. Holder makes
a valid mark-to-market election for the first taxable year of the U.S. Holder in which the U.S. Holder holds (or is deemed to
hold) the ordinary shares and for which we are determined to be a PFIC, such holder generally will not be subject to the PFIC
rules described above with respect to its ordinary shares as long as such ordinary shares continue to be treated as marketable
stock. Instead, in general, the U.S. Holder will include as ordinary income each year that we are treated as a PFIC the excess,
if any, of the fair market value of its ordinary shares at the end of its taxable year over the adjusted tax basis in its ordinary
shares. The U.S. Holder also will be allowed to take an ordinary loss in respect of the excess, if any, of the adjusted tax basis
of its ordinary shares over the fair market value of its ordinary shares at the end of its taxable year (but only to the extent
of the net amount of previously included income as a result of the mark-to-market election). The U.S. Holder's adjusted
tax basis in its ordinary shares will be adjusted to reflect any such income or loss amounts, and any further gain recognized
on a sale or other taxable disposition of the ordinary shares in a taxable year in which we are treated as a PFIC will be treated
as ordinary income. Special tax rules may also apply if a U.S. Holder makes a mark-to-market election for a taxable year after
the first taxable year in which the U.S. Holder holds (or is deemed to hold) the ordinary shares and for which we are treated
as a PFIC. Currently, a mark-to-market election likely may not be made with respect to our warrants.
The
mark-to-market election is available only for stock that is regularly traded on a national securities exchange that is registered
with the Securities and Exchange Commission, including Nasdaq, or on a foreign exchange or market that the IRS determines has
rules sufficient to ensure that the market price represents a legitimate and sound fair market value. There can be no assurance
that the ordinary shares will continue to be listed and traded on Nasdaq in future periods subsequent to this offering. U.S. Holders
should consult their own tax advisors regarding the availability and tax consequences of a mark-to-market election with respect
to the ordinary shares under their particular circumstances.
If
we are a PFIC and, at any time, have a foreign subsidiary that is classified as a PFIC, a U.S. Holder of the ordinary shares generally
should be deemed to own a portion of the shares of such lower-tier PFIC, and generally could incur liability for the deferred
tax and interest charge described above if we receive a distribution from, or dispose of all or part of our interest in, or the
U.S. Holder were otherwise deemed to have disposed of an interest in, the lower-tier PFIC. Upon request, we will endeavor to cause
any lower-tier PFIC to provide to a U.S. Holder no later than 90 days after the request the information that may be required to
make or maintain a QEF election with respect to the lower-tier PFIC. However, there is no assurance that we will have timely knowledge
of the status of any such lower-tier PFIC or that we will be able to cause the lower-tier PFIC to provide the required information.
A mark-to-market election generally would not be available with respect to such a lower-tier PFIC. U.S. Holders are urged to consult
their own tax advisors regarding the tax issues raised by lower-tier PFICs.
176
A
U.S. Holder that owns (or is deemed to own) ordinary shares in a PFIC during any taxable year of the U.S. Holder may have to file
an IRS Form 8621 (whether or not a QEF election or mark-to-market election is or has been made) with such U.S. Holder's
U.S. federal income tax return and provide such other information as may be required by the U.S. Treasury Department.
The
rules dealing with PFICs and with the QEF and mark-to-market elections are very complex and are affected by various factors in
addition to those described above. Accordingly, U.S. Holders of the ordinary shares and warrants should consult their own tax
advisors concerning the application of the PFIC rules to the ordinary shares and warrants under their particular circumstances.
Non-U.S.
Holders
Cash
dividends paid or deemed paid to a Non-U.S. Holder with respect to the ordinary shares generally will not be subject to U.S. federal
income tax unless such dividends are effectively connected with the Non-U.S. Holder's conduct of a trade or business within
the United States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed
base that such holder maintains or maintained in the United States).
In
addition, a Non-U.S. Holder generally will not be subject to U.S. federal income tax on any gain attributable to a sale or other
taxable disposition of the ordinary shares and warrants unless such gain is effectively connected with its conduct of a trade
or business in the United States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment
or fixed base that such holder maintains or maintained in the United States) or the Non-U.S. Holder is an individual who is present
in the United States for 183 days or more in the taxable year of such sale or other disposition and certain other conditions are
met (in which case, such gain from U.S. sources generally is subject to U.S. federal income tax at a 30% rate or a lower applicable
tax treaty rate).
Cash
dividends and gains that are effectively connected with the Non-U.S. Holder's conduct of a trade or business in the United
States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base that
such holder maintains or maintained in the United States) generally will be subject to regular U.S. federal income tax at the
same regular U.S. federal income tax rates as applicable to a comparable U.S. Holder and, in the case of a Non-U.S. Holder that
is a corporation for U.S. federal income tax purposes, may also be subject to an additional branch profits tax at a 30% rate or
a lower applicable tax treaty rate.
The
U.S. federal income tax treatment of a Non-U.S. Holder's receipt of an ordinary share upon the exercise or lapse of a warrant
held by a Non-U.S. Holder, generally will correspond to the U.S. federal income tax treatment of the receipt of a share or exercise
of a warrant by a U.S. Holder, as described under "U.S. Holders — Acquisition of Ordinary Shares Pursuant to a Warrant,"
above, although to the extent a cashless exercise results in a taxable exchange, the consequences would be similar to those described
in the preceding paragraphs above for a Non-U.S. Holder's gain on the sale or other disposition of our ordinary shares and
warrants.
Backup
Withholding and Information Reporting
In
general, information reporting for U.S. federal income tax purposes should apply to cash distributions made on the ordinary shares
within the United States to a U.S. Holder (other than an exempt recipient) and to the proceeds from sales and other dispositions
of the ordinary shares by a U.S. Holder (other than an exempt recipient) to or through a U.S. office of a broker. Payments made
(and sales and other dispositions effected at an office) outside the United States will be subject to information reporting in
limited circumstances. In addition, certain information concerning a U.S. Holder's adjusted tax basis in its ordinary shares
and adjustments to that tax basis and whether any gain or loss with respect to such ordinary shares is long-term or short-term
also may be required to be reported to the IRS, and certain holders may be required to file an IRS Form 8938 (Statement of Specified
Foreign Financial Assets) to report their interest in the ordinary shares.
177
Moreover,
backup withholding of U.S. federal income tax, at a current rate of 24%, generally will apply to cash dividends paid on the ordinary
shares to a U.S. Holder (other than an exempt recipient) and the proceeds from sales and other dispositions of the ordinary shares
by a U.S. Holder (other than an exempt recipient), in each case who:
●
fails
to provide an accurate taxpayer identification number;
●
is
notified by the IRS that backup withholding is required; or
●
in
certain circumstances, fails to comply with applicable certification requirements.
A
Non-U.S. Holder generally may eliminate the requirement for information reporting and backup withholding by providing certification
of its foreign status, under penalties of perjury, on a duly executed applicable IRS Form W-8 or by otherwise establishing an
exemption.
Backup
withholding is not an additional tax. Rather, the amount of any backup withholding will be allowed as a credit against a U.S.
Holder's or a Non-U.S. Holder's U.S. federal income tax liability and may entitle such holder to a refund, provided
that certain required information is timely furnished to the IRS. Holders are urged to consult their own tax advisors regarding
the application of backup withholding and the availability of and procedures for obtaining an exemption from backup withholding
in their particular circumstances.
THE
PRECEDING DISCUSSION OF U.S. FEDERAL TAX CONSIDERATIONS IS FOR GENERAL INFORMATION PURPOSES ONLY. IT IS NOT TAX ADVICE. EACH PROSPECTIVE
INVESTOR SHOULD CONSULT ITS OWN TAX ADVISOR REGARDING THE PARTICULAR U.S. FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES OF
PURCHASING, HOLDING AND DISPOSING OF OUR ORDINARY SHARES, INCLUDING THE CONSEQUENCES OF ANY PROPOSED CHANGE IN APPLICABLE LAWS.
LEGAL
MATTERS
The validity of the
securities of the Company being offered by this prospectus and certain other legal matters related to this prospectus with respect
to the United States federal securities law and Delaware law are passed upon for us by Hunter Taubman Fischer & Li LLC. Certain
legal matters with respect to the United States federal securities and Delaware law in connection with this Offering will be passed
upon for the underwriters by [●].
EXPERTS
The
audited consolidated financial statements of Bison Capital Acquisition Corp. as of December 31, 2018 and 2017, included in
this prospectus have been so included in reliance on a report of Marcum LLP, an independent registered public accounting firm,
appearing elsewhere herein given on the authority of said firm, as experts in auditing and accounting.
The
consolidated financial statements of Xynomic Pharmaceuticals, Inc. ("Xynomic") as of December 31, 2017 and 2018, and
for the years then ended, have been included herein in reliance upon the report of KPMG Huazhen LLP, independent registered public
accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.
The
audit report covering Xynomic's December 31, 2018 consolidated financial statements contains an explanatory paragraph that
states, Xynomic has suffered recurring losses from operations, has net current liabilities and accumulated deficit, and has limited
resources available to fund current research and development activities, and will require substantial additional financing to
continue to fund Xynomic's research and development activities that raise substantial doubt about Xynomic's ability
to continue as a going concern. Xynomic's consolidated financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
178
WHERE
YOU CAN FIND MORE INFORMATION
We
are a reporting company and file annual, quarterly and special reports, and other information with the SEC. Copies of the reports
and other information may be read and copied at the SEC's Public Reference Room at 100 F Street N.E., Washington, D.C. 20549.
You can request copies of such documents by writing to the SEC and paying a fee for the copying cost. You may obtain information
on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains a web site at
http://www.sec.gov
that contains reports, proxy and information statements and other information regarding registrants that file electronically
with the SEC.
This
prospectus is part of a registration statement on Form S-1 that we filed with the SEC. Certain information in the registration
statement has been omitted from this prospectus in accordance with the rules and regulations of the SEC. We have also filed exhibits
and schedules with the registration statement that are excluded from this prospectus. For further information you may:
●
read
a copy of the registration statement, including the exhibits and schedules, without charge at the SEC's Public Reference
Room; or
●
obtain
a copy from the SEC upon payment of the fees prescribed by the SEC.
We
file periodic reports, proxy statements, and other information with the SEC. These periodic reports, proxy statements, and other
information will be available for inspection and copying at the SEC's public reference facilities and the website of the
SEC referred to above. After the closing of this offering, you may access our annual reports on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d)
of the Exchange Act with the SEC free of charge as soon as reasonably practicable after such material is electronically filed
with, or furnished to, the SEC. The information contained in, or that can be accessed through, our website is not incorporated
by reference into this prospectus.
179
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
INDEX TO FINANCIAL
INFORMATION
BISON CAPITAL ACQUISITION CORP
.
CONTENTS
PAGE(S)
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
F-1
FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 AND 2017 AND FOR THE YEAR ENDED DECEMBER 31, 2018 AND 2017
F-2 - F-15
UNAUDITED
FINANCIAL STATEMENTS AS OF
MARCH 31, 2019 AND
DECEMBER 31
, 2018
AND FOR THE
THREE MONTHS
ENDED
MARCH 31, 2019 AND 2018
F-16 - F-24
XYNOMIC PHARMACEUTICALS,
INC.
CONTENTS
PAGE(S)
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
F-25
FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 AND 2017 AND FOR THE YEAR ENDED DECEMBER 31, 2018 AND 2017
F-26 - F-47
UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2019 AND DECEMBER 31, 2018 AND FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018
F-48 - F-61
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors
of
Bison Capital Acquisition Corp.
Opinion on the Financial Statements
We have audited the
accompanying balance sheets of Bison Capital Acquisition Corp. (the "Company") as of December 31, 2018 and 2017,
the related statements of operations, shareholders' equity and cash flows for each of the two years in the period ended December 31,
2018, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017,
and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2018, in conformity
with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements
are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial
statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United
States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits
in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of
our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing
an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such
opinion.
Our audits included
performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.
/s/ Marcum LLP
Marcum LLP
We have served as the Company's auditor
since 2016.
New York, NY
March 5, 2019
Marcum LLP
☐ 750
Third Avenue ☐ 11
th
Floor ☐ New York, New York 10017 ☐
Phone
212.485.5500
☐
Fax
212.485.5501 ☐
marcumllp.com
F-
1
BISON CAPITAL ACQUISITION CORP. AND
SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31,
2018
2017
ASSETS
Current Assets
Cash
$
122,615
$
210,088
Prepaid expenses and other current assets
27,299
89,530
Total Current Assets
149,914
299,618
Marketable securities held in Trust Account
63,310,884
62,208,330
TOTAL ASSETS
$
63,460,798
$
62,507,948
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses
$
164,893
$
78,669
Advances from related party
1,804
1,804
Convertible promissory note – related party
400,000
—
Promissory note - related party
200,000
—
Total Current Liabilities
766,697
80,473
Commitments
Ordinary shares subject to possible redemption, 5,501,868 and 5,573,504 shares at redemption value as of December 31, 2018 and 2017, respectively
57,694,100
57,427,474
Shareholders' Equity
Preferred shares, no par value; unlimited shares authorized, none issued and outstanding
—
—
Ordinary shares, no par value; unlimited shares authorized; 2,477,069 and 2,405,433 shares issued and outstanding (excluding 5,501,868 and 5,573,504 shares subject to possible redemption) as of December 31, 2018 and 2017, respectively
4,776,436
5,043,062
Retained earnings/(Accumulated deficit)
223,565
(43,061
)
Total Shareholders' Equity
5,000,001
5,000,001
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
63,460,798
$
62,507,948
The accompanying notes are an integral part
of the financial statements.
F-
2
BISON CAPITAL ACQUISITION CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year
Ended
December 31,
2018
2017
Operating costs
$
835,928
$
365,215
Loss from operations
(835,928
)
(365,215
)
Other income:
Interest income
1,121,740
341,224
Unrealized loss on securities held in Trust Account
(19,186
)
(17,269
)
Net income/(loss)
$
266,626
$
(41,260
)
Weighted average shares outstanding, basic and diluted
(1)
2,426,155
1,870,947
Basic and diluted net loss per ordinary share
(2)
$
(0.30
)
$
(0.18
)
(1)
Excludes an aggregate of up to 5,501,868 and 5,573,504 ordinary shares subject to possible redemption at December 31, 2018 and 2017.
(2)
Net loss per ordinary share - basic and diluted excludes income attributable to shares subject to possible redemption of $1,004,757 and $299,043 for the year ended December 31, 2018 and 2017, respectively (see Note 2).
The accompanying notes are an integral part
of the financial statements.
F-
3
BISON CAPITAL ACQUISITION CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 2018 AND 2017
Ordinary Shares
Retained
Earnings/
(Accumulated)
Total
Shareholders'
Shares
Amount
Deficit
Equity
Balance – January 1, 2017
1,509,375
$
25,000
$
(1,801
)
$
23,199
Sale of 6,037,500 Units, net of underwriters discount and offering costs
6,037,500
58,124,811
—
58,124,811
Sale of 432,062 Private Units
432,062
4,320,625
—
4,320,625
Unit purchase option issued to underwriter
—
100
—
100
Ordinary shares subject to redemption
(5,573,504
)
(57,427,474
)
—
(57,427,474
)
Net loss
—
—
(41,260
)
(41,260
)
Balance – December 31, 2017
2,405,433
5,043,062
(43,061
)
5,000,001
Ordinary shares subject to redemption
71,636
(266,626
)
—
(266,626
)
Net income
—
—
266,626
266,626
Balance – December 31, 2018
2,477,069
$
4,776,436
$
223,565
$
5,000,001
The accompanying notes are an integral
part of the financial statements.
F-
4
BISON CAPITAL ACQUISITION CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended
December 31,
2018
2017
Cash Flows from Operating Activities:
Net income (loss)
$
266,626
$
(41,260
)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Interest earned on marketable securities held in Trust Account
(1,121,740
)
(341,224
)
Unrealized loss on marketable securities held in Trust Account
19,186
17,269
Changes in operating assets and liabilities:
Prepaid expenses
62,231
(89,530
)
Accounts payable and accrued expenses
86,224
78,669
Net cash used in operating activities
(687,473
)
(376,076
)
Cash Flows from Investing Activities:
Investment of cash and securities held in Trust Account
—
(61,884,375
)
Net cash used in investing activities
—
(61,884,375
)
Cash Flows from Financing Activities:
Proceeds from issuance of ordinary shares
—
25,000
Proceeds from sale of Units, net of underwriting discounts paid
—
58,563,750
Proceeds from sale of Private Units
—
4,320,625
Proceeds from sale of unit purchase option
—
100
Advances from related parties
—
71,804
Repayment of advances from related parties
—
(157,500
)
Proceeds from convertible promissory note – related party
400,000
—
Proceeds from promissory note – related party
200,000
—
Repayment of promissory note – related party
—
(300,000
)
Payment of offering costs
—
(351,439
)
Net cash provided by financing activities
600,000
62,172,340
Net Change in Cash and Cash Equivalents
(87,473
)
(88,111
)
Cash and Cash Equivalents - Beginning
210,088
298,199
Cash and Cash Equivalents - Ending
$
122,615
$
210,088
Non-cash investing and financing activities:
Offering costs charged to additional paid in capital
$
—
$
402,525
Initial classification of ordinary shares subject to possible redemption
$
—
$
57,468,142
Change in value of ordinary shares subject to possible redemption
$
266,626
$
(40,668
)
The accompanying notes are an integral part
of these financial statements.
F-
5
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
NOTE 1. DESCRIPTION OF ORGANIZATION
AND BUSINESS OPERATIONS
Bison Capital Acquisition Corp. (the "Company")
is a blank check company incorporated in the British Virgin Islands on October 7, 2016. The Company was formed for the purpose
of acquiring, engaging in a share exchange, share reconstruction and amalgamation, purchasing all or substantially all of the assets
of, entering into contractual arrangements, or engaging in any other similar business combination with one or more businesses or
entities (a "Business Combination"). Although the Company is not limited to a particular industry or geographic region
for purposes of consummating an initial business combination, the Company focuses on businesses that have their primary operations
located in Asia and North America in media/entertainment, consumer services and healthcare industries.
The Company has one subsidiary, Bison Capital
Merger Sub Inc., a wholly-owned subsidiary of the Company incorporated in Delaware on August 20, 2018 solely for the purpose of
completing the business combination with Xynomic (see Note 7).
All activity through December 31, 2018
relates to the Company's formation, its initial public offering ("Initial Public Offering") described below,
identifying a target company for a Business Combination and activities in connection with the proposed acquisition of Xynomic Pharmaceuticals,
Inc., a Delaware corporation ("Xynomic") (see Note 7).
The registration statements for the Company's
Initial Public Offering were declared effective on June 19, 2017. On June 23, 2017, the Company consummated the Initial Public
Offering of 5,250,000 units ("Units" and, with respect to the ordinary shares included in the Units being offered,
the "Public Shares") at $10.00 per unit, generating gross proceeds of $52,500,000, which is described in Note 3.
Simultaneously with the closing of the
Initial Public Offering, the Company consummated the sale of 388,750 units (the "Private Units") at a price of $10.00
per Unit in a private placement to the Company's sponsor, Bison Capital Holding Company Limited ("Bison Capital")
and EarlyBirdCapital, Inc. ("EarlyBirdCapital") and their designees, generating gross proceeds of $3,887,500, which
is described in Note 4.
Following the closing of the Initial Public
Offering and the private placement on June 23, 2017, an amount of $53,812,500 ($10.25 per Unit) from the net proceeds of the sale
of the Units in the Initial Public Offering and the Private Units was placed in a trust account (the "Trust Account")
and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940,
as amended (the "Investment Company Act"), with a maturity of 180 days or less or in any open-ended investment company
that holds itself out as a money market fund selected by the Company meeting the conditions of paragraphs (d)(2), (d)(3) and (d)(4)
of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business
Combination and (ii) the distribution of the Trust Account, as described below.
On June 28, 2017, in connection with the
underwriters' exercise of their over-allotment option in full, the Company consummated the sale of an additional 787,500
Units at $10.00 per Unit, and the sale of an additional 43,312 Private Units at $10.00 per Unit, generating total gross proceeds
of $8,308,125. A total of $8,071,875 of the net proceeds were deposited in the Trust Account, bringing the aggregate proceeds held
in the Trust Account to $61,884,375.
Transaction costs amounted to $2,250,189,
consisting of $1,811,250 of underwriting fees, and $438,939 of other costs. As of December 31, 2018, $122,615 of cash was held
outside of the Trust Account and was available for working capital purposes.
The Company's management has broad
discretion with respect to the specific application of the net proceeds of its Initial Public Offering and Private Units (subject
to the terms and conditions set forth in the certain trust agreement), although substantially all of the net proceeds are intended
to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to successfully
effect a Business Combination.
The Company, as a foreign private issuer,
must comply with the tender offer rules in connection with its Business Combination, and unless otherwise required by Nasdaq rules
or applicable laws, it does not intend to conduct a shareholder vote. It will, if it remains a foreign private issuer, provide
its shareholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination
by means of a tender offer pursuant to its memorandum and articles of association, conduct the redemptions pursuant to the tender
offer rules of the Securities and Exchange Commission (the "SEC"), and file tender offer documents containing substantially
the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination. If the
Company is a foreign private issuer and it is required by Nasdaq rules or applicable laws to hold a shareholder vote, it will do
so, but redemptions will still be effectuated pursuant to the tender offer rules described above. To the extent Nasdaq rules or
applicable laws require redemption pursuant to a shareholder vote, even if a tender offer is also conducted, the Company will comply
with such rules or laws. If the Company were to lose its foreign private issuer status, the Company may seek shareholder approval
of a Business Combination at a meeting called for such purpose at which shareholders may seek to redeem their shares, regardless
of whether they vote for or against a Business Combination or may conduct a tender offer. The shareholders will be entitled to
redeem their shares for a pro rata portion of the amount then in the Trust Account ($10.25 per share, plus any pro rata interest
earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). The Company
will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 upon such consummation
of a Business Combination and a majority of the outstanding shares voted are voted in favor of the Business Combination. Notwithstanding
the foregoing, a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder
is acting in concert or as a "group" (as defined under Section 13 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act")), will be restricted from seeking redemption rights with respect to 20% or more of the ordinary
shares sold in the Initial Public Offering without the Company's prior written consent.
F- either circumstance and the pro forma
financial statements are substantially the same in circumstances (A) and (B)
F-
6
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
The Company's
sponsor, officers and directors (the "Initial Shareholders") have agreed (a) to vote their Founder Shares (as defined
in Note 5) shares in Private Units and any shares acquired in or after the Initial Public Offering in favor of a Business Combination,
(b) not to propose, or vote in favor of, prior to and unrelated to an initial Business Combination, an amendment to the Company's
memorandum and articles of association that would affect the substance or timing of the Company's redemption obligation to
redeem all Public Shares if the Company cannot complete an initial Business Combination by March 23, 2019 (which, if approved by
the Company's shareholders, will be extended to June 24, 2019 or such earlier date as determined by the Company's board
of directors) (the "Combination Period"), unless the Company provides public shareholders an opportunity to redeem
their Public Shares in conjunction with any such amendment; (c) not to redeem any shares (including the Founder Shares) into the
right to receive cash from the Trust Account in connection with a shareholder vote to approve a Business Combination (or to sell
any shares in a tender offer in connection with a Business Combination if the Company does not seek shareholder approval in connection
therewith) and (d) that the Founder Shares and Private Units or the securities underlying the Private Units shall not participate
in any liquidating distributions upon winding up if a Business Combination is not consummated.
If the Company is unable to complete a
Business Combination by the Combination Period, the Company will (i) cease all operations except for the purpose of winding up,
(ii) as promptly as reasonably possible but no more than five business days thereafter, redeem 100% of the outstanding Public Shares
(including any public units in the Initial Public Offering or any public units or shares that the Initial Shareholders or their
affiliates purchased in the Initial Public Offering or later acquired in the open market or in private transactions) which redemption
will completely extinguish public shareholders' rights as shareholders (including the right to receive further liquidation
distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject
to the approval of the remaining shareholders and the Company's board of directors, proceed to commence a voluntary liquidation
and thereby a formal dissolution of the Company, subject (in each case of (ii) and (iii) above) to its obligations to provide for
claims of creditors and the requirements of applicable law. In connection with the redemption of 100% of the Company's outstanding
Public Shares each holder will receive a full pro rata portion of the amount then in the Trust Account plus any pro rata interest
earned on the funds held in the Trust Account (net of any taxes payable).
The Initial Shareholders have agreed to
waive their redemption rights with respect to the Founder Shares and the shares underlying the Private Units (i) in connection
with the consummation of a Business Combination and (ii) if the Company fails to consummate a Business Combination within the Combination
Period. The Initial Shareholders have agreed to waive their redemption rights with respect to any acquired Public Shares in connection
with the consummation of a Business Combination. However, if the Company's Initial Shareholders should acquire Public Shares
in or after the Initial Public Offering, they will be entitled to redemption rights with respect to such Public Shares if the Company
fails to consummate a Business Combination within the Combination Period. In the event of such redemption, it is possible that
the per share value of the assets remaining available for redemption (including Trust Account assets) will be less than the $10.25
per unit.
