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Appili Therapeutics Inc. (TSX: APLI) (the “Company” or
“Appili”), a biopharmaceutical company focused on drug development
for infectious diseases, today announced that it has entered into a
$3.5 million convertible security funding agreement (the
“Agreement”) with Lind Global Fund II, LP, an investment entity
managed by The Lind Partners, a New York based institutional fund
manager (together "Lind").
Appili Therapeutics intends to use the funding to support the
operations of the Company as it prepares for top-line data from its
PRESECO Phase 3 trial evaluating Avigan®/Reeqonus™ (favipiravir) as
a potential oral therapy for patients with mild-to-moderate
COVID-19. The funding will also be used to advance the broader
Appili pipeline, including ATI-2307, a novel clinical stage
antifungal expected to enter Phase 2 study in 2022.
“Appili is working to develop medicines for some of the most
urgent health challenges facing the world today, including the
COVID-19 pandemic and the growing threat of Candida auris, a highly
drug-resistant fungus that is spreading within hospital settings,”
said Dr. Armand Balboni, Chief Executive Officer, Appili
Therapeutics. “This funding from Lind will help us move our
pipeline forward to address these important public health threats,
as well as provide Appili greater operational flexibility.”
Under the terms of the Agreement, Lind will make an investment
of $3.5 million in exchange for a secured convertible security with
a principal amount of $4.095 million (“Face Value”) and a 24-month
maturity date. Appili will receive net proceeds of $3.395 million
from the funding (after deducting a commitment fee of $105,000).
Lind will be entitled to convert up to 1/20th of the Face Value per
month into Class A common shares of Appili (“Shares”) at a price
equal to 85% of the five-day volume weighted average share price
(“VWAP”) immediately prior to conversion (the “Conversion Price”).
Shares underlying the convertible security will be subject to
resale restrictions for a period of four months and one day
following the closing date.
The Agreement also includes provisions entitling Lind to
accelerated conversion rates based on Appili’s trading price.
Appili has the right to buy-back outstanding Face Value at any time
with no penalty. If Appili elects to exercise its buy-back rights,
Lind will have the option to convert up to 25% of the Face Value.
In addition, if such buy-back right is exercised within 180 days,
the Face Value will be reduced to $3,794,000.
As part of the Agreement, Lind will be issued 2,209,874
cash-exercise warrants, exercisable for 48 months, subject to
acceleration, with a warrant exercise price of $0.9517,
representing a 30% premium to the 20-day VWAP immediately prior to
execution of the Agreement.
The convertible security will be secured against all of the
assets and property of the Company pursuant to a general security
agreement.
The transaction contemplated under the Agreement has been
conditionally approved by the Toronto Stock Exchange. Funding under
the Agreement is expected to be completed on or before August 20,
2021.
“Lind is excited to invest in Appili Therapeutics at such a
critical moment for the company,” said Phillip Valliere, Managing
Director from The Lind Partners. “We look forward to helping Appili
further accelerate their pipeline and supporting them in their
upcoming trials.”
This press release shall 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 “U.S. Securities
Act”), or applicable state securities laws, and may not be offered
or sold to, or for the account or benefit of, persons in the United
States or U.S. persons (as both such terms are defined in
Regulation S promulgated under the U.S. Securities Act) absent
registration or an applicable exemption from such registration
requirements. This press release shall not constitute an offer to
sell or a solicitation of an offer to buy nor shall there be any
sale of the securities offered in any jurisdiction in which such
offer, solicitation, or sale would be unlawful.
About Appili Therapeutics
Appili Therapeutics is an infectious disease biopharmaceutical
company that is purposefully 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 novel therapies to prevent deaths and improve lives. As part of
a global consortium, Appili is sponsoring late-stage clinical
trials evaluating the antiviral Avigan/Reeqonus for the worldwide
treatment and prevention of COVID-19. The Company is also advancing
a diverse range of anti-infectives, including a broad-spectrum
antifungal, a vaccine candidate to eliminate a serious biological
weapon threat, and two novel antibiotic programs. Led by a proven
management team, Appili is at the epicenter of the global fight
against infection. For more information, visit
www.AppiliTherapeutics.com.
About The Lind Partners
The Lind Partners is an institutional fund manager and leading
provider of growth capital to small- and mid-cap companies publicly
traded in the US, Canada, Australia and the UK. Lind makes direct
investments ranging from US$1 to US$30 million, invests in
syndicated equity offerings and selectively buys on market. Lind
has completed more than 100 direct investments totaling over US$1
billion in value and has been a flexible and supportive capital
partner to investee companies since 2011. For more information,
please visit www.thelindpartners.com.
Forward looking statements
This news release contains “forward-looking statements”,
including with respect to the proposed use of proceeds and the
funding timeline. Wherever possible, words such as “may,” “would,”
“could,” “should,” “will,” “anticipate,” “believe,” “plan,”
“expect,” “intend,” “estimate,” “potential for” and similar
expressions have been used to identify these forward-looking
statements. These forward-looking statements reflect the current
expectations of the Company’s management for future growth, results
of operations, performance and business prospects and opportunities
and involve significant known and unknown risks, uncertainties and
assumptions, including, without limitation, those listed in the
annual information form of the Company dated June 23, 2021 and the
other filings made by the Company with the Canadian securities
regulatory authorities (which may be viewed 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 vary
materially from those expressed or implied by the forward-looking
statements contained in this news release. These factors should be
considered carefully, and prospective investors should not place
undue reliance on the forward-looking statements. The Company
disclaims any intention or obligation to revise forward-looking
statements whether as a result of new information, future
developments or otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210809005355/en/
Media Contacts Danielle Raabe/APCO Worldwide T: (646) 717
9915 Email: draabe@apcoworldwide.com Investor Relations
Contacts Kimberly Stephens, CFO Appili Therapeutics E:
Info@AppiliTherapeutics.com
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