DGAP-Adhoc: PAION COMPLETES PRIVATE PLACEMENT THROUGH THE ISSUANCE OF NEW SHARES IN A PLACEMENT VOLUME OF EUR 3.17 MILLION

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

12.02.2014 23:54

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 COMPLETES PRIVATE PLACEMENT THROUGH THE ISSUANCE OF NEW SHARES IN A
PLACEMENT VOLUME OF EUR 3.17 MILLION

Aachen (Germany), 12 February 2014 - The biopharmaceutical company PAION AG
(ISIN DE000A0B65S3; Frankfurt Stock Exchange General Standard: PA8)
announces that the Company will issue an additional amount of about 1.3
million new shares with a total value of around EUR 3.17 million in a
private placement to the U.S. institutional investor Capital Ventures
International (CVI), under exclusion of the shareholders' subscription
rights. The U.S. institutional investor CVI and PAION AG agreed in December
2013 that CVI will have the right to acquire new shares in PAION AG in a
private placement resulting in proceeds up to a total amount of EUR 6.0
million, whereby the purchase price per new share had to correspond to a
customary five percent discount on the volume weighted average share price
during a reference period.

In a first step, CVI had agreed on 16 January 2014 to immediately invest
half of the amount of EUR 6.0 million, i.e. EUR 3.0 million. In this first
step, CVI has acquired about 1.25 million shares. Today CVI has decided to
acquire additional about 1.3 million shares with a total value of around
EUR 3.17 million, the purchase price per new share corresponded to a five
per cent discount on the volume weighted average share price over the last
five trading days prior to 12 February 2014.

The total proceeds from the private placement of about EUR 6.17 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.

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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.


12.02.2014 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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