<SEC-DOCUMENT>0001171520-22-000422.txt : 20220722
<SEC-HEADER>0001171520-22-000422.hdr.sgml : 20220722
<ACCEPTANCE-DATETIME>20220722141610
ACCESSION NUMBER:		0001171520-22-000422
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20220722
DATE AS OF CHANGE:		20220722

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CATALYST BIOSCIENCES, INC.
		CENTRAL INDEX KEY:			0001124105
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				562020050
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51173
		FILM NUMBER:		221099629

	BUSINESS ADDRESS:	
		STREET 1:		611 GATEWAY BLVD., SUITE 710
		CITY:			SOUTH SAN FRANCISCO
		STATE:			CA
		ZIP:			94080
		BUSINESS PHONE:		650-871-0761

	MAIL ADDRESS:	
		STREET 1:		611 GATEWAY BLVD., SUITE 710
		CITY:			SOUTH SAN FRANCISCO
		STATE:			CA
		ZIP:			94080

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TARGACEPT INC
		DATE OF NAME CHANGE:	20000919

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SINGER JULIAN D.
		CENTRAL INDEX KEY:			0001628706

	FILING VALUES:
		FORM TYPE:		DFAN14A

	MAIL ADDRESS:	
		STREET 1:		2200 FLETCHER AVENUE
		STREET 2:		SUITE 501
		CITY:			FORT LEE
		STATE:			NJ
		ZIP:			07024
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>eps10373_jds.htm
<TEXT>
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<P STYLE="font: 13.5pt Arial,sans-serif; margin: 0; text-align: center"><B>UNITED STATES </B></P>

<P STYLE="font: 13.5pt Arial,sans-serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center"><B>Washington, DC 20549</B></P>

<P STYLE="font: 8pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 16pt Arial,sans-serif; margin: 0; text-align: center"><B>SCHEDULE 14A </B></P>

