Appili Therapeutics Reports Financial and Operational Results for Third Quarter Fiscal Year 2020
HALIFAX, Nova Scotia, February 20, 2020 – Appili Therapeutics Inc. (TSXV: APLI) (the “Company” or “Appili”), a biopharmaceutical company focused on anti-infective drug development, today reported its financial and operational results for the third quarter of its fiscal year 2020, ending December 31, 2019.
Third quarter and recent operational highlights included:
Acquiring ATI-2307, a novel, antifungal candidate from FUJIFILM Toyama Chemical Co., LTD, thereby adding another clinical-stage asset to the Company’s pipeline;
Entering its first commercialization agreement by partnering with Saptalis Pharmaceuticals on ATI-1501, Appili’s taste-masked liquid oral suspension of the antibiotic metronidazole;
Naming Dr. Armand Balboni as Appili’s new Chief Executive Officer; and
Securing C$10,250,000 in funding via a marketed equity offering.
“Our third quarter proved to be a transformative period for Appili and we are pleased to continue executing against our mission: addressing urgent unmet needs in the infectious disease marketplace,” said Kimberly Stephens, Chief Financial Officer of Appili Therapeutics. “In the third quarter alone, we expanded our asset pipeline with the acquisition of ATI-2307—a novel anti-fungal clinical asset, secured an optimal partner for the commercialization of ATI-1501 and transitioned our CEO leadership to industry veteran Dr. Armand Balboni, whose significant late-stage development experience will be instrumental in this period of the Company’s corporate growth.”
Chief Executive Officer Dr. Balboni added, “Our recent funding has provided significant financial support that positions Appili to continue meeting our value-driving milestones. We are very pleased that this offering included many of our long-standing investors, as well as many new participants. Together with the Board of Directors and leadership team, we believe that Appili is well positioned to keep advancing our programs and maintain leadership in the infectious disease marketplace.”
The Company prepares its financial statements in accordance with IFRS as issued by the International Accounting Standard Board and Part I of Chartered Professional Accountants of Canada Handbook–Accounting. All dollar figures are $CAN unless otherwise noted.
The net loss and comprehensive loss of $4,129,423 or $0.13 loss per share for the nine months ended December 31, 2019 was $1,104,895 higher than the net loss and comprehensive loss of $3,024,528 or $0.10 loss per share during the nine months ended December 31, 2018. This relates mainly to a $1,209,528 decrease in government assistance, a $795,797 increase in general and administrative expenses, a $337,128 increase in business development expenses, and a reduction of accreted interest by $90,193, offset by a $1,128,645 decrease in research and development (R&D) expenses and an increase of revenue by $199,106 attributable to the out-license of ATI-1501.
As of December 31, 2019, the Company had cash and short-term investments of $2,438,599, compared to $5,451,578 at March 31, 2019.
As of February 26, 2020, the Company had 46,401,447 Class A common shares (“Common Shares”) issued and outstanding. In addition, the Company had 4,402,932 stock options and 8,043,243 warrants outstanding as of February 26, 2020.
The Company’s unaudited interim condensed financial statements for December 31, 2019 and the management discussion and analysis (MD&A) are available on SEDAR at www.sedar.com.
Investor Relations Consultant
The Company also announced that it has retained Transcend Capital Inc. (“Transcend Capital”) to provide strategic investor relations services. With offices in Vancouver, British Columbia, Transcend Capital is a full-service investor relations firm that assists small and mid-cap companies with market awareness campaigns and exposes their clients to an extensive network of retail and institutional clients. Mr. Etienne Moshevich is the sole owner of Transcend Capital.
Under the terms of the consulting agreement with Transcend Capital (the “Agreement”), the Company has agreed to pay Transcend Capital CDN $50,000 for a term of 6 months. The Agreement is subject to the approval of the TSX Venture Exchange. The Agreement has an initial term of six months but may be extended by the parties. The fees paid by the Company to Transcend Capital are for its services only. Transcend Capital advises that it currently holds 62,500 common shares and 31,250 common share purchase warrants of the Company.
About Appili Therapeutics
Appili Therapeutics Inc. was founded to advance the global fight against infectious disease by matching clearly defined patient needs with drug development programs that provide solutions to existing challenges patients, doctors, and society face in this challenging disease space. Appili has built a pipeline of assets designed to address a broad range of urgent threats in global public health. ATI-2307, a novel, broad spectrum, clinical stage antifungal, is in development to address severe and difficult-to-treat invasive fungal infections. Via an in-licensing program, Appili is developing ATI-1701, a vaccine for tularemia, to mitigate the risks of a very serious biological weapons threat. ATI-1503 is a drug discovery program developing a novel class of antibiotics with broad-spectrum activity against Gram-negative superbugs. ATI-1501 employs Appili’s proprietary, taste-masked, oral-suspension technology with the antibiotic metronidazole for the growing number of patients with difficulty swallowing. Headquartered in Halifax, Nova Scotia, with offices in Toronto, Ontario, Appili is pursuing worldwide opportunities in collaboration with science and industry commercial partners, governments and government agencies. For more information, visit www.AppiliTherapeutics.com.
This news release contains “forward-looking statements” which reflect the current expectations of the Company’s management future growth, results of operations, performance and business prospects and opportunities. 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. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions, including, without limitation, those listed in the annual information form of the Company dated July 2, 2019 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.
Neither the TSX Venture Exchange, nor its regulation services provider (as that term is defined in the policies of the exchange), accepts responsibility for the adequacy or accuracy of this release.
Media Relations Contact:
Sam Brown Inc.
Investor Relations Contact:
Kimberly Stephens, CFO