Appili Therapeutics Announces US$3.6 Million Non-Convertible Secured Loan and License and Distribution Agreement with Long Zone Holdings

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HALIFAX, Nova Scotia — Appili Therapeutics Inc. (TSX: APLI; OTCQX: APLIF) (the “Company” or “Appili”), a biopharmaceutical company focused on the development of drugs for infectious diseases, announced today that has entered into an exclusive licensing and lending agreement and distribution agreement (the “Agreement”) with Long Zone Holdings Inc. (“LZH”), led by Jonathan Ross Goodman, founder of Paladin Labs Inc. and Knight Therapeutics Inc. (TSE:GUD). The US$3.6 million senior secured loan will be used by Appili to retire the previously announced senior convertible financing agreement with The Lind Partners and for working capital purposes.

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Under the terms of the agreement, LZH will issue a secured loan of US$3.6 million bearing a minimum interest rate of 8.5% per annum, compounded quarterly, with a maturity date of March 28, 2025. Appili expects to receive net proceeds of approximately US$3.5 million from the financing (after deducting total fees of US$108,000, including labor costs and set-up fees payable to LZH). LZH will also receive 1,500,000 cash warrants, exercisable for seven years, with a warrant exercise price of C$0.115, equal to the 5-day volume-weighted average price (“VWAP”) immediately prior to the execution of the agreement.

In addition, Appili will grant LZH an exclusive license to market Appili’s future approved products in Latin America, Canada and Israel (collectively, the “Territory”), except for the ATI-1501 in Latin America. , which was recently licensed to existing partner Saptalis Pharmaceuticals. Appili will receive a supply price for products sold by LZH or its sublicensees, as well as royalties on net sales.

“We are excited to announce this non-dilutive financing agreement and partnership to help us advance our pipeline and ultimately bring our products to Canadian, Israeli and Latin American markets,” said the Dr. Armand Balboni, CEO of Appili Therapeutics. . “Infectious diseases are a global threat and funding from LZH, in addition to more than US$10 million in expected non-dilutive funding from the US Department of Defense, helps bring Appili closer to delivering its portfolio of innovative medicines to patients from all over the world. world.”

The loan will be secured by all assets and property of the Company under a general security agreement. The transaction contemplated under the Agreement has been conditionally approved by the Toronto Stock Exchange.

“Appili focuses on some of the world’s toughest infectious disease threats, as evidenced by the fact that two of Appili’s programs in development will, if cleared by the FDA, be eligible to receive a good review. priority. Priority review vouchers have sold for as little as US$67 million and as high as US$350 million. Knight was fortunate to sell its priority review voucher for US$125 million to Gilead in November 2014. We are delighted to partner with Appili to help address these urgent unmet public health needs while creating significant shareholder value in the process,” said Jonathan Ross Goodman, Long Zone Holdings Inc.

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This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein. The securities offered have not been registered under the United States Securities Act of 1933, as amended (the “US Securities Act”), or applicable state securities laws, and may not be offered or sold to , or for the account or benefit of, United States Persons or United States Persons (as both terms are defined in Regulation S promulgated under United States securities law) absent registration or an applicable exemption from these registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy and there will be no sale of the securities offered in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Therapeutic Device
Appili Therapeutics is an infectious disease biopharmaceutical company that is deliberately built, portfolio-driven, and people-focused to fulfill its mission of solving life-threatening infections. By systematically identifying urgent infections with unmet needs, Appili’s goal is to strategically develop a pipeline of new therapies to prevent deaths and improve lives. The company is currently developing a diverse line of anti-infectives, including a broad-spectrum antifungal, a vaccine candidate to eliminate a serious bioweapon threat, and two new antibiotic programs. Led by a proven management team, Appili is at the epicenter of the global fight against infections. For more information, visit www.AppiliTherapeutics.com.

About Long Zone Holdings Inc.
Long Zone Holdings Inc. is based in Montreal, Canada and founded by Jonathan Ross Goodman with its proceeds from the $3.2 billion sale of Paladin Labs Inc.. Long Zone Holdings Inc. is named after the first letters of the 3 young Jonathan’s children to reflect the area’s Long Horizon investment. Long Zone holds a number of senior positions at pharmaceutical and health-related companies, including specialty pharmaceutical company Knight Therapeutics Inc. (TSE:GUD) and privately held Fody Foods Inc. ( www.fodyfoods.com).

Forward-looking statements
This press release contains “forward-looking statements,” including with respect to the product’s proposed use, future development and commercialization plans, future funding (including from the U.S. Department of Defense), and potential eligibility of certain company programs for a priority review voucher. Whenever possible, words such as “may”, “would”, “could”, “should”, “will”, “anticipate”, “believe”, “plan”, “expect”, ” intend to”, “estimate”, “potential for” and similar expressions have been used to identify these forward-looking statements. These forward-looking statements reflect the Company’s management’s current expectations regarding future growth, results of operations, performance and business prospects and opportunities and involve important known and unknown risks, uncertainties and assumptions, including, without limitation, risks relating to the development, regulatory approval (including availability of priority review voucher) and commercialization of any approved product, risks relating to the Company’s ability to obtain future financing , and the other risks listed in the annual information form of the Company dated June 23, 2021 and the other documents filed by the Company with the Canadian securities authorities (which can be consulted at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking statements contained herein. Press release. These factors should be carefully considered and potential investors should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220328005914/en/

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contacts

Media:
Danielle Raabe/APCO Worldwide
T: 1-646-717-9915
Email: [email protected]

Investor Relations:
Stephane Paquette; Vice President, Corporate Development
Therapeutic Device
E: [email protected]

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