<P STYLE="font: 6pt Arial,sans-serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center"><B>Proxy Statement Pursuant to Section 14(a) of the </B></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0 0 2pt"><FONT STYLE="font-family: Arial,sans-serif">Filed by the Registrant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-family: MS Gothic">&#9744;</FONT></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0 0 2pt"><FONT STYLE="font-family: Arial,sans-serif">Filed by a Party other than the
Registrant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-family: MS Gothic">&#9745;</FONT></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0 0 2pt">Check the appropriate box:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 2pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: MS Gothic">&#9744;</FONT></TD><TD><FONT STYLE="font-family: Arial,sans-serif">Preliminary Proxy Statement </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 2pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: MS Gothic">&#9744;</FONT></TD><TD><FONT STYLE="font-family: Arial,sans-serif">Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 2pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: MS Gothic">&#9744;</FONT></TD><TD><FONT STYLE="font-family: Arial,sans-serif">Definitive Proxy Statement </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 2pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: MS Gothic">&#9745;</FONT></TD><TD><FONT STYLE="font-family: Arial,sans-serif">Definitive Additional Materials </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 2pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: MS Gothic">&#9744;</FONT></TD><TD><FONT STYLE="font-family: Arial,sans-serif">Soliciting Material Pursuant to &sect;240.14a-12</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>CATALYST BIOSCIENCES, INC</B></FONT><B>.</B></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center"><B>(Name of Registrant as Specified in Its Charter)</B></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>JDS1, LLC</B></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>CCUR HOLDINGS, INC.</B></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>CIDM II, LLC</B></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>JULIAN D. SINGER</B></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>DAVID S. OROS</B></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>SHELLY C. LOMBARD</B></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>MATTHEW STECKER</B></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>IGOR VOLSHTEYN</B></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center"><B>(Name of Person(s) Filing Proxy Statement, if Other Than the
Registrant)</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0">Payment of Filing Fee (Check the appropriate box):</P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font: 12pt Times New Roman,serif"><FONT STYLE="font-family: MS Gothic">&#9745;</FONT></TD>
    <TD STYLE="width: 96%">
    <P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: justify">No fee required</P>
    <P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: justify">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-family: MS Gothic">&#9744;</FONT></TD>
    <TD>
    <P STYLE="font: 12pt Arial,sans-serif; margin: 0">Fee paid previously with preliminary materials</P>
    <P STYLE="font: 12pt Arial,sans-serif; margin: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-family: MS Gothic">&#9744;</FONT></TD>
    <TD STYLE="font: 12pt Times New Roman,serif"><FONT STYLE="font-family: Arial,sans-serif">Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a6(i)(1) and 0-11</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 11pt Arial,sans-serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 11pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="background-color: white">On July 22, 2022,
JDS1, LLC issued the following press release:</FONT></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: center"><B>JDS1, LLC Files Definitive Proxy Statement and Sends Letter
to Catalyst Stockholders</B></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: center"><B>Calls for Catalyst to Firmly Commit to Distribute to Stockholders
All Available Cash</B></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: center"><B>Reminds Stockholders of JDS1&#8217;s Previous Proposal
to Drop Proxy Fight and Litigation</B></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: center"><B>Urges Stockholders to Vote for JDS1&#8217;s Nominees on
the <U>GOLD</U> Proxy Card</B></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify">FORT LEE, NJ, July 22, 2022 &#8211; JDS1, LLC, which collectively
with the other participants in its solicitation beneficially owns approximately 8.4% of the outstanding common stock of Catalyst Biosciences,
Inc. (NASDAQ: CBIO) (&#8220;Catalyst&#8221; or the &#8220;Company&#8221;), today announced that it has filed its definitive proxy statement
with the U.S. Securities and Exchange Commission and sent a letter to its fellow stockholders. JDS1 is urging shareholders to vote on
the <B><U>GOLD</U></B> proxy card to elect its slate of three highly-qualified nominees &#8211; <B>Shelly Lombard, Matthew Stecker, and
Igor Volshteyn</B> &#8211; to Catalyst&#8217;s eight-member Board of Directors at Catalyst&#8217;s 2022 Annual Meeting of Stockholders
to be held in person on August 15, 2022. In its letter to stockholders, included below, JDS1 again calls for Catalyst to firmly, and unequivocally,
commit to a distribution to stockholders of most of its available cash at the earliest possible time.</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify">Julian D. Singer, JDS1&#8217;s Managing Member, commented:
&#8220;Contrary to Catalyst&#8217;s public protestations, our agenda is in pursuing this proxy contest is very clear. We are pursuing
this proxy contest principally to ensure that the Catalyst Board takes timely, if not immediate, action to distribute the maximum amount
of its available cash to ALL stockholders, including following through on Catalyst&#8217;s very non-committal public statement, made in
apparent response to our proxy contest, that it intends to, at some unspecified point in time, return &#8220;<I>as much as</I>&#8221;
$65 million in cash to stockholders, with the total amount to be distributed dependent upon &#8220;<I>several factors.</I>&#8221;&#8221;</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify">A complete copy of JDS1&#8217;s letter to Catalyst&#8217;s
stockholders follows:</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt 297pt; text-align: left">July 21, 2022</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify">Dear Fellow Catalyst Biosciences, Inc. Stockholder:</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Enclosed you will find the proxy materials
of JDS1, LLC for the 2022 Annual Meeting of the Stockholders of Catalyst Biosciences, Inc. to be held in person <B>on August 15, 2022,
at 8:00 a.m., Pacific Time, at 611 Gateway Boulevard, Suite 710, South San Francisco, California 94080</B>.</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We, together with the other participants
in our solicitation, own approximately 7.6% of Catalyst&#8217;s outstanding common stock, making us one of Catalyst&#8217;s largest stockholders.
As a fellow Catalyst stockholder, we are seeking your support and asking you to vote TODAY by signing, dating, and returning the enclosed
<B><U>GOLD</U></B> proxy card in the postage-paid envelope provided and vote <B><U>FOR ALL</U></B> of JDS1&#8217;s highly qualified and
very experienced nominees &#8211; <B>Shelly C. Lombard, Matthew Stecker, and Igor Volshteyn</B>. You may also vote by phone or Internet
by following the instructions on the enclosed <B><U>GOLD</U></B> proxy card.</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: center"><B>CATALYST IS AT A CRITICAL JUNCTURE AND THE BOARD MEMBERS
WHO ARE ELECTED AT THE ANNUAL MEETING COULD HELP DETERMINE WHETHER THE COMPANY DISTRIBUTES THE MAXIMUM AMOUNT OF CASH TO STOCKHOLDERS</B></P>


