<SEC-DOCUMENT>0001171843-17-003646.txt : 20170615
<SEC-HEADER>0001171843-17-003646.hdr.sgml : 20170615
<ACCEPTANCE-DATETIME>20170615090015
ACCESSION NUMBER:		0001171843-17-003646
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170612
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170615
DATE AS OF CHANGE:		20170615

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Capstone Therapeutics Corp.
		CENTRAL INDEX KEY:			0000887151
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				860585310
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21214
		FILM NUMBER:		17912487

	BUSINESS ADDRESS:	
		STREET 1:		1275 WEST WASHINGTON STREET
		STREET 2:		SUITE 101
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281
		BUSINESS PHONE:		6022865520

	MAIL ADDRESS:	
		STREET 1:		1275 WEST WASHINGTON STREET
		STREET 2:		SUITE 101
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ORTHOLOGIC CORP
		DATE OF NAME CHANGE:	19940211
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_061517.htm
<DESCRIPTION>FORM 8-K
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<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">UNITED STATES</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549<BR>
______________________</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">FORM 8-K<BR>
CURRENT REPORT</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">Pursuant to Section 13 or 15(d)<BR>
of the Securities Exchange Act of 1934</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">_______________________</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">Date of Report: June 12, 2017 (Date of earliest event reported)</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><BR>
<U><B>CAPSTONE THERAPEUTICS CORP.</B></U><BR>
(Exact name of registrant as specified in its charter)</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 31%; border-bottom: Black 1pt solid; text-align: center; text-indent: 0in">Delaware</TD>
    <TD STYLE="width: 2%; text-align: center; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 36%; border-bottom: Black 1pt solid; text-align: center; text-indent: 0in">000-21214</TD>
    <TD STYLE="width: 2%; text-align: center; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 29%; border-bottom: Black 1pt solid; text-align: center; text-indent: 0in">86-0585310</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; text-indent: 0in">(State or other jurisdiction of incorporation)</TD>
    <TD STYLE="text-align: center; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in">(Commission File Number)</TD>
    <TD STYLE="text-align: center; text-indent: 0in">&nbsp;</TD>
    <TD>
        <P STYLE="font-size: 10pt; text-align: center; text-indent: 0in; margin: 0pt 0">(I.R.S. Employer</P>
        <P STYLE="font-size: 10pt; text-align: center; text-indent: 0in; margin: 0pt 0">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 50%; font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">1275 West Washington Street, Suite 104, Tempe, Arizona</TD><TD STYLE="width: 1%; font-size: 10pt; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 49%; font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">85281</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1pt">(Address of principal executive offices)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1pt">(Zip Code)</TD></TR>
</TABLE>


<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">Registrant&rsquo;s telephone number, including area code:<BR>
(602) 286-5520</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">[ ] &nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425)</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">[ ] &nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under
the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">[ ] &nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">[ ] &nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (17 CFR &sect;230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR &sect;240.12b-2). Emerging growth
company [ ]</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">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 13(a) of the Exchange
Act. [ ]</P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; text-indent: -0.75pt; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; text-align: center; text-indent: -0.75pt; margin: 0pt 0"><B>Section 2 &ndash; Financial Information</B></P>

