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Adial ™ PHARMACEUTICALS Exhibit 99.1 Adiel Pharmaceuticals Reports 2026 Second Quarter Financial Results and Provides Business Update Completed acquisition of Azora Therapeutics , adding AT177 , a fully synthetic , oral , colon - targeted aryl hydrocarbon receptor ( " Ahr " ) agonist in development for ulcerative colitis , to its pipeline Closed initial $ 32 million tranche , including the conversion of notes , of an up to $ 64 million private placement from biotech specialist investors Glen Allen , VA - August 17 , 2026 - Adial Pharmaceuticals , Inc. ( NASDAQ : ADIL ) ( " Adial " or the " Company " ) today provided a business update and reported its financial results for the 2026 second quarter ended June 30 , 2026 . " The acquisition of Azora Therapeutics and the concurrent financing mark an important inflection point for Adial , ” said Cary Claiborne , Chief Executive Officer of Adial Pharmaceuticals . “ AT177 establishes a new strategic focus for the Company around a differentiated approach to treating ulcerative colitis , an area where many patients continue to experience inadequate outcomes despite a growing number of therapies . AT177 is built on a mechanism with demonstrated clinical benefit , delivered in a form designed to concentrate activity in the colon , where it matters . Our focus is now on advancing AT177 into the clinic in 2027 and building long - term value for patients and shareholders . " During the quarter , the Company strengthened its financial position by closing the first $ 32 million tranche , including the conversion of $ 5.5 million of notes , of an up to $ 64 million private financing led by biotechnology - focused institutional investors . This financing provides the capital needed to advance AT177 through key clinical development milestones . In parallel , the Company enhanced its board and executive leadership team with experienced pharmaceutical industry veterans with expertise in small molecule drug development . " AhR signaling is a clinically validated pathway with the potential to restore immune homeostasis and epithelial barrier function in ulcerative colitis , ” said Matt Davidson , Ph.D. , Chief Development Officer and Director of Adial Pharmaceuticals . “ AT177 is differentiated by design , a fully synthetic , oral prodrug engineered to release the active AhR agonist in the colon , where disease occurs , while minimizing systemic exposure . We believe this targeted delivery strategy addresses an important limitation of earlier AhR agonists and positions AT177 to capture the promise of localized AhR activation with a potentially better safety profile . With strong progress across our preclinical and CMC programs , we remain on track to file an IND in the first half of 2027. " Second Quarter 2026 Financial Results • Cash and cash equivalents were $ 28.7 million as of June 30 , 2026 , compared to $ 4.6 million as of March 31 , 2026. The Company believes that its existing cash and cash equivalents will fund its operating expenses into the second half of 2027. This does not assume receipt of the additional $ 32 million available under the milestone tranche of the private placement . • Research and development expenses decreased by approximately $ 292 thousand to $ 440 thousand during the three months ended June 30 , 2026 , compared to $ 732 thousand for the three months ended June 30 , 2025. This was mainly due to decreased research and development activity as the Company was engaged in merger discussions during the three months ended June 30 , 2026 as compared to the same period in 2025 .