Adial Pharmaceuticals (ADIL) investor relations material

Company overview and business model

• Clinical-stage biopharma focused on serious inflammatory diseases and therapeutics for addiction and related disorders; post-merger strategy prioritizes inflammatory disease development.

• AT177, acquired with Azora on June 11, 2026, is a patented oral, colon-targeted AhR agonist in development for ulcerative colitis (UC); preclinical studies showed local colonic AhR activation with limited systemic exposure.

• AT177 is in IND-enabling studies; an IND filing and Phase 1a trial are planned for H1 2027, followed by a Phase 1b UC proof-of-concept study, subject to regulatory clearance.

Financial performance and metrics

• PIPE closed June 12, 2026, at $26.8 million gross and approximately $24.3 million net proceeds; $5.5 million of Azora notes were retired through warrant issuance.

• Cash and cash equivalents were approximately $28.7 million as of June 30, 2026; audited FY2025 and FY2024 statements include going-concern explanatory paragraphs.

• Cash settlement of all Series A Preferred Stock conversion shares, using the September 30, 2026 closing price of $4.01, would total approximately $51.9 million.

Use of proceeds and capital allocation

• No proceeds from resale sales accrue to the issuer; selling stockholders receive those proceeds, while any cash exercise of initial pre-funded warrants would yield only the nominal exercise price.

• Registration costs are borne by the issuer; selling holders bear their brokerage and disposal expenses, including underwriting discounts and commissions.

• Optional PIPE milestone closings could provide up to $26.8 million gross; participation is at investor discretion, with no assurance of additional funding.