DGAP-News: PAION AG SUCCESSFULLY COMPLETES CAPITAL INCREASE

DGAP-News: PAION AG / Key word(s): Capital Increase PAION AG SUCCESSFULLY COMPLETES CAPITAL INCREASE WITH SUBSCRIPTION RIGHTS 15.01.2014 / 15:39 --------------------------------------------------------------------- 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. PAION AG SUCCESSFULLY COMPLETES CAPITAL INCREASE WITH SUBSCRIPTION RIGHTS Aachen (Germany), 15 January 2014 - PAION AG (ISIN DE000A0B65S3; Frankfurt Stock Exchange General Standard: PA8) announced that the Company has successfully completed its rights offering. The subscription price was EUR 1.80 per share. The U.S. institutional investor, which has supported the capital increase through a commitment to subscribe all shares that were not subscribed by existing shareholders, has subscribed 335,104 new shares. This includes shares resulting from 1,224,784 subscription rights that Dr. Wolfgang and Dr. Mariola Söhngen have gratuitously assigned to the U.S. investor in order to support the capital increase. With the completion of this transaction, the Company's share capital has been increased from EUR 25,379,906.00 by EUR 2,777,777.00 to EUR 28,157,683.00 by issuing 2,777,777 new shares. The offering partly utilized existing authorized capital created by resolution at the Annual General Meeting on 24 May 2011. PAION has received gross proceeds of EUR 4.99 million for the rights offering. Furthermore the Company plans, as announced in December, to issue up to 2,536,077 additional shares in a private placement under exclusion of subscription rights of the shareholders. In such private placement the U.S. institutional investor commits to PAION AG to purchase at least 120% of the amount which he has invested in the acquisition of shares in connection with the rights offering and thereby at least EUR 0.7 with the option to subscribe for new shares up to a total amount of EUR 6.0 million in this private placement. The capital increase improved PAION's financial freedom to operate. The proceeds of the transaction will be used mainly for the preparation of the Remimazolam Phase III development program. Specifically it is intended to use the funds to produce the trial medication and validate the production at market scale. PAION's CEO Dr. Wolfgang Soehngen commented: 'We appreciate the great interest in the capital increase. This is a clear signal that our shareholders will continue to support the chosen path with Remimazolam and believe in the great potential of this innovative drug.' ### About PAION PAION AG is a publicly-listed biotech company headquartered in Aachen, Germany with a second site in Cambridge, UK. The company has a track record in developing hospital-based treatments for which there is substantial unmet medical need. PAION AG is transforming its business model from a pure development company to a specialty pharmaceutical company with a focus on anaesthesia products to take advantage of the unique profile of its main compound, Remimazolam. Contact Ralf Penner Director 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. This release does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities of PAION AG in the United States or any other jurisdiction. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. The securities of PAION AG may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the 'Securities Act'). The securities of PAION AG have not been, and will not be, registered under the Securities Act. End of Corporate News --------------------------------------------------------------------- 15.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and 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: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 248132 15.01.2014