This report is published by Research Dynamics, an independent research boutique


Key changes in Group Dynamics

Changes in the leadership team
Relief Therapeutics announced the resignation of two of its top-level executives; Mr. Raffaele Petrone and Mr. Antonino Amato, from the Board of Directors. In addition, Mr. Raffaele Petrone will also step down from his position as the CEO of the company. The company said that it will continue with a three-member board until the next AGM, which will take place in May 2017.
Mr. Gael Hedou, until now the Company's Chief Operating Officer, will assume the role of interim-CEO, post the resignation of Mr. Raffaele Petrone.
Also, Mr. Timothy Snyder has resigned from his current position as the CFO and will serve till August 31, 2017.

New financing from GEM
Relief also inked a term sheet with GEM Global Yield Fund LLC SCS ('GEM') securing CHF500,000 of financing, by issuing new shares of its common stock.
Under the terms of the new round of financing, GEM, currently a major shareholder will subscribe to 50 million new Relief shares at a price of CHF 0.01. Additionally, Relief will issue to GEM 600 million warrants with a strike price of CHF 0.01 exercisable for a period of 5 years.
The financing will provide the necessary working capital to the company to continue to run its operations smoothly.
Relief also strengthened its stand towards undertaking new cost cutting measures and aims to achieve this by reducing and optimizing certain elements of its fixed overhead structure such as a consolidation of offices and reductions in personnel costs.

Conclusion
The company is under a restructuring phase wherein it's taking various bold and aggressive steps towards consolidating offices and reducing costs and thereby, improving the overall corporate structure.
We believe that the additional financing is a positive sign that will allow the company to seek for additional funds to support its research activities and bring its drug candidates to market within the expected timeframe. Alternative supports for the company's strategy would also include a new business combination (for example with FirstString Research as announced in July 2016, or others) and progress with the grant-based financial support to apply for an Investigational New Drug (IND) application of atexakin alfa in Diabetic Neuropathy.

Valuation
We have kept our valuation unchanged at CHF0.18 per share as we still believe that the stock has a strong upside potential under the condition that the company gets the appropriate funding to progress its clinical development and subsequently, in a later stage, partner and/or approval for its chief drug candidate.