<P STYLE="font-size: 10pt; text-align: center; text-indent: -0.75pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"> <B>Item 2.03.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.</B></P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">On December 11, 2015, Capstone Therapeutics Corp. (&quot;we,&quot; our,&quot; &quot;us&quot;
or the &ldquo;Company&rdquo;) entered into a Securities Purchase Agreement (the &ldquo;Agreement&rdquo;) with Biotechnology Value
Fund affiliated entities Biotechnology Value Fund, L.P., Biotechnology Value Fund II, L.P., Biotechnology Value Trading Fund OS,
L.P., Investment 10, LLC, and MSI BVF SPV, LLC (the &quot;Lenders&rdquo;) (Included as Exhibit 10.1 to the Company&rsquo;s Current
Report on Form 8-K filed with the Securities and Exchange Commission on December 15, 2015). The Lenders currently own in the aggregate
approximately 19% of our outstanding Common Stock, par value $.0005 per share (&quot;Common Stock&quot;).</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">P<FONT STYLE="font-size: 10pt">ursuant to the Agreement, the Lenders funded an aggregate
of $1,000,000 of loans to us, evidenced by Convertible Promissory Notes (the &ldquo;Notes&rdquo;) dated December 11, 2015 and due
April 30, 2017. On April 28, 2017 the Lenders entered into a Letter Agreement extending the maturity of the Notes to June 15, 2017
(Included as Exhibit 10.1 to the Company&rsquo;s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission
on May 4, 2017). On June 12, 2017 the Lenders entered into the 2<SUP>nd</SUP> Letter Agreement to extend the maturity of the Notes
to June 30, 2017.The Notes bear interest at 5% per annum and are secured by a security interest in all of our assets. </FONT></P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">A copy of the 2<SUP>nd</SUP> Letter Agreement is filed with this report as Exhibit 10.1
and is incorporated into this Item 2.03 by this reference.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; text-indent: -0.75pt; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; text-align: center; text-indent: -0.75pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; text-indent: -0.75pt; margin: 0pt 0"><B>Section 9 &ndash; Financial Statements and
Exhibits</B></P>

<P STYLE="font-size: 10pt; text-align: center; text-indent: -0.75pt; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; font-weight: bold; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">Item 9.01</TD><TD STYLE="text-align: left">Financial Statements and Exhibits.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt">                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(d)</TD><TD>Exhibits</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD><B><U>Exhibit No.</U></B></TD><TD><B><U>Description</U></B></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">10.1</TD><TD>2<SUP>nd</SUP> Letter Agreement dated June 12, 2017 to the Securities Purchase Agreement dated December 11, 2015, by and among
Capstone Therapeutics, Corp. and Biotechnology Value Fund, L.P., Biotechnology Value Fund II, L.P., Biotechnology Value Trading
Fund OS, L.P., Investment 10, LLC, and MSI BVF SPV, LLC.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: -1in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: -1in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0"><BR>
<BR>
</P>

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<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0">SIGNATURES</P>

<P STYLE="font-size: 10pt; font-weight: bold; text-align: center; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"></P>

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    <TD STYLE="width: 50%; text-indent: 0in">Dated:&nbsp;&nbsp;June 15, 2017</TD>
    <TD STYLE="width: 50%">CAPSTONE THERAPEUTICS CORP.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD><U>/s/ John M. Holliman, III&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD>John M. Holliman, III</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD>Executive Chairman and CEO</TD></TR>
</TABLE>


<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: -0.5in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: -0.5in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: -0.5in; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B></B></P>

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<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>Exhibit Index</B></P>

<P STYLE="font-size: 10pt; text-indent: 0in; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt">                                                                                                                                                                                                                                                                                                                                                   <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD><B><U>Exhibit No.</U></B></TD><TD><B><U>Description</U></B></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1in">10.1</TD><TD>2<SUP>nd</SUP> Letter Agreement dated June 12, 2017 to the Securities Purchase Agreement dated December 11, 2015, by and among
Capstone Therapeutics, Corp. and Biotechnology Value Fund, L.P., Biotechnology Value Fund II, L.P., Biotechnology Value Trading
Fund OS, L.P., Investment 10, LLC, and MSI BVF SPV, LLC.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exh_101.htm
<DESCRIPTION>EXHIBIT 10.1
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<P STYLE="font-size: 10pt; text-align: right; margin: 0pt"><B>Exhibit 10.1</B></P>

<P STYLE="font-size: 10pt; text-align: right; margin: 0pt"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>2<SUP>nd</SUP> Letter Agreement </B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0"><FONT STYLE="color: #262323">This Letter Agreement is by and between Capstone Therapeutics
Corp., a Delaware corporation, having its principal business at 1275 West Washington Street, Suite 104, Tempe, AZ 85281 </FONT>(&quot;Capstone&quot;)<FONT STYLE="color: #262323">,
its joint venture, LipimetiX Development, Inc., a Delaware corporation, having its principal business at 5 Commonwealth Road, Suite
2a, Natick, MA 01760 (</FONT>&quot;LipimetiX&quot;<FONT STYLE="color: #262323">), and </FONT>Biotechnology Value Fund, L.P., Biotechnology
Value Fund II, L.P., Biotechnology Value Trading Fund OS, L.P., Investment 10, LLC, and MSI BVF SPV, LLC. (the &quot;<U>BVF Parties</U>&quot;).</P>

