Appili Therapeutics Announces Update to Funding Agreement with The Lind Partners

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

HALIFAX, Nova Scotia, December 22, 2021 – Appili Therapeutics Inc. (TSX:APLI) (the “Company” or “Appili”), a biopharmaceutical company focused on drug development for infectious diseases, announced today that the Company and Lind Global Fund II, LP, an investment entity managed by The Lind Partners, a New York based institutional fund manager (together "Lind"), have agreed to amend certain terms of the previously announced senior convertible funding agreement (the “Funding Agreement”).


Under the previously disclosed Funding Agreement, Appili issued to Lind a secured convertible security with a face value of $4.095 million and a 24-month maturity date. Under the revised terms, Appili has agreed to make a voluntary prepayment of $1 million towards the principal amount outstanding under the Funding Agreement. In exchange, Lind has agreed to a standstill period expiring on March 18, 2021 during which Lind shall not be entitled to convert any of the remaining principal amount outstanding into Appili shares, which is now approximately $3 million.


“Today’s agreement is an important part of Appili’s near-term strategy to maximize balance sheet flexibility and ultimately grow shareholder value” said Dr. Armand Balboni, CEO of Appili Therapeutics. “We are grateful for the continued support from our partners at Lind as we look to expand and advance our diversified anti-infective pipeline of four potential products through key development milestones in 2022, including a Phase 2 start for our novel antifungal ATI-2307. In addition, we believe that two of our programs come with the additional potential for obtaining priority review vouchers, which could add significant, non-dilutive value to our shareholders in the event these programs are successful.”


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. The Company is 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”. 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. Such forward looking statements include statements with respect to the Company’s development plans with respect to its product portfolio and expectations with respect to priority review voucher eligibility. 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, (i) risks relating to unforeseen events that may delay or impede the Company’s development plans with respect to its product portfolio, (ii) the risk that a product may ultimately not be priority review voucher eligible and (iii) the risks and assumptions 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.


###


Media Contact:

Danielle Raabe/APCO Worldwide

T: 1-646-717-9915

E: DRaabe@apcoworldwide.com


Investor Relations Contact:

Stéphane Paquette; Vice President, Corporate Development

Appili Therapeutics

E: Info@AppiliTherapeutics.com