Bison Capital has agreed that it will indemnify
the Company to the extent necessary to ensure that the proceeds in the Trust Account are not reduced by the claims of prospective
target businesses with which the Company has discussed entering into a transaction agreement, or claims of vendors or other entities
that are owed money by the Company for services rendered or contracted for or products sold to the Company, but only if such a
vendor or prospective target business does not execute such a waiver. However, Bison Capital may not be able to meet such obligation
as the Company has not required Bison Capital to retain any assets to provide for its indemnification obligations, nor has the
Company taken any further steps to ensure that Bison Capital will be able to satisfy any indemnification obligations that arise.
Moreover, Bison Capital will not be liable to the Company's public shareholders if Bison Capital should fail to satisfy its
obligations under this agreement and instead will only be liable to the Company. The Company will seek to reduce the possibility
that Bison Capital will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service
providers (other than the Company's independent auditors), prospective target businesses or other entities with which the
Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies
held in the Trust Account. Therefore, the distribution from the Trust Account to each holder of ordinary shares may be less than
$10.25 per unit.
Liquidity
The Company has principally financed its
operations from inception using proceeds from the sale of its equity securities to its Initial Shareholders and such amount of
proceeds from the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes.
As of December 31, 2018, the Company had $122,615 of cash held outside of the Trust Account. As of December 31, 2018, the Sponsor
has loaned the Company an aggregate of $600,000. In February 2019, Bison Capital committed to provide an additional $200,000 in
loans to the Company (see Notes 5 and 10). Based on the foregoing, the Company believes it will have sufficient cash to meet its
needs through the earlier of consummation of a Business Combination or March 23, 2019 (which, if approved by the Company's
shareholders, will be extended to June 24, 2019, or such earlier date as determined by the Company's board of directors),
the date that the Company will be required to cease all operations except for the purpose of winding up, if a Business Combination
is not consummated.
F-
7
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Basis of presentation
The accompanying consolidated financial
statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America
("GAAP") and pursuant to the rules and regulations of the SEC.
Principles of Consolidation
The accompanying consolidated financial
statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions
have been eliminated in consolidation.
Emerging growth company
The Company is an "emerging growth
company," as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012
(the "
JOBS Act
"), and it may take advantage of certain exemptions from various reporting requirements that are
applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to
comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding
executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding
advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.
Further, section 102(b)(1) of the JOBS
Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private
companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of
securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The
JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply
to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such
extended transition period which means that when a standard is issued or revised and it has different application dates for public
or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of the Company's financial statements with another public company
which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition
period difficult or impossible because of the potential differences in accounting standards used.
Use of estimates
The preparation of financial statements
in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period.
Making estimates requires management to
exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or
set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate,
could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from
those estimates.
Cash equivalents
The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents
as of December 31, 2018 and 2017.
Marketable Securities held in Trust
Account
At December 31, 2018 and 2017, the substantially
all of the assets held in the Trust Account were held in U.S. Treasury Bills and are classified as trading securities.
Ordinary shares subject to possible redemption
The Company accounts for its ordinary
shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification ("ASC")
Topic 480 "Distinguishing Liabilities from Equity." Ordinary shares subject to mandatory redemption are classified
as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares
that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of
uncertain events not solely within the Company's control) are classified as temporary equity. At all other times, ordinary
shares are classified as shareholders' equity. The Company's ordinary shares feature certain redemption rights that
are considered to be outside of the Company's control and subject to occurrence of uncertain future events. Accordingly,
at December 31, 2018 and 2017, ordinary shares subject to possible redemption are presented at redemption value as temporary equity,
outside of the shareholders' equity section of the Company's consolidated balance sheets.
F-
8
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
Offering costs
Offering costs consist of legal, accounting,
underwriting fees and other costs incurred through the balance sheet date that are directly related to the Initial Public Offering.
Offering costs amounting to $2,250,189 were charged to shareholders' equity upon the completion of the Initial Public Offering.
Income taxes
The Company complies with the accounting
and reporting requirements of ASC Topic 740, "Income Taxes," which requires an asset and liability approach to financial
accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the
financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on
enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation
allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
ASC Topic 740 prescribes a recognition
threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected
to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon
examination by taxing authorities. The Company's management determined that the British Virgin Islands is the Company's
only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any,
as income tax expense. There were no unrecognized tax benefits as of December 31, 2018 and 2017 and no amounts accrued for interest
and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals
or material deviation from its position.
The Company's tax provision is zero
because the Company is organized in the British Virgin Islands with no connection to any other taxable jurisdiction. As such, the
Company has no deferred tax assets or liabilities. The Company is considered to be an exempted British Virgin Islands Company,
and is presently not subject to income taxes or income tax filing requirements in the British Virgin Islands or the United States.
Net loss per share
Net loss per share is computed by dividing
net loss by the weighted average number of ordinary shares outstanding during the period. The Company applies the two-class method
in calculating earnings per share. Ordinary shares subject to possible redemption at December 31, 2018 and 2017, which are not
currently redeemable and are not redeemable at fair value, have been excluded from the calculation of basic loss per share since
such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company has not considered
the effect of (1) warrants sold in the Initial Public Offering and private placement to purchase 3,234,781 ordinary shares, (2)
rights sold in the Initial Public Offering and private placement that convert into 646,957 ordinary shares, and (3) 157,500 ordinary
shares, warrants to purchase 78,750 ordinary shares and rights that convert into 15,750 ordinary shares in the unit purchase option
sold to the underwriter, in the calculation of diluted loss per share, since the exercise of the warrants and the conversion of
the rights into ordinary shares is contingent upon the occurrence of future events. As a result, diluted loss per share is the
same as basic loss per share for the periods presented.
Reconciliation of Net Loss per Ordinary
Share
The Company's net income (loss) is
adjusted for the portion of income that is attributable to ordinary shares subject to redemption, as these shares only participate
in the earnings of the Trust Account and not the income or losses of the Company. Accordingly, basic and diluted loss per ordinary
share is calculated as follows:
Year Ended
December 31,
2018
2017
Net income (loss)
$
266,626
$
(41,260
)
Less: Income attributable to ordinary shares subject to redemption
(1,004,757
)
(299,043
)
Adjusted net loss
$
(738,131
)
$
(340,303
)
Weighted average shares outstanding, basic and diluted
2,426,155
1,870,947
Basic and diluted net loss per ordinary share
$
(0.30
)
$
(0.18
)
F-
9
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
Concentration of credit risk
Financial instruments that potentially
subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed
the amount covered by government-provided insurance, if any, and in the event of non-performance by financial institutions may
expose the Company to a loss.
Fair value of financial instruments
The fair value of the Company's assets
and liabilities, which qualify as financial instruments under ASC Topic 820, "Fair Value Measurements and Disclosures,"
approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.
Recent accounting pronouncements
Management does not believe that any recently
issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company's
consolidated financial statements.
NOTE 3. INITIAL PUBLIC OFFERING
Pursuant to the Initial Public Offering,
the Company sold 6,037,500 Units at a purchase price of $10.00 per unit, inclusive of 787,500 Units sold to the underwriter on
June 28, 2017 upon the underwriters' election to fully exercise their over-allotment option. Each Unit consists of one ordinary
share, no par value, one right ("Public Right") and one-half of one redeemable warrant (each whole warrant, a "Public
Warrant"). Each Public Right will convert into one-tenth (1/10) of one ordinary share upon consummation of a Business Combination
(see Note 8). Each whole Public Warrant entitles the holder to purchase one ordinary share at an exercise price of $11.50 per share
(subject to certain adjustments) (see Note 8).
NOTE 4. PRIVATE PLACEMENT
Simultaneously with the consummation of
the Initial Public Offering, Bison Capital and EarlyBirdCapital purchased an aggregate of 388,750 Private Units (or an aggregate
purchase price of $3,887,500), of which 362,500 Private Units were purchased by Bison Capital and 26,250 Private Units were purchased
by EarlyBirdCapital. In addition, on June 28, 2017, due to the exercise of the over-allotment option by the underwriter, the Company
consummated the sale of an additional 43,312 Placement Units at a price of $10.00 per Unit, of which 39,375 Private Units were
purchased by Bison Capital and 3,937 Private Units were purchased by EarlyBirdCapital, generating gross proceeds of $433,125. The
proceeds from the sale of the Private Units were added to the net proceeds from the Initial Public Offering held in the Trust Account.
The Private Units are identical to the
Units sold in the Initial Public Offering, except that (i) Bison Capital and EarlyBirdCapital have agreed not to transfer, assign
or sell any of the Private Units until after the completion of a Business Combination, subject to certain exceptions, (ii) the
Private Units (including underlying securities) were purchased pursuant to an exemption from the registration requirements of the
Securities Act and will become tradable only after certain conditions are met or the resale of the Private Units is registered
under the Securities Act, and (iii) the warrants included in the Private Units (the "Private Warrants"), as described
in Note 8, are non-redeemable and may be exercised on a cashless basis, in each case so long as they continue to be held by Bison
Capital or EarlyBirdCapital or their permitted transferees. However, the holders have agreed (a) to vote their private shares (representing
the ordinary shares underlying the Private Units) and any Public Shares in favor of a Business Combination, (b) not to propose,
or vote in favor of, an amendment to the memorandum and articles of association, prior to and unrelated to a Business Combination,
to affect the substance or timing of the Company's obligation to redeem all Public Shares if it cannot complete a Business
Combination within the Combination Period, unless the Company provides public shareholders an opportunity to redeem their Public
Shares, (c) not to redeem any shares included in the Private Units (the "Private Shares") into the right to receive
cash from the Trust Account in connection with a shareholder vote to approve a Business Combination or sell their shares to the
Company in a tender offer in connection with a Business Combination, and (d) that the Private Shares shall not participate in any
liquidating distribution upon winding up if a Business Combination is not consummated.
NOTE 5. RELATED PARTY TRANSACTIONS
Founder Shares
In December 2016, the Company issued 1,437,500
ordinary shares to some of its Initial Shareholders (the "Founder Shares") for an aggregate purchase price of $25,000.
The Company received payment for the Founder Shares in January and February 2017. On June 19, 2017, the number of Founder Shares
issued under the original subscription agreement was increased by way of the sub-division of each of the then existing Founder
Shares on a 1.05 for 1 basis, resulting in the total number of Founder Shares becoming 1,509,375, with 196,875 of such shares
being subject to forfeiture to the extent that the underwriters' over-allotment option was not exercised in full or in part.
The Founder Shares are identical to the Public Shares sold in the Initial Public Offering, except that (1) the Founder Shares
are subject to certain transfer restrictions as set forth in certain share escrow agreement, (2) the Founder Shares were purchased
pursuant to an exemption from the registration requirements of the Securities Act and will become tradable only after certain
conditions are met or the resale of the Founder Shares is registered under the Securities Act, in addition to in accordance with
the terms of the share escrow agreement, and (3) the Initial Shareholders have agreed (i) to waive their redemption rights with
respect to any shares in connection with the consummation of Business Combination and (ii) to waive their liquidation rights with
respect to their Founder Shares and private shares if the Company fails to complete a Business Combination within the Combination
Period.
F-
10
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
The 1,509,375 Founder Shares included an
aggregate of up to 196,875 shares subject to forfeiture by the Initial Shareholders to the extent that the underwriters'
over-allotment was not exercised in full or in part, so that the Initial Shareholders would collectively own 20% of the Company's
issued and outstanding shares after the Initial Public Offering (excluding the sale of the Private Units). As a result of the underwriters'
election to exercise their over-allotment option in full on June 28, 2017, 196,875 Founder Shares are no longer subject to forfeiture.
Additionally, subject to certain limited
exceptions, the Initial Shareholders have agreed not to transfer, assign or sell any of the Founder Shares (except to certain permitted
transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) one year after the date of the consummation of
a Business Combination, or (ii) the date on which the closing price of the Company's ordinary shares equals or exceeds $12.50
per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any 20 trading days within
any 30-trading day period commencing after a Business Combination, and with respect to the remaining 50% of the Founder Shares,
upon one year after the date of the consummation of a Business Combination, or earlier, in each case, if, subsequent to a Business
Combination, the Company consummates a subsequent liquidation, merger, stock exchange or other similar transaction which results
in all of the Company's shareholders having the right to exchange their ordinary shares for cash, securities or other property.
Related Party Advances
Prior to the closing of the Initial Public
Offering, Bison Capital advanced the Company an aggregate of $159,304 to be used for the payment of costs related to the Initial
Public Offering. The advances are non-interest bearing, unsecured and due on demand. Advances in the amount of $157,500 was repaid
shortly after the closing of the Initial Public Offering. As of December 31, 2018 and 2017, advances outstanding amounted to $1,804.
Administrative Services Arrangement
Bison Capital entered into an agreement
whereby, commencing on June 19, 2017 through the earlier of the Company's consummation of a Business Combination and its
liquidation, to make available to the Company certain general and administrative services, including office space, utilities and
administrative services, as the Company may require from time to time. The Company will pay Bison Capital $5,000 per month for
these services. For the year ended December 31, 2018 and 2017, the Company incurred $55,000 and $35,000, respectively, in fees
for these services. At December 31, 2018 and 2017, $90,000 and $35,000 in administrative fees, respectively, are included in accounts
payable and accrued expenses in the accompanying consolidated balance sheets.
Related Party Loans and Promissory Notes
Prior to the closing of the Initial Public
Offering, Bison Capital loaned the Company $300,000, a portion of which was used for the payment of costs associated with the Initial
Public Offering. The loan was non-interest bearing, unsecured and due on the earlier of December 31, 2017 or the closing of the
Initial Public Offering. The loan was repaid shortly after the closing of the Initial Public Offering.
In order to finance transaction costs in
connection with a Business Combination, Bison Capital or the Company's officers and directors or their respective affiliates
may, but are not obligated to, loan the Company funds as may be required (the "Working Capital Loans"). If the Company
completes a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does
not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds
held in the Trust Account would be used to repay the Working Capital Loans. Such Working Capital Loans would be evidenced by promissory
notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender's
discretion, up to $500,000 of notes may be converted upon consummation of a Business Combination into additional Private Units
at a price of $10.00 per unit (the "Working Capital Units"). Bison Capital in August 2018, has loaned the Company an
aggregate of $400,000, which is evidenced by a promissory note, non-interest bearing, unsecured and payable in cash or convertible
in Private Units at $10.00 per unit, at the Bison Capital's discretion, on the consummation of a Business Combination.
In November 2018, Bison Capital loaned
the Company an additional aggregate amount of $200,000 in order to finance transaction costs in connection with a Business Combination.
The loan is non-interest bearing, unsecured and due to be paid on the consummation of a Business Combination. In February 2019,
$100,000 of such loans were converted into Working Capital Loans (see Note 10).
In February 2019, Bison Capital committed
to provide $200,000 in loans to the Company in order to finance transaction costs in connection with a Business Combination. The
loans will be evidenced by a promissory note, will be non-interest bearing, unsecured and will only be repaid upon the completion
of a Business Combination (see Note 10).
At December 31, 2018, an aggregate of
$600,000 is owed by the Company to Bison Capital pursuant to the above loans.
F-
11
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
NOTE 6. COMMITMENTS AND CONTINGENCIES
Director Compensation
The Company will pay its independent directors
an annual retainer in an aggregate amount of $38,400 (to be prorated for a partial term), payable in arrears commencing on the
first anniversary of the Initial Public Offering and ending on the earlier of a Business Combination and the Company's liquidation.
For the year ended December 31, 2018 and 2017, the Company recorded $-0- and $38,400 in director's fees, of which $-0- and
$19,200 is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets at December 31, 2018
and 2017, respectively. During the year ended December 31, 2018 and 2017, the Company has paid $19,200 and $19,200 in director's
fees, respectively.
Registration Rights
Pursuant to a registration rights agreement
entered into on June 19, 2017, the holders of the ordinary shares issued to the Initial shareholders (the "Founder Shares"),
Private Units (and underlying securities) and working capital units (and underlying securities) are entitled to registration rights.
The holders of a majority-in-interest of these securities are entitled to make up to three demands, excluding short form demands,
that the Company register such securities. In addition, the holders have certain "piggy-back" registration rights with
respect to registration statements filed subsequent to the consummation of a Business Combination. Notwithstanding anything to
the contrary, EarlyBirdCapital may participate in a "piggy-back" registration only during the seven year period beginning
on the effective date of the registration statement. However, the registration rights agreement provides that the Company will
not permit any registration statement filed under the Securities Act of 1993, as amended, to become effective until termination
of the applicable lock-up period. The Company will bear the expenses incurred in connection with the filing of any such registration
statements.
Business Combination Marketing Agreement
On June 19, 2017, the Company entered into
a Business Combination Marketing Agreement with EarlyBirdCapital wherein EarlyBirdCapital would act as an advisor in connection
with a Business Combination to assist the Company in holding meetings with its shareholders to discuss the potential Business Combination
and the target business' attributes, introduce the Company to potential investors that are interested in purchasing the Company's
securities, assist the Company in obtaining shareholder approval for the Business Combination and assist the Company with its press
releases and public filings in connection with the Business Combination. The Company will pay EarlyBirdCapital a cash fee for such
services upon the consummation of a Business Combination in an amount equal to $1,811,250 (exclusive of any applicable finders'
fees which might become payable). Notwithstanding the foregoing, the fee will be reduced by an amount equal to 2% of the dollar
amount of purchases of the Company's ordinary shares by investors introduced to the Company by Bison Capital or the Company's
officers, directors or their respective affiliates following announcement by the Company of a proposed vote on such Business Combination
and do not seek conversion of their shares in connection with such proposed Business Combination; provided, however, that the fee
will not be reduced by more than $500,000.
Finders Agreement
On November 16, 2017, the Company entered
into a finder agreement (the "Finder Agreement") with EarlyBirdCapital pursuant to which EarlyBirdCapital will introduce
potential targets (the "Targets") to the Company on a nonexclusive basis in connection with a Business Combination.
The Company shall pay EarlyBirdCapital for its services, upon the closing (or closings) of a Business Combination with a Target,
a cash fee equal to 1.0% of the Total Consideration (as defined in the Finder Agreement) deducting any finder fee, advisor fee
or any other type of service fee or compensation that Target has paid or has agreed to pay to EarlyBirdCapital in connection with
such Business Combination. The Company shall also reimburse EarlyBirdCapital for all out-of-pocket expenses incurred and such expenses
shall not exceed $10,000 in the aggregate through the termination of the Finder Agreement unless otherwise consented to in writing
by the Company in advance.
NOTE 7. MERGER AGREEMENT
On September 12, 2018, the Company entered
into an Agreement and Plan of Merger (the "Merger Agreement") with Xynomic, Bison Capital Merger Sub Inc., a Delaware
corporation ("Merger Sub"), and Yinglin Mark Xu ("Stockholder Representative"), solely in his capacity
as the Stockholder Representative thereunder. Pursuant to the Merger Agreement, among other things, Merger Sub will merge with
and into Xynomic, with Xynomic continuing as the surviving entity and a wholly-owned subsidiary of the Company (the "Merger"
and the "Surviving Company").
At the effective date of the closing (the
"Effective Time"), each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective
Time (excluding dissenting shares, if any) will be automatically converted into the right to receive, on a pro rata basis, the
Closing Consideration Shares (as defined below) and the Earnout Shares (as defined below), and each option to purchase Xynomic
stock that is outstanding immediately prior to the Effective Time will be assumed by the Company and automatically converted into
an option to purchase shares of common stock of the Company.
F-
12
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
Pursuant to the Merger Agreement, the aggregate
merger consideration payable upon the Closing (the "Aggregate Merger Consideration") consists of the Closing Merger
Consideration (as defined below) and the Earnout Consideration (as defined below).
The "Closing Merger Consideration"
means (a) $350,000,000,
minus
(i) the amount of Xynomic's closing indebtedness,
plus
(ii) the amount of Xynomic's
closing cash,
minus
(iii) the amount of Xynomic's transaction expenses,
plus
(iv) certain closing tax assets,
plus
(v) the amount, if any, by which Xynomic's closing working capital exceeds an agreed upon target amount of working
capital, minus (vi) the amount, if any, by which such target amount of working capital exceeds Xynomic's closing working
capital. The Closing Merger Consideration is payable in newly issued shares (the "Closing Consideration Shares") of
the Company's common stock at a value of $10.15 per share.
The Merger Agreement provides that, in
addition to the Closing Merger Consideration, Xynomic stockholders will receive additional consideration of an additional 9,852,216
shares of Company common stock (representing $100,000,000 based on a $10.15 per share value of the Company's common stock).
Consummation of the transactions contemplated
by the Merger Agreement is subject to the satisfaction or waiver by the respective parties of a number of conditions, including
the approval of the Merger Agreement and the transactions contemplated thereby by Xynomic's and the Company's respective
stockholders. Other closing conditions include, among others: (i) the respective representations of the parties to each other being
true and correct; (ii) performance and compliance with in all material respects of the respective covenants and agreements of each
party; (iii) the applicable waiting periods, if any, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 having expired
or terminated; (iv) the Company having at least $7,500,000 of net tangible assets remaining after the closing of the contemplated
transactions.
The Merger also calls for additional agreements,
including, among others, the Escrow Agreement, the Non-competition Agreements, the Lock-Up Agreements, the Voting and Support Agreement,
and the Registration Rights Agreement.
NOTE 8. SHAREHOLDERS' EQUITY
Preferred Shares
—
The Company is authorized to issue an unlimited number of no par value preferred shares, divided into five classes, Class A through
Class E, each with such designation, rights and preferences as may be determined by a resolution of the Company's board of
directors to amend the memorandum and articles of association to create such designations, rights and preferences. The Company
has five classes of preferred shares to give the Company flexibility as to the terms on which each Class is issued. All shares
of a single class must be issued with the same rights and obligations. Accordingly, starting with five classes of preferred shares
will allow the Company to issue shares at different times on different terms. At December 31, 2018 and 2017, there are no preferred
shares designated, issued or outstanding.
Ordinary Shares
— The
Company is authorized to issue an unlimited number of no par value ordinary shares. Holders of the Company's ordinary shares
are entitled to one vote for each share. At December 31, 2018 and 2017, there were 2,477,069 and 2,405,433 ordinary shares issued
and outstanding, respectively (excluding 5,501,868 and 5,573,504 ordinary shares subject to possible redemption).
Rights
— Each holder
of a right will receive one-tenth (1/10) of one ordinary share upon consummation of a Business Combination, even if a holder of
such right converted all ordinary shares held by it in connection with a Business Combination. No fractional shares will be issued
upon exchange of the rights. No additional consideration will be required to be paid by a holder of rights in order to receive
its additional shares upon consummation of a Business Combination as the consideration related thereto has been included in the
Unit purchase price paid for by investors in the Initial Public Offering. If the Company enters into a definitive agreement for
a Business Combination in which the Company will not be the surviving entity, the definitive agreement will provide for the holders
of rights to receive the same per share consideration the holders of the ordinary shares will receive in the transaction on an
as-converted into ordinary shares basis and each holder of rights will be required to affirmatively covert its rights in order
to receive 1/10 of a share underlying each right (without paying additional consideration). The shares issuable upon exchange of
the rights will be freely tradable (except to the extent held by affiliates of the Company).
If the Company is unable to complete a
Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of rights
will not receive any of such funds with respect to their rights, nor will they receive any distribution from the Company's
assets held outside of the Trust Account with respect to such rights, and the rights will expire worthless. Further, there are
no contractual penalties for failure to deliver securities to the holders of the rights upon consummation of a Business Combination.
Additionally, in no event will the Company be required to net cash settle the rights. Accordingly, the rights may expire worthless.
The rights included in the Private Units
sold in the Private Placement are identical to the rights included in the Units sold in the Initial Public Offering, except that,
among others, the rights including the shares issuable upon exchange of such rights, are being purchased pursuant to an exemption
from the registration requirements of the Securities Act and will become tradable only after certain conditions are met or the
resale of such rights (including underlying securities) is registered under the Securities Act.
F-
13
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
Warrants
— Public Warrants
may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The
Public Warrants will become exercisable upon the consummation of a Business Combination. No Public Warrants will be exercisable
for cash unless the Company has an effective and current registration statement covering the ordinary shares issuable upon exercise
of the Public Warrants and a current prospectus relating to such ordinary shares. Notwithstanding the foregoing, if a registration
statement covering the ordinary shares issuable upon the exercise of the Public Warrants is not effective within 120 days from
the consummation of a Business Combination, the holders may, until such time as there is an effective registration statement and
during any period when the Company shall have failed to maintain an effective registration statement, exercise the Public Warrants
on a cashless basis pursuant to an available exemption from registration under the Securities Act. If an exemption from registration
is not available, holders will not be able to exercise their Public Warrants on a cashless basis. The Public Warrants will expire
five years from the consummation of a Business Combination or earlier upon redemption or liquidation.
The Private Warrants are identical to the
Public Warrants underlying the Units sold in the Initial Public Offering, except the Private Warrants are exercisable for cash
(even if a registration statement covering the ordinary shares issuable upon exercise of such Private Warrants is not effective)
or on a cashless basis, at the holder's option, and are not be redeemable by the Company, in each case so long as they are
still held by the Initial Shareholders or their affiliates.
The Company may call the warrants for redemption
(excluding the Private Warrants, but including any outstanding warrants issued upon exercise of the unit purchase option issued
to EarlyBirdCapital), in whole and not in part, at a price of $0.01 per warrant:
●
at
any time while the Public Warrants are exercisable,
●
upon
not less than 30 days' prior written notice of redemption to each Public Warrant holder,
●
if,
and only if, the reported last sale price of the ordinary shares equals or exceeds $24.00 per share, for any 20 trading days within
a 30 trading day period ending on the third business day prior to the notice of redemption to Public Warrant holders, and
●
if,
and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants
at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until
the date of redemption.
