PAION AG, DE000A0B65S3

PAION AG, DE000A0B65S3

17.07.2017 - 18:50:41

PAION AG RAISES EUR 8.0 MILLION IN PRIVATE PLACEMENT

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.Ad-hoc Announcement INSIDE INFORMATION ACCORDING TO ARTICLE 17 MAR 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.

The offering in the first step consists of almost 5% of PAION's current registered share capital and will increase the total number of issued shares. The new shares will be admitted to trading on the regulated market of the Frankfurt Stock Exchange.

The transaction is being handled by Dero Bank AG and was supported by Trout Capital LLC.

End of inside information ###

Contact Ralf Penner Vice President Investor Relations/Public Relations PAION AG Martinstrasse 10-12 52062 Aachen - Germany Phone: +49 241 4453-152 E-mail: r.penner@paion.comwww.paion.com

Disclaimer:

This release contains certain forward-looking statements concerning the future business of PAION AG. These forward-looking statements contained herein are based on the current expectations, estimates and projections of PAION AG's management as of the date of this release. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors. Should actual conditions differ from the Company's assumptions, actual results and actions may differ materially from any future results and developments expressed or implied by such forward-looking statements. Considering the risks, uncertainties and other factors involved, recipients should not rely unreasonably upon these forward-looking statements. PAION AG has no obligation to periodically update any such forward-looking statements to reflect future events or developments.

17-Jul-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language: English

Company: PAION AG Martinstr. 10-12 52062 Aachen

Germany Phone: +49 (0)241-4453-0 Fax: +49 (0)241-4453-100 E-mail: info@paion.com Internet: www.paion.com ISIN: DE000A0B65S3 WKN: A0B65S Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange   End of Announcement DGAP News Service

593063  17-Jul-2017 CET/CEST

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