Adial Pharmaceuticals, Inc. (NASDAQ: ADIL; ADILW)
(“Adial” or the “Company”), a clinical-stage biopharmaceutical
company focused on developing therapies for the treatment and
prevention of addiction and related disorders, today announced that
it has received funds and capital commitments totaling $1,255,000;
$800,000 from the sale of shares of common stock in a private
placement at a price of $4.00 per share (the “Shares”), and
$455,000 from the cash exercise of incentive stock options (the
“Options”) granted to Mark Howard Peikin, the Company’s Chief
Strategy Officer.
Although the Options were available for cashless
exercise, Mr. Peikin elected to exercise the Options for cash to
support the expansion of Adial’s drug development pipeline. Mr.
Peikin does not receive a salary for his work on behalf of Adial,
however, Adial’s Board of Directors has granted Mr. Peikin stock
options from time-to-time in recognition of his contributions to
the Company. The Options were exercised by Mr. Peikin for a total
cash exercise price of $455,000, which funds have been received by
Adial.
The Shares were purchased pursuant to a
Securities Purchase Agreement (“SPA”) by Bespoke Growth Partners,
Inc. (“Bespoke”), which is controlled by Mr. Peikin. Bespoke led
Adial’s prior private placement and has also invested in Adial in
several earlier financing rounds. In accordance with the terms of
the SPA, Bespoke has funded $80,000, which has been received by
Adial, and Bespoke is expected to fund the balance of the $800,000
it committed to fund upon a registration statement registering the
Shares being declared effective by the Securities and Exchange
Commission. No warrants or options were issued in connection with
the SPA, and no investment banking fees were incurred by Adial in
connection with the transactions.
William Stilley, Adial’s Chief Executive
Officer, stated, “Due to the strength of our recently announced
data for our lead compound for pain, PNV-5030, we felt it important
to have additional cash on hand to support the development of
PNV-5030 into clinical trials as a potential non-opioid drug
candidate for the treatment of pain. These additional funds,
invested on terms that we believe are beneficial to our
shareholders, add to our current cash position, which we already
believed was more than sufficient capital to complete the ONWARD™
Phase 3 trial of AD04 as a genetically targeted treatment for
Alcohol Use Disorder. We appreciate Mr. Peikin’s investment through
Bespoke and his cash exercise of his pre-existing options, which in
the aggregate provide the Company with the additional capital
sought to advance PNV-5030.”
About Adial Pharmaceuticals,
Inc.
Adial Pharmaceuticals is a clinical-stage
biopharmaceutical company focused on the development of treatments
for addictions. The Company’s lead investigational new drug
product, AD04, is a genetically targeted, serotonin-3 receptor
antagonist, therapeutic agent for the treatment of Alcohol Use
Disorder (AUD) and is currently being investigated in the Company’s
landmark ONWARD™ pivotal Phase 3 clinical trial for the potential
treatment of AUD in subjects with certain target genotypes, which
are to be identified using the Company’s proprietary companion
diagnostic genetic test. A Phase 2b clinical trial of AD04 for the
treatment of AUD showed promising results in reducing frequency of
drinking, quantity of drinking and heavy drinking (all with
statistical significance), and no overt safety concerns (there were
no statistically significant serious adverse events reported). AD04
is also believed to have the potential to treat other addictive
disorders such as Opioid Use Disorder, gambling, and obesity. The
Company is also developing adenosine analogs for the treatment of
pain and other disorders. Additional information is available at
www.adialpharma.com.
About Purnovate, Inc.
Purnovate, Inc., a wholly owned subsidiary of
Adial Pharmaceuticals, is a pharmaceutical development and
chemistry company focused on inventing and developing selective,
potent, stable, and soluble adenosine analogs to treat diseases and
disorders such as pain, cocaine addiction, inflammation, infectious
disease, cancer, asthma, and diabetes. Additional information is
available at www.purnovate.com.
Forward Looking Statements
This communication contains certain
"forward-looking statements" within the meaning of the U.S. federal
securities laws. Such statements are based upon various facts and
derived utilizing numerous important assumptions and are subject to
known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Statements
preceded by, followed by or that otherwise include the words
"believes," "expects," "anticipates," "intends," "projects,"
"estimates," "plans" and similar expressions or future or
conditional verbs such as "will," "should," "would," "may" and
"could" are generally forward-looking in nature and not historical
facts, although not all forward-looking statements include the
foregoing. The forward-looking statements include statements
regarding the expected funding of the balance of the $800,000 upon
a registration statement registering the Shares being declared
effective, the development of PNV-5030 into clinical trial as a
potential non-opioid drug candidate for the treatment of pain, the
additional funds allowing us to support the development of PNV-5030
into clinical trial as a non-opioid drug candidate, our current
cash position being more than sufficient capital to complete the
ONWARD™ Phase 3 trial of AD04 as a genetically targeted treatment
for Alcohol Use Disorder and the potential of AD04 to treat other
addictive disorders such as opioid use disorder, gambling, and
obesity. Any forward-looking statements included herein reflect our
current views, and they involve certain risks and uncertainties,
including, among others, our ability to successfully close the
private placement offering, our ability to complete the ONWARD™
Phase 3 trial of AD04 as a genetically targeted treatment for
Alcohol Use Disorder through data read-out as planned, our ability
to achieve key milestones for our pre-clinical adenosine program
for non-opiate pain relief including our ability to develop
PNV-5030 into clinical trial as a potential non-opioid drug
candidate for treatment of pain, our ability to enroll patients
within the timelines anticipated and complete clinical trials on
time and achieve desired results and benefits as expected, our
ability to obtain regulatory approvals for commercialization of
product candidates or to comply with ongoing regulatory
requirements, regulatory limitations relating to our ability to
promote or commercialize our product candidates for specific
indications, acceptance of its product candidates in the
marketplace and the successful development, marketing or sale of
products, our ability to maintain our license agreements, the
continued maintenance and growth of our patent estate, our ability
to establish and maintain collaborations, our ability to obtain or
maintain the capital or grants necessary to fund its research and
development activities, and our ability to retain our key employees
or maintain our Nasdaq listing. These risks should not be construed
as exhaustive and should be read together with the other cautionary
statement included in our Annual Report on Form 10-K for the year
ended December 31, 2020, subsequent Quarterly Reports on Form 10-Q
and current reports on Form 8-K filed with the Securities and
Exchange Commission. Any forward-looking statement speaks only as
of the date on which it was initially made. We undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events,
changed circumstances or otherwise, unless required by law.
Contact:Crescendo Communications, LLCDavid
Waldman / Natalya RudmanTel: 212-671-1021Email:
adil@crescendo-ir.com
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