Aequus Receives Approval for Short Form Base Shelf Prospectus to Raise up to C$20,000,000

VANCOUVER, BC--(Marketwired - August 16, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

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, announced today that it has received a receipt for its final short form base shelf prospectus (the "Prospectus"). The Prospectus will allow Aequus to offer up to C$20,000,000 of common shares, preferred shares, debt securities, subscription receipts, units and warrants from time to time, in each of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, until the Prospectus expires on September 16, 2019. This new filing replaces the Company's existing base shelf prospectus, which expired on August 6, 2017. This shelf prospectus is intended to give Aequus the flexibility to take advantage of financing opportunities when market conditions are favourable.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold to or for the account or benefit, of persons within the United States or, in certain circumstances, U.S. persons (as such term is defined in the U.S. Securities Act), unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

A copy of the Prospectus may be obtained from the Company by directing a request to Aequus at 2820 - 200 Granville Street, Vancouver, British Columbia, Canada, V6C 1S4 or can be found on SEDAR at www.sedar.com.

About Aequus

Aequus Pharmaceuticals Inc. (TSX VENTURE: AQS) (OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus' development stage pipeline includes several products in neurology and psychiatry with a goal of addressing the need for improved medication adherence through enhanced delivery systems. Aequus intends to commercialize its internal programs in Canada alongside its current portfolio of marketed established medicines and will look to form strategic partnerships that would maximize the reach of its product candidates worldwide. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.