DGAP-News: PAION AG

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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.

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.

PAION's CEO Dr. Wolfgang Soehngen commented: "We are highly pleased about the successful placement which allows us to accelerate the preparation of the remimazolam EU Phase III development program in general anesthesia. I would like to thank both the U.S. investor and TIAA-Cref who have supported and continue to support us as investors."

Abdelghani Omari, Chief Financial Officer of PAION AG, added: "We are delighted about the support by these two sophisticated healthcare investors. Today's transaction enables us to further strengthen the financial position of PAION."

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About PAION
PAION AG is a publicly listed specialty pharmaceutical company developing and aiming to commercialize innovative drugs to be used in out-patient and hospital-based sedation, anesthesia and critical care services. PAION's lead compound is remimazolam, an intravenous, ultra-short-acting and controllable benzodiazepine sedative/anesthetic drug candidate which is in the final stage of clinical development for use in procedural sedation in the U.S. Currently, PAION is mainly focusing its business and financial resources on successfully completing its ongoing clinical development program in procedural sedation. Outside the U.S., PAION has so far focused on the development of remimazolam in the indication general anesthesia. A full clinical development program for general anesthesia was completed in Japan and PAION is preparing filing in Japan. In the EU, PAION is currently planning to continue the clinical development program. Development of remimazolam in the indication intensive care unit (ICU) sedation is also part of the longer term life-cycle plan for remimazolam.

PAION is headquartered in Aachen (Germany) with a further site in Cambridge (United Kingdom).

PAION's vision is to become an acknowledged "PAIONeer" in sedation and anesthesia.

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.com
www.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.