SOURCE: Aequus Pharmaceuticals

Aequus Pharmaceuticals

March 13, 2017 09:12 ET

Aequus Raises $5.2 Million Through Bought Deal Financing Including Full Exercise of the Over-Allotment Option

NOT FOR DISTRIBUTION OR DISSEMINATION INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

VANCOUVER, BC--(Marketwired - March 13, 2017) - Aequus Pharmaceuticals Inc. (TSX VENTURE: AQS) (OTCQB: AQSZF) ("Aequus" or the "Company"), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products, is pleased to announce the closing today of its previously announced public offering (the "Offering"). Pursuant to the Offering, the Company issued 17,250,000 units (the "Units") at a price of $0.30 per Unit, for aggregate gross proceeds to Aequus of $5,175,000. Canaccord Genuity Corp. (the "Underwriter") acted as underwriter for the Offering. The 17,250,000 Units issued include 2,250,000 Units issued and sold pursuant to the over-allotment option granted by the Company to the Underwriter, which was exercised in full.

Each Unit is comprised of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant is exercisable to acquire one Common Share (a "Warrant Share") for a period of two years at an exercise price of $0.45 per Warrant Share, subject to adjustment in certain events. In the event that the volume weighted average trading price of the Company's Common Shares on the TSX Venture Exchange is greater than $0.80 per Common Share for a period of 15 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof by way of press release and in such case the Warrants will expire on the 30th day after such notice is given.

In addition, Aequus issued to the Underwriter a total of 862,500 broker warrants (the "Broker Warrants") in connection with the Offering. Each such Broker Warrant entitles the holder to acquire a Unit at an exercise price of $0.30 per Unit for a period of two years following the closing of the Offering.

Net proceeds of the Offering are to be used for the development of the Company's drug pipeline and other general corporate purposes.

The Units were offered by way of a prospectus supplement and an accompanying short form base shelf prospectus of the Company, in the provinces of Alberta, British Columbia, Saskatchewan, Manitoba and Ontario, and in the United States by way of private placement to qualified institutional investors.

The Units issued pursuant to the Offering have not been, nor will they be, registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Aequus Pharmaceuticals

Aequus Pharmaceuticals Inc. (TSX VENTURE: AQS) (OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus' development stage pipeline includes several products in neurology and psychiatry with a goal of addressing the need for improved medication adherence through enhanced delivery systems. Aequus intends to commercialize its internal programs in Canada alongside its current portfolio of marketed established medicines and will look to form strategic partnerships that would maximize the reach of its product candidates worldwide. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.

Forward-Looking Statements:

This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "potential" and similar expressions. Forward-looking statements are necessarily based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Forward-looking statements in this release include but are not limited to statements relating to: the use of proceeds of the Offering; and the Company's intention to commercialize its internal programs in Canada, form strategic partnerships and build its Canadian commercial platform. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Aequus, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements. In making the forward-looking statements included in this release, the Company has made various material assumptions, including, but not limited to: obtaining positive results of clinical trials, obtaining regulatory approvals, general business and economic conditions, the Company's ability to successfully out-license or sell its current products and in-license and develop new products, the assumption that the Company's current good relationships with its manufacturer and other third parties will be maintained, the availability of financing on reasonable terms, the Company's ability to attract and retain skilled staff, market competition, the products and technology offered by the Company's competitors and the Company's ability to protect patents and proprietary rights. In evaluating forward-looking statements, current and prospective shareholders should specifically consider various factors set out under the heading "Risk Factors" in the Company's Annual Information Form dated April 29, 2016, a copy of which is available on Aequus' profile on the SEDAR website at www.sedar.com, and as otherwise disclosed from time to time on Aequus' SEDAR profile. Should one or more of these risks or uncertainties, or a risk that is not currently known to us materialize, or should assumptions underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by applicable securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance and are inherently uncertain. Accordingly, investors are cautioned not to put undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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