Impel Pharmaceuticals Announces Filing of Voluntary Chapter 11 Cases and Signing of `Stalking Horse` Agreement to Facilitate Sale

• Patient Access to Trudhesa® to Continue Uninterrupted
• Sufficient Liquidity to Fund Day to Day Operations During Court-Supervised Process

Impel Pharmaceuticals Inc. (OTCQX: IMPL) ("Impel" or "the Company"), a commercial-stage biopharmaceutical company with a mission to develop transformative therapies for people suffering from diseases with high unmet medical needs, today announced that it is pursuing a sale of the Company and has entered into an agreement with JN BIDCO LLC to serve as the "stalking horse" bidder to acquire the Company and its assets.

To facilitate an orderly sale process, the Company has filed voluntary petitions to commence chapter 11 proceedings in the U.S. Bankruptcy Court for the Northern District of Texas (the "Court"), which will provide interested parties the opportunity to submit higher and better offers.

The decision to file for Chapter 11 protection follows the strategic review process that Impel announced in October 2023 during which the Company announced the exploration of a wide range of options including potential sale of assets of the Company, a sale of all the Company, a merger or other strategic transaction.

Impel`s Interim President & Chief Executive Officer, Len Paolillo, said: "After carefully reviewing all available strategic options with our advisors, Impel made the decision to pursue a sale through an in-court restructuring process. Impel is mindful of the many patients who rely on Trudhesa for migraine relief, and the Company is confident that this is the right option to maximize value for all stakeholders and ensure the continued availability of this important product."

Impel intends to continue operating as usual throughout the court-supervised sale process, including providing wages and benefits to employees. To enable this, the Company has filed certain customary "First Day" motions with the Court. Upon Court approval of these First Day motions, the Company expects to minimize the impact of the sale process on the Company`s customers, employees, and other key stakeholders.

The Company has also appointed Brandon Smith, a Senior Managing Director at Teneo Capital LLC, as Chief Restructuring Officer. Mr. Smith has more than 20 years of experience leading financial and operational restructuring matters, often in interim management roles. He previously held senior roles at firms including Ernst & Young, CR3 Partners, and Deloitte.

In accordance with the sale process under Section 363 of the Bankruptcy Code, the Company will solicit competing bids from interested parties, in an effort to achieve the highest and best value for the Company`s assets. Impel seeks to complete the sale process in the first quarter of 2024, with any sale subject to Court approval. 

Court filings and additional information related to the proceedings are available at https://omniagentsolutions.com/Impel. Stakeholders with questions can contact the Company`s claims agent, Omni Agent Solutions, at ImpelInquiries@OmniAgnt.com or (888) 202-6183, or (747) 288-6396 for international calls.

Impel is being advised by Moelis & Company LLC as its investment banker, Teneo Capital LLC as its financial advisor, and Sidley Austin LLP and Fenwick & West LLP as legal counsel.

About Impel Pharmaceuticals Inc.

Impel Pharmaceuticals Inc. is a commercial-stage pharmaceutical company developing transformative therapies for people suffering from diseases with high unmet medical needs. Impel offers development opportunities that pair its proprietary POD^® technology with well-established therapeutics. In September 2021, Impel received U.S. FDA approval for its first product, Trudhesa^® nasal spray, which is approved in the U.S. for the acute treatment of migraine with or without aura in adults. For more information visit https://impelpharma.com/.

About Trudhesa®
Indication 
Trudhesa® is used to treat an active migraine headache with or without aura in adults. Do not use Trudhesa to prevent migraine when you have no symptoms. It is not known if Trudhesa is safe and effective in children.