Aequus Pharmaceuticals Inc. Announces $2.0 to $4.0 Million Best Efforts Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 6, 2016) -

NOT FOR DISTRIBUTION OR DISSEMINATION INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Aequus Pharmaceuticals Inc. (TSX VENTURE:AQS) (OTCQB:AQSZF) (the "Company" or "Aequus") is pleased to announce that it has entered into an agreement with a syndicate of agents led by Cormark Securities Inc. and including Canaccord Genuity Corp. (collectively the "Agents"), on best efforts agency basis, to sell a minimum of 6,667,000 common shares ("Shares") and a maximum of 13,340,000 Shares from the treasury of the Company, at a price of $0.30 per Share ("Offering Price") for aggregate gross proceeds of approximately $2.0 million, in the case of the minimum offering, and approximately $4.0 million, in the case of the maximum offering (the "Offering").

In addition, the Company has granted the Agents an option ("Over-Allotment Option") to purchase up to an additional 15% of the number of Shares sold under the Offering at the Offering Price, for market stabilization purposes and to cover over-allotments, if any. The Over-Allotment Option shall be exercisable, in whole or in part, on or after the closing (described below) and for a period of 30 days thereafter.

The Company intends to use the net proceeds of the Offering for general corporate purposes.

Closing of the Offering is expected to occur on or about September 13, 2016 and is subject to regulatory approval including that of the TSX Venture Exchange.

The Offering is being made in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario by way of a prospectus supplement to the Company's base shelf prospectus dated June 30, 2015. The Shares may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and certain other jurisdictions.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.