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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9.35pt"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">Contrary to Catalyst&#8217;s protestations,
our agenda is in pursuing this proxy contest is very clear. We are pursuing this proxy contest principally to ensure that the Board takes
timely, if not immediate, action to distribute the maximum amount of its available cash to stockholders, including following through on
Catalyst&#8217;s non-committal public statement, made in apparent response to our proxy contest, that it intends to, at some unspecified
point in time, return &#8220;<I>as much as</I>&#8221; $65 million in cash to stockholders, with the total amount to be distributed dependent
upon &#8220;<I>several factors.</I>&#8221; To be clear, Catalyst has never publicly committed to a minimum amount of cash it intends to
distribute to stockholders. Nor has Catalyst ever publicly committed to a specific timetable for making any cash distributions to stockholders
other than &#8220;<I>as soon as practicable</I>.&#8221;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">We have no interest in controlling Catalyst
and we are not even the largest stockholder. Our nominee slate is what may be referred to as a &#8220;minority slate&#8221; since, if
elected, our nominees will be three directors on a Board with eight directors. Although our nominees would only constitute a minority
on the Catalyst Board if elected, we believe they will bring a critical stockholder-oriented mindset and a sense of urgency to the need
to unlock stockholder value by distributing to ALL stockholders the maximum amount of Catalyst&#8217;s available cash and cash equivalents,
save for whatever Catalyst needs to retain to provide for contingent liabilities and administrative expenses.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">The three highly qualified individuals we
have nominated are extremely capable and ready to serve the best interests of ALL Catalyst&#8217;s stockholders. We believe our nominees
will bring much needed financial and other expertise to the Catalyst Board.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: center"><B>UNDER THE WATCH OF THE INCUMBENT BOARD MEMBERS, <BR>
CATALYST
STOCKHOLDERS HAVE SUFFERED TREMENDOUS VALUE DESTRUCTION</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">Under the watch of the incumbent Board, Catalyst
stockholders have suffered tremendous value destruction. Catalyst&#8217;s stock price has plummeted by approximately 95.1% from its high
of $35.60 in February 2018, and by approximately 78.7% since its closing price of $8.32 on July 22, 2019, when we called upon Catalyst
to explore strategic alternatives.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">Just over the past year, stockholders have
suffered a decline of approximately 59%, even after the stock price&#8217;s rebound after Catalyst announced the sale of its complement
portfolio for $60 million.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">During the 16-year tenure of Dr. Usman on
the Board, and as Chief Executive Officer, we are not aware of a single drug that has been commercialized at Catalyst. Yet, in 2021, Dr.
Usman was awarded and/or paid more than $1.2 million in total compensation, while, during that same year, stockholders saw the value of
their shares plummet by approximately 86%. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">We believe that Catalyst&#8217;s stockholders
have suffered enough value destruction under the watch of the incumbent Board and the Board should take immediate action to rebuild stockholder
value by making a firm commitment to distribute the maximum amount of Catalyst&#8217;s available cash as soon as possible. </FONT></TD></TR></TABLE>


