DGAP-News: PAION AG SUCCESSFULLY COMPLETES CAPITAL INCREASE WITH SUBSCRIPTION RIGHTS

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| Source: EQS Group AG
DGAP-News: PAION AG / Key word(s): Capital Increase
PAION AG SUCCESSFULLY COMPLETES CAPITAL INCREASE WITH SUBSCRIPTION
RIGHTS

15.01.2014 / 15:39

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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.'

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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

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15.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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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  
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