If the Company calls the Public Warrants
for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a
"cashless basis," as described in the warrant agreement.
The exercise price and number of ordinary
shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend,
extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted
for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to
net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period and the
Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to
their warrants, nor will they receive any distribution from the Company's assets held outside of the Trust Account with respect
to such warrants. Accordingly, the warrants may expire worthless.
Unit Purchase Option
The Company sold to the underwriter and
its designees, for $100, an option to purchase up to 157,500 units exercisable at $10.00 per unit (or an aggregate exercise price
of $1,575,000) commencing on the later of the first anniversary of the effective date of the registration statement related to
the Initial Public Offering and the consummation of a Business Combination. The unit purchase option may be exercised for cash
or on a cashless basis, at the holder's option, and expires five years from the effective date of the registration statement
related to the Initial Public Offering. The units issuable upon exercise of this option are identical to the Units offered in
the Initial Public Offering. The Company accounted for the unit purchase option, inclusive of the receipt of $100 cash payment,
as an expense of the Initial Public Offering resulting in a charge directly to shareholders' equity. The Company estimated
the fair value of the unit purchase option to be $528,441 (or $3.36 per Unit) using the Black-Scholes option-pricing model. The
fair value of the unit purchase option granted to the underwriters was estimated as of the date of grant using the following assumptions:
(1) expected volatility of 35%, (2) risk-free interest rate of 1.77% and (3) expected life of five years. The unit purchase option
and such units purchased pursuant to the unit purchase option, as well as the ordinary shares underlying such units, the rights
included in such units, the ordinary shares that are issuable for the rights included in such units, the warrants included in
such units, and the shares underlying such warrants, have been deemed compensation by FINRA and are therefore subject to a 180-day
lock-up pursuant to Rule 5110(g)(1) of FINRA's NASDAQ Conduct Rules. Additionally, the unit purchase option may not be sold,
transferred, assigned, pledged or hypothecated for a one-year period (including the foregoing 180-day period) following the date
of Initial Public Offering except to any underwriter and selected dealer participating in the Initial Public Offering and their
bona fide officers or partners. The unit purchase option grants to holders demand and "piggy back" rights for periods
of five and seven years, respectively, from the effective date of the registration statement with respect to the registration
under the Securities Act of the securities directly and indirectly issuable upon exercise of the option. The Company will bear
all fees and expenses attendant to registering the securities, other than underwriting commissions which will be paid for by the
holders themselves. The exercise price and number of units issuable upon exercise of the unit purchase option may be adjusted
in certain circumstances including in the event of a stock dividend, or the Company's recapitalization, reorganization,
merger or consolidation. However, the option will not be adjusted for issuances of ordinary shares at a price below its exercise
price.
F-
14
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
NOTE 9. FAIR VALUE MEASUREMENTS
The Company follows the guidance in ASC
820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial
assets and liabilities that are re-measured and reported at fair value at least annually.
The fair value of the Company's financial
assets and liabilities reflects management's estimate of amounts that the Company would have received in connection with
the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants
at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize
the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal
assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify
assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:
Level 1:
Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2:
Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
Level 3:
Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.
The following table presents information
about the Company's assets that are measured at fair value on a recurring basis at December 31, 2018 and 2017, and indicates
the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
Description
Level
December 31,
2018
December 31,
2017
Assets:
Marketable securities held in Trust Account
1
$
63,310,884
$
62,208,330
NOTE 10. SUBSEQUENT EVENTS
The Company evaluates subsequent events
and transactions that occur after the balance sheet date up to the date that the consolidated financial statements were issued.
Other than as described below, the Company did not identify subsequent events that would have required adjustment or disclosure
in the consolidated financial statements.
In February 2019, the Company converted
$100,000 of its promissory notes issued to Bison Capital into a convertible promissory note in the amount of $100,000 to evidence
the Working Capital Loans. The loan is evidenced by a promissory note, is non-interest bearing, unsecured and payable in cash or
convertible in Private Units at $10.00 per unit, at Bison Capital's discretion, on the consummation of a Business Combination.
In February 2019, Bison Capital committed
to provide $200,000 in loans to the Company in order to finance transaction costs in connection with a Business Combination.
The Company has filed a preliminary proxy
statement on February 22, 2019 and its amendment on March 4, 2019, pursuant to which it is seeking shareholder approval to extend
the time by which the Company is required to consummate a Business Combination from March 23, 2019 to June 24, 2019, or such earlier
date as determined by the Company's board of directors (the "Extension Proposal").
On March 3, 2019, the Company received
a commitment from Xynomic that it has agreed to contribute to the Company as a loan $0.02 per month for each Public Share that
is not redeemed by the Company's shareholders (the "Contribution") in connection with the Extension Proposal.
On March 4, 2019, Bison filed a definitive
proxy statement on Schedule 14A for the shareholders' approval on the Extension Amendment and Trust Amendment.
On March 21, 2019, Bison held a special
meeting of stockholders (the "Extension Meeting"). At the Extension Meeting, the Company's stockholders approved
the following items: (i) an amendment to the Company's Amended and Restated Memorandum of Association and Articles of Association
extending the date by which the Company must consummate its initial business combination and the date for cessation of operations
of the Company if the Company has not completed an initial business combination from March 23, 2019 to June 24, 2019 or such earlier
date as determined by the Board of Directors of the Company (the "Extension Amendment Proposal") and (ii) an amendment
(the "Amendment to Trust Agreement") to the Trust Agreement (the "Trust Agreement") between the Company
and Continental extending the date on which to commence liquidation of the Trust Account in accordance with the Trust Agreement,
as amended by the Amendment to Trust Agreement, from March 23, 2019 to June 24, 2019 (the "Trust Amendment Proposal").
In connection with the Extension Meeting, shareholders holding 5,234,420 public shares exercised their right to redeem such public
shares for a pro rata portion of the Trust Account. As a result, an aggregate of $55,177,977 (or $10.54 per share) was removed
from the Trust Account to pay such holders.
F-
15
BISON CAPITAL ACQUISITION CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31,
2019
December 31,
2018
(Unaudited)
ASSETS
Current Assets
Cash
$
3,210
$
122,615
Prepaid expenses and other current assets
15,089
27,299
Total current assets
18,299
149,914
Marketable securities held in Trust Account
8,477,530
63,310,884
Total Assets
$
8,495,829
$
63,460,798
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses
$
227,799
$
164,893
Advances from related party
1,804
1,804
Convertible promissory note – related party
500,000
400,000
Promissory note – related party
110,000
200,000
Total Current Liabilities
839,603
766,697
Commitments and Contingencies
Ordinary shares subject to redemption, 251,625 and 5,501,868 shares at redemption value as of March 31, 2019 and December 31, 2018, respectively
2,656,225
57,694,100
Shareholders' Equity
Preferred shares, no par value; unlimited shares authorized, none issued and outstanding
—
—
Ordinary shares, no par value; unlimited shares authorized; 2,492,892 and 2,477,069 shares issued and outstanding (excluding 251,625 and 5,501,868 shares subject to redemption) as of March 31, 2019 and December 31, 2018, respectively
4,636,334
4,776,436
Retained earnings
363,667
223,565
Total Shareholders' Equity
5,000,001
5,000,001
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
8,495,829
$
63,460,798
The accompanying notes are an integral part
of the unaudited condensed consolidated financial statements.
F-
16
BISON CAPITAL ACQUISITION CORP.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2019
2018
Operating costs
$
204,521
$
125,916
Loss from operations
(204,521
)
(125,916
)
Other income:
Interest income
347,210
220,841
Unrealized loss on marketable securities held in Trust Account
(2,587
)
(19,491
)
Net income
$
140,102
$
75,434
Weighted average shares outstanding, basic and diluted
(1)
2,477,069
2,405,433
Basic and diluted net income (loss) per ordinary share
(2)
$
0.01
$
(0.05
)
(1)
Excludes
an aggregate of up to 251,625 and 5,562,820 ordinary shares subject to possible redemption at March 31, 2019 and 2018, respectively.
(2)
Net
income (loss) per ordinary share - basic and diluted excludes income attributable to shares subject to possible redemption of
$107,970 and $185,524 for the three months ended March 31, 2019 and 2018, respectively (see Note 2).
The accompanying notes are an integral part
of the unaudited condensed consolidated financial statements.
F-
17
BISON CAPITAL ACQUISITION CORP.
CONDENSED CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
Ordinary Shares
Retained
Total
Shareholders'
Shares
Amount
Earnings
Equity
Balance – January 1, 2019
2,477,069
$
4,776,436
$
223,565
$
5,000,001
Change in value of ordinary shares subject to possible redemption
15,823
(140,102
)
—
(140,102
)
Net income
—
—
140,102
140,102
Balance – March 31, 2019 (unaudited)
2,492,892
$
4,636,334
$
363,667
$
5,000,001
Ordinary Shares
Retained
Earnings/
(Accumulated)
Total
Shareholders'
Shares
Amount
Deficit
Equity
Balance – January 1, 2018
2,405,433
$
5,043,062
$
(43,061
)
$
5,000,001
Change in value of ordinary shares subject to possible redemption
10,684
(75,434
)
—
(75,434
)
Net income
—
—
75,434
75,434
Balance – March 31, 2018 (unaudited)
2,416,117
$
4,967,628
$
32,373
$
5,000,001
The accompanying notes are an integral part
of the unaudited condensed consolidated financial statements.
F-
18
BISON CAPITAL ACQUISITION CORP.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
2019
2018
Cash Flows from Operating Activities:
Net income
$
140,102
$
75,434
Adjustments to reconcile net income to net cash used in operating activities:
Interest earned on marketable securities held in Trust Account
(347,210
)
(220,841
)
Unrealized loss on marketable securities held in Trust Account
2,587
19,491
Changes in operating assets and liabilities:
Prepaid expenses and other current assets
12,210
22,009
Accounts payable and accrued expenses
62,906
36,698
Net cash used in operating activities
(129,405
)
(67,209
)
Cash Flows from Investing Activities:
Cash withdrawn from Trust Account
55,177,977
-
Net cash provided by investing activities
55,177,977
-
Cash Flows from Financing Activities:
Proceeds from promissory note – related party
10,000
-
Redemption of ordinary shares
(55,177,977
)
-
Net cash used in financing activities
(55,167,977
)
-
Net Change in Cash
(119,405
)
(67,209
)
Cash – Beginning
122,615
210,088
Cash – Ending
$
3,210
$
142,879
Non-Cash investing and financing activities:
Change in value of ordinary shares subject to possible redemption
$
140,102
$
75,434
Conversion of promissory notes to convertible promissory notes
$
100,000
$
-
The accompanying notes are an integral part
of the unaudited condensed consolidated financial statements.
F-
19
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
MARCH 31, 2019
(Unaudited)
NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Bison Capital Acquisition Corp. (the "Company")
is a blank check company incorporated in the British Virgin Islands on October 7, 2016. The Company was formed for the purpose
of acquiring, engaging in a share exchange, share reconstruction and amalgamation, purchasing all or substantially all of the assets
of, entering into contractual arrangements, or engaging in any other similar business combination with one or more businesses or
entities (a "Business Combination"). Although the Company is not limited to a particular industry or geographic region
for purposes of consummating an initial business combination, the Company focuses on businesses that have their primary operations
located in Asia and North America in media/entertainment, consumer services and healthcare industries.
All activity through March 31, 2019 relates
to the Company's formation, its initial public offering of 6,037,500 units (the "Initial Public Offering"), the
simultaneous sale of 432,062 units (the "Private Units") in a private placement to the Company's sponsor, Bison
Capital Holding Company Limited ("Bison Capital") and EarlyBirdCapital, Inc. ("EarlyBirdCapital") and their
designees, identifying a target company for a Business Combination and activities in connection with the proposed acquisition of
Xynomic Pharmaceuticals, Inc., a Delaware corporation ("Xynomic") (see Note 5).
The Company has one subsidiary, Bison Capital
Merger Sub Inc., a wholly-owned subsidiary of the Company incorporated in Delaware on August 20, 2018.
Pursuant to the Company's Memorandum
of Association and Articles of Association, the Company initially had until March 23, 2019 to consummate a Business Combination.
On March 21, 2019, the Company shareholders approved to extend the period of time for which the Company is required to consummate
a Business Combination until June 24, 2019 (the "Combination Period"), or such earlier date as determined by the Company's
Board of Directors (the "Extension Amendment"). Shareholders holding 5,234,420 public shares exercised their right
to redeem such public shares for a pro rata portion of the Trust Account. The Company paid cash in the aggregate amount of $55,177,977,
or approximately $10.54 per share, to redeeming shareholders.
On March 3, 2019, the Company received
a commitment from Xynomic that it has agreed to contribute to the Company as a loan $0.02 per month for each public share that
is not redeemed by the Company's shareholders (the "Contribution") in connection with the Extension Amendment.
The amount of the Contribution will not bear interest and will be repayable by the Company to Xynomic upon consummation of a Business
Combination. Xynomic will have the sole discretion whether to continue extending for additional calendar months until the Combination
Period and if Xynomic determines not to continue extending for additional calendar months, its obligation to make Contributions
following such determination will terminate. In May 2019, $16,062 was loaned to the Company and deposited into the Trust Account,
which amount is equal to $0.02 for each of the 803,080 shares that were not redeemed (see Note 8).
Liquidity
The Company has principally financed its
operations from inception using proceeds from the sale of its equity securities to its shareholders prior to the Initial Public
Offering (the "Initial Shareholders") and such amount of proceeds from the Initial Public Offering that were placed
in an account outside of the Trust Account for working capital purposes. As of March 31, 2019, the Company had $3,210 of cash held
outside of the Trust Account. As of March 31, 2019, Bison Capital has loaned the Company an aggregate of $610,000 and has committed
to provide an additional $190,000 in loans to the Company. Based on the foregoing, the Company believes it will have sufficient
cash to meet its needs through the earlier of consummation of a Business Combination or June 24, 2019, the date that the Company
will be required to cease all operations except for the purpose of winding up, if a Business Combination is not consummated.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Basis of presentation
The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation
S-X of the Securities and Exchange Commission (the "SEC"). Certain information or footnote disclosures normally included
in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations
of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a
comprehensive presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying
unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are
necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.
F-
20
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
MARCH 31, 2019
(Unaudited)
The accompanying unaudited condensed consolidated
financial statements should be read in conjunction with the Company's Annual Report on
Form 10-K
for the year ended December
31, 2018 as filed with the SEC on March 5, 2019, which contains the audited financial statements and notes thereto, together with
Management's Discussion and Analysis. The financial information as of December 31, 2018 is derived from the audited financial
statements presented in the Company's Annual Report on
Form 10-K
for the year December 31, 2018. The interim results for
the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December
31, 2019 or for any future interim periods.
Principles of Consolidation
The accompanying condensed consolidated
financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances
and transactions have been eliminated in consolidation.
Use of estimates
The preparation of financial statements
in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period.
Making estimates requires management to
exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or
set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate,
could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from
those estimates.
Net income (loss) per share
Net income (loss) per share is computed
by dividing net income (loss) by the weighted average number of ordinary shares outstanding during the period. The Company applies
the two-class method in calculating earnings per share. Ordinary shares subject to possible redemption at March 31, 2019 and 2018,
which are not currently redeemable and are not redeemable at fair value, have been excluded from the calculation of basic income
(loss) per share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company
has not considered the effect of (1) warrants sold in the Initial Public Offering and private placement to purchase 3,234,781 ordinary
shares, (2) rights sold in the Initial Public Offering and private placement that convert into 646,957 ordinary shares, and (3)
157,500 ordinary shares, warrants to purchase 78,750 ordinary shares and rights that convert into 15,750 ordinary shares in the
unit purchase option sold to the underwriter, in the calculation of diluted income (loss) per share, since the exercise of the
warrants and the conversion of the rights into ordinary shares is contingent upon the occurrence of future events. As a result,
diluted income (loss) per share is the same as basic income (loss) per share for the periods presented.
Reconciliation of net income (loss)
per ordinary share
The Company's net income is adjusted
for the portion of income that is attributable to ordinary shares subject to redemption, as these shares only participate in the
earnings of the Trust Account and not the income or losses of the Company. Accordingly, basic and diluted income (loss) per ordinary
share is calculated as follows:
Three Months Ended
March 31,
2019
2018
Net income
$
140,102
$
75,434
Less: Income attributable to ordinary shares subject to redemption
(107,970
)
(185,524
)
Adjusted net income (loss)
32,132
(110,090
)
Weighted average shares outstanding, basic and diluted
2,477,069
2,405,433
Basic and diluted net income (loss) per ordinary share
$
0.01
$
(0.05
)
F-
21
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
MARCH 31, 2019
(Unaudited)
Recent accounting pronouncements
Management does not believe that any recently
issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company's
condensed consolidated financial statements.
NOTE 3. RELATED PARTY TRANSACTIONS
Related Party Loans and Promissory Notes
In order to finance transaction costs in
connection with a Business Combination, Bison Capital or the Company's officers and directors or their respective affiliates
may, but are not obligated to, loan the Company funds as may be required (the "Working Capital Loans"). If the Company
completes a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does
not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds
held in the Trust Account would be used to repay the Working Capital Loans. Such Working Capital Loans would be evidenced by promissory
notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender's
discretion, up to $500,000 of notes may be converted upon consummation of a Business Combination into additional Private Units
at a price of $10.00 per unit (the "Working Capital Units"). As of March 31, 2019, Bison Capital has loaned the Company
an aggregate of $500,000, which is evidenced by a promissory note, non-interest bearing, unsecured and payable in cash or convertible
in Private Units at $10.00 per unit, at Bison Capital's discretion, on the consummation of a Business Combination.
In February 2019, $100,000 of loans from
Bison Capital were converted into convertible promissory loans and is included in the $500,000 outstanding amount noted above. In
addition, as of March 31, 2019, Bison Capital has loaned the Company an aggregate amount of $110,000 in order to finance transaction
costs in connection with a Business Combination. The loan is non-interest bearing, unsecured and due to be paid on the consummation
of a Business Combination.
In February 2019, Bison Capital committed
to provide $200,000 in loans to the Company in order to finance transaction costs in connection with a Business Combination. In
March 2019, Bison Capital loaned the Company $10,000. The loan is non-interest bearing, unsecured and due to be paid on the consummation
of a Business Combination. Any additional loans will be evidenced by a promissory note, will be non-interest bearing, unsecured
and will only be repaid upon the completion of a Business Combination.
At March 31, 2018, an aggregate of $610,000
is owed by the Company to Bison Capital pursuant to the above loans.
Administrative Services Arrangement
Bison Capital entered into an agreement
whereby, commencing on June 19, 2017 through the earlier of the Company's consummation of a Business Combination and its
liquidation, to make available to the Company certain general and administrative services, including office space, utilities and
administrative services, as the Company may require from time to time. The Company will pay Bison Capital $5,000 per month for
these services. For the three months ended March 31, 2019 and 2018, the Company incurred $15,000 and $12,500, respectively, in
fees for these services. At March 31, 2019 and December 31, 2018, $105,000 and $90,000 in administrative fees, respectively, are
included in accounts payable and accrued expenses in the accompanying condensed balance sheets.
NOTE 4. COMMITMENTS AND CONTINGENCIES
Registration Rights
Pursuant to a registration rights agreement
entered into on June 19, 2017, the holders of the ordinary shares issued to the Initial shareholders (the "Founder Shares"),
Private Units (and underlying securities) and working capital units (and underlying securities) are entitled to registration rights.
The holders of a majority-in-interest of these securities are entitled to make up to three demands, excluding short form demands,
that the Company register such securities. In addition, the holders have certain "piggy-back" registration rights with
respect to registration statements filed subsequent to the consummation of a Business Combination. Notwithstanding anything to
the contrary, EarlyBirdCapital may participate in a "piggy-back" registration only during the seven year period beginning
on the effective date of the registration statement. However, the registration rights agreement provides that the Company will
not permit any registration statement filed under the Securities Act of 1993, as amended, to become effective until termination
of the applicable lock-up period. The Company will bear the expenses incurred in connection with the filing of any such registration
statements.
F-
22
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
MARCH 31, 2019
(Unaudited)
Business Combination Marketing Agreement
On June 19, 2017, the Company entered into
a Business Combination Marketing Agreement with EarlyBirdCapital wherein EarlyBirdCapital would act as an advisor in connection
with a Business Combination to assist the Company in holding meetings with its shareholders to discuss the potential Business Combination
and the target business' attributes, introduce the Company to potential investors that are interested in purchasing the Company's
securities, assist the Company in obtaining shareholder approval for the Business Combination and assist the Company with its press
releases and public filings in connection with the Business Combination. The Company will pay EarlyBirdCapital a cash fee for such
services upon the consummation of a Business Combination in an amount equal to $1,811,250 (exclusive of any applicable finders'
fees which might become payable). Notwithstanding the foregoing, the fee will be reduced by an amount equal to 2% of the dollar
amount of purchases of the Company's ordinary shares by investors introduced to the Company by Bison Capital or the Company's
officers, directors or their respective affiliates following announcement by the Company of a proposed vote on such Business Combination
and do not seek conversion of their shares in connection with such proposed Business Combination; provided, however, that the fee
will not be reduced by more than $500,000.
Finders Agreement
On November 16, 2017, the Company entered
into a finder agreement (the "Finder Agreement") with EarlyBirdCapital pursuant to which EarlyBirdCapital will introduce
potential targets (the "Targets") to the Company on a nonexclusive basis in connection with a Business Combination.
The Company shall pay EarlyBirdCapital for its services, upon the closing (or closings) of a Business Combination with a Target,
a cash fee equal to 1.0% of the Total Consideration (as defined in the Finder Agreement) deducting any finder fee, advisor fee
or any other type of service fee or compensation that Target has paid or has agreed to pay to EarlyBirdCapital in connection with
such Business Combination. The Company shall also reimburse EarlyBirdCapital for all out-of-pocket expenses incurred and such expenses
shall not exceed $10,000 in the aggregate through the termination of the Finder Agreement unless otherwise consented to in writing
by the Company in advance.
NOTE 5. MERGER AGREEMENT
On September 12, 2018, the Company entered
into an Agreement and Plan of Merger (the "Merger Agreement") with Xynomic, Bison Capital Merger Sub Inc., a Delaware
corporation ("Merger Sub"), and Yinglin Mark Xu ("Stockholder Representative"), solely in his capacity
as the Stockholder Representative thereunder. Pursuant to the Merger Agreement, among other things, Merger Sub will merge with
and into Xynomic, with Xynomic continuing as the surviving entity and a wholly-owned subsidiary of the Company (the "Merger"
and the "Surviving Company").
At the effective date of the closing (the
"Effective Time"), each share of Xynomic common stock and preferred stock issued and outstanding prior to the Effective
Time (excluding dissenting shares, if any) will be automatically converted into the right to receive, on a pro rata basis, the
Closing Consideration Shares (as defined below) and the Earnout Shares (as defined below), and each option to purchase Xynomic
stock that is outstanding immediately prior to the Effective Time will be assumed by the Company and automatically converted into
an option to purchase shares of common stock of the Company.
Pursuant to the Merger Agreement, the aggregate
merger consideration payable upon the Closing (the "Aggregate Merger Consideration") consists of the Closing Merger
Consideration (as defined below) and the Earnout Consideration (as defined below).
The "Closing Merger Consideration"
means (a) $350,000,000,
minus
(i) the amount of Xynomic's closing indebtedness,
plus
(ii)
the amount of Xynomic's closing cash,
minus
(iii) the amount of Xynomic's transaction expenses,
plus
(iv)
certain closing tax assets,
plus
(v) the amount, if any, by which Xynomic's closing working capital exceeds
an agreed upon target amount of working capital, minus (vi) the amount, if any, by which such target amount of working capital
exceeds Xynomic's closing working capital. The Closing Merger Consideration is payable in newly issued shares (the "Closing
Consideration Shares") of the Company's common stock at a value of $10.15 per share.
The Merger Agreement provides that, in
addition to the Closing Merger Consideration, Xynomic stockholders will receive additional consideration of an additional 9,852,216
shares of Company common stock (representing $100,000,000 based on a $10.15 per share value of the Company's common stock).
Consummation of the transactions contemplated
by the Merger Agreement is subject to the satisfaction or waiver by the respective parties of a number of conditions, including
the approval of the Merger Agreement and the transactions contemplated thereby by Xynomic's and the Company's respective
stockholders. Other closing conditions include, among others: (i) the respective representations of the parties to each other being
true and correct; (ii) performance and compliance with in all material respects of the respective covenants and agreements of each
party; (iii) the applicable waiting periods, if any, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 having expired
or terminated; (iv) the Company having at least $7,500,000 of net tangible assets remaining after the closing of the contemplated
transactions.
The Merger also calls for additional agreements,
including, among others, the Escrow Agreement, the Non-competition Agreements, the Lock-Up Agreements, the Voting and Support Agreement,
and the Registration Rights Agreement.
NOTE 6. SHAREHOLDERS' EQUITY
Preferred Shares
—
The Company is authorized to issue an unlimited number of no par value preferred shares, divided into five classes, Class A through
Class E, each with such designation, rights and preferences as may be determined by a resolution of the Company's board
of directors to amend the Memorandum and Articles of Association to create such designations, rights and preferences. The Company
has five classes of preferred shares to give the Company flexibility as to the terms on which each Class is issued. All shares
of a single class must be issued with the same rights and obligations. Accordingly, starting with five classes of preferred shares
will allow the Company to issue shares at different times on different terms. At March 31, 2019 and December 31, 2018, there are
no preferred shares designated, issued or outstanding.