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<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: center"><B>WE BELIEVE THAT STOCKHOLDERS NEED TO QUESTION WHETHER
THEY CAN TRUST THE INCUMBENT BOARD MEMBERS TO ENSURE THAT CATALYST DISTRIBUTES THE MAXIMUM AMOUNT OF CASH TO STOCKHOLDERS</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">According to the Catalyst&#8217;s pro forma
balance sheet, included as Exhibit 99.2 to the Form 8-K/A that Catalyst filed with the Securities and Exchange Commission on May 24, 2022,
Catalyst has, as of March 31, 2022, approximately $87 million in cash and cash equivalents, after giving effect to the $53 million in
net cash proceeds that Catalyst received from the sale of its complement portfolio on May 19, 2022. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">We recognize that the total pro forma amount
of cash that Catalyst disclosed as having as of March 31, 2022 may not all be currently available for distribution to stockholders since
Catalyst may have incurred liabilities, obligations, and expenses since March 31, 2022, including, we believe, to fight us in this proxy
contest and prevent our highly qualified nominees from being elected at the Annual Meeting and, thereby, prevent our nominees from being
able to advocate for Catalyst to make a firm commitment to a maximum and timely cash distribution to stockholders. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">However, like other stockholders, we have
no visibility into how much cash Catalyst really has available to distribute to stockholders and how Catalyst is using its available cash.
</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">With limited drug development projects and
only a handful of employees remaining, Catalyst should explain to stockholders why it needs all the cash it currently holds.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">We are also extremely concerned, as should
all stockholders, that Catalyst has, to date, made no firm commitment to distribute any sum certain amount of cash within any fixed timetable.
While Catalyst has publicly stated it intends to distribute &#8220;<I>as much</I>&#8221; as $65 million in cash to stockholders, depending
upon &#8220;<I>several factors</I>,&#8221; we are concerned by Catalyst&#8217;s apparent unwillingness to publicly commit to any cash
distribution amount to stockholders within a fixed period of time. The only time period that Catalyst has publicly specified for distributing
cash to stockholders is &#8220;<I>as soon as practicable</I>.&#8221;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">We also believe stockholders would be comforted
if Catalyst would commit publicly that it will not use any of its available cash to pursue or engage in any strategic, investment, M&amp;A,
and/or financing opportunities, and instead use available cash solely for activities related to the ordinary course of business, paying
off current liabilities, and winding down operations. </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: center"><B>WE HAVE MADE NUMEROUS ATTEMPTS TO CONSTRUCTIVELY RESOLVE
OUR CONCERNS WITH CATALYST, EVEN RECENTLY OFFERING TO DROP OUR STOCKHOLDER LITIGATION IF CATALYST WOULD COMMIT TO A TIMELY CASH DISTRIBUTION
TO STOCKHOLDERS OF AT LEAST $60 MILLION</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">We have sought to constructively work in
good faith with Catalyst and its Board. Prior to nominating our nominees and thereafter, we sought to engage in settlement discussions
with Catalyst&#8217;s Board and its advisors in an attempt to establish a path to avoid a public proxy contest. Our efforts to reach a
settlement with Catalyst were completely futile, as we believe Catalyst and its Board were more interested in &#8220;gamesmanship&#8221;
and self-preservation than in working with us to avoid a proxy contest.</FONT></TD></TR></TABLE>


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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9.35pt"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt; background-color: white">Most recently, on
July 15, 2022, we sent a written settlement proposal to Catalyst&#8217;s representatives proposing, among other terms, that Catalyst commit
to a cash distribution to stockholders of not less than $60 million. We also asked for Catalyst to make a firm commitment to distribute
the remainder of its available cash within a year. As part of this settlement, we also indicated that we would drop all of our litigation
against Catalyst, even though we are very confident in the merits of that litigation and believe we will ultimately prevail.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">In response to our settlement proposal, Catalyst&#8217;s
representatives made it very clear that Catalyst was not prepared to firmly commit to a cash distribution to stockholders of more than
$43 million. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt"><FONT STYLE="font-family: Symbol; font-size: 11pt">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial,sans-serif; font-size: 11pt">We continue to believe that Catalyst and
its Board have forced us into a proxy contest that is extremely costly for both us and Catalyst and we remain open to alterative paths
to ensure that Catalyst firmly commits to a timely distribution of the maximum amount of its available cash to stockholders. </FONT></TD></TR></TABLE>

