Aequus Raises $5.2 Million Through Bought Deal Financing Including Full Exercise of the Over-Allotment Option

VANCOUVER, BC--(Marketwired - March 13, 2017) - Aequus Pharmaceuticals Inc. (TSX VENTURE: AQS) (OTCQB: AQSZF) ("Aequus" or the "Company"), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products, is pleased to announce the closing today of its previously announced public offering (the "Offering"). Pursuant to the Offering, the Company issued 17,250,000 units (the "Units") at a price of $0.30 per Unit, for aggregate gross proceeds to Aequus of $5,175,000. Canaccord Genuity Corp. (the "Underwriter") acted as underwriter for the Offering. The 17,250,000 Units issued include 2,250,000 Units issued and sold pursuant to the over-allotment option granted by the Company to the Underwriter, which was exercised in full.

Each Unit is comprised of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant is exercisable to acquire one Common Share (a "Warrant Share") for a period of two years at an exercise price of $0.45 per Warrant Share, subject to adjustment in certain events. In the event that the volume weighted average trading price of the Company's Common Shares on the TSX Venture Exchange is greater than $0.80 per Common Share for a period of 15 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof by way of press release and in such case the Warrants will expire on the 30th day after such notice is given.

In addition, Aequus issued to the Underwriter a total of 862,500 broker warrants (the "Broker Warrants") in connection with the Offering. Each such Broker Warrant entitles the holder to acquire a Unit at an exercise price of $0.30 per Unit for a period of two years following the closing of the Offering.

Net proceeds of the Offering are to be used for the development of the Company's drug pipeline and other general corporate purposes.

The Units were offered by way of a prospectus supplement and an accompanying short form base shelf prospectus of the Company, in the provinces of Alberta, British Columbia, Saskatchewan, Manitoba and Ontario, and in the United States by way of private placement to qualified institutional investors.