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


HALIFAX, Nova Scotia, March 29, 2022– Appili Therapeutics Inc. (TSX: APLI; OTCQX: APLIF) (the “Company” or “Appili”), a biopharmaceutical company focused on drug development for infectious diseases, today announced that it has entered into a senior secured loan and exclusive license and distribution agreement (the “Agreement”) with Long Zone Holdings Inc. (“LZH”), led by Jonathan Ross Goodman, founder of both 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 funding agreement with The Lind Partners and for working capital purposes.

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 year, compounded quarterly, with a maturity date of March 28, 2025. Appili expects to receive net proceeds of approximately US$3.5 million from the funding (after deducting aggregate fees of US$108,000, including in respect of a work fee and origination fee payable to LZH). LZH will also be issued 1,500,000 cash-exercise 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 execution of the Agreement.

In addition, Appili shall grant LZH an exclusive license to commercialize Appili’s future approved products in Latin America, Canada, and Israel (collectively, the “Territory”), excluding 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 funding agreement and partnership to help advance our pipeline and, ultimately, bring our products to the Canadian, Israeli, and Latin American markets,” said Dr. Armand Balboni, Chief Executive Officer, Appili Therapeutics. “Infectious diseases are a global threat and the funding from LZH, in addition to over US$10 million in expected non-dilutive funding from the US Department of Defense, help bring Appili that much closer to delivering its portfolio of innovative medicines to patients around the world.”

The loan 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.

“Appili is focused on some of the most challenging infectious disease threats in the world, as evidenced by the fact that two of Appili’s programs in development will, if approved by the FDA, be eligible to receive a Priority Review Voucher. Priority Review Vouchers have sold for as low as US$67 million and as high as US$350 million. Knight was blessed to sell its Priority Review Voucher for US$125 million to Gilead in November 2014. We are excited 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.

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 currently 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


About Long Zone Holdings Inc.

Long Zone Holdings Inc. is based in Montreal, Canada and founded by Jonathan Ross Goodman with his proceeds from the $3.2 billion sale of Paladin Labs Inc.. Long Zone Holdings Inc. is named after the first letters of Jonathan’s 3 young children to reflect Long Zone’s investment horizon. Long Zone holds a number of significant positions in pharmaceutical and health related companies including specialty pharma Knight Therapeutics Inc. (TSE: GUD) and IBS gut friendly privately held Fody Foods Company Inc. (


Forward looking statements

This news release contains “forward-looking statements”, including with respect to the proposed use proceeds, future development and commercialization plans, future funding (including from the US Department of Defense) and potential eligibility of certain Company programs for a Priority Review Voucher. 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 risks relating to the development, regulatory approval (including availability of Priority Review Voucher) and commercialization of any approved product, risks relating to ability of the Company to secure future funding, and the other risks 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 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


Investor Relations Contact:
Stéphane Paquette; Vice President, Corporate Development
Appili Therapeutics