DGAP-Adhoc: PAION AG PLANS TO ISSUE UP TO 2.5 MILLION SHARES IN A PRIVATE PLACEMENT

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| Source: EQS Group AG
PAION AG  / Key word(s): Capital Increase

16.01.2014 01:54

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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.

AD-HOC ANNOUNCEMENT ACCORDING TO §15 WPHG

PAION AG PLANS TO ISSUE UP TO 2.5 MILLION SHARES IN A PRIVATE PLACEMENT

  - U.S. institutional investor Capital Ventures International commits to
    immediately invest EUR 3.0 million with the option to subscribe for new
    shares resulting in proceeds up to a total amount of EUR 6.0 million in
    a private placement

Aachen (Germany), 16 January 2014 - PAION AG (ISIN DE000A0B65S3; Frankfurt
Stock Exchange General Standard: PA8) announced that the Company plans to
issue in the coming weeks up to a total of 2,536,077 new shares in a
private placement under exclusion of subscription rights of the
shareholders. US institutional investor Capital Ventures International has
the option to subscribe until 14 February 2014 for new shares resulting in
proceeds up to a total amount of EUR 6.0 million in this private placement.

As a new commitment and a first step Capital Ventures International has
agreed today to immediately invest half of the amount of EUR 6.0 million,
i.e. EUR 3.0 million. The price per share amounts to EUR 2.4079 calculated
based on a daily volume weighted average share price (VWAP) over the last
ten days before 15. January 2014 for PAION shares in XETRA trading on the
Frankfurt Stock Exchange less a discount of 5%. Thus, Capital Ventures
International will acquire 1.25 million shares in the first step.

Furthermore, until 14 February 2014 Capital Ventures International has the
right to buy shares up to the remaining proceeds of EUR 3.0 million.

If Capital Ventures International invests less than a total of EUR 6
million, the company has the right to place the remaining shares with other
investors.

The potential total proceeds from the private placement of up to
approximately EUR 6.0 million together with the gross issue proceeds of EUR
4.99 million from the rights offering will further improve PAION's
financial leeway. The proceeds from 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 study
medication and validate the production at market scale.

###

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.


16.01.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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 Announcement                             DGAP News-Service
 
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