Halifax-based biopharmaceutical company Appili Therapeutics has agreed to be acquired by Virginia life sciences company Aditxt in a nearly $17-million CAD deal.
Appili shareholders will receive a blended consideration of cash and common stock of Aditxt, with the total consideration equalling about 5.6 cents USD per share, bringing the total deal value to $16.8 million CAD when factoring in Appili’s long-term debt.
The transaction, which has been recommended by a special committee of the Appili board, is conditional upon Aditxt raising at least $20 million USD in financing prior to closing. The deal comes with a termination fee of $1.25 million CAD, should it fall through in certain circumstances.
Appili president and CEO Don Cilla said the transaction will allow Appili to leverage Aditxt’s research and development, operations, and commercialization expertise to develop its treatment programs.
“By integrating Appili’s proven expertise and diverse portfolio in the infectious disease and biodefence domain, Aditxt can substantially contribute to advancing public health solutions,” Aditxt co-founder, chairman, and CEO Amro Albanna said in a statement.
Founded in 2015, Appili Therapeutics focuses on developing drugs and advancing therapeutics in the area of infectious disease. The company began trading on the Toronto Stock Exchange (TSX) in 2019 before closing its $10.25-million public offering in February 2020.
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Appili went on to develop drugs aimed at curbing the spread of COVID-19, which resulted in testing clearance from Health Canada and the United States Food and Drug Administration in the summer of 2020. The company raised $3.5 million from a convertible security funding agreement in August 2021.
Aditxt is a Virginia-based life sciences company specifically focused on developing technology for immune system health through immune reprogramming and monitoring. Albanna said the acquisition of Appili will enhance Aditxt’s portfolio and create synergies with its existing programs.
Appili is currently developing a vaccine to combat Francisella tularensis, as well as a topical treatment for skin disease cutaneous leishmaniasis and a new formulation for an antibiotic.
Appili’s stock traded as high as $1.53 per share on the TSX in May 2020, but tumbled in October 2021 and has been trading around three cents per share for the past year. The stock value jumped up to five cents per share when the transaction agreement was announced, but has since evened out to roughly four cents per share at publication time.
The transaction is expected to close no later than Q3 2024 and will result in Appili delisting from Toronto Stock Exchange, making it the latest in a long string of Canadian tech firms to go private.
Feature image courtesy of National Cancer Institute via Unsplash.