F-
23
BISON CAPITAL ACQUISITION CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
MARCH 31, 2019
(Unaudited)
Ordinary Shares
—
The Company is authorized to issue an unlimited number of no par value ordinary shares. Holders of the Company's ordinary
shares are entitled to one vote for each share. At March 31, 2019 and December 31, 2018, there were 2,492,892 and 2,477,069 ordinary
shares issued and outstanding, respectively (excluding 251,625 and 5,501,868 ordinary shares subject to possible redemption).
NOTE 7. FAIR VALUE MEASUREMENTS
The Company follows the guidance in ASC
820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial
assets and liabilities that are re-measured and reported at fair value at least annually.
The fair value of the Company's financial
assets and liabilities reflects management's estimate of amounts that the Company would have received in connection with
the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants
at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize
the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal
assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify
assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:
Level 1:
Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2:
Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
Level 3:
Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.
The following table presents information
about the Company's assets that are measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018,
and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
Description
Level
March 31,
2019
December 31,
2018
Assets:
Marketable securities held in Trust Account
1
$
8,477,530
$
63,310,884
NOTE 8. SUBSEQUENT EVENTS
The Company evaluates subsequent events
and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements were
issued. Other than as described below, the Company did not identify subsequent events that would have required adjustment or disclosure
in the condensed consolidated financial statements.
On May 1, 2019, the Company and Yinglin
Mark Xu entered into a Backstop and Subscription Agreement (the "
Backstop Agreement
"), pursuant to which
Yinglin Mark Xu agreed to purchase up to $7,500,001 ordinary shares in the open market or in other privately negotiated transactions
with third parties (Yinglin Mark Xu is not obligated to pay a price of greater than $10.15 per share); or from the Company at a
price of $10.15 per share concurrently with the consummation of the Business Combination, in order to ensure that the Company has
at least $7,500,001 of net tangible assets remaining at the Closing after giving effect to the redemption of any ordinary shares
by the public shareholders in connection with the Business Combination with Xynomic (the "
Backstop Commitment
").
The Company's charter does not allow the Company to issue any additional shares or any debt securities that would entitle
the holders to receive funds from the Trust Account or vote on any Business Combination proposal. As any purchase by Yinglin Mark
Xu under the Backstop Commitment would occur after the Record Date, he would not be entitled to vote those shares on the Business
Combination proposals.
At the Closing, the Company and Yinglin
Mark Xu will enter into a registration rights agreement, in a form to be agreed upon, with respect to the ordinary shares purchased
by Yinglin Mark Xu in connection with the Backstop Agreement (the "
Backstop Shares
"). If Yinglin Mark
Xu assigns all or a portion of its obligations under the Backstop Agreement to investors that are qualified institutional buyers
or institutional accredited investors, such assignees will take a proportionate share of Yinglin Mark Xu's rights with respect
to the Backstop Shares and proportionate rights under the registration rights agreement contemplated by the Backstop Agreement.
As a result of the Backstop Commitment,
the Company will be able to consummate the Business Combination even if all of its public shares are redeemed by the public shareholders
as long as the share purchases by Yinglin Mark Xu contemplated by the Backstop Commitment close immediately prior to the Closing.
In May 2019, $16,062 was loaned to the
Company and deposited into the Trust Account, which amount is equal to $0.02 for each of the 803,080 shares that were not redeemed.
F-
24
Report of Independent Registered Public
Accounting Firm
To the Shareholders and Board of Directors
Xynomic Pharmaceuticals, Inc.:
Opinion on the Consolidated Financial
Statements
We have audited the accompanying consolidated
balance sheets of Xynomic Pharmaceuticals, Inc. and subsidiaries (the Company) as of December 31, 2017 and 2018, the related
consolidated statements of comprehensive loss, changes in shareholders' deficit, and cash flows for the years then ended,
and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2018, and the
results of its operations and its cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.
Going Concern
The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated
financial statements, the Company has suffered recurring losses from operations, has net current liabilities and accumulated deficit,
and has limited resources available to fund current research and development activities, and will require substantial additional
financing to continue to fund its research and development activities that raise substantial doubt about its ability to continue
as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These consolidated financial statements
are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial
statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United
States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws
and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing
procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ KPMG Huazhen LLP
We have served as the Company's auditor since 2018.
Beijing, China
April 3, 2019
F-
25
XYNOMIC
PHARMACEUTICALS, INC.
CONSOLIDATED
BALANCE
SHEETS
(I
n
U.S. dollars, except share data
)
Note
As of December 31,
2017
2018
ASSETS
Current assets:
Cash
3
$
100,344
$
4,746,370
Prepaid expenses
5
21,122
277,750
Prepaid expenses to a shareholder
14
116,244
-
Total current assets
237,710
5,024,120
Property and equipment, net
2(f)
-
280,730
Intangible assets, net
2(g)
1,874
1,937
Other non-current assets
6
-
155,176
TOTAL ASSETS
$
239,584
$
5,461,963
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
Current liabilities:
Bank overdraft
$
33,619
$
4,954
Accrued expenses and other current liabilities
7
229,982
14,407,261
Amount due to shareholders
14
630,903
3,233,728
Total current liabilities
894,504
17,645,943
Total liabilities
894,504
17,645,943
Commitments and Contingencies
13
Mezzanine equity:
Angel Preferred Shares (par value US$0.0001 per share as of December 31, 2017 and 2018; 23,435,379 shares authorized, issued and outstanding as of December 31, 2017 and 2018. Redemption value of US$537,274  and US$580,256 as of December 31, 2017 and 2018; Liquidation value of US$751,233 and US$811,332 as of December 31, 2017 and 2018)
9
537,274
580,256
Series A-1 Preferred Shares (par value US$0.0001 per share as of December 31, 2017 and 2018; 12,147,500 shares authorized, issued and outstanding as of December 31, 2017 and 2018. Redemption value of US$4,542,389 and US$4,905,780 as of December 31, 2017 and 2018; Liquidation value of US$6,448,355 and US$6,964,223 as of December 31, 2017 and 2018)
9
4,542,389
4,905,780
Series B Preferred Shares (par value US$0.0001 per share as of December 31, 2018; nil and 5,281,101 shares authorized, nil and 5,281,101 shares issued and outstanding as of December 31, 2017 and 2018. Redemption value of US$2,424,712 as of December 31, 2018; Liquidation value of US$24,335,989 as of December 31, 2018)
9
-
2,424,712
Total mezzanine equity
5,079,663
7,910,748
Shareholders' deficit:
Ordinary shares (par value US$0.0001 per share as of December 31, 2017 and 2018; 149,617,121 shares authorized, 9,617,121 shares issued and outstanding as of December 31, 2017 and 2018)
10
962
962
Additional paid-in capital
-
14,168,915
Accumulated other comprehensive income
-
58,564
Accumulated deficit
(5,735,545
)
(34,323,169
)
Total shareholders' deficit
(5,734,583
)
(20,094,728
)
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
$
239,584
$
5,461,963
The accompanying notes are an integral
part of these consolidated financial statements.
F-
26
XYNOMIC
PHARMACEUTICALS, INC.
CONSOLIDATED
statements
of COMPREHENSIVE lOSS
(I
n
U.S. dollars, except share data
)
Note
For the Year Ended
December 31,
2017
2018
Operating expenses:
Research and development
$
4,321,247
$
25,159,602
General and administrative
884,980
3,049,353
General and administrative to related parties
14
248,737
362,336
Total operating expenses
5,454,964
28,571,291
Loss from operations
5,454,964
28,571,291
Other income
Investment income
-
16,541
Total other income, net
-
16,541
Interest expenses to a related party
14
-
32,874
Loss from operations before income tax benefit
5,454,964
28,587,624
Income tax
4
-
-
Net loss
5,454,964
28,587,624
Accretion to preferred share redemption value
1,269,366
2,831,085
Net loss attributable to ordinary shareholders
6,724,330
31,418,709
Other comprehensive (income)/loss:
Foreign currency translation adjustment, net of nil income taxes
-
(58,564
)
Unrealized gain on available for sale securities, net of nil income taxes
-
(16,541
)
Less: reclassification adjustment for gain on available for sale securities realized in net income, net of nil income taxes
-
16,541
Total other comprehensive income
-
(58,564
)
Comprehensive loss attributable to ordinary shareholders
6,724,330
31,360,145
Weighted average ordinary shares outstanding – basic and diluted
8,826,673
9,617,121
Loss per share - basic and diluted
11
0.76
3.27
The accompanying notes are an integral
part of these consolidated financial statements.
F-
27
XYNOMIC
PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS' DEFICIT
(I
n
U.S. dollars, except share data
)
Ordinary shares
Additional
paid-in
Accumulated Other Comprehensive
Accumulated
Total Shareholders'
Shares
Amount
capital
Income
deficit
Deficit
Balance as of January 1, 2017
-
$
-
$
-
$
-
$
(918
)
$
(918
)
Issuance of ordinary shares (Note 10)
9,617,121
962
989,703
-
-
990,665
Redeemable convertible preferred shares redemption value accretion (Note 9)
-
-
(989,703
)
-
(279,663
)
(1,269,366
)
Net loss
-
-
-
-
(5,454,964
)
(5,454,964
)
Balance as of December 31, 2017
9,617,121
962
-
-
(5,735,545
)
(5,734,583
)
Beneficial conversion feature of Series B Preferred Shares (Note 9)
-
-
17,000,000
-
-
17,000,000
Redeemable convertible preferred shares redemption value accretion (Note 9)
-
-
(2,831,085
)
-
-
(2,831,085
)
Net loss
-
-
-
-
(28,587,624
)
(28,587,624
)
Foreign currency translation adjustment, net of nil income taxes
-
-
-
58,564
-
58,564
Unrealized holding gains on available-for-sale security, net of nil income taxes
-
-
-
16,541
-
16,541
Reclassification adjustment for gains on available-for-sale securities realized in net income, net of nil income taxes
-
-
-
(16,541
)
-
(16,541
)
Balance as of December 31, 2018
9,617,121
$
962
$
14,168,915
$
58,564
$
(34,323,169
)
$
(20,094,728
)
The accompanying notes are an integral
part of these consolidated financial statements.
F-
28
XYNOMIC
PHARMACEUTICALS, INC.
CONSOLIDATED
statements
of cash flows
(I
n
U.S. dollars
)
For the Year Ended
December 31,
2017
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(5,454,964
)
$
(28,587,624
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Investment income
-
(16,541
)
Amortization
170
605
Depreciation
-
505
Changes in operating assets and liabilities:
Prepaid expenses
(21,122
)
(266,910
)
Prepaid expenses to a shareholder
(116,244
)
116,244
Other non-current assets
-
(157,483
)
Accrued expenses and other payables
229,382
14,074,501
Amount due to shareholders
-
113,514
Net cash used in operating activities
(5,362,778
)
(14,723,189
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of intangible assets
(2,044
)
(684
)
Purchase of property and equipment
-
(176,815
)
Purchase of short-term investments
-
(4,447,904
)
Sale of short-term investments
-
4,496,052
Net cash used in investing activities
(2,044
)
(129,351
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft
33,619
(28,665
)
Proceeds from advance from a Series B shareholder
-
1,425,959
Repayment of advance from a Series B shareholder
-
(262,743
)
Proceeds from short-term loan
-
906,810
Repayment of short-term loan
-
(877,450
)
Proceeds from issuance of ordinary shares
962
-
Proceeds from issuance of Series Angel Preferred Shares
500,000
-
Proceeds from issuance of Series A-1 Preferred Shares
4,300,000
-
Proceeds from issuance of convertible notes
-
2,500,000
Proceeds from issuance of Series B Preferred Shares
-
14,500,000
Advance from a shareholder
630,585
1,407,054
Net cash provided by financing activities
5,465,166
19,570,965
Effect of foreign exchange rate changes on cash
-
(72,399
)
NET INCREASE IN CASH
100,344
4,646,026
CASH, BEGINNING OF THE YEAR
-
100,344
CASH, END OF THE YEAR
$
100,344
$
4,746,370
SUPPLEMENTAL INFORMATION
Interest paid
-
-
Income tax paid
-
-
Non-cash transactions:
Discount due to beneficial conversion feature
$
-
$
17,000,000
Convertible notes converted into Series B Preferred Shares
$
-
$
2,500,000
The accompany notes are an integral
part of these consolidated financial statements.
F-
29
XYNOMIC
PHARMACEUTICALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2017
AND 2018
(I
n
U.S. dollars, except share data
)
1.
ORGANIZATION
AND PRINCIPAL ACTIVITIES
Xynomic Pharmaceuticals, Inc.
(the "Company" or "Xynomic") was incorporated in the United States on August 24, 2016. The Company and
its subsidiaries (collectively, the "Group"), are primarily engaged in in-licensing, developing and commercializing
oncology drug candidates in the People's Republic of China ("PRC"), the United States, and rest of the world.
As of December 31, 2018, the
Company's subsidiaries are as following:
Subsidiaries
Date of incorporation
Place of incorporation
/establishment
Percentage of economic ownership
Xynomic Pharmaceuticals
    (Nanjing) Co., Ltd.
("Xynomic Nanjing")
November 20, 2017
PRC
100
%
Xynomic Pharmaceuticals (Shanghai) Co., Ltd.
("Xynomic Shanghai")
July 31, 2018
PRC
100
%
Xynomic Pharmaceuticals (Zhongshan) Co., Ltd.
("Xynomic Zhongshan")
May 15, 2018
PRC
100
%
Liquidity
The Group has not generated any
revenues from product sales. Substantial additional financing will be required by the Group to continue to fund its research and
development activities. No assurance can be given that any such financing will be available when needed or that the Group's
research and development efforts will be successful.
The Group's ability to
fund operations is based on its ability to attract investors and its ability to borrow funds on reasonable economic terms. Historically,
the Group has relied principally on equity financing and shareholder's borrowings to fund its operations and business development.
The Group's ability to continue as a going concern is dependent on management's ability to successfully execute its
business plan, which includes generating revenues after drug marketing, controlling operating expenses, as well as, continuing
to obtain additional equity financing. On April 3, 2018, the Group issued convertible notes to Northern Light Venture Capital V,
Ltd., and Bo Tan and received proceeds of US$2,500,000, which were converted into 776,633 Series B Preferred Shares in August 2018.
Further in August 2018, the Group raised US$17 million by issuance of 5,281,101 Series B Preferred Shares to certain investors,
including the conversion of convertible notes of US$2.5 million. On September 12, 2018, the Group entered into an Agreement and
Plan of Merger (the "Merger Agreement") with Yinglin Mark Xu, Bison Capital Acquisition Corp. ("BCAC"),
a Special Purpose Acquisition Company listed in Nasdaq, and Bison Capital Merger Sub Inc. ("Merger Sub"). Pursuant
to the Merger Agreement, among other things, Merger Sub will merge with and into Xynomic, with Xynomic continuing as the surviving
entity and a wholly-owned subsidiary of BCAC (the "Merger" and the "Surviving Company"). The Merger Agreement
is contingent depending on the approval of shareholders and others described in Merger Agreement. This business combination is
still in process. On March 21, 2019, BCAC's stockholders approved the following items: (i) an amendment to the BCAC's
Amended and Restated Memorandum of Association and Articles of Association extending the date by which BCAC must consummate its
initial business combination and the date for cessation of operations of BCAC if BCAC has not completed an initial business combination
from March 23, 2019 to June 24, 2019 or such earlier date as determined by the Board of Directors of BCAC (the "Extended
Termination Date") and (ii) an amendment (the "Amendment to Trust Agreement") to the Trust Agreement (the "Trust
Agreement") between BCAC and Continental extending the date on which to commence liquidation of the Trust Account in accordance
with the Trust Agreement, as amended by the Amendment to Trust Agreement, from March 23, 2019 to June 24, 2019. The Group also
plans to attract institutional investors following the business combination. Further, the Group can adjust the pace of its clinical
development and patient recruitment and control the operating expenses of the Group.
F-
30
The Group currently does not
have any commitments to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable terms,
if at all. If the Group cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its
research and development programs to: commercialize potential products or technologies that it might otherwise seek to develop
or commercialize independently; consider other various strategic alternatives, including another merger or sale of the Group; or
cease operations. If the Group engages in collaborations, it may receive lower consideration upon commercialization of such products
than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the product development
process.
The Group has prepared its financial
statements assuming that it will continue as a going concern, which contemplates realization of assets and the satisfaction of
liabilities in the normal course of business. The Group has incurred recurring losses from operations since inception. The Group
incurred a net loss of US$5,454,964 and US$28,587,624 for the years ended December 31, 2017 and 2018, respectively. Further as
of December 31, 2018, the Group had net current liabilities (current assets less current liabilities) of US$ 12,621,823 and accumulated
deficit of US$34,323,169. The Group's ability to continue as a going concern is dependent on its ability to raise capital
to fund its current research and development activities and future business plans. Additionally, volatility in the capital markets
and general economic conditions in the United States may be a significant obstacle to raising the required funds. These factors
raise substantial doubt about its ability to continue as a going concern. The financial statements included herein do not include
any adjustments that might be necessary should the Group be unable to continue as a going concern. If the going concern basis were
not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities,
the reported expenses and the balance sheet classifications used.
Operations of the Group are subject
to certain risks and uncertainties including various internal and external factors that will affect whether and when the Group's
product candidates become approved drugs and how significant their market share will be, some of which are outside of the Group's
control. The length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage
of the drug approval process will materially affect the Group's financial condition and future operations.
2.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis
of presentation
The consolidated financial statements
of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America
("U.S. GAAP"), and include the financial statements of Xynomic and its subsidiaries. All inter-company transactions
and balances have been eliminated upon consolidation.
(b)
Use
of estimates
The preparation of financial statements
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and expenses in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected
in the Company's consolidated financial statements include valuation of ordinary shares issued for share-based compensation,
the fair value of the ordinary shares to determine the existence of beneficial conversion feature of the redeemable convertible
preferred shares and recoverability of deferred tax assets. The current economic environment has increased the degree of uncertainty
inherent in these estimates and assumptions.
F-
31
(c)
Cash
Cash consists of cash on hand and cash in bank.
(d)
Financial
instruments
Financial instruments of the Group
primarily consist of cash and amount due to shareholders. The carrying values of the Group's financial instruments approximate
their fair values, principally because of the short-term maturity of these instruments or their terms.
(e)
Short-term
investments
For the year ended December 31,
2018, the Company invested US$4,447,904, in wealth management products issued by commercial banks in the PRC which are redeemed
upon demand of the Group. The Group earned investment income of US$16,541 on the wealth management products, which was included
in investment income in the consolidated statements of comprehensive loss for the year ended December 31, 2018. As of December
31, 2018, there were no balance in short-term investments.
(f)
Property
and equipment
Property and equipment are stated
at cost less accumulated depreciation and any recorded impairment. Depreciation on property and equipment is calculated on the
straight-line method over the following useful lives of the assets.
Electronic equipment
3 years
Leasehold improvement
The shorter of lease terms and estimated useful lives
Property and equipment at December
31, 2017 and 2018 consisted of the following:
As of December 31,
2017
2018
Leasehold improvement
$
-
$
276,838
Electronic equipment
-
4,379
Property and Equipment
$
-
$
281,217
Less: Accumulated depreciation
-
(487
)
Property and Equipment, net
$
-
$
280,730
Depreciation expenses were recorded
in general and administrative of US$505 for the year ended December 31, 2018.
F-
32
(g)
Intangible
assets
As of December 31, 2017
Weighted average amortization period
Gross carrying amount
Accumulated amortization
Net carrying amount
Years
USD
USD
USD
Intangible assets
5
2,044
(170
)
1,874
As of December 31, 2018
Weighted average amortization period
Gross carrying amount
Accumulated amortization
Net carrying amount
Years
USD
USD
USD
Intangible assets
5
2,705
(768
)
1,937
Intangible assets mainly consist
of externally purchased software which are amortized on a straight-line basis. The estimated useful life of the software is five
years. The Group has no intangible assets with indefinite lives.
Amortization expenses of US$170
and US$605 were recognized in general and administrative for the years ended December 31, 2017 and 2018, respectively. Estimated
amortization expenses of intangible assets for the years ending December 31, 2019, 2020, 2021 and 2022 are US$880, US$409, US$409
and US$239, respectively.
(h)
Impairment
of long-lived assets
The Group evaluates the recoverability
of long-lived assets, including property and equipment and intangible assets with finite useful lives, whenever events or changes
in circumstances indicate that a long-lived asset's carrying amount may not be recoverable. The Group measures the carrying
amount of long-lived asset (assets group) against the estimated undiscounted future cash flows associated with the asset (assets
group). Impairment exists when the sum of the undiscounted cash flows expected to be generated by that asset is less than the carrying
value of the asset (assets group) being evaluated. Impairment loss is calculated as the amount by which the carrying value of the
asset (assets group) exceeds its fair value. Fair value is estimated based on various techniques, including the discounted value
of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows
over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed
and estimated amounts.
For the years ended December 31,
2017 and 2018, no impairment loss for long-lived assets was recorded.
F-
33
(i)
Research
and development expenses
Elements of research and development
expenses primarily include (1) payroll and other related costs of personnel engaged in research and development activities, (2)
in-licensed patent rights fee of exclusive development rights of drugs granted to the Group, (3) costs related to preclinical testing
of the Group's technologies under development and clinical trials such as payments to contract research organizations ("CROs"),
(4) costs to develop the product candidates, including raw materials and supplies related expenses, such as payments to contract
manufacture organizations ("CMOs"), (5) other research and development expenses. Research and development expenses
are charged to expense as incurred when these expenditures relate to the Group's research and development services and have
no alternative future uses. The conditions enabling capitalization of development costs as an asset have not yet been met and,
therefore, all development expenditures are recognized in statements of comprehensive loss when incurred.
(j)
Income
taxes
Deferred income taxes are provided
using the asset and liability method. Under this method, deferred income taxes are recognized for net operating losses available
for carry-forwards and temporary differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax basis using enacted tax rates in effect for the years in which the differences are expected to reverse.
A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that
some portion of, or all of the deferred income tax assets will not be realized.
Income taxes are provided for in
accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. The impact of an uncertain
income tax position on the income tax return is recognized at the largest amount that is more-likely-than not to be sustained upon
audit of the related tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood
of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The
Group records interest and penalties related to unrecognized tax benefits (if any) in general and administrative expenses.
(k)
Loss
per share
Basic loss per ordinary share is
computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding
during the period.
Diluted loss per ordinary share
reflect the potential dilution that could occur if dilutive potential common shares were exercised or converted into ordinary shares.
The Group has convertible preferred shares which could potentially dilute basic loss per share. The dilutive effect of convertible
preferred shares is computed using the treasury stock method. Potential dilutive securities are not included in the calculation
of diluted loss per share if the impact is anti-dilutive.
(l)
Share-based
compensation
Awards granted to non-employees
The Group has accounted for equity
instruments issued to non-employees in accordance with the provisions of ASC 505, Equity-Based Payments to Non-Employees. All transactions
in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration
received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the
fair value of the equity instrument issued is the date on which the counterparty's performance is completed as there is no
associated performance commitment. The expense is recognized in the same manner as if the Group had paid cash for the services
provided by the nonemployees in accordance with ASC 505.
In 2017, the Group issued 3,000,010
ordinary shares for a cash consideration of US$300 to Bridge Pharm International Inc., for the financial advisory services in connection
with Series A-1 Preferred Shares issuance. The Group has accounted the difference between the consideration received and the fair
value of these ordinary shares as redeemable convertible preferred share issuance cost, which was recorded as a reduction of the
carrying amount of the redeemable convertible preferred shares.
F-
34
(m)
Fair
value
Fair value is the price that would
be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded
at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions
that market participants would use when pricing the asset or liability.
Fair value hierarchy prioritizes
the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which
the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value
measurement as follows:
●
Level
1-inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets.
●
Level
2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar assets
or liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable
in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
●
Level
3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants
would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques.
The carrying amounts of cash and
amount due to shareholders as of December 31, 2017 and 2018 approximate fair value because of the short maturity of these instruments.
(n)
Commitments
and contingencies
In the normal course of business,
the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide
range of matters, including, among others, government investigations, lawsuits, and non-income tax matters. An accrual for a loss
contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.
If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then
the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is
disclosed.
(o)
Segment
reporting
In accordance with ASC 280, Segment
Reporting, the Group's chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when
making decisions about allocating resources and assessing performance of the Group as a whole and hence, the Group has only one
reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. The geographic
information of the Group's long-lived assets is as following.
As of December 31,
2017
2018
PRC
$
-
$
281,201
United States
1,874
1,466
Total long-lived assets
$
1,874
$
282,667
F-
35
(p)
Concentration
and risk
Concentration of suppliers
The following suppliers for the Group's research
and development activities accounted for 10% or more of research and development expenses for the years ended December 31, 2017
and 2018:
For the Year Ended
December 31,
2017
2018
USD
%
USD
%
Supplier A
*
*
11,278,667
45
%
Supplier B
*
*
4,601,128
18
%
Supplier C
3,500,000
81
%
3,500,000
14
%
*
Represents
less than 10% of research and development expenses for the years ended December 31, 2017 and 2018.
