DGAP-News: SYGNIS AG

PRESS RELEASE
8 November 2017

SYGNIS AG reports financial results for the third quarter and first
nine months of 2017

Financial guidance re-confirmed

- Seventh quarter of consecutive revenue growth (Q3 2017: EUR 2.4 million; 47% increase on Q2 2017; YTD 2017: EUR 5.3 million; 446% increase on same period in 2016)

- Full year revenue guidance of EUR 7 million to EUR 8 million reiterated

- On track to reach operating cash flow break even in Q4 2017

- Successful acquisitions of profitable C.B.S. Scientific and Innova Biosciences expanding capabilities and increasing revenues

Heidelberg, Germany, 8 November 2017 - SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported results for the third quarter of 2017 and nine-month period ended 30 September 2017.

"The successful execution of our Grow, Buy and Build strategy during 2017 is delivering significant growth in revenues as well as operational scale and capacity within the organisation," said Dr. Heikki Lanckriet, CEO and CSO of SYGNIS. "We are seeing significant benefits from the recent acquisition of Innova Biosciences, with the addition of a highly skilled workforce and key complementary products. This has also been assisted further with the merger of Innova's and SYGNIS' operational and R&D activities in the UK. The addition of Innova has significantly enhanced our existing sales and marketing capacity as well as broadening the range of R&D projects being commercialised. This has resulted in recent announcements in relation to new customer arrangements and product launches. We expect this to continue during the remainder of 2017 and beyond."

He added: "We remain focussed on the development and commercialisation of additional innovative products for genomics and proteomics research and have a solid pipeline of new product developments which are expected to support revenue growth into 2018 and beyond. We continue to see strong revenue growth and increasingly more repeat sales in our TruePrime^TM product range which demonstrates the strength, quality and increased acceptance of the TruePrime^TM technology in the market place. Furthermore, we continue to validate TruePrime^TM in a clinical setting with a focus on liquid biopsy, early cancer diagnosis and other added value point of care diagnostic applications. We anticipate strong upside revenue potential in the midterm future from this market segment."

2017 year-to-date operational highlights:

- Acquisition of profitable Innova Biosciences for EUR 8 million in cash and up to 3.5 million shares concluded; relocation of operational and R&D activities of Innova completed

- Second OEM deal with TANON signed, expanding access to Chinese market from one to three product lines; expected revenue contribution more than EUR 1 million

- Partnership deal with Abingdon Health announced

- Integration of recently acquired C.B.S. Scientific completed within three months

- New services, tools and kits successfully launched

- Universal Lateral Flow Assay kit and associated patent filing

- TrueHelix bioinformatics service platform

- TrueAdvance^TM amplification service to address quality needs in next-generation sequencing

David Roth, CFO of SYGNIS, commented: "We continue to see strong demand for SYGNIS products, with quarter on quarter sales growth being delivered through a combination of new product launches and organic and acquisitive growth. The period from July 2016 has been transformative for SYGNIS in creating an organisation with significant strength in its sales & marketing and operational functions, alongside ongoing investment in R&D. The Group is now able to draw on almost 100 staff worldwide. These developments have put us in a solid financial position and we remain focussed on delivering operational cashflow break even for Q4 2017."

First nine months of 2017 financial results:

Revenues increased 4-fold to EUR 5.3 million for the first nine months of 2017 (nine months 2016: EUR 976 thousand) through a combination of organic and acquisitive growth.

Including Cost of Goods, Total Operating Expenses were EUR 8.7 million for the first nine months of 2017 compared to EUR 3.1 million for the same period in 2016.

The increase in Operating Expenses reflects the increased capacity and scale of the Group with a significantly enhanced sales, manufacturing and R&D base in comparison to 2016. Total Operating Expenses also include restructuring costs and fair value non-cash accounting charges under IFRS for the Expedeon, C.B.S. Scientific and Innova Biosciences acquisitions, as well as transaction-related expenses totalling EUR 1.9 million as shown below.

The adjusted net loss was EUR 1.2 million excluding these one-time costs and non-cash charges. This represents a strong improvement compared to the EUR 2.1 million loss for the same period in 2016. The reported net loss for the first nine months of 2017 was EUR 3.1 million.

The following table shows the composition of revenue and operating expenses for the first nine months of 2017 compared to same period in 2016:

At 30 September 2017, total assets were EUR 49.6 million, of which EUR 30.5 million was goodwill. Cash and cash equivalents were EUR 1.5 million, compared to EUR 3.8 million at 31 December 2016.

During the first nine months of 2017, cash outflows from operating activities, excluding one-off restructuring and transaction costs were EUR 2.2 million (2016: EUR 2.1 million). Including one-off cash items, reported cash flows from operating activities were EUR 3.0 million:

Cash outflows from investing activities were EUR 9.0 million (2016: EUR 2.0 million) and related primarily to the acquisitions of C.B.S. Scientific and Innova Biosciences and expansion of the UK offices.

Outlook 2017:

SYGNIS reiterates its full year revenue target previously updated following the acquisition of Innova Biosciences and expects revenues to be in the range of EUR 7 million to EUR 8 million for 2017. This forecast is based on continued strong organic growth of the product sales through expansion of the sales force in combination with further development of the OEM and distribution sales channels.

The Company continues to invest in R&D with a focus on further development of its ground-breaking TruePrime^TM technology for high-value applications such as single cell DNA analysis and liquid biopsy for early detection and monitoring of cancer.

With the increased marketing and sales activities and a broader but targeted product offering, SYGNIS intends to further strengthen and expand its sales and customer base across the globe. Assuming the business continues to progress as projected, the Management Board expects to reach operational break-even in the fourth quarter of 2017, with strong upside potential and cash generation expected for 2018.

For further information, please contact:

SYGNIS AG
Dr. Heikki Lanckriet
CEO/CSO
Phone: +44 1223 873 364
Email: heikki.lanckriet@sygnis.com

MC Services AG
Dr. Claudia Gutjahr-Löser
Managing Director
Phone: +49 89 210228 0
Email: sygnis@mc-services.eu

About SYGNIS AG: www.sygnis.com

SYGNIS AG develops and commercialises value-added, easy-to-use, reliable products based on its proprietary technologies, offering a wide range of solutions that address key challenges in molecular biology. With the acquisitions of Expedeon Holdings Ltd. in 2016 and both C.B.S. Scientific Company, Inc. and Innova Biosciences Ltd. in 2017, SYGNIS significantly expanded its product line and now covers the entire molecular biology workflow, including genomics, proteomics and tools as well as cutting-edge bioconjugation technologies and services. SYGNIS' products are sold through a direct sales force and several distribution partners in Europe, the U.S. and Asia. The SYGNIS Group has offices in Germany, Spain, UK, USA and Asia. The Company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (Ticker: LIO1; ISIN: DE000A1RFM03).

### This publication is intended for information only and constitutes neither an offer to sell nor an invitation to buy securities. Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward-looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of SYGNIS AG may deviate greatly from the established conclusions or implied predictions contained in such statements. SYGNIS does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason. ###