DGAP-News

PAION AG RAISES EUR 8.0 MILLION IN PRIVATE PLACEMENT

DGAP-News: PAION AG / Key word(s): Capital Increase PAION AG RAISES EUR 8.0 MILLION IN PRIVATE PLACEMENT 17.07.2017 / 18:49 The issuer is solely responsible for the content of this announcement. NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. PRESS RELEASE PAION AG RAISES EUR 8.0 MILLION IN PRIVATE PLACEMENT

- A U.S.-American institutional investor invests EUR 5.2 million; potential further subscription of up to 2.8 million new shares until 30 April 2018

- PAION's second largest shareholder TIAA-Cref invests EUR 2.8 million

- Proceeds for PAION of approx. EUR 8.0 million

Aachen (Germany), 17 July 2017 - The Specialty Pharma Company PAION AG (ISIN DE000A0B65S3; Frankfurt Stock Exchange Prime Standard: PA8) today announces that the Company will issue a total of 2,824,515 new shares in a private placement under exclusion of subscription rights of the shareholders. The shares will be placed with two U.S. institutional investors at a price of EUR 2.8444 per share. The offer price corresponds to the volume-weighted average Xetra price on 14 July 2017 minus a discount of 5%.

Gross proceeds amount to approximately EUR 8.0 million. A U.S. investor will invest EUR 5.2 million and TIAA-Cref will invest EUR 2.8 million.

The U.S. investor may subscribe for further up to 2.8 million new shares until 30 April 2018 in a maximum of two tranches. In case the U.S. investor has not subscribed to a minimum of 0.9 million new shares until 30 April 2018, PAION can request that this minimum investment is to be made by the U.S. investor under certain conditions. The offer price will correspond to a volume-weighted average Xetra price at or around that time minus a 5% discount.

The proceeds from the current private placement of EUR 8.0 million will further improve PAION's financial position and will be used mainly to accelerate the preparation of the remimazolam EU Phase III development program in general anesthesia.