Concentration of license agreements
The Group's most advanced
drug candidates in its pipeline are in-licensed as disclosed in Note 12.
(q)
Recently
issued accounting pronouncements not yet adopted
In February 2016, the FASB issued
ASU No. 2016-02 ("ASU 2016-02"),
Leases
. ASU 2016-02 specifies the accounting for leases. For operating leases,
ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value
of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so
that the cost of the lease is allocated over the lease term, on a generally straight-line basis. ASU 2016-02 is effective for public
companies for annual reporting periods, and interim periods within those years beginning after December 15, 2018. For all other
entities, it is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning
after December 15, 2020. Early adoption is permitted. Management does not plan to early adopt ASU 2016-02 and is currently evaluating
the impact of adopting ASU 2016-02 on its consolidated financial statements.
In August 2016, the FASB issued
ASU No. 2016-15,
Classification of Certain Cash Receipts and Cash Payments
("ASU 2016-15"), which addressed
and provided guidance for each of eight specific cash flow issues with the objective of reducing the existing diversity in practice.
This standard is be effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within
those fiscal years. For all other entities, the amendments in ASU No. 2016-15 are effective for fiscal years beginning after December
15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. Management does
not plan to early adopt ASU 2016-15 and do not believe that the adoption of this guidance will have a material effect on the consolidated
financial statements.
In June 2018, the FASB issued
ASU No. 2018-07,
Compensation-Stock Compensation (Topic 718)
- Improvements to Nonemployee Share-Based Payment Accounting
("ASU 2018-07"). The amendments in ASU 2018-07 expand the scope of Topic 718 to include share-based payment transactions
for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards
except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over
which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic
718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's
own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based
payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services
to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. ASU 2018-07 is effective
for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year.
For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within
fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity's adoption date
of Topic 606. The management is currently evaluating the impact of adopting ASU 2018-07 on its consolidated financial statements.
In August 2018, the FASB issued
ASU No. 2018-13,
Fair Value Measurement (Topic 820)
: Disclosure Framework-Changes to the Disclosure Requirements for Fair
Value Measurement (ASU 2018-13) ("ASU 2018-13"). ASU 2018-13 modifies certain disclosure requirements on fair value
measurements, including (i) clarifying narrative disclosure regarding measurement uncertainty from the use of unobservable inputs,
if those inputs reasonably could have been different as of the reporting date, (ii) adding certain quantitative disclosures, including
(a) changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value
measurements held at the end of the reporting period and (b) the range and weighted average of significant unobservable inputs
used to develop Level 3 fair value measurements, and (iii) removing certain fair value measurement disclosure requirements, including
(a) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (b) the policy for timing
of transfers between levels of the fair value hierarchy and (c) the valuation processes for Level 3 fair value measurements. The
amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning
after December 15, 2019. The Company is permitted to early adopt any removed or modified disclosures and delay adoption of the
additional disclosures until their effective date. Management does not plan to early adopt this guidance and is currently evaluating
the impact of adopting ASU No. 2018-13 on its consolidated financial statements.
F-
36
3.
CASH
The Group's cash is deposited in financial institutions
at below locations:
As of December 31,
2017
2018
Financial institutions in the mainland of the PRC
—Denominated in RMB
$
-
$
523
Financial institutions in the United States
—Denominated in USD
$
100,344
$
4,745,847
Total cash balances held at financial institutions
$
100,344
$
4,746,370
4.
INCOME
TAXES
United States
Xynomic, which was incorporated
on August 24, 2016, in Wyoming and was redomesticated to Delaware on April 3, 2018, is subject to statutory U.S. Federal corporate
income tax at a rate of 35% for the year ended December 31, 2017.
On December 22, 2017, the Tax
Cuts and Job Act (the "Tax Act") was enacted into law which reduced the U.S. Federal statutory income tax rate from
35% to 21%, effective from January 1, 2018.
People's Republic
of China
Xynomic Nanjing, Xynomic Shanghai
and Xynomic Zhongshan are all incorporated in the PRC and are subject to the statutory tax rate of 25% in accordance with the PRC
Enterprise Income Tax Law ("EIT Law").
The components of loss before income taxes
are as follows:
For the year ended
December 31,
2017
2018
U.S.
$
(5,454,964
)
$
(27,038,779
)
PRC
-
(1,548,845
)
Total
$
(5,454,964
)
$
(28,587,624
)
F-
37
The actual income tax benefit
reported in the consolidated statements of comprehensive loss differs from the respective amount computed by applying the U.S.
Federal statutory income tax rate of 35% for the year ended December 31, 2017 and 21% for the year ended December 31, 2018 due
to the following:
For the year ended
December 31,
2017
2018
Computed "expected" income tax benefit
$
1,909,237
$
6,003,401
Non-deductible expenses
Entertainment
(1,300
)
(498
)
M&A expenses
-
(296,097
)
Tax rate differential
-
61,881
Research and development credit adjustment
-
425,478
Increase in valuation allowance
(1,144,634
)
(6,194,165
)
Impact of change in statutory tax rate
(763,303
)
-
Actual income tax benefit
$
-
$
-
The tax effects of the Group's
temporary differences that give rise to significant portions of the deferred income tax assets are as follows:
As of December 31,
2017
2018
Deferred income tax assets:
Tax loss carryforwards
$
1,144,955
$
6,760,111
Research and development credit carryforwards
-
538,580
Advertising cost
-
26,578
Less: valuation allowance
(1,144,955
)
(7,325,269
)
Total deferred income tax assets, net
$
-
$
-
The movements of the valuation allowance are as follows:
For the year ended December 31,
2017
2018
Balance at the beginning of the year
$
321
$
1,144,955
Additions
1,144,634
6,194,165
Foreign currency translation adjustment
-
(13,851
)
Balance at the end of the year
$
1,144,955
$
7,325,269
As of December 31, 2017 and 2018,
the valuation allowance of US$1,144,955 and US$7,325,269 were related to the deferred income tax assets of Xynomic and its subsidiaries,
which were all in loss positions. As of December 31, 2017 and 2018, management believes it is more likely than not that the Group
will not realize the deferred income tax assets, net of the valuation allowance. As of December 31, 2018, US$1,436,758 of tax loss
carryforwards will expire by December 31, 2023, if not used. The Company also has research and development credit carryforwards
of approximately $538,580 as of December 31, 2018 that will expire by December 31, 2038.
The Company and each of its PRC
subsidiaries file income tax returns in the United States and the PRC, respectively. The Company is subject to U.S. federal income
tax examination by tax authorities for tax years from 2016. According to the PRC Tax Administration and Collection Law, the statute
of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding
agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more
than RMB100,000. In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation
in the case of tax evasion. The income tax returns of the Company's PRC subsidiaries for the years from 2017 are open to
examination by the PRC tax authorities.
F-
38
5.
PREPAID
EXPENSES
Prepaid expenses consist of the
following:
As of December 31,
2017
2018
Prepaid research and development expenses
$
-
$
207,988
Prepaid rental expenses
-
66,371
Prepaid professional fee
20,020
-
Others
1,102
3,391
Total prepaid expenses
$
21,122
$
277,750
6.
OTHER
NON-CURRENT ASSETS
Other non-current assets consist
of the following:
As of December 31,
2017
2018
VAT input tax
$
-
$
52,762
Prepaid insurance
-
93,075
Deposits
-
9,339
Total other non-current assets
$
-
$
155,176
7
ACCRUED
EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities
consist of the following:
As of December 31,
2017
2018
Research and development expense-Contract Research Organizations
$
112,060
$
10,304,750
Research and development expense-Contract Manufacture Organizations
37,706
1,874,956
License fee payable
-
1,000,000
Professional fee
60,668
824,360
Payroll and social insurance
19,548
147,692
Payable for leasehold improvement
-
110,736
Others
-
144,767
Total accrued expenses and other current liabilities
$
229,982
$
14,407,261
F-
39
8.
CONVERTIBLE
NOTES
On March 26, 2018, the Company
entered a convertible promissory note agreement (the "2018 Convertible Notes") with Northern Light Venture Capital
V, Ltd., and Bo Tan (collectively "2018 Convertible Notes Holders") to obtain a loan of US$2,500,000 with a term of
one hundred and eighty-three (183) days. On April 3, 2018, the convertible notes were issued and the Company received proceeds
of US$2,500,000.
The 2018 Convertible Notes automatically
convert into the Company's preferred shares upon the next financing closing. No interest shall accrue on the outstanding
principal amount of the 2018 Convertible Notes. The issuance of the preferred shares of the Company pursuant to the conversion
of the 2018 Convertible Notes shall be subject to the same terms and conditions applicable to the preferred shares of the Company
sold in the next financing.
In August 2018, the 2018 Convertible
Notes were converted into 776,633 Series B Preferred Shares.
9.
REDEEMABLE
CONVERTIBLE PREFERRED SHARES
Redeemable convertible preferred shares consist of
the following:
Angel Preferred Shares
Series A-1 Preferred Shares
Series B Preferred Shares
Balance as of January 1, 2017
-
-
-
Issuance for cash
$
500,000
$
4,300,000
$
-
Issuance cost
-
(989,703
)
-
Redemption value accretion
37,274
1,232,092
-
Balance as of December 31, 2017
537,274
4,542,389
-
Issuance
-
-
17,000,000
Discount due to beneficial conversion feature
-
-
(17,000,000
)
Redemption value accretion
42,982
363,391
2,424,712
Balance as of December 31, 2018
$
580,256
$
4,905,780
$
2,424,712
Angel Preferred Shares and Series A-1
Preferred Shares
In January, 2017, 24,435,379
Redeemable Convertible Angel Preferred Shares ("Angel Preferred Shares") were issued to the founder of the Company,
Yinglin Mark Xu, for consideration of US$500,000.
In February, 2017, the Company
entered into a Preferred Share Purchase Agreement ("SPA") with certain investors, pursuant to which 12,147,500 Redeemable
Convertible Series A-1 Preferred Shares ("Series A-1 Preferred Shares") were issued for consideration of US$4,300,000.
The Group has classified the
Angel Preferred Shares and the Series A-1 Preferred Shares (collectively "Preferred Shares") as mezzanine equity in
the consolidated balance sheets since they are contingently redeemable at the option of the holders or upon the occurrence of an
event that is not solely within the control of the Group.
The Group has determined that
conversion and redemption features embedded in the Preferred Shares are not required to be bifurcated and accounted for as a derivative,
as the economic characteristics and risks of the embedded conversion and redemption features are clearly and closely related to
that of the Preferred Shares. The Preferred Shares are not readily convertible into cash as there is not a market mechanism in
place for trading of the Group's shares.
F-
40
The Group has determined that
there was no beneficial conversion feature attributable to any of the Preferred Shares because the initial effective conversion
prices of these Preferred Shares were higher than the fair value of the Group's ordinary shares at the relevant commitment
dates.
In addition, the carrying values
of the Preferred Shares are accreted from the share issuance dates to the redemption value on the earliest redemption dates. The
accretions are recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in
capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit.
The rights, preferences and privileges
of the Preferred Shares are as follows:
Redemption Rights
Each holder of the outstanding
Preferred Shares may require that the Company redeem all or part of the Preferred Shares held by such holder, if (a) the Company
is unable to obtain exclusive global rights of Abexinostat from AbbVie Inc. (or from Pharmacyclics LLC) by April 30, 2017; (b)
there is any material breach by any of the Group or by any direct or indirect owners of the ordinary shares of any of their representations,
warranties, covenants or other obligations, and such breach has not been cured by the breach party to the satisfaction of such
preferred shareholder and the losses (if any) of such preferred shareholder resulting from such breach has not been indemnified
within thirty days after receipt of notice from such preferred shareholder; (c) any other class or series of equity securities
of the Group becomes redeemable; or (d) the date that any material adverse change in the regulatory environment that will cause
the structure of the Group to be in contravention with any applicable laws.
The redemption value is an amount
equal to 100% of the Preferred Shares plus 8% compound interest per annum and accrued but unpaid dividends. The Group recognizes
the redemption value by using redemption price of US$500,000 and US$4,300,000 respectively plus 8% compound interest for the period
from the date on which the Group receives the preferred shares issuance price to each balance sheet date and accretes changes in
the redemption value. Changes in the redemption value are considered to be changes in accounting estimates.
Conversion Right
Each Preferred Share is convertible,
at the option of the holder, at any time after the date of issuance of such Preferred Shares according to a conversion ratio, subject
to adjustments for dilution, including but not limited to share splits, share combination, share dividends and distribution and
certain other events. Each Preferred Share is convertible into a number of ordinary shares determined by dividing the applicable
original issuance price by the conversion price. As of December 31, 2017 and 2018, the conversion price of each Preferred Share
is the same as its original issuance price, no adjustments to conversion price have occurred, and each Preferred Share is convertible
into one ordinary share.
Each Preferred Share shall automatically
be converted into ordinary shares, at the then applicable preferred share conversion price upon (i) Qualified M&A or Qualified
Initial Public Offering ("Qualified IPO") or (ii) written consent of the holders of at least 20% of the voting power
of then outstanding Preferred Shares.
Dividends rights
Preferred Shares holders are
entitled to receive dividends at the rate of 8% of the original issuance price. The Company is not obliged to pay such dividends
to Preferred Shares holders until a liquidation, winding up or a deemed liquidation event of the Company takes place. The deemed
liquidation event represents any sale of shares, merger, consolidation or other similar transaction involving the Group in which
its shareholders do not retain a majority of the voting power in the surviving the Company, the exclusive, irrevocable licensing
of all or substantially all the Group's intellectual property to a third party, or a sales of all or substantially all the
Group's assets.
F-
41
Liquidation Rights
At the time of the liquidation,
dissolution or winding up (as the case may be), the holder(s) of the Preferred Shares shall be entitled to receive in preference
to the holders of ordinary Shares, a liquidation preference per Preferred Share equivalent to 1.4 times the sum of the original
issuance price and any accrued and unpaid dividends.
Series B Preferred Shares
On June 4, 2018, the Company
entered into a share purchase agreement with certain investors, pursuant to which a total of 5,281,101 Redeemable Convertible Series
B Preferred Shares ("Series B Preferred Shares") were to be issued for an aggregated cash consideration of US$17,000,000.
On August 16, 2018, the Series B Preferred Shares were issued and US$17,000,000 was received, including the conversion of convertible
notes of US$2.5 million (Note 8).
The rights, preferences and privileges
of the Series B Preferred Shares are as follows:
Redemption Rights
Unless prohibited by Delaware
law governing distributions to stockholders, at any time after the earlier of (i) the fifth anniversary of the Series B Preferred
Shares original issue date; (ii) occurrence of any material breach of any transaction documents by the corporation or the founder
or (iii) the redemption request by the holder of Series A-1 Preferred Shares, each share of Series B Preferred Shares shall be
redeemable at the option of each holder of the Series B Preferred Stock, out of funds legally available therefor, at a redemption
price per share that equals the sum of (A) 100% of the original issue price per share for Series B Preferred Shares, (B) an amount
that would accrue on the original issue price for Series B Preferred Shares at a rate of 12% per annum, for each year such Series
B Preferred Shares was outstanding measured from the Series B original issue date, and (C) all the accrued but unpaid dividends
on such Series B Preferred Shares.
Conversion Right
Each preferred share is convertible,
at the option of the holder, at any time after the date of issuance of such preferred shares according to a conversion ratio, subject
to adjustments for dilution, including but not limited to share splits, share combination, share dividends and distribution and
certain other events. Each preferred share is convertible into a number of ordinary shares determined by dividing the applicable
original issuance price by the conversion price. The conversion price of each preferred share is the same as its original issuance
price and no adjustments to conversion price have occurred, and each Series B Preferred Share is convertible into one ordinary
share.
Each preferred share shall automatically
be converted into ordinary shares, at the then applicable preferred share conversion price upon (a) the closing of the sale of
shares of Common Stock to the public at a pre-offering valuation of at least $400,000,000, in a Qualified Initial Public Offering
("Qualified IPO"), or (b) (ii) written consent of the holders of at least 66% of the voting power of then outstanding
preferred shares.
Dividends rights
Preferred shares holders are
entitled to receive dividends at the rate of 6% of the original issue price. The Company is not obliged to pay such dividends to
preferred shares holders until a liquidation, winding up or a deemed liquidation event of the Company takes place. The deemed liquidation
event represents any sale of shares, merger, consolidation or other similar transaction involving the Group in which its shareholders
do not retain a majority of the voting power in the surviving the Company, the exclusive, irrevocable licensing of all or substantially
all the Group's intellectual property to a third party, or a sale of all or substantially all the Group's assets.
F-
42
Liquidation Rights
At the time of the liquidation,
dissolution or winding up, the holders of the preferred shares shall be entitled to receive in preference to the holders of ordinary
shares, a liquidation preference per preferred share equivalent to 1.4 times the sum of the original issuance price and any accrued
and unpaid dividends.
The Group has classified the
Series B Preferred Shares as mezzanine equity in the consolidated balance sheets since they are contingently redeemable at the
option of the holders or upon the occurrence of an event that is not solely within the control of the Group.
The Group has determined that
there was a beneficial conversion feature attributable to Series B Preferred Shares, as the initial effective conversion price
of the Series B Preferred Shares (US$3.22 per share) was lower than the fair value of the ordinary shares at the commitment date
(US$8.70 per share). The intrinsic value of the beneficial conversion feature, US$28,940,433, was greater than the proceeds allocated
to the Series B Preferred Shares, US$17,000,000. The amount of the discount assigned to the beneficial conversion feature is limited
to the amount of the proceeds allocated to the Series B Preferred Shares, which was US$17,000,000. The intrinsic value of the beneficial
conversion feature was recorded as additional paid-in capital with a corresponding discount against Series B Preferred Shares issued,
which resulted in an initial carrying amount of zero.
The Group accretes changes in
the redemption value over the period from the date of issuance to the earliest redemption date of the security using the interest
method. As the initial carrying amount of Series B Preferred Shares is zero, the Group amortizes the discount using the straight-line
method. The accretion is recorded against retained earnings, or in the absence of retained earnings, by charges against additional
paid-in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated
deficit.
10.
ORDINARY
SHARES
In January 2017, the Company
issued 6,617,111 ordinary shares at par value of US$0.0001 to two founders of the Company for a consideration of US$662.
In connection with Series A-1
Preferred Shares issuance, 3,000,010 ordinary shares were issued to Bridge Pharm International Inc., ("Bridge Pharm")
for consideration of US$300 for its financial advisory service for the fund raising. The difference between the fair value of the
ordinary shares of US$990,003 and the consideration paid of US$300 was treated as issuance cost and recorded as a reduction of
the proceeds from the Series A-1 Preferred Shares.
11.
LOSS
PER SHARE
Basic and diluted net loss per share are calculated
as follow:
For the year ended
December 31,
2017
2018
Numerator:
Net loss attributable to ordinary shareholders
$
6,724,330
$
31,418,709
Denominator:
Weighted average number of ordinary shares-basic and diluted
8,826,673
9,617,121
Net loss per share-basic and diluted
$
0.76
$
3.27
When the dividends to preferred
shares are not fully paid, the ordinary shares holders shall not participate in undistributed earnings. If all dividends to preferred
shares holders are fully paid, the holders of the preferred shares and the holders of the ordinary shares participate in undistributed
earnings on a pro rata basis, as if the preferred shares had been converted into ordinary shares.
F-
43
As a result of the Group's
net loss for the years ended December 31, 2017 and 2018, preferred shares outstanding in the respective years were excluded from
the calculation of diluted loss per share as their inclusion would have been anti-dilutive.
For the year ended
December 31,
2017
2018
Number of Angel Preferred Shares outstanding
23,435,379
23,435,379
Number of Series A-1 Preferred Shares outstanding
12,147,500
12,147,500
Number of Series B Preferred Shares outstanding
-
5,281,101
12.
LICENSES
ARRANGEMENT
License agreement with Pharmacyclics LLC ("Pharmacyclics")
In February 2017, the Group entered
into a license agreement with Pharmacyclics, under which the Group obtained an exclusive and worldwide license or sublicense under
certain patents and know-how of Pharmacyclics to develop, manufacture and commercialize Pharmacyclics's HDAC inhibitor, also
known as Abexinostat, for all human and non-human diagnostic, prophylactic, and therapeutic uses.
Under the terms of the agreement,
the Group made upfront payments of US$3.5 million in 2017 and 1
st
milestone payment of US$3.5 million in 2018 to Pharmacyclics
which were recorded as research and development expenses in 2017 and 2018, respectively. In addition, the Group is obligated to
pay the following development and regulatory milestone payments: 1) 2
nd
milestone payment of US$6,500,000 upon regulatory
approval for the first indication for a licensed product in China or in the United States; 2) 3rd milestone payment of US$4,000,000
upon regulatory approval for the second indication for a licensed product in China or in the United States.
In addition, the Group will pay
to Pharmacyclics royalties at a flat high-teen percentage rate on the net sales of the licensed products. The Group shall have
no obligation to pay any royalty with respect to net sales of any licensed product in any country or other jurisdiction after the
royalty term for such licensed product in such country or other jurisdiction has expired.
The license agreement with Pharmacyclics
will remain in effect until the expiration of the royalty term and may be early terminated by either party for the other party's
uncured material breach, bankruptcy, insolvency, or similar event. Pharmacyclics has the right to terminate the agreement if the
Group challenge Pharmacyclics' patents or fails its diligent obligations to develop or commercialize the licensed product
pursuant to the license agreement with Pharmacyclics. In addition, the Group may terminate this agreement for convenience with
advance written notice to Pharmacyclics. In the event this license agreement is terminated for any reason other than Pharmacyclics'
material breach, the Group will be responsible for continuing, at its cost for up to six months, to conduct clinical studies it
conducts at the termination and transfer the control of the clinical studies to Pharmacyclics. If such transfer is expressly prohibited
by a regulatory authority, the Group will continue to conduct such clinical studies to completion, at the Group's cost.
Patent assignment and licensing agreement with
Boehringer Ingelheim International GMBH ("BII")
In August 2017, the Group entered
into a Patent assignment and licensing agreement with BII, under which the Group accepts the assignment and transfer of the patents
and know-how of BII to exclusively develop, manufacture and commercialize BII's Pan-RAF Inhibitor BI 882370, also known as
Dabrafenib, for the diagnosis, prevention or treatment of any and all diseases or conditions in humans or animals. BII retains
the exclusive right to use the licensed compound to conduct internal preclinical research.
F-
44
Under the terms of the agreement,
the Group made upfront payments to BII totaling US$0.3 million which was recorded as a research and development expense in 2017.
In addition, the Group is obligated to pay the following development and regulatory milestone payments: 1) 1
st
milestone
payment of US$ 1,700,000 upon first dosing of a patient in Phase I Clinical Trial in the US or China; 2) 2
nd
milestone
payment of US$ 4,000,000 upon first dosing of a patient in a pivotal Phase III Clinical Trial in the first indication in the US
or China; 3) 3
rd
milestone payment of US$2,000,000 upon first dosing of a patient in a pivotal Phase III Clinical Trial
in a second indication in the US or China; 4) 4
th
milestone payment of US$ 7,000,000 upon the grant of the first marketing
authorization of the first indication in the US; 5) 5
th
milestone payment of US$3,000,000 upon the grant of the first
marketing authorization of the first indication in China.
In addition, the Group will pay
royalties at a certain percentage of the net sales. The royalty term commences from the first commercial sale of such licensed
product in such country until the later of (i) the date on which such licensed product is no longer covered by a valid claim of
the assigned patents and assigned invention, (ii) the expiration of regulatory exclusivity of the licensed product in such country,
or (iii) the tenth anniversary of the first launch of the respective licensed product in the country, provided the licensed know-how
is still proprietary, or such licensed know-how is no longer proprietary owing to a breach of its confidentiality obligations.
The Group has the right to terminate
this agreement by providing BII with written notice.
License agreement with BII
(XP-105)
In December 2018, Xynomic entered
into a license agreement with BII for the worldwide exclusive rights to develop and commercialize XP-105 (also known as BI 860585)
for all human and non-human diagnostic, prophylactic, and therapeutic uses.
Under the terms of the agreement,
as of December 31, 2018 the Group was obligated to make upfront payments to BII totaling US$1 million which was recorded as a research
and development expense for the year ended December 31, 2018 and was included in accrued expenses and other current liabilities
as of December 31, 2018. In addition, the Group is obligated to pay the following development and regulatory milestone payments:
1) 1
st
milestone payment of US$7,000,000 upon first dosing of a patient in Phase II or Phase III Clinical Trial in the
first indication either of which is intended to be a pivotal trial; 2) 2
nd
milestone payment of US$10,000,000 upon the
grant of the first Marketing Authorization of the first indication.
In addition, the Group will pay
royalties at a certain percentage of the net sales. The royalty term commences from the first commercial sale of such licensed
product in such country until the later of (i) the date on which such licensed product is no longer covered by a valid claim of
the licensed patents, (ii) the expiration of regulatory exclusivity of the licensed product in such country, or (iii) the tenth
anniversary of the first launch of the respective licensed product in the country in the indication, provided the licensed know-how
is still proprietary, or such licensed know-how is no longer proprietary owing to a breach of its confidentiality obligations.
The Group has the right to terminate
this agreement by providing BII with written notice.
F-
45
13.
COMMITMENTS
AND CONTINGENCIES
(a)
Lease
commitments
The Group entered into non-cancelable
operating leases, primarily for office space, for initial terms of 12 to 36 months. Minimum rent payments under operating leases
are recognized on a straight-line basis over the term of the lease.
