Mr. Amro Albanna of Aditxt reports

ADITXT'S ACQUISITION TARGET APPILI THERAPEUTICS WILL HOLD A SPECIAL MEETING OF SHAREHOLDERS ON NOVEMBER 6, 2024, TO VOTE ON THE TRANSACTION AND SECURE APPILI'S SHAREHOLDER APPROVAL

Aditxt Inc. acquisition target Appili Therapeutics Inc. has commenced the mailing of its management information circular in connection with the upcoming special meeting of its shareholders, which will be held virtually on Nov. 6, 2024. Appili's board of directors has recommended the shareholders' vote in favour of the proposed acquisition by Aditxt.

Since its founding in 2015, over $100-million has been raised toward developing antivirals and vaccines for emerging and neglected infectious agents to address a wide range of urgent medical needs in infectious diseases and biodefence. As a result, Appili's portfolio includes LIKMEZ, the first and only FDA-approved, taste-masked oral liquid suspension form of the antibiotic, metronidazole. LIKMEZ addresses an unmet need in patients, such as children and the elderly, who have trouble swallowing large pills. LIKMEZ was commercially launched by Saptalis Pharmaceuticals LLC in 2023 and the product is now available to patients and doctors in the United States. Appili has the right to receive sales-based milestone payments and royalties from Saptalis based on sale of the product.

In addition, Appili has two programs, ATI-1701 and 1801, which, subject to the renewal of certain legislation, are potentially eligible for FDA priority review vouchers (PRVs). A PRV enables its recipient to expedite the review process for future drug applications upon issuance. While PRVs can be traded and recent transactions averaged approximately $100-million, their strategic value can potentially extend beyond the secondary market, offering significant advantages in accelerating the development timeline of new treatments.

ATI-1701 is a live attenuated vaccine that targets tularemia. This bacterial infection caused by Francisella tularensis is potentially 1,000 times more infectious than anthrax, posing significant threats to public health and national security and, thus, classified as a Category A pathogen by the National Institutes of Health for its potential use in bioterrorism. ATI-1701 has been awarded a total of $14-million in U.S. Air Force Academy funding commitments, facilitating essential activities like manufacturing, non-clinical studies, and regulatory activities for an investigational new drug (IND) application, positioning ATI-1701 as a pivotal element in biodefence strategies. ATI-1801 is another program representing a topical antiparasitic product licensed by the U.S. Army medical materiel development activity.

ATI-1801 is in advanced clinical trials. This novel topical formulation is being developed to combat cutaneous leishmaniasis (CL), a devastating disease causing disfiguring skin lesions and affecting hundreds of thousands of people annually, primarily in tropical and subtropical regions. Recognized by the World Health Organization as a neglected tropical disease, CL presents significant social and economic challenges, particularly in impoverished communities. CL leads to severe physical deformities and social stigma, contributing to isolation and diminished quality of life for those affected. This novel topical formulation of paromomycin provides a more comfortable application of the anti-infective agent to treat CL's painful and disfiguring lesions effectively.

Amro Albanna, co-founder, chairman and chief executive officer of Aditxt, commented: "Completing the acquisition of Appili would be another vehicle to expand Aditxt's reach in addressing infectious diseases with commercial or clinical development programs. The strategic importance of Appili's work in developing treatments and vaccines for infectious diseases and medical countermeasures could impact millions of people around the globe. We believe Appili's team and asset portfolio could address some of the most urgent public health challenges, including antibiotic-resistant infections and bioterrorism threats."

Dr. Don Cilla, president and chief executive officer of Appili Therapeutics, stated: "Appili's board of directors recommends that shareholders vote in favour of the proposed acquisition by Aditxt, as this transaction aligns with our strategic goals and opens new opportunities across multiple fronts. Appili has received indications of support from approximately 29 per cent of the total voting power. By leveraging the Aditxt's platform, we will significantly enhance our ability to combat life-threatening infectious diseases, enabling us to expand our reach and impact. Our combined expertise will rapidly advance our mission to develop treatments for some of today's most critical public health challenges."

The closing of the transaction with Appili is subject to several conditions, including but not limited to approval of the transaction by Appili's shareholders and Aditxt raising sufficient capital to finance its obligations at closing. No assurance can be provided that all of the conditions to closing will be obtained or satisfied or that the transaction will ultimately close.

About Appili

Appili 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.

We seek Safe Harbor.