DGAP-News: MOLOGEN AG completes capital increase with gross proceeds of around EUR8 million

PRESS RELEASE N 21/2018 of 27 September 2018

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MOLOGEN AG completes capital increase with gross proceeds of around EUR8 million

- Placement of around 1.7 million new shares

- Gross proceeds of EUR8.2 million

Berlin, 27 September 2018 - Biopharmaceutical Company MOLOGEN AG has completed its capital increase from authorized capital. In total 1,734,345 new shares were issued to national and international investors at a subscription price of EUR4.70 raising the share capital of the Company to EUR9,271,632. Once entered in the Commercial Register, all new shares will be fully entitled to dividend payments as of 1 January 2018 and are scheduled to be included in the existing listing on the regulated market of the Frankfurt stock exchange (Prime Standard) probably on 4 October 2018. More than 40% of the new shares were acquired by shareholders of the Company. Within the framework of the private placement that took place following expiry of the subscription period a further 143,640 new shares were allocated. The gross proceeds amounting to around EUR8.2 million are to be mainly used for funding the IMPALA clinical trial.

"We would like to thank those investors who have placed their trust in us. Although we could not fully implement the capital increase, we will still be able to achieve our most important goal: the financing of our pivotal IMPALA trial until read-out," says Walter Miller, Chief Financial Officer of MOLOGEN AG.

MAINFIRST BANK AG was the sole bookrunner for the transaction.

Gross proceeds of around EUR8.2 million - primarily to be used for the further development of the Company's lead compound lefitolimod
In the course of the capital increase, MOLOGEN placed a total of 1,734,345 shares, with the result that MOLOGEN achieved gross proceeds of around EUR8.2 million. The new shares were offered to existing shareholders for subscription during the subscription period which ran between 7 September 2018 and 24 September 2018 (inclusive) at a price of EUR4.70 each. The subscription ratio was 2:1 (for two existing shares in the Company one new share). More than 40% of the new shares were acquired by shareholders of the Company. The shares that were not subscribed for during the subscription period were allocated in the context of oversubscription and allocated at the subscription price by way of international private placement. Part of the Executive Board also participated in the private placement.

The gross proceeds of around EUR8.2 million will be partly used for the further funding of the ongoing pivotal IMPALA clinical study with lefitolimod in the indication of colorectal cancer and for the production of further clinical medication. These funds - together with the potential contribution from MOLOGEN's partner ONCOLOGIE - are expected to finance the Phase III IMPALA clinical study up to the expected time of the read-out.

In August 2018 MOLOGEN signed a term sheet for the global partnership with ONCOLOGIE, an US oncology therapeutics company. The term sheet envisages that all rights for lefitolimod, including intellectual property (IP) and know-how, will be transferred to ONCOLOGIE. In return, MOLOGEN would receive short-term as well as development and sales milestone payments. The co-development agreement would provide an opportunity to fully materialize the potential of lefitolimod in combination with other immuno-oncology drugs and in additional indications outside the colorectal cancer (CRC) maintenance setting. Success in additional indications would bring in additional milestones and royalties representing substantial value for MOLOGEN. The potential total deal value amounts to over EUR1 billion plus low double digit royalties on net sales.

Inclusion of the new shares under the Company's existing listing (ISIN DE000A2LQ900, SIN A2L Q90) is planned for 4 October 2018.

Important note:
This announcement is not an offer of securities for sale in the United States, Australia, Canada, Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to in this press release have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offering of the securities in the United States of America. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan.

MOLOGEN AG
MOLOGEN AG is a biopharmaceutical Company and a pioneer in the field of immunotherapy on account of its unique active agents and technologies. Alongside a focus on immuno-oncology, MOLOGEN develops immunotherapies for the treatment of infectious diseases. The focus of the development work is on the product family of DNA-based TLR9 agonists. This includes the lead compound lefitolimod and the next-generation molecule family EnanDIM^(R).

The immunotherapeutic agent lefitolimod is the Company's lead compound and is currently being investigated in a pivotal trial. It is regarded as the best-in-class TLR9 agonist. Treatment with lefitolimod triggers a broad and strong activation of the immune system. On account of this mode of action, lefitolimod could potentially be used in various indications. Lefitolimod is currently being developed within the framework of a pivotal study for first line maintenance therapy for colorectal cancer. Key data of the phase II IMPULSE study in small cell lung cancer have been announced in April 2017, and the final analysis in the first quarter 2018 confirmed the data. Furthermore, data from the extension phase of the TEACH study in HIV have also been published in 2017. In addition, lefitolimod is currently being investigated in a phase I combination study with the checkpoint inhibitor ipilimumab (Yervoy^(R)) in various cancer indications.
Along with various checkpoint inhibitors, lefitolimod, which is being investigated as part of a phase III clinical trial currently, is one of the few near-to-market product candidates in the field of immuno-oncology.
MOLOGEN's pipeline focus is on new innovative immunotherapies to treat diseases for which there is a great medical demand in particular.

MOLOGEN AG is a publicly listed Company, headquartered in Berlin. The shares (ISIN, DE000A2LQ900/SIN: A2L Q90) are listed in the Prime Standard of the German Stock Exchange.

www.mologen.com

Contact

Claudia Nickolaus
Head of Investor Relations & Corporate Communications
Tel: +49 - 30 - 84 17 88 - 38
Fax: +49 - 30 - 84 17 88 - 50
investor@MOLOGEN.com

Note about risk for future predictions
Certain information in this report contains forward-looking statements or the corresponding statements with negation or versions deviating from this or comparable terminology. These are described as forward-looking statements. In addition, all of the information given here that refers to planned or future results of business areas, key financial figures, developments of the financial situation or other financial figures or statistical data, is to be understood as such forward-looking statements. The company points out to investors that they should not rely on these forward-looking statements as predictions about actual future events. The company is not obligated and refuses to accept any liability for the forward-looking statements and has no obligation to update such statements in order to accurately reflect the current situation.