Future minimum lease payments
under non-cancelable operating leases with remaining lease terms in excess of one year as of December 31, 2018 are:
Minimum
Lease Payment
Amount
Year ending December 31:
2019
$
184,844
2020
228,774
2021
197,551
2022
41,237
$
652,406
Rental expenses for operating
leases for the years ended December 31, 2017 and 2018 were nil and US$139,043, respectively.
(b)
Other
commitments
The Group is a party to or assignee
of license and collaboration agreements that may require it to make future payments relating to milestone fees and royalties on
future sales of licensed products (Note 12).
14.
RELATED
PARTY TRANSACTIONS
(a)
Amount
due to shareholders
i)
Payable
due to a shareholder
For the years ended December 31,
2017 and 2018, Yinglin Mark XU, the founder and CEO of the Company, advanced US$630,585 and US$1,407,054, respectively, to the
Company to fund its operation. As of December 31, 2017 and 2018, the amount due to Yinglin Mark XU was US$630,903 and US$2,008,936,
respectively.
ii)
Services
purchased from a company affiliated with a shareholder
Eigenbridge, Inc., a company affiliated
with Yong Cui, one of the Company's shareholders and Vice President of Chemistry, Manufacturing and Controls, entered into
a contractor agreement with the Company on February 26, 2017. Pursuant to the agreement, Eigenbridge, Inc., provided specialized
advisory services to the Company. The Company recognized general and administrative of US$69,960 and US$246,092 for the year ended
December 31, 2017 and 2018, respectively. The amount due to Eigenbridge, Inc., were nil and US$80,640 as of December 31, 2017 and
2018, respectively.
F-
46
iii)
Advances
from and interest payable to a shareholder
On May 2, 2018, as one of the potential
investors of Series B financing, Zhongshan Bison Healthcare Investment Limited (Limited Partnership) ("Zhongshan Bison")
entered into a loan agreement with Xynomic Pharmaceuticals (Nanjing) Co., Ltd. ("Xynomic Nanjing"). On May 13, 2018,
Zhongshan Bison made an advance of RMB9,435,000 (equivalent to US$1,425,959) to fund the operations and business development of
Xynomic Nanjing. Zhongshan Bison is entitled to withdraw the advance within 5 business days after Zhongshan Bison paid the first
investment of Series B financing, or if current shareholders and investors fail to subscribe shares of the Series B financing within
6 months.
On August 16, 2018, Zhongshan Bison
became one of the Series B Preferred Shareholders.
On August 23, 2018, Xynomic Nanjing
entered into a termination agreement for the advance from Zhongshan Bison. Xynomic Nanjing is required to a) repay RMB1,800,000
of the advance from Zhongshan Bison within 2 days after signing the agreement; and b) repay the remaining RMB7,635,000 of the advance
from Zhongshan Bison and interest accrued at annual interest rate of 8% from signing the agreement within six months from the date
of the termination agreement.
On August 23, 2018, Xynomic Nanjing
repaid RMB1,800,000 (equivalent to US$262,743) of the advance from Zhongshan Bison. As of December 31, 2017 and 2018, the advance
from Zhongshan Bison was nil and US$1,112,455, respectively.
On January 21, 2019, Xynomic Nanjing
repaid RMB5,064,000 (equivalent to US$747,189) of the advance from Zhongshan Bison. On February 20, 2019, Zhongshan Bison agreed
to extend the due date of the remaining advance of RMB2,571,000 (US$ 380,562) and all accrued interest to April 15, 2019.
Xynomic Nanjing accrued interest
expense of US$32,874 for the advance from Zhongshan Bison for the year ended December 31, 2018. The interest payable to Zhongshan
Bison was US$31,697 as of December 31, 2018.
(b)
Short-term
loan from a company affiliated with a shareholder
In April 2018, Xynomic Nanjing entered into a short-term loan agreement with Shanghai Jingshu Venture
Capital Center ("Shanghai Jingshu"), one of the potential investors of Series B financing and an entity affiliated
with Infinite Fortune Limited, one of the Company's shareholders, to obtain an interest-free loan of RMB6,000,000 (equivalent
to US$906,810) to fund its operations and business development before receiving the investment of Series B financing. The Company
is required to return the short-term loan within the earliest of (a) 183 days; or (b) 20 business days after receiving the Shanghai
Jingshu's investment consideration for Series B Preferred Shares. In August 2018, Xynomic Nanjing fully repaid the loan.
(c)
Service
purchased from a shareholder
In June 2017, the Group paid
US$295,021 to Bridge Pharm International Inc., one of the Company's shareholders, pursuant to 20 months services agreement.
Under the agreement, Bridge Pharm International Inc. provides consulting service, including business development, screening and
selection of contract research organizations and contract manufacturing organizations and scouting and references of key scientific
and managerial personnel to the Group. The Company recognized general and administrative of US$178,777 and US$116,244 for the years
ended December 31, 2017 and 2018, respectively. The prepaid expenses to Bridge Pharm International Inc. was US$116,244 and nil
as of December 31, 2017 and 2018, respectively.
15.
SUBSEQUENT
EVENT
The Group has considered subsequent
events through April 3, 2019, which was the date these consolidated financial statements were available to be issued.
On March 3, 2019, the Group signed
a commitment letter with BCAC. For the stockholders of BCAC, who did not exercise their rights to redeem their shares in BCAC after
the special shareholder meeting on March 21, 2019, the Group agreed to contribute to BCAC as a loan of $0.02 per month per BCAC's
share until the Extended Termination Date.
F-
47
XYNOMIC
PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED
BALANCE
SHEETS
(I
n
U.S. dollars, except share data
)
As of December 31,
As of
March 31,
Note
2018
2019
(Unaudited)
ASSETS
Current assets:
Cash
2
$
4,746,370
$
1,049,561
Prepaid expenses
4
277,750
98,874
Total current assets
5,024,120
1,148,435
Property and equipment, net
5
280,730
486,363
Intangible assets, net
1,937
1,701
Other non-current assets
6
155,176
175,035
TOTAL ASSETS
$
5,461,963
$
1,811,534
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
Current liabilities:
Bank overdraft
$
4,954
$
6,040
Accrued expenses and other current liabilities
7
14,407,261
17,615,282
Amount due to shareholders
12
3,233,728
2,872,456
Total current liabilities
17,645,943
20,493,778
Total liabilities
17,645,943
20,493,778
Commitments and Contingencies
11
Mezzanine equity:
Angel Preferred Shares (par value US$0.0001 per share as of December 31, 2018 and March 31, 2019; 23,435,379 shares authorized, issued and outstanding as of December 31, 2018 and March 31, 2019. Redemption value of US$580,256 and US$591,373 as of December 31, 2018 and March 31,2019; Liquidation value of US$811,332 and US$826,875 as of December 31, 2018 and March 31, 2019)
8
580,256
591,373
Series A-1 Preferred Shares (par value US$0.0001 per share as of December 31, 2018 and March 31, 2019; 12,147,500 shares authorized, issued and outstanding as of December 31, 2018 and March 31, 2019. Redemption value of US$4,905,780 and US$4,999,764 as of December 31, 2018 and March 31, 2019; Liquidation value of US$6,964,223 and US$7,097,643 as of December 31, 2018 and March 31, 2019)
8
4,905,780
4,999,764
Series B Preferred Shares (par value US$0.0001 per share as of December 31, 2018 and March 31, 2019; 5,281,101 shares authorized, 5,281,101 shares issued and outstanding as of December 31, 2018 and March 31, 2019. Redemption value of US$2,424,712 and US$4,017,589 as of December 31, 2018 and March 31, 2019; Liquidation value of US$24,335,989 and US$24,678,294 as of December 31, 2018 and March 31, 2019)
8
2,424,712
4,017,589
Total mezzanine equity
7,910,748
9,608,726
Shareholders' deficit:
Ordinary shares (par value US$0.0001 per share as of December 31, 2018 and March 31, 2019; 149,617,121 shares authorized, 9,617,121 shares issued and outstanding as of December 31, 2018 and March 31, 2019)
962
962
Additional paid-in capital
14,168,915
20,154,219
Accumulated other comprehensive income
58,564
21,573
Accumulated deficit
(34,323,169
)
(48,467,724
)
Total shareholders' deficit
(20,094,728
)
(28,290,970
)
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
$
5,461,963
$
1,811,534
The accompanying notes are an integral
part of these unaudited condensed consolidated financial statements.
F-
48
XYNOMIC
PHARMACEUTICALS, INC.
UNAUDITED CONDENSED CONSOLIDATED
statements
of COMPREHENSIVE lOSS
(I
n
U.S. dollars, except share data
)
Note
Three Months Ended
March 31,
2018
2019
Operating expenses:
Research and development
$
466,402
$
5,324,310
General and administrative
103,475
8,779,249
General and administrative to related parties
12
49,053
25,908
Total operating expenses
618,930
14,129,467
Loss from operations
618,930
14,129,467
Interest expenses to a related party
12
-
15,088
Loss from operations before income tax benefit
618,930
14,144,555
Income tax
3
-
-
Net loss
618,930
14,144,555
Accretion to preferred share redemption value
97,316
1,697,978
Net loss attributable to ordinary shareholders
716,246
15,842,533
Other comprehensive loss:
Foreign currency translation adjustment, net of nil income taxes
-
36,991
Total other comprehensive loss
-
36,991
Comprehensive loss attributable to ordinary shareholders
716,246
15,879,524
Weighted average ordinary shares outstanding – basic and diluted
9,617,121
9,617,121
Loss per share - basic and diluted
9
0.07
1.65
The accompanying notes are an integral
part of these unaudited condensed consolidated financial statements.
F-
49
XYNOMIC
PHARMACEUTICALS, INC.
UNAUDITED CONDENSED CONSOLIDATED
statements
of cash flows
(I
n
U.S. dollars
)
Three Months Ended
March 31,
2018
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(618,930
)
$
(14,144,555
)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation
-
7,683,282
Amortization
102
246
Depreciation
-
23,981
Changes in operating assets and liabilities:
Prepaid expenses
3,411
184,144
Prepaid expenses to a shareholder
47,490
-
Other non-current assets
-
(18,325
)
Accrued expenses and other payables
16,417
3,068,190
Amount due to shareholders
-
(65,552
)
Net cash used in operating activities
(551,510
)
(3,268,589
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
-
(92,367
)
Net cash used in investing activities
-
(92,367
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft
(31,288
)
1,086
Repayment of advance from a Series B shareholder
-
(747,189
)
Advance from a shareholder
498,222
412,961
Net cash provided by/(used in) financing activities
466,934
(333,142
)
Effect of foreign exchange rate changes on cash
-
(2,711
)
NET DECREASE IN CASH
(84,576
)
(3,696,809
)
CASH, BEGINNING OF THE PERIOD
100,344
4,746,370
CASH, END OF THE PERIOD
$
15,768
$
1,049,561
SUPPLEMENTAL INFORMATION
Interest paid
-
-
Income tax paid
-
-
Acquisition of property and equipment included in accrued expenses and other liabilities
-
133,061
The accompany notes are an integral
part of these unaudited condensed consolidated financial statements.
F-
50
XYNOMIC
PHARMACEUTICALS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31,
2018 AND 2019
(I
n
U.S. dollars, except share data
)
1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis
of Presentation
The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
("U.S. GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in accordance
with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the United States Securities and Exchange
Commission ("SEC"). The condensed consolidated balance sheet as of December 31, 2018 was derived from the audited consolidated
financial statements of Xynomic Pharmaceuticals, Inc. ("the Company") and its subsidiaries (the "Group").
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated balance
sheet of the Group as of December 31, 2018, and the related consolidated statements of comprehensive loss, changes in equity and
cash flows for the year then ended, included in Bison Capital Acquisition Corp.'s Proxy Statement/Prospectus on
Form S-4/A
filed with the SEC on April 4, 2019.
In the opinion of management, all adjustments (which
include normal recurring adjustments) necessary to present a fair statement of the financial position as of March 31, 2019, the
results of operations and cash flows for the three months ended March 31, 2018 and 2019, have been made.
The preparation of the unaudited condensed consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited condensed consolidated
financial statements and the reported amounts of revenue and expenses during the reporting period. Significant accounting estimates
include, but not limited to the fair value of the ordinary shares to determine the existence of beneficial conversion feature of
the redeemable convertible preferred shares, the fair value of share-based compensation awards, depreciable lives of property and
equipment, the recoverability of the carrying amounts of property and equipment and the recoverability of deferred income tax assets.
Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such,
differences may be material to the unaudited condensed consolidated financial statements.
Liquidity
The Group has not generated any revenues from product
sales. Substantial additional financing will be required by the Group to continue to fund its research and development activities.
No assurance can be given that any such financing will be available when needed or that the Group's research and development
efforts will be successful.
The Group's ability to fund operations is based
on its ability to attract investors and its ability to borrow funds on reasonable economic terms. Historically, the Group has relied
principally on equity financing and shareholder's borrowings to fund its operations and business development. The Group's
ability to continue as a going concern is dependent on management's ability to successfully execute its business plan, which
includes generating revenues after drug marketing, controlling operating expenses, as well as, continuing to obtain additional
equity financing. On April 3, 2018, the Group issued convertible notes to Northern Light Venture Capital V, Ltd., and Bo Tan and
received proceeds of US$2,500,000, which were converted into 776,633 Series B Preferred Shares in August 2018. Further in August
2018, the Group raised US$17 million by issuance of 5,281,101 Series B Preferred Shares to certain investors, including the conversion
of convertible notes of US$2.5 million.
On May 15, 2019, the Company closed a merger (the
"Closing"), pursuant to certain Agreement and Plan of Merger (as amended, the "Merger Agreement"), dated
as of September 12, 2018, entered into by and among by and among (i) Bison Capital Acquisition Corp., a British Virgin Islands
company to be domesticated to Delaware immediately prior to the Merger ("Bison", sometimes is referred as "XYN"
posting the Merger); (ii) Bison Capital Merger Sub Inc., a Delaware corporation ("Merger Sub") (iii) the Company; and
(iv) Yinglin Mark Xu ("Stockholder Representative"), solely in his capacity as the Stockholder Representative thereunder,
among other things, Merger Sub merged with and into the Company, with the Company continuing as the surviving entity and a wholly-owned
subsidiary of Bison, which then changed its name to "Xynomic Pharmaceuticals Holdings, Inc." (the "Merger"
and "XYN").
F-
51
On the same day, XYN received written notice from
the staff of the NASDAQ Stock Market LLC ("Nasdaq") indicating that the Staff had determined to delist its securities
from NASDAQ based upon the non-compliance with the requirement of a minimum of 300 round lot holders of and 400 round lot holders
of purchase warrants and the requirement of the minimum US$5 million in stockholders' equity. XYN intends to request a hearing
before the Nasdaq Hearings Panel (the "Panel"), and such request will stay any suspension or delisting action by Nasdaq
pending the completion of the hearing process and the expiration of any extension period that may be granted to XYN by the Panel.
XYN intends to pursue certain actions to increase the number of round lot holders of its common stock and warrants as well as increase
its stockholders' equity as soon as practicable to meet the applicable listing requirements; however, there can be no assurances
that XYN will be able to do so within the period of time that may be granted by the Panel.
The Group also plans to attract institutional investors
following the business combination. Further, the Group can adjust the pace of its clinical development and patient recruitment
and control the operating expenses of the Group.
The Group currently does not have any commitments
to obtain additional funds and may be unable to obtain sufficient funding in the future on acceptable terms, if at all. If the
Group cannot obtain the necessary funding, it will need to delay, scale back or eliminate some or all of its research and development
programs to: commercialize potential products or technologies that it might otherwise seek to develop or commercialize independently;
consider other various strategic alternatives, including another merger or sale of the Group; or cease operations; or its securities
may be delisted from Nasdaq. If the Group engages in collaborations, it may receive lower consideration upon commercialization
of such products than if it had not entered into such arrangements or if it entered into such arrangements at later stages in the
product development process.
The Group has prepared its financial statements assuming
that it will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal
course of business. The Group has incurred recurring losses from operations since inception. The Group incurred a net loss of US$14,144,555
for the three months ended March 31, 2019. Further, as of March 31, 2019, the Group had net current liabilities (current assets
less current liabilities) of US$19,345,343 and accumulated deficit of US$48,467,724. The Group's ability to continue as a
going concern is dependent on its ability to raise capital to fund its current research and development activities and future business
plans. Additionally, volatility in the capital markets and general economic conditions in the United States may be a significant
obstacle to raising the required funds. These factors raise substantial doubt about its ability to continue as a going concern.
The financial statements included herein do not include any adjustments that might be necessary should the Group be unable to continue
as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary
in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used.
Operations of the Group are subject to certain risks
and uncertainties including various internal and external factors that will affect whether and when the Group's product candidates
become approved drugs and how significant their market share will be, some of which are outside of the Group's control. The
length of time and cost of developing and commercializing these product candidates and/or failure of them at any stage of the drug
approval process will materially affect the Group's financial condition and future operations.
(b)
Share-based
Compensation
The Company granted share options to its selected
employees and non-employee consultants.
Share-based awards granted to employees with service
conditions attached are measured at the grant date fair value and are recognized as an expense using graded vesting method over
the requisite service period, which is generally the vesting period. The forfeitures are accounted when they occur.
F-
52
In June 2018, the FASB issued ASU No. 2018-07, Compensation
- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"). The new
guidance largely aligns the accounting for share-based awards issued to employees and nonemployees. Existing guidance for employee
awards will apply to non-employee share-based transactions with limited exceptions. The Company adopted this guidance on January
1, 2019.
Share-based awards granted to non-employees are
measured at the grant date fair value. When no future services are required to be performed by the non-employee in exchange for
an award of equity instruments, the cost of the award is expensed on the grant date.
Option-pricing models are adopted to measure the value
of awards at each grant date. The determination of fair value is affected by the share price as well as assumptions relating to
a number of complex and subjective variables, including but not limited to the expected share price volatility, actual and projected
employee and non-employee share option exercise behavior, risk-free interest rates and expected dividends. The use of the option-pricing
model requires extensive actual employee and non-employee exercise behavior data for the relative probability estimation purpose,
and a number of complex assumptions.
(c)
Concentration
and risk
Concentration of suppliers
The following suppliers for the Group's research
and development activities accounted for 10% or more of research and development expenses for the three months ended March 31,
2018 and 2019:
For
the Three Months Ended
March 31,
2018
2019
USD
%
USD
%
Supplier A
*
*
2,632,651
49
%
Supplier B
*
*
678,925
13
%
Supplier C
112,326
24
%
*
*
Supplier D
102,223
22
%
*
*
Supplier E
99,394
21
%
*
*
Supplier F
73,271
16
%
*
*
*
Represents
less than 10% of research and development expenses for the three months ended March 31, 2018 and 2019.
2.
CASH
The Company's cash is deposited in financial
institutions at below locations:
As of
December 31,
2018
As of
March 31,
2019
Financial institutions in the mainland of the PRC
—Denominated in RMB
$
523
$
495
Financial institutions in the United States
—Denominated in USD
$
4,745,847
$
1,049,066
Total cash balances held at financial institutions
$
4,746,370
$
1,049,561
3.
INCOME
TAXES
Three Months Ended
March 31,
2018
2019
Loss before income taxes
$
(618,930
)
$
(14,144,555
)
Income tax expenses
-
-
Effective income tax rate
0
%
0
%
The effective income tax rates for the three months
ended March 31, 2018 and 2019 were 0% and 0%, respectively. The effective income tax rate for the three months ended March 31,
2018 and 2019 differs from the U.S. Federal statutory corporate income tax rate of 21% is primarily due to the increase in valuation
allowance.
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4.
PREPAID
EXPENSES
Prepaid expenses consist of the following:
As
of
December 31,
2018
As of
March 31,
2019
Prepaid research and development expenses
$
207,988
$
6,967
Prepaid rental expenses
66,371
62,992
Prepaid health insurance
-
23,703
Others
3,391
5,212
Total prepaid expenses
$
277,750
$
98,874
5.
PROPERTY
AND EQUIPMENT, NET
As of
December 31,
2018
As of
March 31,
2019
Leasehold improvement
$
276,839
$
296,524
Lab equipment
-
200,087
Electronic equipment
4,379
14,357
Property and equipment
281,218
510,968
Less: accumulated depreciation
(488
)
(24,605
)
Property and equipment, net
$
280,730
$
486,363
The depreciation expense for property and equipment
was nil and US$23,981 for the three months ended March 31, 2018 and 2019, respectively.
6.
OTHER
NON-CURRENT ASSETS
Other non-current assets consist of the following:
As of
December 31,
2018
As of
March 31, 2019
VAT input tax
$
52,762
$
78,673
Prepaid insurance
93,075
87,407
Deposits
9,339
8,955
Total other non-current assets
$
155,176
$
175,035
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7.
ACCRUED
EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities
consist of the following:
As of
December 31,
2018
As of
March 31,
2019
Research and development expense-Contract Research Organizations
$
10,304,750
$
12,889,717
Research and development expense-Contract Manufacture Organizations
1,874,956
2,105,725
License fee payable
1,000,000
1,000,000
Professional fee
824,360
985,963
Payroll and social insurance
147,692
280,343
Payables for equipment
-
138,002
Payable for leasehold improvement
110,736
105,795
Others
144,767
109,737
Total accrued expenses and other current liabilities
$
14,407,261
$
17,615,282
8.
REDEEMABLE
CONVERTIBLE PREFERRED SHARES
Redeemable convertible preferred shares consist of
the following:
Angel Preferred Shares
Series A-1 Preferred Shares
Series B Preferred Shares
Balance as of December 31, 2018
$
580,256
$
4,905,780
$
2,424,712
Redemption value accretion
11,117
93,984
1,592,877
Balance as of March 31, 2019
$
591,373
$
4,999,764
$
4,017,589
9.
LOSS
PER SHARE
Basic and diluted net loss per share for each of the
periods presented are calculated as follow:
Three Months Ended
March 31,
2018
2019
Numerator:
Net loss attributable to ordinary shareholders
$
716,246
$
15,842,533
Denominator:
Weighted average number of ordinary shares-basic and diluted
9,617,121
9,617,121
Net loss per share-basic and diluted
$
0.07
$
1.65
When the dividends to preferred shares are not fully
paid, the ordinary shares holders shall not participate in undistributed earnings. If all dividends to preferred shares holders
are fully paid, the holders of the preferred shares and the holders of the ordinary shares participate in undistributed earnings
on a pro rata basis, as if the preferred shares had been converted into ordinary shares.
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55
As a result of the Group's net loss for the
three months ended March 31, 2018 and 2019, preferred shares and options outstanding in the respective periods were excluded from
the calculation of diluted loss per share as their inclusion would have been anti-dilutive.
Three Months Ended
March 31,
2018
2019
Number of Angel Preferred Shares outstanding
23,435,379
23,435,379
Number of Series A-1 Preferred Shares outstanding
12,147,500
12,147,500
Number of Series B Preferred Shares outstanding
-
5,281,101
Number of Share options outstanding
-
886,046
10.
LICENSES
ARRANGEMENT
License agreement with Pharmacyclics
LLC ("Pharmacyclics")
In February 2017, the Group entered into a license
agreement with Pharmacyclics, under which the Group obtained an exclusive and worldwide license or sublicense under certain patents
and know-how of Pharmacyclics to develop, manufacture and commercialize Pharmacyclics's HDAC inhibitor, also known as Abexinostat,
for all human and non-human diagnostic, prophylactic, and therapeutic uses.
Under the terms of the agreement, the Group made upfront
payments of US$3.5 million in 2017 and 1st milestone payment of US$3.5 million in 2018 to Pharmacyclics which were recorded as
research and development expenses in 2017 and 2018, respectively. In addition, the Group is obligated to pay the following development
and regulatory milestone payments: 1) 2nd milestone payment of US$6,500,000 upon regulatory approval for the first indication for
a licensed product in China or in the United States; 2) 3rd milestone payment of US$4,000,000 upon regulatory approval for the
second indication for a licensed product in China or in the United States.
In addition, the Group will pay to Pharmacyclics royalties
at a flat high-teen percentage rate on the net sales of the licensed products. The Group shall have no obligation to pay any royalty
with respect to net sales of any licensed product in any country or other jurisdiction after the royalty term for such licensed
product in such country or other jurisdiction has expired.
The license agreement with Pharmacyclics will remain
in effect until the expiration of the royalty term and may be early terminated by either party for the other party's uncured
material breach, bankruptcy, insolvency, or similar event. Pharmacyclics has the right to terminate the agreement if the Group
challenge Pharmacyclics' patents or fails its diligent obligations to develop or commercialize the licensed product pursuant
to the license agreement with Pharmacyclics. In addition, the Group may terminate this agreement for convenience with advance written
notice to Pharmacyclics. In the event this license agreement is terminated for any reason other than Pharmacyclics' material
breach, the Group will be responsible for continuing, at its cost for up to six months, to conduct clinical studies it conducts
at the termination and transfer the control of the clinical studies to Pharmacyclics. If such transfer is expressly prohibited
by a regulatory authority, the Group will continue to conduct such clinical studies to completion, at the Group's cost.