<P STYLE="font-size: 10pt; text-align: right; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Re: Securities Purchase Agreement dated as of December 11, 2015 and
the Letter Agreement dated April 28, 2017 by and among Capstone Therapeutics Corp. and Biotechnology Value Fund, L.P., Biotechnology
Value Fund II, L.P., Biotechnology Value Trading Fund OS, L.P., Investment 10, LLC, and MSI BVF SPV, LLC.</P>

<P STYLE="font-size: 10pt; text-indent: -1in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">Ladies and Gentlemen:</P>

<P STYLE="font-size: 10pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Please refer to the above Securities Purchase Agreement (the &quot;<U>Agreement</U>&quot;).</P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Capitalized terms used in this letter agreement without definition
shall have the meanings set forth herein.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">By execution of this letter agreement below, each of the undersigned
BVF Parties agrees as follows:</P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Extension of Maturity
Date</U>. The Maturity Date shall be extended from June 15, 2017 by 15 days to June 30, 2017.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 0.5in">Except as expressly modified hereby, the Agreement shall remain in full force
and effect.</P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">This letter agreement shall be governed by and construed under the
laws of the State of California as applied to agreements among California residents, made and to be performed entirely within
the State of California. This letter agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Any signature page delivered electronically or by facsimile
(including without limitation transmission by .pdf) shall be binding to the same extent as an original signature page. Any party
who delivers such a signature page agrees to later deliver an original counterpart to the other party if so requested.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">Please confirm your agreement hereto by executing the acknowledgement
and agreement below and returning it to the undersigned via email or fax.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"></P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">Kind regards,</P>

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    <TD STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0; width: 50%"><FONT STYLE="text-transform: uppercase"><B>Capstone Therapeutics Corp.</B></FONT></TD>
    <TD STYLE="width: 50%; font-size: 10pt"><FONT STYLE="text-transform: uppercase"><B>LipimetiX Development, InC.</B></FONT><U></U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">By: <U>/s/ John M. Holliman, III</U></P>
        <P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">Name: John M. Holliman</P>
        <P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0">Title: Executive Chairman</P></TD>
    <TD STYLE="font-size: 10pt">By: <U>/s/ John M. Holliman, III</U><BR>
John M. Holliman<BR>
Executive Chairman</TD></TR>
</TABLE>


<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 0.5in">ACKNOWLEDGED AND AGREED, as of this 12th day of June 2017:</P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0"><B>Biotechnology Value Fund, L.P.</B></P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0"><B>By: BVF, Inc., General Partner</B></P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">By: <U>/s/ Mark Lampert</U></P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">Mark Lampert<BR>
Title: President</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in"><B>Biotechnology Value Fund II, L.P.</B><BR>
<B>By: BVF, Inc., General Partner</B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">By: <U>/s/ Mark Lampert</U><BR>
Name: Mark Lampert<BR>
Title: President</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0"><B>Investment 10, LLC</B></P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0"><B>By: BVF, Inc., attorney-in-fact</B></P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">By: <U>/s/ Mark Lampert</U><BR>
Name: Mark Lampert<BR>
Title: President</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0"><B>MSI BVF SPV, LLC</B></P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0"><B>By: BVF, Inc., attorney-in-fact</B></P>

<P STYLE="font-size: 10pt; text-indent: 3in; margin: 0pt 0">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">By: <U>/s/ Mark Lampert</U><BR>
Name: Mark Lampert<BR>
Title: President</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in"><B>Biotechnology Value Trading</B><BR>
<B>Fund OS, L.P.</B><BR>
<B>By: BVF Partners OS, Ltd.,</B><BR>
<B>General Partner</B><BR>
<B>By: BVF Partners L.P.,</B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in"><B></B></P>

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<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in"><B>Managing Member</B><BR>
<B>By: BVF, Inc., General Partner</B></P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">By: <U>/s/ Mark Lampert</U><BR>
Name: Mark Lampert<BR>
Title: President</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0pt 0 0pt 3in">&nbsp;</P>

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