<P STYLE="font: bold 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: center">SUPPORT JDS1&#8217;S EFFORTS TO UNLOCK STOCKHOLDER VALUE
AND DRIVE THE MAXIMUM DISTRIBUTION OF AVAILABLE CASH TO STOCKHOLDERS BY VOTING FOR JDS1&#8217;S THREE HIGHLY QUALIFIED NOMINEES ON THE
<U>GOLD</U> PROXY CARD TODAY</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.45in">We also urge you to discard any white
proxy card or voting instruction card you may receive from Catalyst. Even a WITHHOLD vote with respect to Catalyst&#8217;s nominees on
its white proxy card will cancel any <B><U>GOLD</U></B> proxy card previously given to JDS1. If you previously signed a white proxy card
sent to you by Catalyst, you can revoke that proxy card and vote for JDS1&#8217;s nominees by voting a new <B><U>GOLD</U></B> proxy card.
Only your latest-dated proxy card will count.</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.45in">We urge you to carefully consider the
information contained in the attached Proxy Statement and then support our efforts by signing, dating, and returning the enclosed <B><U>GOLD</U></B>
proxy card today. If you have any questions or require any assistance with your vote, please contact Kingsdale Advisors, which is assisting
us, at its address and toll-free numbers listed below.</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.45in">We look forward to communicating further
with you in the coming weeks.</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 0 3.15in">Thank you for your support,<BR>
<BR>
/s/ Julian D. Singer<BR>
<BR>
Julian D. Singer</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 0 3.15in">JDS1, LLC</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 0 3.15in">&nbsp;</P>


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<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; background-color: #FEFEFE; color: #444444"><B>About JDS1, LLC</B></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify">JDS1, LLC is a value-oriented investment firm based in Fort
Lee, New Jersey. JDS1 is led by Julian D. Singer.</P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; background-color: white"><B>Additional Information and Where to Find It</B></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0 0 12pt; text-align: justify; background-color: white">On July 19, 2022, JDS1, LLC and
the other participants in its proxy solicitation filed a definitive proxy statement and an accompanying <B><U>GOLD</U></B> proxy card
with the Securities and Exchange Commission in connection with its solicitation of proxies for Catalyst Biosciences, Inc.&#8217;s 2022
Annual Meeting of Stockholders. <B>BEFORE MAKING ANY VOTING DECISION, INVESTORS AND STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ JDS1&#8217;S
PROXY STATEMENT, THE ACCOMPANYING <U>GOLD</U> PROXY CARD, AND ANY AMENDMENTS AND SUPPLEMENTS THERETO, AND OTHER DOCUMENTS FILED BY JDS1
WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION.</B> Information regarding
the identity of participants, and their direct or indirect interests, by security holdings or otherwise, is set forth in JDS1&#8217;s
Proxy Statement, including the schedules thereto. Stockholders can obtain JDS1&#8217;s Proxy Statement, any amendments or supplements
to JDS1&#8217;s Proxy Statement and other documents filed by JDS1 with the SEC for no charge at the SEC&#8217;s website at www.sec.gov.
Copies will also be available at no charge at the following website: http://www.myproxyonline.com/jds1.
Investors can also contact JDS1&#8217;s proxy solicitor, Kingsdale Advisors, toll free at 1-888-302-5677.</P>

<P STYLE="font: 11pt Arial,sans-serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in"><B>Contacts:</B></P>

<P STYLE="font: 11pt Arial,sans-serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial,sans-serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">JDS1, LLC<BR>
Julian D. Singer, (201) 592-3400</P>

<P STYLE="font: 11pt Arial,sans-serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 11pt Arial,sans-serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">Kingsdale Advisors<BR>
Michael Fein / Sylvia Hermina, (646) 651-1640<BR>
mfein@kingsdaleadvisors.com / shermina@kingsdaleadvisors.com</P>

<P STYLE="font: 11pt Arial,sans-serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">&nbsp;</P>


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