Patent assignment and licensing agreement with
Boehringer Ingelheim International GMBH ("BII")
In August 2017, the Group entered into a Patent assignment
and licensing agreement with BII, under which the Group accepts the assignment and transfer of the patents and know-how of BII
to exclusively develop, manufacture and commercialize BII's Pan-RAF Inhibitor BI 882370, also known as Dabrafenib, for the
diagnosis, prevention or treatment of any and all diseases or conditions in humans or animals. BII retains the exclusive right
to use the licensed compound to conduct internal preclinical research.
Under the terms of the agreement, the Group made upfront
payments to BII totaling US$0.3 million which was recorded as a research and development expense in 2017. In addition, the Group
is obligated to pay the following development and regulatory milestone payments: 1) 1st milestone payment of US$ 1,700,000 upon
first dosing of a patient in Phase I Clinical Trial in the US or China; 2) 2nd milestone payment of US$ 4,000,000 upon first dosing
of a patient in a pivotal Phase III Clinical Trial in the first indication in the US or China; 3) 3rd milestone payment of US$2,000,000
upon first dosing of a patient in a pivotal Phase III Clinical Trial in a second indication in the US or China; 4) 4th milestone
payment of US$ 7,000,000 upon the grant of the first marketing authorization of the first indication in the US; 5) 5th milestone
payment of US$3,000,000 upon the grant of the first marketing authorization of the first indication in China.
F-
56
In addition, the Group will pay royalties at a certain
percentage of the net sales. The royalty term commences from the first commercial sale of such licensed product in such country
until the later of (i) the date on which such licensed product is no longer covered by a valid claim of the assigned patents and
assigned invention, (ii) the expiration of regulatory exclusivity of the licensed product in such country, or (iii) the tenth anniversary
of the first launch of the respective licensed product in the country, provided the licensed know-how is still proprietary, or
such licensed know-how is no longer proprietary owing to a breach of its confidentiality obligations.
The Group has the right to terminate this agreement
by providing BII with written notice.
License agreement with BII (XP-105)
In December 2018, Xynomic entered into a license agreement
with BII for the worldwide exclusive rights to develop and commercialize XP-105 (also known as BI 860585) for all human and non-human
diagnostic, prophylactic, and therapeutic uses.
Under the terms of the agreement, as of March 31,
2019 the Group was obligated to make upfront payments to BII totaling US$1 million which was recorded as a research and development
expense for the year ended December 31, 2018 and was included in accrued expenses and other current liabilities as of December
31, 2018. In addition, the Group is obligated to pay the following development and regulatory milestone payments: 1) 1st milestone
payment of US$7,000,000 upon first dosing of a patient in Phase II or Phase III Clinical Trial in the first indication either of
which is intended to be a pivotal trial; 2) 2nd milestone payment of US$10,000,000 upon the grant of the first Marketing Authorization
of the first indication.
In addition, the Group will pay royalties at a certain
percentage of the net sales. The royalty term commences from the first commercial sale of such licensed product in such country
until the later of (i) the date on which such licensed product is no longer covered by a valid claim of the licensed patents, (ii)
the expiration of regulatory exclusivity of the licensed product in such country, or (iii) the tenth anniversary of the first launch
of the respective licensed product in the country in the indication, provided the licensed know-how is still proprietary, or such
licensed know-how is no longer proprietary owing to a breach of its confidentiality obligations.
The Group has the right to terminate this agreement
by providing BII with written notice.
11.
COMMITMENTS
AND CONTINGENCIES
(a)
Lease
commitments
The Group entered into non-cancelable operating leases,
primarily for office space, for initial terms of 12 to 36 months. Minimum rent payments under operating leases are recognized on
a straight-line basis over the term of the lease.
Future minimum lease payments under non-cancelable
operating leases with remaining lease terms in excess of one year as of March 31, 2019 are:
Minimum
Lease Payment
Amount
Year ending March 31,
2020
$
247,639
2021
234,064
2022
185,207
$
666,910
Rental expenses for operating leases for the three
months ended March 31, 2018 and 2019 were US$16,026 and US$48,164, respectively.
(b)
Other
commitments
The Group is a party to or assignee of license and
collaboration agreements that may require it to make future payments relating to milestone fees and royalties on future sales of
licensed products (Note 10).
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12.
RELATED
PARTY TRANSACTIONS
(a)
Amount
due to shareholders
i)
Payable
due to a shareholder
For the three months ended March 31, 2018 and 2019,
Yinglin Mark XU, the founder and CEO of the Company, advanced US$498,222 and US$412,961, respectively, to the Company to fund its
operation. As of December 31, 2018 and March 31, 2019, the amount due to Yinglin Mark XU was US$2,008,936 and US$2,441,776, respectively.
ii)
Services
purchased from a company affiliated with a shareholder
Eigenbridge, Inc., a company affiliated with Yong Cui,
one of the Company's shareholders and Vice President of Chemistry, Manufacturing and Controls, entered into a contractor
agreement with the Company on February 26, 2017. Pursuant to the agreement, Eigenbridge, Inc., provided specialized advisory services
to the Company. The Company recognized general and administrative of nil and US$25,908 for the three months ended March 31, 2018
and 2019, respectively. The amount due to Eigenbridge, Inc., were US$80,640 and nil as of December 31, 2018 and March 31, 2019,
respectively.
iii)
Advances
from and interest payable to a shareholder
On May 2, 2018, as one of the potential investors of
Series B financing, Zhongshan Bison Healthcare Investment Limited (Limited Partnership) ("Zhongshan Bison") entered
into a loan agreement with Xynomic Pharmaceuticals (Nanjing) Co., Ltd. ("Xynomic Nanjing"). On May 13, 2018, Zhongshan
Bison made an advance of RMB9,435,000 (equivalent to US$1,425,959) to fund the operations and business development of Xynomic Nanjing.
Zhongshan Bison is entitled to withdraw the advance within 5 business days after Zhongshan Bison paid the first investment of Series
B financing, or if current shareholders and investors fail to subscribe shares of the Series B financing within 6 months.
On August 16, 2018, Zhongshan Bison became one of the
Series B Preferred Shareholders.
On August 23, 2018, Xynomic Nanjing entered into a termination
agreement for the advance from Zhongshan Bison. Xynomic Nanjing is required to a) repay RMB1,800,000 of the advance from Zhongshan
Bison within 2 days after signing the agreement; and b) repay the remaining RMB7,635,000 of the advance from Zhongshan Bison and
interest accrued at annual interest rate of 8% from signing the agreement within six months from the date of the termination agreement.
On August 23, 2018, Xynomic Nanjing repaid RMB1,800,000
(equivalent to US$262,743) of the advance from Zhongshan Bison. As of December 31, 2018, the advance from Zhongshan Bison was US$1,112,455.
On January 21, 2019, Xynomic Nanjing repaid RMB5,064,000
(equivalent to US$747,189) of the advance from Zhongshan Bison. On February 20, 2019, Zhongshan Bison agreed to extend the due
date of the remaining advance of RMB2,571,000 (US$383,097) and all accrued interest to April 15, 2019. On April 12, 2019, Zhongshan
Bison agreed to further extend the due date of the remaining advance of RMB2,571,000 (US$383,097) and all accrued interest to June
30, 2019. On June 30, 2019, the due date was further extended to September 15, 2019.
Xynomic Nanjing accrued interest expense of US$15,088
for the advance from Zhongshan Bison for the three months ended March 31, 2019. The interest payable to Zhongshan Bison was US$31,697
and US$47,583 as of December 31, 2018 and March 31, 2019, respectively.
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(b)
Service
purchased from a shareholder
In June 2017, the Group paid US$295,021 to Bridge
Pharm International Inc., one of the Company's shareholders, pursuant to 20 months services agreement. Under the agreement,
Bridge Pharm International Inc. provides consulting service, including business development, screening and selection of contract
research organizations and contract manufacturing organizations and scouting and references of key scientific and managerial personnel
to the Group. The Company recognized general and administrative of US$49,053 and nil for the three months ended March 31, 2018
and 2019, respectively. The balance related to the Bridge Pharm International Inc. was nil as of December 31, 2018 and March 31,
2019.
13.
SHARE-BASED
COMPENSATION
2018 Stock Incentive Plan
On August 28, 2018, the Board of Directors of the
Company approved a resolution to adopt the 2018 Stock Incentive Plan (the "2018 Plan") that provides for the granting
of options to selected employees, directors and non-employee consultants to acquire ordinary shares of the Company at exercise
prices determined by the Board or the administrator appointed by the Board at the time of grant. Upon this resolution, the Board
of Directors and shareholders authorized and reserved 8,908,430 ordinary shares for the issuance under the 2018 Plan. The number
of ordinary shares available under the Plan shall increase annually on the first day of each fiscal year, beginning with the second
fiscal year following the effective date of this Plan, and continuing until (and including) the fiscal year ending December 31,
2028, with such annual increase equal to the lesser of (i) 3,000,000 ordinary shares, (ii) 5% of the number of ordinary shares
issued and outstanding on December 31 of the immediately preceding calendar year, and (iii) an amount determined by the Board.
As of December 31, 2018 and March 31, 2019, 8,908,430 and 8,022,384 awards remain available for future grants under the 2018 Plan.
Under the 2018 Plan, the Company granted 886,046
ordinary shares of the Company with the below vesting schedule on January 21, 2019:
Granted to an employee (100,000 shares): 25% of
the options is to be vested on April 30, 2019, and 1/48 of the options to be vested each month thereafter;
Granted to a non-employee (786,046 shares): 25%
of the options is to be vested on August 31, 2019, and 1/48 of the options to be vested each month thereafter, subject to an acceleration
vesting schedule that 75% is to be issued upon completion of the Company's merger with Bison Capital Acquisition Corp, and
25% to be issued in one year after the closing of the merger.  The cost of the share options granted to the non-employee was
fully recognized at the grant date, as no substantive future services are required.
Summary of Share Option Activities
The following tables summarize the Company's
share option activities for the three months ended March 31, 2019:
Weighted
Weighted
average
remaining
Aggregate
Number of
exercise
contractual
intrinsic
Granted to Employee
shares
price
years
value
US$
US$
Outstanding at January 1, 2019
-
-
-
Granted
100,000
1.00
Forfeited
-
-
Outstanding at March 31, 2019
100,000
1.00
9.82
855,730
Exercisable as of March 31, 2019
-
-
-
-
F-
59
Weighted
Weighted
average
remaining
Aggregate
Number of
exercise
contractual
intrinsic
Granted to Non-employee
shares
price
years
value
US$
US$
Outstanding at January 1, 2019
-
-
-
Granted
786,046
0.10
Forfeited
-
-
Outstanding at March 31, 2019
786,046
0.10
9.82
7,433,873
Exercisable as of March 31, 2019
-
-
-
-
No options were exercised during the three months
ended March 31, 2019.
Management is responsible for determining the fair
value of options granted to employees and non-employees and considered a number of factors including valuations. The Company's
share-based compensation cost is measured at the fair value of the options as calculated under the binomial models.
Assumptions used in the option-pricing model are
presented below:
2019
Risk-free interest rate
2.77
%
Expected term
10 years
Volatility rate
36.1
%
Dividend yield
0
%
Exercise multiple
2.8
Fair value of underlying ordinary share
9.5573
The Company estimated the risk-free rates based
on the 10-year U.S. bond as at the option valuation date. Life of the share options is the contract life of the option. Based on
the option agreements, the contract life of the option are 10 years from the respective grant date. The expected volatility at
the option valuation date was estimated based on historical volatility of comparable companies. The Company has no history or expectation
of paying dividends on its ordinary shares. The Company estimated the fair value of the ordinary shares using the equity allocation
approach when valuing options granted. As the Company did not have sufficient information of past employee exercise history, the
expected exercise multiple was estimated by referencing to How to Value Employee Stock Options (published by John Hull& Allen
White, Financial Analysts Journal, 2004 edition), a well-accepted academic publication.
The weighted average grant date fair value of the
share options granted for the three months ended March 31, 2019 was US$9.3653. Compensation expense of US$7,683,282 were recognized
in general and administrative relating to the 886,046 options for the three months ended March 31, 2019.
As of March 31, 2019, there was US$614,833 unrecognized
compensation expenses related to non-vested options. The expenses are expected to be recognized over a period of 3.08 years.
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60
14.
CHANGES
IN SHAREHOLDERS' DEFICIT
Ordinary
Additional
paid-in
Accumulated
other
comprehensive
Accumulated
Total
Shareholders'
Shares
Amount
capital
income/(loss)
deficit
Deficit
Balance as of December 31, 2017
9,617,121
$
962
$
-
$
-
$
(5,735,545
)
$
(5,734,583
)
Redeemable convertible preferred shares redemption value accretion
-
-
(97,316
)
-
-
(97,316
)
Net loss
-
-
-
-
(618,930
)
(618,930
)
Balance as of March 31, 2018
9,617,121
$
962
$
(97,316
)
$
-
$
(6,354,475
)
$
(6,450,829
)
Ordinary
Additional
paid-in
Accumulated
other
comprehensive
Accumulated
Total
Shareholders'
Shares
Amount
capital
income/(loss)
deficit
Deficit
Balance as of December 31, 2018
9,617,121
$
962
$
14,168,915
$
58,564
$
(34,323,169
)
$
(20,094,728
)
Redeemable convertible preferred shares redemption value accretion (Note 8)
-
-
(1,697,978
)
-
-
(1,697,978
)
Net loss
-
-
-
-
(14,144,555
)
(14,144,555
)
Foreign currency translation adjustment, net of nil income taxes
-
-
-
(36,991
)
-
(36,991
)
Share-based compensation
-
-
7,683,282
-
-
7,683,282
Balance as of March 31, 2019
9,617,121
$
962
$
20,154,219
$
21,573
$
(48,467,724
)
$
(28,290,970
)
15.
SUBSEQUENT
EVENT
The Group has considered subsequent events through
July 5, 2019, which was the date these consolidated financial statements were available to be issued.
On May 15, 2019 (the "Effective Time"),
each share of the Company's ordinary shares and preferred shares issued and outstanding prior to the Effective Time was automatically
converted into the right to receive, on a pro rata basis, the Closing Consideration Shares (as defined in the Merger Agreement)
and the Earnout Shares (as defined in the Merger Agreement), and each option to purchase the Company's ordinary shares that
was outstanding immediately prior to the Effective Time was assumed by the XYN and automatically converted into an option to purchase
shares of common stock of the XYN.
Following the business combination, the Company became
a subsidiary of XYN.
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61
UNAUDITED
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Xynomic Pharmaceuticals Holdings, Inc. is
providing the following unaudited pro forma condensed combined financial information to aid you in your analysis of the financial
aspects of the Business Combination.
The following unaudited pro forma condensed
combined balance sheet as of March 31, 2019 combines amounts derived from the unaudited consolidated balance sheet of Xynomic as
of March 31, 2019 with the unaudited consolidated balance sheet of Bison as of March 31, 2019, giving effect to the Business Combination
as if it had been consummated as of that date.
The following unaudited pro forma condensed combined statements of operations for the year ended December
31, 2018 combines the amounts derived from the audited consolidated statement of comprehensive loss of Xynomic for the year ended
December 31, 2018 with the audited consolidated income statement of Bison for the year ended December 31, 2018, giving effect to
the Business Combination as if it had occurred on January 1, 2018.
The following unaudited pro forma condensed
combined statements of operations for the three months ended March 31, 2019 combines the amounts derived from the unaudited condensed
consolidated statement of comprehensive loss of Xynomic for the three months ended March 31, 2019 with the unaudited consolidated
income statement of Bison for the three months ended March 31, 2019, giving effect to the Business Combination as if it had occurred
on January 1, 2019.
The historical financial information has
been adjusted to give effect to pro forma events that are related and/or directly attributable to the Business Combination, are
factually supportable and are expected to have a continuing impact on the combined results. The adjustments presented in the unaudited
pro forma condensed combined financial statements have been identified and presented to provide relevant information necessary
for an accurate understanding of the combined company upon consummation of the Business Combination.
The historical financial
information of Xynomic was derived from the audited consolidated financial statements of Xynomic for the year ended December 31,
2018 and 2017 and the unaudited consolidated financial statements of Xynomic for the three months ended March 31, 2019 and 2018,
included elsewhere in this Form 8-K. The historical financial information of Bison was derived from the unaudited consolidated
financial statements of Bison for the three months ended March 31, 2019 and 2018 included in the Form 10-Q filed on May 14, 2019.
This information should be read together with Xynomic's and Bison's audited and unaudited financial statements and
related notes, "
Xynomic Management's Discussion and Analysis of Financial Condition and Results of Operations
,"
"Bison's
Management's Discussion and Analysis of Financial Condition and Results of Operations
" and other financial information
included elsewhere in this proxy statement/prospectus.
The unaudited pro forma condensed combined
financial information is for illustrative purposes only. The financial results may have been different had the companies always
been combined. You should not rely on the unaudited pro forma condensed combined financial information as being indicative of the
historical results that would have been achieved had the companies always been combined or the future results that the combined
company will experience. Bison and Xynomic have not had any historical relationship prior to the Business Combination except that
(a) Zhongshan Bison Healthcare Investment Limited (Limited Partnership) ("
Zhongshan Bison
") is holding 1,553,265
shares of Series B preferred stock of Xynomic representing approximately 2.96% equity interest in Xynomic immediately prior to
the Closing, and (b) Mr. Peixin Xu, the Chairman of Bison, is the beneficial owner of 21% of Zhongshan Bison and his wife owns
100% of the Sponsor. Accordingly, no pro forma adjustments were required to eliminate activities between the companies.
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62
The Business Combination will be accounted
for as a reverse merger in accordance with accounting principles generally accepted in the United States of America. Under this
method of accounting, Bison will be treated as the "acquired" company for financial reporting purposes. This determination
was primarily based on Xynomic comprising the ongoing operations of the combined entity, Xynomic's senior management comprising
the senior management of the combined company, and Xynomic's stockholders having a majority of the voting power of the combined
company. Accordingly, for accounting purposes, the Business Combination will be treated as the equivalent of Xynomic issuing stock
for the net assets of Bison, accompanied by a recapitalization. These transactions are not business combinations because Bison
is not a business under S-X Rule 11-01(d). The private operating company would credit equity for the fair value of the net assets
of the shell company (i.e., no goodwill or intangible assets would be recognized). Operations prior to the Business Combination
will be those of Xynomic.
The aggregate number of Bison's ordinary
shares that will be issued to Xynomic's equity holders at the closing of the Business Combination will consist of the Closing
Consideration Shares that equal to (a) $350,000,000 minus (b) the amount of the Closing Indebtedness, plus (c) the amount of the
Closing Cash (which may be a positive or negative dollar amount), minus (d) the amount of the Company Transaction Expenses, plus
(e) the Closing Tax Benefits, plus (f) if Closing Working Capital is greater than Target Working Capital, an amount equal to (x)
Closing Working Capital minus (y) Target Working Capital, minus (g) if Target Working Capital is greater than the Closing Working
Capital an amount equal to (x) Target Working Capital minus (y) Closing Working Capital (capitalized terms are defined in the Merger
Agreement), if any, divided by $10.15 and 9,852,216 Earnout Shares.
Pursuant
to the Merger Agreement, immediately prior to the Closing, and giving effect to the completion of any redemptions, but excluding
the payment of Bison's reasonable expenses, the amount of net tangible assets shall be no less than $7,500,000.
Given that the Extension Amendment Proposal
and the Trust Amendment Proposal were approved at the Extension Meeting and shareholders holding 5,234,420 public shares exercised
their rights to redeem such public shares for a pro rata portion of the Trust Account, an aggregate of $55,177,977 (or $10.54 per
share) was removed from the Trust Account to pay such shareholders.
Public shareholders are further redeemed
789,269 public shares in connection with the expected shareholder vote to approve the proposed business combination with Xynomic,
which has been consummated by May 17, 2019.
Based upon the adjusted equity valuation
of Xynomic of $435,036,831 as of the closing, a total of 42,860,772 Merger Consideration Shares were issued, of which 9,852,216
of such shares are serving as the Earnout Shares.
As a condition to the Business Combination
and as further discussed in the accompanying Current Report on Form 8-K, the Backstop Investors purchased $7.67 million of our
ordinary shares through a private placement that occurred simultaneously with that of the Business Combination, in order to ensure
that there is at least $7.5 million in net tangible assets available in the Company immediately following the Business Combination
(the "Backstop").
As a result of the Business Combination
(i) after 789,269 ordinary shares were redeemed and converted into cash, (ii) an adjusted equity valuation of $435,036,831, (iii)
the issuance of 755,873 ordinary shares to Backstop investor, and (iv) Bison's sponsor select to convert its promissory notes
of $500,000 to ordinary shares at price of $10.00 per share, Xynomic stockholders will own approximately 94.24% of the Company's
ordinary shares to be outstanding immediately after the Business Combination, and Bison shareholders will own approximately 5.76%
of the Company's outstanding ordinary shares.
F-
63
PRO FORMA CONDENSED COMBINED BALANCE
SHEET
AS OF MARCH 31, 2019
(UNAUDITED)
(A)
Xynomic
(B)
Bison
Pro Forma
Adjustments
Pro Forma
Balance sheet
Assets
Current assets:
Cash
$
1,049,561
$
3,210
$ 8,477,530
(1)
$
4,689,656
(3)
(8,330,748
)
(5)
(1,804
)
(7)
(783,798
)
(8)
5,103,607
Prepaid expenses
98,874
15,089
113,963
Total Current Assets
1,148,435
18,299
4,050,836
5,217,570
Non-current assets:
Cash and marketable securities held in Trust Account
-
8,477,530
(8,477,530
)
(1)
-
Intangible assets, net
1,701
-
1,701
Property and equipment, net
486,363
-
486,363
Other non-current assets
175,035
-
175,035
Total Non-Current Assets
663,099
8,477,530
(8,477,530
)
663,099
Total Assets
$
1,811,534
$
8,495,829
$
(4,426,694
)
$
5,880,669
Liabilities
Current liabilities:
Bank overdraft
$
6,040
$
-
$
$
6,040
Advance from related party
-
1,804
(1,804
)
(7)
-
Amount due to shareholders
2,872,456
-
(2,872,456
)
(3)
-
Accrued expenses and other current liabilities
17,615,282
227,799
17,843,081
Promissory notes
-
610,000
(500,000
)
(4)
(110,000
)
(3)
-
Total Current Liabilities
20,493,778
839,603
(3,484,260
)
17,849,121
Total Liabilities
20,493,778
839,603
(3,484,260
)
17,849,121
Commitments and Contingencies
Mezzanine Equity
Angel preferred shares
591,373
-
(591,373
)
(6)
-
Series A-1 preferred shares
4,999,764
-
(4,999,764
)
(6)
-
Series B preferred shares
4,017,589
-
(4,017,589
)
(6)
-
Ordinary shares subject to possible redemption
-
2,656,225
(2,656,225
)
(5)
-
Total Mezzanine Equity
9,608,726
2,656,225
(12,264,951
)
-
Shareholders' Equity/(Deficit)
Ordinary shares
962
4,636,334
(4,636,086
)
(2)
75
(3)
6
(4)
12
(5)
3,304
(6)
4,607
Additional paid-in capital
20,154,219
-
4,636,086
(2)
7,672,037
(3)
499,994
(4)
(5,674,535
)
(5)
9,969,089
(6)
37,256,890
Accumulated other comprehensive income
21,573
21,573
(Accumulated deficit)/Retained earnings
(48,467,724
)
363,667
(363,667
)
(6)
(783,798
)
(8)
(49,251,522
)
Total Shareholders' Equity/(Deficit)
(28,290,970
)
5,000,001
11,322,517
(11,968,452
)
Total Liabilities, Mezzanine Equity and Shareholders' Equity/(Deficit)
$
1,811,534
$
8,495,829
$
(4,426,694
)
$
5,880,669
F-
64
Pro Forma Adjustments to the Unaudited
Condensed Combined Balance Sheet
(A)
Derived
from the unaudited consolidated balance sheet of Xynomic as of March 31, 2019;
(B)
Derived
from the unaudited balance sheet of Bison as of March 31, 2019.
1)
Liquidate
the investments held in trust by Bison;
2)
Reclassification
from Ordinary shares to Additional paid in capital as the Domestication exchanged the no par value share to $0.0001 per share;
3)
To
reflect the proceeds received from the issuance of 755,873 ordinary shares to the Backstop Investor, of which Yinglin Mark Xu
subscribed 742,080 ordinary shares and Bison Sponsor subscribed 13,793 ordinary shares;
4)
To
reflect Bison's promissory notes of $500,000 conversion at $10.00 per unit, and the conversion of Rights to 5,000 shares;
5)
As
a result of 789,269 ordinary shares redeemed by Bison's shareholder, $8,330,748 was paid in cash to the redeem the shares
at the value at March 31, 2019.
6)
To
reflect the recapitalization of Xynomic through the issuance of 42,636,484 shares of the Company's ordinary shares and the
elimination the historical accumulated deficit of Bison, the accounting acquiree.
