Neovacs Secures a Contingent Equity Line

Regulatory News:

NEOVACS (Paris:ALNEV) (Alternext Paris : ALNEV), a leader in active immunotherapies for the treatment of autoimmune diseases, today announced that it has arranged a contingent equity line with Kepler Cheuvreux, available in tranches over time at Neovacs’ discretion, as approved by shareholders at the Annual General Meeting of June 10, 2013.

"The Phase IIb clinical study of TNF-Kinoid in Rheumatoid Arthritis is now moving ahead at full speed, with the first patients inclusions announced earlier this week. Expecting positive results for this study, the Board of Directors of Neovacs approved the diversification of its sources of financing and the implementation of a contingent equity line. With this flexible and guaranteed financing tool, we are strengthening our financial means to pursue the development of our two therapeutic vaccines, while limiting any dilution for our shareholders” commented Miguel Sieler, CEO of Neovacs. He concludes : "This initiative is not linked to an immediate need, but to the decision to insure the necessary ressources for long-term value creation”.

The shares subscribed by Kepler Cheuvreux can be issued by tranches within the next 36 months, exclusively at Neovacs’ request, within an overall envelope of 1,970,000 new shares, i.e. 9,9% of the current total number of shares.

For each tranche, the issuance price will reflect the then share market price performance, minus a discount of 6%. This discount will enable Kepler Cheuvreux to instantly underwrite the shares despite possible market volatility. Acting as financial intermediary, Kepler Cheuvreux does not aim to remain a shareholder of the Company.

Neovacs has no drawdown obligation, and only intends to use this equity facility if needed, in the best interest of both the Company and its shareholders.

Should the entire contingent equity line be drawn¹, a shareholder currently owning 1.0% of the company’s share capital would see his or her share ownership reduced to 0.91%².

¹ Leading to the issuance of 1,970,000 new shares
² Based on the total number of Neovacs shares as of November 30, 2013 i.e. 19,709,481 shares

About Neovacs
Neovacs is a biotechnology company focused on an active immunotherapy technology platform (Kinoids) with applications in autoimmune and/or inflammatory diseases. On the basis of the company’s proprietary technology for inducing a polyclonal immune response (covered by five patent families that run until at least 2023) Neovacs is focusing its development efforts on two active immunotherapies: TNF-Kinoid is being developed for the treatment of TNF-mediated autoimmune diseases such as rheumatoid arthritis and Crohn’s disease, whereas IFNa-Kinoid is being developed for the indication of lupus. The goal of the Kinoid approach is to enable patients to have access to safe treatments with efficacy that is sustained in these life-long diseases.

For more information on Neovacs, visit www.neovacs.fr