Mr. Gadi Levin reports

VAXIL PROVIDES UPDATE ON RESEARCH ACTIVITIES AND MANAGEMENT CHANGES

Vaxil Bio Ltd. has released the following update on its research activities and changes in senior management.

Research update

As previously announced, Vaxil, together with Prof. Ayelet David, from Ben-Gurion University of the Negev (BGU), demonstrated therapeutic success by prolonging the survival of mice treated with P-Esbp-DOX in a mouse model of aggressive liver metastasis of colorectal cancer (CRC). P-Esbp-DOX which combines HPMA (N-(2-hydroxypropyl methacrylamide) polymer, the high-affinity E-selectin targeting peptide for diseases with inflammatory component, and the commonly used chemotherapeutic drug doxorubicin (DOX), together a promising targeted drug delivery system for the treatment of aggressive metastatic cancer.

A scale-up manufacturing contract was established with an experienced third party vendor. The vendor has successfully scaled up the production of the drug product. However, significant additional investment will be required to complete the necessary CMC work to enable human clinical testing.

Given the need for additional investment, the company is exploring new sources of capital and potential partners to support continued development of this asset. In parallel, the board is actively exploring strategic options for maximizing shareholder value from Vaxil's assets that may or may not be a continuation of the business in its current form.

Management changes

The company announces that effective July 31, 2023, in order to reduce costs and preserve cash, Dr. Yuval Avnir, the company's chief executive officer, will be replaced by Gadi Levin, the company's current chairperson of the board and chief financial officer. The board of directors wishes to thank Dr. Avnir for his contribution to the company during his tenure and wishes him success in his endeavours. Dr. Avnir will continue to provide consulting services to the company, according to his availability, and as needed.

The company further announces, effective July 31, 2023, the appointment of Alan Rootenberg, as the company's CFO. Mr. Rootenberg will be replacing Mr. Levin, who transitions from the CFO position to the CEO position.

Mr. Rootenberg is a chartered professional accountant who has served as the chief financial officer of a number of publicly traded companies listed on Nasdaq, the Toronto Stock Exchange, the TSX Venture Exchange and Canadian Securities Exchange. These companies include biotechnology, mineral exploration, service technologies and cannabis research companies. He has also served as a director of a number of publicly traded companies. Mr. Rootenberg has a bachelor of commerce degree from the University of the Witwatersrand in Johannesburg, South Africa, and received his CPA designation in Ontario, Canada.

Option grants

In order to further preserve the company's working capital, certain officers and directors have agreed to reduce their cash-based compensation.

As a result of the reduction in cash-based compensation, the company wishes to announce the granting of an aggregate of 1.1 million stock options to directors, officers and consultants, as follows: 400,000 stock options to Mr. Rootenberg, 200,000 stock options to Mr. Levin, 300,000 options to Daniel Bloch, a director of the company, and 200,000 options to a consultant. All the options are being issued pursuant to the company's stock option plan and exercisable into an equal amount of common shares of the company at an exercise price of five cents per common share. The options shall vest in four equal instalments with one-quarter vesting three months after the grant date, one-quarter on the three-month anniversary of the initial grant, and one-quarter on the six-month anniversary of the initial grant and the last one-quarter on the nine-month anniversary of the initial grant. All the options shall expire on the fifth anniversary of the grant date.

About Vaxil Bio Ltd.

Vaxil is an Israeli immunotherapy biotech company focused on its novel approach to targeting prominent cancer markers and infectious diseases. Its lead product ImMucin successfully completed a phase 1/2 clinical trial in multiple myeloma for which it received orphan drug status from the FDA (U.S. Food and Drug Administration) and EMA (European Medicines Agency). The company aims to continue to develop ImMucin, a potential COVID-19 vaccine and a tuberculosis vaccine/treatment that has demonstrated promising preliminary results with further preclinical evaluation planned. Additional indications and mAb candidates are under evaluation as immuno-oncology and infectious disease treatments alone and in combination with other treatments.

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