DGAP-News

PAION AG REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST HALF-YEAR 2014 - Seite 3

agreement's scope, PAION received an upfront payment of EUR 1.5 million and
is eligible to receive potential regulatory and commercial milestone
payments of up to EUR 5.5 million and low double-digit royalties on net
sales in the territory.

After the completion of an exclusive option agreement with the Canadian
company Pendopharm in June 2014, the final license agreement concerning the
development and commercialization rights to Remimazolam in Canada was
signed in early July 2014. Based on this license agreement, PAION will be
eligible to receive potential regulatory and commercial milestone payments
of up to CAD 5.7 million (approximately EUR 3.9 million) and significant
double-digit, tiered royalties on net sales in Canada starting at 15%.
Under the option agreement, Pendopharm's European affiliate, Pharmascience
International Limited, had committed to invest up to EUR 4 million in
shares not subscribed by PAION's shareholders, at a 10% premium to the
theoretical ex-rights price of those PAION shares that were available after
completion of the rights offering. Since no new shares were available after
completion of the rights offering to permit an investment of EUR 4 million,
PAION had the right to require Pharmascience International Limited to
invest the EUR 4 million in shares of PAION in a separate private placement
at a 10% premium to the then current market price. The private placement
was completed on 17 July 2014 at a subscription price of EUR 3.1463, which
is 25.9% above the subscription price in the rights offering.

Capital increases

With the consent of the Supervisory Board and/or the General Meeting, the
Management Board of PAION AG resolved several capital increases, which it
implemented in the course of the year. Upon completion of the most recent
capital increases after the end of the reporting period in July 2014, the
company's share capital increased from EUR 25,379,906.00 as of 31 December
2013 to EUR 50,618,817. The Authorised Capital 2014 correspondingly
decreased to EUR 14,137,297.00 as a result of these capital measures.



Type of capital Date Gross issue proceeds Issue Number of
measure (EUR million) shares issued

price
(EUR)


Private 22 July 4.00 3.1463 1,271,334
placement 2014


Rights offering 9 July 2014 46.26 2.50 18,505,305


Private 17 February 3.17 2.4553 1,290,178