Novartis AG — Director's Dealing 2017

Aug 23, 2017

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Altimmune, Inc. (ALT)
CIK: 0001326190
Period of Report: 2017-08-21

Reporting Person: Novartis Bioventures Ltd (10% Owner)
Reporting Person: NOVARTIS AG (10% Owner)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2017-08-21	Series B Convertible Preferred Stock	$2.67	P	3104.447	Acquired	2018-08-15	Common Stock, par value $0.0001 (1162714)	Indirect
2017-08-21	Warrant	$2.67	P	465086	Acquired	2018-08-15	Common Stock, par value $0.0001 (465086)	Indirect

Footnotes

F1: The Issuer's Series B Convertible Preferred Stock (the "Preferred Stock") is convertible at any time at the option of the holder into shares of the Issuer's common stock, par value $0.0001 per share (the "Common Stock"), subject to certain restrictions, at an initial conversion price of $2.67 per share and a stated amount of $1,000 per share. Prior to the receipt of approval by the Issuer's stockholders for the issuance of shares pursuant to the conversion of the Preferred Stock (the "Requisite Stockholder Approval"), the Preferred Stock may not be converted by the holder if, as a result of such conversion, the holder, together with its affiliates, would hold more than 19.99% of the Issuer's Common Stock.

F2: The board of directors of Novartis Bioventures Ltd has sole voting and investment control and power over such securities. None of the members of its board of directors has individual voting or investment power with respect to such securities and each disclaims beneficial ownership of such securities. Novartis Bioventures Ltd is an indirectly owned subsidiary of Novartis AG.

F3: Warrants to purchase shares of the Issuer's Common Stock were acquired in connection with the acquisition of the Preferred Stock and reported on this Form 4. The Warrants held by Novartis may not be exercised if such exercise would cause Novartis to hold more than 19.99% of the Issuer's Common Stock, regardless of receipt by the Issuer of the Requisite Stockholder Approval.