Building a National Security Healthcare company focused on dual-use medical technologies
Halifax, Nova Scotia--(Newsfile Corp. - November 12, 2026) - Appili Therapeutics Inc. (NEX: APLI.H) (OTC Pink: APLIF) (the "Company" or "Appili"), a biopharmaceutical company building a National Security Healthcare platform focused on dual-use medical technologies, today announced its financial and operational results for the second quarter of its fiscal year 2027, which ended on September 30, 2026. All figures are in Canadian dollars unless otherwise stated.
Revised Business Strategy
Appili is repositioning itself as a National Security Healthcare company focused on acquiring and advancing medical technologies that protect military personnel, strengthen national resilience, and address critical healthcare needs. The Company's strategy builds upon its experience in infectious disease, medical countermeasure development, government-funded programs, and public-private partnerships while expanding its focus into adjacent areas relevant to defense and health security. Our revised strategic focus is driven by the significant unmet medical and public health need for innovative countermeasures against naturally occurring and emerging infectious diseases, antimicrobial resistance, and biological threats, as well as the expanding regulatory, procurement, and non-dilutive funding mechanisms available to support development. These opportunities are increasingly supported by U.S. Government agencies, allied governments, and international organizations seeking resilient biodefense and health security capabilities.
"Appili is expanding beyond a traditional infectious disease model to build a National Security Healthcare company focused on dual-use medical technologies that protect military personnel, strengthen national resilience and address important commercial healthcare needs" said Dr. Don Cilla, President and Chief Executive Officer of Appili. "We intend to pursue this strategy with disciplined capital allocation, leveraging partnerships and non-dilutive funding to advance selected programs and create meaningful value for shareholders."
ATI-1801 - Topical Antiparasitic Program with an Aligned Regulatory Path
Following positive feedback from the U.S. Food and Drug Administration ("FDA") on its scientific bridging strategy, ATI-1801, a topical formulation of paromomycin in development for cutaneous leishmaniasis has a clearly defined registration pathway to support an NDA submission. Appili is actively pursuing non-dilutive funding from global health organizations and government agencies that share the Company's focus on tropical diseases to execute this strategy and complete the remaining development work.
ATI-1801 is potentially eligible to receive a Priority Review Voucher ("PRV") upon FDA approval, which is anticipated as early as the fourth quarter of 2029 subject to securing the requisite funding. Recent PRV transactions have reached US$200 million, representing meaningful non-dilutive value creation
LIKMEZ (ATI-1501), Commercial Momentum Building in U.S. Market
Saptalis Pharmaceuticals, Appili's manufacturing and commercialization partner, continues to commercialize LIKMEZ (metronidazole oral suspension, 500 mg/5 mL), the first and only FDA-approved liquid oral formulation of metronidazole. Since the re-launch in May 2025, LIKMEZ has demonstrated sales growth, reflecting clinician and patient demand.
In April 2025, additional patents protecting LIKMEZ's composition and preparation methods were published in the U.S. and Mexico, with patent protection extending through 2039.
Lender Extensions
Pursuant to the terms of such extensions, all amounts owing under the Bloom Burton Loan, together with all accrued and unpaid interest, will be due on December 31, 2026. On October 31, 2026, the Company and Long Zone Holdings entered into a lender agreement and waiver extending the repayment of the outstanding obligations under these loans to November 30, 2026. This lender also waived the requirement that the Company's shares remain listed on the TSX, conditional on the shares continuing to be listed on the NEX on November 30, 2026. A conditional waiver fee of $18,000 remains payable upon completion of a $350,000 financing.
Financial Results
The Company prepares its financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board and Part I of Chartered Professional Accountants of Canada Handbook-Accounting. All figures are in Canadian dollars unless otherwise stated.
For the six months ending September 30, 2026, the Company reported a net and comprehensive loss of $3.5 million ($0.03 per share), representing an increase of $1.3 million compared to the net loss of $2.2 million ($0.02 per share) for the same period in 2025. The higher loss was driven by a $0.5 million reduction in government assistance, a $0.3 million increase in financing costs, $0.4 million decrease in foreign exchange gains and a $0.5 increase in administrative expenses, partially offset by a $0.4 million decrease in research and development expenses. As of September 30, 2026, the Company's cash balance was $0.4 million, up from $0.04 million as of March 31, 2026.
For the six months ended September 30, 2026, Bloom Burton & Co. made $1.2 million of non-interest bearing, unsecured and with no specific payment terms, cash advances to the Company. Subsequent to September 30, 2026, the Company's Chief Development Officer stepped down and it laid off three employees.
Bloom Burton is considered to be a "related party" of the Company, and the advances referenced above are considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on section 5.7(f) of MI 61-101 as (i) the advances are not less advantageous to the issuer than loans that the Company would be obtained from arm's length persons, and (ii) the advances are not convertible into, or repayable in, equity of the Company.
As of September 30, 2026, the Company had 132,366,120 issued and outstanding Common Shares, 12,895,281 stock options, and 41,368,000 warrants outstanding.
This press release should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements for the second quarter of the 2027 fiscal year and the related MD&A, copies of which are available under the Company's profile on SEDAR+ at www.sedarplus.ca.
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About Appili Therapeutics
Appili Therapeutics is building a National Security Healthcare company that develops, acquires, and advances medical technologies to protect military personnel, strengthen national resilience, and address critical healthcare needs. Guided by a force health protection framework, Appili is building a portfolio spanning infectious disease, physiological readiness, diagnostics, biosurveillance, and protection against chemical, biological, radiological, and nuclear threats. The Company emphasizes dual-use technologies with applications across defense, government, and commercial healthcare markets. Appili's current portfolio includes programs addressing biological threats, serious infections, and other urgent unmet medical needs.
Appili Therapeutics: Advancing National Security Healthcare. Protecting the warfighter. Strengthening resilience. Advancing healthcare solutions.
For more information, visit www.AppiliTherapeutics.com.
Forward-looking statements
This news release contains "forward-looking statements", including with respect to the potential for partnered projects to be developed, the potential that Appili will receive government awards and / or contracts related to its proposal submissions, further anticipated milestones and the timing thereof, the Company's development plans and timelines with respect to LIKMEZ (ATI-1501), ATI-1701, ATI-1801 and VXV-01, the timing of any milestone and/or royalty payments in respect of LIKMEZ (ATI-1501), the potential PRV eligibility of ATI-1701 and ATI-1801 and the Company's expectations with respect to its ability to operate as a going concern and satisfy its ongoing working capital requirements. 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, (i) the risk that the Company may not secure any government funding in respect of any proposal submitted prior to the date hereof, (ii) risks relating to the ability of the Company to repay the LZH Loan and the Bloom Burton Loan as and when they become due (including the risk that any waivers the Company may require thereunder will not be provided), and (iii) those risks listed in the annual information form of the Company dated June 26, 2026, and the other filings made by the Company with the Canadian securities regulatory authorities (which may be viewed at www.sedarplus.ca). 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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Media and Investor Relations Contact:
Don Cilla, President and CEO
Appili Therapeutics
E: Info@AppiliTherapeutics.com
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