3rd Quarter 2018 Shareholder Letter
August 1, 2018
Dear Valued Alitair Shareholder,
I want to provide you with a brief update on Alitair Pharmaceuticals.
Critical Need for More Capital
Alitair requires additional capital to fund its 24-month Clinical Development Plan and for General Corporate Purposes. I am limited to what I can say as Alitair is working through the final steps of a closing process to raise capital with two funding sources -- one a new investment fund that targets Alternate Investment from endowment funds from major non-profit health systems and the other a Healthcare Investment Bank. Together, these two entities will provide new capital to help grow our company. The investment fund committed to a future funding of up to $10 million as well. Due to confidentiality agreements, I can't share the names of these financial partners today, but will share more details once we finalize all closing documents, have a firm closing date, and exit our confidentiality period. It is critical that we receive this new capital and the Alitair executive team is highly focused on that task.
Commitment to Investor Relations
Looking forward, you will see 3 key initiatives that will improve the Alitair Investor Relations communications platform and provide better transparency regarding stock holdings within 60 days of our closing with our funders:
1. A 'go live" of a new Alitair website with up-to-date content and a 'sign-up" tab for ongoing outbound communications
2. Initiation of quarterly IR newsletters to shareholders
3. Launch of an electronic, web-based book entry listing of existing stock certificates using American Stock Transfer (AST) as our Transfer Agent. This will provide you a web portal to view your Alitair holdings, update contact information and provide a mechanism to transfer shares to your individual brokerage account if/when Alitair shares are listed on a public exchange.
Market Environment Remains Very Positive for Alitair Pipeline Opportunities
The opportunity to meet unmet medical needs is a cornerstone of the Alitair business model. Our pipeline of Overdose Reduction (ODR) formulation technology, Non-Narcotic and Narcotic prescription cough products, and Orphan Drugs for rare diseases all hold great promise and will be key value drivers to grow our enterprise valuation over time.
Using funds from our 2017 private capital raise with Network 1 Financial Securities, we recently completed initial formulation work on the Narcotic Cough products. We also are poised to begin formulation work on ODR and benzonatate. In addition, we have worked with our ALT-09 partner, Recipharm, to manufacture new clinical trial material for an animal study that will be starting shortly. Some of these funds were also used to pay down pre-existing debt and open invoices in order to strengthen the financial footing of Alitair.
Summary
This has been a challenging period for Alitair as a new management team came on board and has worked to raise sufficient capital to progress our robust pipeline. I believe we are at the end of that phase and once the closing is complete, we can focus on execution of the clinical development plans.
Thank you for your past investment in Alitair and for your patience as we worked through this challenging period over the past 12-18 months.
Regards,
James Hoyes
Chief Executive Officer
THIS LETTER (TOGETHER WITH ANY AMENDMENTS OR SUPPLEMENTS), THE ACCOMPANYING MATERIALS, ANY FINANCIAL MODELS AND THE APPENDICES (WHICH ARE AVAILABLE FROM THE COMPANY ON REQUEST), CONTAIN CERTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO THE COMPANY THAT ARE BASED ON OUR BELIEFS, ASSUMPTIONS AND INFORMATION AVAILABLE TO US AS OF THE DATE OF THIS PRESENTATION.
STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANY’S BELIEFS, DESIGNS, ANTICIPATION, AIMS, GOALS, EXPECTATIONS AND POTENTIAL RESULTS ARE FORWARD-LOOKING STATEMENTS.
IN ADDITION, IN THIS LETTER, THE WORDS “WILL,” “MAY,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “ESTIMATE,” “EXPECT,” “PROJECT,” “PLAN,” “SHOULD,” “COULD,” AND SIMILAR EXPRESSIONS, AND THEIR VARIATIONS AND NEGATIVES, AS THEY RELATE TO THE COMPANY OR THE POSSIBLE PERFORMANCE OF THE COMPANY, ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS REFLECT OUR VIEW WITH RESPECT TO FUTURE EVENTS AS OF THE DATE OF THIS PRESENTATION AND ARE SUBJECT TO CERTAIN RISKS, UNCERTAINTIES AND ASSUMPTIONS, INCLUDING THE RISK FACTORS DESCRIBED IN THIS PRESENTATION AND ANY ACCOMPYING MEMORANDUMS OR SUPPORTING MATERIALS.