The following table details
the calculation of the number of shares comprising the Closing Consideration Shares and Earnout Shares in accordance with the terms
of the Merger Agreement as if the merger had occurred on March 31, 2019, which is estimated to be approximately 42,636,484 shares:
Base Merger consideration
$
350,000,000
Earnout consideration
100,000,000
Less: Indebtedness
(2,872,456
)
Plus: Cash held by Xynomic as of March 31, 2019
1,049,561
Plus: Difference between Actual Working Capital and Target Working Capital
(15,416,789
)
Adjusted Merger consideration
432,760,316
Share Price
$
10.15
Shares issued for recapitalization
42,636,484
7)
To
record repayment of advances from related parties, and amount due to shareholders
8)
To
record payment of estimated legal, financial advisory, accounting, printing and other professional fees related to the Business
Combination
F-
65
PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2018
(UNAUDITED)
(A)
Xynomic
(B)
Bison
Pro Forma
Adjustments
Assuming
Maximum
Redemptions
Pro Forma
Income
statement
Assuming
Maximum
Redemptions
Operating expenses:
General and administrative
$
3,049,353
835,928
(1,852,582
)
(1)
$
2,032,699
General and administrative to related parties
362,336
362,336
Research and development
25,159,602
-
-
25,159,602
Total operating expenses
28,571,291
835,928
(1,852,582
)
27,554,637
Net operating (loss) income
(28,571,291
)
(835,928
)
1,852,582
(27,554,637
)
Other income (expense):
Unrealized loss on securities held in Trust Account
-
(19,186
)
19,186
(3)
-
Interest income
-
1,121,740
(1,121,740
)
(3)
-
Investment income
16,541
-
-
16,541
Interest expense to a related party
(32,874
)
-
-
(32,874
)
Income (loss) before income taxes
(28,587,624
)
266,626
750,028
(27,570,970
)
Income tax expense
-
-
-
-
Net (loss) income
(28,587,624
)
266,626
750,028
(27,570,970
)
Accretion to preferred share redemption value
2,831,085
-
(2,831,085
)
(2)
-
Net (loss)/income attributable to the Company's ordinary shareholders
$
(31,418,709
)
$
266,626
$
3,581,113
$
(27,570,970
)
Other comprehensive income/(loss)
Foreign currency translation adjustment, net of nil income taxes
58,564
-
-
58,564
Unrealized gain on available for sale securities, net of nil income taxes
16,541
-
-
16,541
Less: reclassification adjustment for gain on available for sale securities realized in net income, net of nil income taxes
(16,541
)
-
-
(16,541
)
Total other comprehensive income
58,564
-
-
58,564
Comprehensive (loss)/income attributable to ordinary shareholders
$
(31,360,145
)
$
266,626
$
3,581,113
$
(27,512,406
)
Weighted average shares outstanding, basic
2,426,155
45,004,818
(4)
47,430,973
Basic net loss per share
(0.30
)
(0.58
)
(A)
Derived from the audited consolidated statement of comprehensive loss of Xynomic for the year ended December 31, 2018.
(B)
Derived from the audited statements of operations of Bison for the year ended December 31, 2018.
1)
To eliminate direct costs of the Business Combination which are reflected in the historical financial statements of Bison and Xynomic in the amount of $ 442,595 and $ 1,409,987 as of December 31, 2018.
2)
To eliminate the accretion to the redemption value on preferred shares as of the beginning of the periods.
3)
To eliminate unrealized gain/(loss) and interest income on marketable securities held in the trust account as of the beginning of the period.
F-
66
4)
As the Business Combination is being reflected as if it had occurred at the beginning of the periods presented, the calculation of weighted average shares outstanding for basic and diluted net income/(loss) per share assumes that the shares issuable relating to the Business Combination have been outstanding for the entire periods presented. If the maximum number of shares are redeemed, this calculation is retroactively adjusted to eliminate such shares for the entire period. The Bison public shares used in the weighted average shares calculation is computed as the sum of the public shares outstanding, plus the shares issued to the investor, less the shares redeemed. Weighted average common shares outstanding - basic and diluted is calculated as follows, the potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive:
Year Ended
December 31,
2018
Weighted average shares calculation, basic
BCAC weighted average public shares outstanding
1,955,248
BCAC rights converted to shares
651,956
BCAC promissory notes conversion
50,000
Backstop shares issued to Yinglin Mark Xu
728,172
Backstop shares issued to Bison Sponsor
9,852
BCAC shares issued in Business Combination
44,035,745
Weighted average shares outstanding
47,430,973
Percent of shares owned by Xynomic's holders
94.38
%
Percent of shares owned by BCAC
5.62
%
Weighted average shares calculation, basic
Existing Xynomic holders
44,763,917
BCAC holders
2,667,056
Weighted average shares, basic and diluted
47,430,973
Weighted average shares calculation, diluted
BCAC holders
2,667,056
BCAC shares issued in Business Combination
44,763,917
BCAC warrants underlying public shares
3,043,750
Warrants
241,030
Unit purchase option
252,000
Weighted average shares outstanding
50,967,753
Percent of shares owned by Xynomic's holders
87.83
%
Percent of shares owned by BCAC
12.17
%
Weighted average shares calculation, diluted
Existing Xynomic holders
44,763,917
BCAC holders
6,203,836
Weighted average shares, basic and diluted
50,967,753
F-
67
PRO FORMA CONDENSED COMBINED STATEMENT
OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31,
2019
(UNAUDITED)
(A)
Xynomic
(B)
Bison
Pro Forma
Adjustments
Assuming
Maximum
Redemptions
Pro Forma
Income
statement
Assuming
Maximum
Redemptions
Operating expenses:
General and administrative
$
8,779,249
204,521
(359,272
)
(1)
$
8,624,498
General and administrative to related parties
25,908
-
25,908
Research and development
5,324,310
-
-
5,324,310
Total operating expenses
14,129,467
204,521
(359,272
)
13,974,716
Net operating (loss) income
(14,129,467
)
(204,521
)
359,272
13,974,716
Other income (expense):
Unrealized loss on securities held in Trust Account
-
(2,587
)
2,587
(3)
-
Interest income
-
347,210
(347,210
)
(3)
-
Interest expense to a related party
(15,088
)
-
-
(15,088
)
Income (loss) before income taxes
(14,144,555
)
140,102
14,649
(13,989,804
)
Income tax expense
-
-
-
-
Net (loss) income
(14,144,555
)
140,102
14,649
(13,989,804
)
Accretion to preferred share redemption value
1,697,978
-
(1,697,978
)
(2)
-
Net (loss)/income attributable to the Company's ordinary shareholders
$
(15,842,533
)
$
140,102
$
1,712,627
$
(13,989,804
)
Other comprehensive income/(loss)
Foreign currency translation adjustment, net of nil income taxes
36,991
-
-
36,991
Total other comprehensive income
36,991
-
-
36,991
Comprehensive (loss)/income attributable to ordinary shareholders
$
(15,879,524
)
$
140,102
$
1,712,627
$
(14,026,795
)
Weighted average shares outstanding, basic
2,477,069
43,572,490
(4)
46,049,559
Basic net loss per share
(0.01
)
(0.30
)
(A)
Derived
from the unaudited consolidated statement of comprehensive loss of Xynomic for the three months ended March 31, 2019;
(B)
Derived
from the unaudited statements of operations of Bison for the three months ended March 31, 2019.
1)
To
eliminate direct costs of the Business Combination which are reflected in the historical financial statements of Bison and Xynomic
in the amount of $73,455 and $285,817 during the three months ended March 31, 2019;
2)
To
eliminate the accretion to the redemption value on preferred shares as of the beginning of the periods.
3)
To
eliminate unrealized gain/(loss) and interest income on marketable securities held in the trust account as of the beginning of
the period.
F-
68
4)
As
the Business Combination is being reflected as if it had occurred at the beginning of the periods presented, the calculation of
weighted average shares outstanding for basic and diluted net income/(loss) per share assumes that the shares issuable relating
to the Business Combination have been outstanding for the entire periods presented. If the maximum number of shares are redeemed,
this calculation is retroactively adjusted to eliminate such shares for the entire period. The Bison public shares used in the
weighted average shares calculation is computed as the sum of the public shares outstanding, plus the shares issued to the investor,
less the shares redeemed. Weighted average common shares outstanding - basic and diluted is calculated as follows, the potentially
dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive:
Three Months Ended
March 31,
2019
Weighted average shares calculation, basic
BCAC weighted average public shares outstanding
1,941,437
BCAC rights converted to shares
646,954
BCAC shares subject to redemption reclassified to equity
13,811
BCAC promissory notes and rights conversion
55,000
Backstop shares issued to Yinglin Mark Xu
742,080
Backstop shares issued to Bison Sponsor
13,793
BCAC shares issued in Business Combination
42,636,484
Weighted average shares outstanding
46,049,559
Percent of shares owned by Xynomic's holders
94.20
%
Percent of shares owned by BCAC
5.80
%
Weighted average shares calculation, basic
Existing Xynomic holders
43,378,564
BCAC holders
2,670,995
Weighted average shares outstanding
46,049,559
Weighted average shares calculation, diluted
BCAC holders
2,670,995
BCAC shares issued in Business Combination
43,378,564
BCAC warrants underlying public shares
3,018,750
Warrants
241,030
Unit purchase option
252,000
Weighted average shares outstanding
49,561,339
Percent of shares owned by Xynomic's holders
87.53
%
Percent of shares owned by BCAC
12.47
%
Weighted average shares calculation, diluted
Existing Xynomic holders
43,378,564
BCAC holders
6,182,775
Weighted average shares outstanding
49,561,339
F-
69
PART
II — INFORMATION NOT REQUIRED IN PROSPECTUS
Item
13.
Other Expenses of Issuance and Distribution
The
following table sets forth all expenses to be paid by the Registrant, other than estimated placement agents' fees, in connection
with our public offering. All amounts shown are estimates except for the SEC registration fee and the FINRA filing fee:
SEC
    registration fee
$
FINRA
    filing fee
$
Legal
    fees and expenses
$
Accounting
    fees and expenses
$
Transfer
    agent and registrar fees
$
Miscellaneous
    fees and expenses
$
Total
$
*
*
Estimated.
Item
14.
Indemnification of Directors and Officers
XYN
following the consummation of the Business Combination
Section
145(a) of the DGCL empowers a corporation to indemnify any director, officer, employee or agent, or former director, officer,
employee or agent, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation)
by reason of his service as a director, officer, employee or agent of the corporation, or his service, at the corporation's
request, as a director, officer, employee or agent of another corporation or enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding provided that such director or officer acted in good faith and in a manner reasonably believed to be
in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, provided that
such director or officer had no reasonable cause to believe his conduct was unlawful.
II-
1
Section
145(b) of the DGCL empowers a corporation to indemnify any person who was or is a party or is threatened to be made a party to
any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by
reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving
at the request of the corporation as a director, officer, employee or agent of another enterprise, against expenses (including
attorneys' fees) actually and reasonably incurred in connection with the defense or settlement of such action or suit provided
that such director or officer acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests
of the corporation, except that no indemnification may be made in respect of any claim, issue or matter as to which such director
or officer shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware Court of Chancery
or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability
but in view of all the circumstances of the case, such director or officer is fairly and reasonably entitled to indemnity for
such expenses which the court shall deem proper.
Section
145 of the DGCL further provides that to the extent a director or officer of a corporation has been successful in the defense
of any action, suit or proceeding referred to in Section 145(a) or Section 145(b) of the DGCL or in the defense of any claim,
issue or matter therein, he shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred
by him in connection therewith, provided that indemnification provided for by Section 145 of the DGCL or granted pursuant thereto
shall not be deemed exclusive of any other rights to which the indemnified party may be entitled, and empowers the corporation
to purchase and maintain insurance on behalf of a director or officer of the corporation against any liability asserted against
him or incurred by him in any such capacity or arising out of his status as such whether or not the corporation would have the
power to indemnify him against such liabilities under Section 145 of the DGCL.
Bylaws
of the combined entity provides that the combined entity shall indemnify to the fullest extent authorized or permitted by applicable
law, indemnify its current and former directors and officers, as well as those persons who, while directors or officers of the
combined entity, are or were serving as directors, officers, employees or agents of another entity, trust or other enterprise,
including service with respect to an employee benefit plan, in connection with any threatened, pending or completed proceeding,
whether civil, criminal, administrative or investigative, against all expense, liability and loss reasonably incurred or suffered
by any such person in connection with any such proceeding. Notwithstanding the foregoing, a person eligible for indemnification
pursuant to the bylaws will be indemnified by the combined entity in connection with a proceeding initiated by such person only
if such proceeding was authorized by the board of directors.
The
right to indemnification conferred by combined entity's bylaws is a contract right that includes the right to be paid by
combined entity the expenses incurred in defending or otherwise participating in any proceeding referenced above in advance of
its final disposition.
Upon
the Closing, the Company has entered into indemnification agreements with each of its directors and executive officers. These
agreements require the Company to indemnify these individuals to the fullest extent permitted under Delaware law against liabilities
that may arise by reason of their service to the Company, and to advance expenses incurred as a result of any proceeding against
them as to which they could be indemnified.
The
Form of the Indemnification Agreement is filed with this prospectus as Exhibit 10.20 and is incorporated herein by
reference. The foregoing description of the Indemnification Agreement does not purport to be complete and is subject to, and is
qualified in its entirety by, the full text of the Indemnification Agreement.
Bison
prior to the consummation of the Business Combination
British
Virgin Islands law does not limit the extent to which a company's memorandum and articles of association may provide for
indemnification of officers and directors, except to the extent any such provision may be held by a British Virgin Islands court
to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime.
Our memorandum and articles of association provide that, subject to certain limitations, we shall indemnify our directors and
officers against all expenses, including legal fees, and against all judgments, fines and amounts paid in settlement and reasonably
incurred in connection with legal, administrative or investigative proceedings. Such indemnity only applies if the person acted
honestly and in good faith with a view to our best interests and, in the case of criminal proceedings, the person had no reasonable
cause to believe that his or her conduct was unlawful.
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling
us pursuant to the foregoing provisions, we have been informed that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act and is theretofore unenforceable.
II-
2
Item
15.
Recent Sales of Unregistered Securities
The
42,860,772 Merger Consideration Shares and the 742,080 Backstop Shares were issued in reliance upon an exemption from the registration
requirements of the Securities Act, pursuant to the Section 4(a) (2) of the Securities Act and Regulation S promulgated under
the Securities Act. The Sellers and Yinglin Mark Xu receiving the shares represented their intentions to acquire the shares for
investment only and not with a view to or for sale in connection with any distribution, and appropriate restrictive legends were
affixed to the certificates representing the shares. The parties also had adequate access, through business or other relationships,
to information about the Company. For additional information of the Merger Consideration Shares and Backstop Shares, please
see Item 1 [●] on page [●].
Item
16.
Exhibits and Financial Statement Schedules
(a)      The
following exhibits are filed as part of this Registration Statement:
Exhibit No.
Description
2.1
Merger
    Agreement (Incorporated by reference to Exhibit 2.1 to the registrant's Current Report on Form 8-K filed by the registrant
    on September 13, 2018)
2.2
Amendment
    No. 1 to Merger Agreement dated February 11, 2019 (Incorporated by reference to Exhibit 2.2 to the registrant's Form
    S-4/A filed by the registrant on February 12, 2019, file number 333-229127)
2.3
Amendment
    No. 2 to Merger Agreement dated February 22, 2019 (incorporated by reference to Exhibit 2.1 to registrant's current
    report on Form 8-K filed on February 27, 2019)
2.4
Amendment
    No. 3 to the Merger Agreement (Incorporated by reference to Exhibit 2.4 to the registrant's Form S-4/A filed by the
    registrant on April 4, 2019, file number 333-229127)
3.1
Certificate
    of Incorporation of the Company, effective on May 14, 2019 (incorporated by reference to Exhibit 3.1 to registrant's
    current report on Form 8-K filed on May 15, 2019)
3.2
Amended
    and Restated Certificate of Incorporation of the Company, effective on May 15, 2019 (incorporated by reference to Exhibit
    3.2 to registrant's current report on Form 8-K filed on May 15, 2019)
3.3
Bylaws
    of Xynomic Pharmaceuticals Holdings, Inc. (incorporated by reference to Exhibit 3.3 to registrant's current report on
    Form 8-K filed on May 15, 2019)
4.1
Specimen
    Warrant Certificate (incorporated by reference to Exhibit 4.3 to the registrant's registration statement on Form S-1
    filed on May 31, 2017)
4.2
Warrant
    Agreement, dated June 19, 2017, between Continental Stock Transfer & Trust Company and the Registrant (incorporated by
    reference to Exhibit 4.1 to registrant's current report on Form 8-K filed on June 26, 2017)
4.3
Unit Purchase Option Agreement, dated June 19, 2017, between the Registrant and EarlyBirdCapital, Inc. (incorporated by reference to Exhibit 4.2 to registrant's current report on Form 8-K filed on June 26, 2017)
5.1
Opinion
    of Hunter Taubman Fischer & Li LLC*
10.1
Amended
    and Restated Registration Rights Agreement dated May 15, 2019 (incorporated by reference to Exhibit 10.1 to registrant's
    current report on Form 8-K filed on May 15, 2019)
10.2
Escrow
    Agreement by and among Bison Capital Acquisition Corp., Yinglin Mark Xu and Continental Stock Transfer & Trust Company
    (incorporated by reference to Exhibit 10.4 to registrant's current report on Form 8-K filed on May 15, 2019).
10.3
Form
    of Lock-Up Agreement to be entered into by and among Bison Capital Acquisition Corp. and the stockholders party thereto
    (incorporated by reference to Exhibit 10.2 to registrant's current report on Form 8-K filed on September 13, 2018)
10.4
Form
    of Non-Competition and Non-Solicitation Agreement to be entered into by and among Bison Capital Acquisition Corp. and the
    covered parties thereto (incorporated by reference to Exhibit 10.5 to registrant's current report on Form 8-K filed
    on September 13, 2018)
10.5
Backstop and Subscription Agreement, dated as of May 1, 2019 between Bison Capital Acquisition Corp. and Yinglin Mark Xu (incorporated by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K filed by the registrant on May 2, 2019)
10.6
Escrow
    Agreement, dated June 19, 2017 between the Registrant, Continental Stock Transfer & Trust Company and the Initial Shareholders
    (incorporated by reference to Exhibit 10.5 to registrant's current report on Form 8-K filed on June 26, 2017)
10.7
Letter
    Agreement, dated June 19, 2017, among the Registrant, EarlyBirdCapital, Inc. and each of the sponsor, directors and officers
    of the Registrant (incorporated by reference to Exhibit 10.3 to registrant's current report on Form 8-K filed on June
    26, 2017)
10.8
License Agreement by and between Pharmacyclics LLC and Xynomic Pharmaceuticals, Inc. dated February 23, 2017 (incorporated by reference to Exhibit 10.14 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.9
Patent Assignment And Licensing Agreement by And between Boehringer Ingelheim International GMBH And Xynomic Pharmaceuticals, Inc. dated August 16, 2017 (incorporated by reference to Exhibit 10.15 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.10
Licensing Agreement by and between Boehringer Ingelheim International Gmbh And Xynomic Pharmaceuticals, Inc. dated December 20, 2018 (incorporated by reference to Exhibit 10.16 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
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Exhibit No.
Description
10.11
Bridge Loan Agreement by and between Xynomic Pharmaceuticals, Inc., a Wyoming corporation, and Yinglin Mark Xu dated August 15, 2017 (incorporated by reference to Exhibit 10.17 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.12
Amended Bridge Loan Agreement By And Between Xynomic Pharmaceuticals, Inc., a Wyoming corporation, and Yinglin Mark Xu Dated As Of August 31, 2017 (incorporated by reference to Exhibit 10.18 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.13
Employment Agreement by and between Xynomic Pharmaceuticals, Inc. and Sophia Paspal effective as of January 16, 2019 (incorporated by reference to Exhibit 10.19 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.14
Labor Contract by and between Xynomic Pharmaceuticals, Inc.(Zhongshan) and Bing Zhao dated March 1, 2019 (incorporated by reference to Exhibit 10.20 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.15
Cooperation Development Agreement for New Drugs between Xynomic Nanjing and Niefang Yu, effective as of May 1, 2018 (incorporated by reference to Exhibit 10.21 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.16
Contractor Agreement by and between Xynomic Pharmaceuticals, Inc. and Eigenbridge, Inc. dated February 26, 2017 (incorporated by reference to Exhibit 10.22 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.17
Employment Agreement by and between Xynomic Pharmaceuticals, Inc., and Ying Zhang, effective as of January 1, 2019 (incorporated by reference to Exhibit 10.23 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.18
Employment Agreement by and between Xynomic Pharmaceuticals, Inc., and Jason Wentao Wu, effective as of January 1, 2019 (incorporated by reference to Exhibit 10.24 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.19
Non-Competition Agreement by and between Xynomic Pharmaceuticals, Inc.(Zhongshan) and Bing Zhao dated March 1, 2019 (incorporated by reference to Exhibit 10.25 to registrant's registration statement on Form S-4/A filed on April 29, 2019, file number 333-229127)
10.20
Form of Indemnification Agreement with each director and office (incorporated by reference to Exhibit 10.7 to registrant's current report on Form 8-K filed on May 15, 2019)
10.21
Securities Purchase Agreement with investors in the Unit Offering dated July 10, 2019 (incorporated by reference to Exhibit 10.1 to registrant's current report on Form 8-K filed on July 11, 2019)
10.22
Form of Not Warrant (incorporated by reference to Exhibit 10.2 to registrant's current report on Form 8-K filed on July 11, 2019)
14.1
Corporation Governance and Nominating Committee Charter (included as Annex G to the registrant's Form S-4/A filed by the registrant on May 1, 2019, file number 333-229127)
14.2
Audit Committee Charter (incorporated by reference to Exhibit 99.1 to registrant's registration statement on Form S-1 filed on May 31, 2017, file number 333-218404)
14.3
Compensation Committee Charter (incorporated by reference to Exhibit 99.2 to registrant's registration statement on Form S-1 filed on May 31, 2017, file number 333-218404)
14.4
Insider Trading Policy (incorporated by reference to Exhibit 14.1 to registrant's current report on Form 8-K filed on May 15, 2019).
14.5
2018 Equity Incentive Plan, assumed and adopted on May 15, 2019
23.1
Consent of Marcum LLP
23.2
Consent of KPMG Huazhen LLP
23.3
Consent of Hunter Taubman Fischer & Li LLC (included in Exhibit 5.1)*
24.1
Power of Attorney (included in signature page)
*
To
be filed by amendment.
Item
17. Undertakings
Insofar
as indemnification for liabilities arising under the Securities Act of 1933, as amended (the Act), may be permitted to directors,
officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed
in the Act and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final adjudication of such issue. The Registrant hereby undertakes
that:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high
end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the effective registration statement.
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(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration statement;
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall
be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold
at the termination of the offering.
(4)
That for the purpose of determining any liability under the Securities Act of 1933 in a primary offering of securities of the
undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities
to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the
undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant
to Rule 424;
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred
to by the undersigned Registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned
Registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(5)
That for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial
distribution of the securities, the undersigned Registrant undertakes that in a primary offering of securities of the undersigned
registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser,
if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant
will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
The
undersigned Registrant hereby undertakes to provide to the Underwriters at the closing specified in the underwriting agreement
certificates in such denominations and registered in such names as required by the Underwriters to permit prompt delivery to each
purchaser.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers, and controlling
persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant
of expenses incurred or paid by a director, officer, or controlling person of the Registrant in the successful defense of any
action, suit, or proceeding) is asserted by such director, officer, or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit
to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such issue.
The
undersigned registrant hereby undertakes that:
(1)       For
purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed
as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant
pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement
as of the time it was declared effective.
(2)       For
the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form
of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide offering thereof.
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SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement on Form S-1 to be
signed on its behalf by the undersigned, thereunto duly authorized in the City of New York, New York on July 11, 2019.
XYNOMIC PHARMACEUTICALS HOLDINGS, INC.
By:
/s/ Yinglin Mark Xu
Name:
Yinglin Mark Xu
Title:
President, Chairman and Chief Executive Officer
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POWER
OF ATTORNEY
Each
person whose individual signature appears below hereby authorizes and appoints Howard Doong and Eugene Jiang, and each of them,
with full power of substitution and resubstitution and full power to act without the other, as his true and lawful attorney-in-fact and
agent to act in his name, place and stead and to execute in the name and on behalf of each person, individually and in each capacity
stated below, and to file any and all amendments to this registration statement, including any and all post-effective amendments,
or any registration statements to be filed in connection with this registration statement pursuant to Rule 462 under the Securities
Act of 1933, as amended, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing, ratifying and confirming all that said attorneys-in-fact and
agents or any of them or their or his substitute or substitutes may lawfully do or cause to be done by virtue thereof.
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the
capacities and on the dates indicated.
Signature
Title
Date
/s/
    Yinglin Mark Xu
President,
    Chairman, Chief Executive Officer and
July
    11,     2019
Yinglin
    Mark Xu
Interim Chief Financial Officer
(Principal
    Executive Officer)
/s/
    Jinwei Coco Kou
Interim
    Chief Accounting Officer
July
    11,     2019
Jinwei Coco Kou
(Principal
    Financial and Accounting Officer)
/s/ Tingzhi Qian
Director
July
    11,     2019
Tingzhi
    Qian
/s/
    Charles Vincent Prizzi
Director
July
    11,     2019
Charles
    Vincent Prizzi
/s/ Thomas Folinsbee
Director
July
    11,     2019
Thomas
    Folinsbee
/s/
    Richard Peidong Wu
Director
July 11,
    2019
Richard
    Peidong Wu
/s/
    Adam Inglis
Director
July 11,
    2019
Adam
    Inglis
/s/
Wentao Jason Wu
Chief
    Operating Officer
July 11,
    2019
Wentao
    Jason Wu
/s/
    Jiayuan James Tong
Chief
    Strategy Officer and Director
July 11,
    2019
Jiayuan
    James Tong
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