New subsidiary secures funding of just over USD 3 m ahead of potential IPO in Taiwan

NeuroVive has established a subsidiary in Taiwan, NeuroVive Pharmaceutical Asia,
Inc., which has secured initial funding totaling USD 3,255 m. The funding is
sourced from Taiwanese investors, collaboration partner Foundation Asia Pacific
Ltd. and the parent company ahead of its potential IPO in Taiwan. The subsidiary
strengthens the group’s presence in Asia and will be the driver behind existing
project in the region, while conducting its own research and development
operations under license from the parent company.
As has already been communicated, NeuroVive is preparing a potential IPO of its
subsidiary in Taiwan. The company has established a Taiwanese subsidiary,
NeuroVive Pharmaceutical Asia, Inc. (NeuroVive Asia) as a step in this process.
NeuroVive Asia has established a wholly-owned subsidiary, NeuroVive
Pharmaceutical Asia Taiwan Inc. (NeuroVive Taiwan), in Taiwan to manage local
operations.

Alongside collaboration partner Foundation Asia Pacific Ltd., NeuroVive already
owns a company for the group’s intellectual property rights in Asia, NeuroVive
Pharmaceutical Asia Ltd. (NeuroVive Hong Kong), with its registered office in
Hong Kong. The company’s holding in NeuroVive Hong Kong has been converted to
the corresponding shares in NeuroVive Asia.

As a result of the restructuring, NeuroVive Hong Kong has received additional
territorial rights in Asia for CicloMulsion®, NeuroSTAT® and ToxPhos®. An
external valuation agent has calculated the value of the additional rights at
USD 3.6 m. This has increased the parent company’s holding in NeuroVive Asia
from 70% to 82% before the initial financing.

An initial investment round aimed at strengthening NeuroVive Asia’s financial
resources closed on 11 February 2015, raising a total of USD 3,255 m for the
company, of which USD 1.0 m from the parent company and USD 2,255 m from
Foundation Asia Pacific Ltd. and Taiwanese investors. The parent company’s
holding in NeuroVive Asia is estimated at 71.37% following this financing round.
The valuation calculated an estimated pre-money market value of USD 12.5 m
including the company’s assets.

Michael L. Huang has been appointed CEO of NeuroVive’s Asian group. Michael L.
Huang is highly qualified for the assignment and has strong regional contacts.

Stronger Asian position benefits NeuroVive group
The establishment of NeuroVive Taiwan is a step in NeuroVive’s strategic focus
on its Asian operations which includes phase III trials in CicloMulsion® in
China and countries in East Asia. The Taiwanese company enables NeuroVive to
manage its local operations throughout a number of Asian countries outside
China, and to expand its existing collaborations with Sihuan Pharmaceutical in
China as well as other potential collaboration partners in the region. A clearer
presence in Asia is also expected to facilitate the potential future launch of
NeuroVive’s products CicloMulsion® and NeuroSTAT® on the Asian market.

The new group structure enables the parent company to cost-effectively generate
long-term value for the entire group by transferring early research and
development projects as well as projects outside the parent company’s main focus
to NeuroVive Asia. This process is expected to shorten the time to market for
these projects.

“The market for the biotech and pharmaceutical industry in Taiwan is currently
favorable, which has created an attractive climate for small and medium-sized
companies with research intensive operations that are looking for capital to
expand their operations. The strategy of gradually working towards a potential
IPO for a subsidiary in Taiwan has created value, as investors have shown
significant interest in the company’s products and its establishment in Asia.
The initial financing is a further step towards creating the optimal conditions
for commercialization of CicloMulsion® in Asia including China, and to establish
a research and development platform in Asia for early-stage projects,” commented
NeuroVive’s CEO Mikael Brönnegård.

“I look forward to leading NeuroVive Pharmaceutical Asia, Inc. and to develop
the company’s projects efficiently in close collaboration with our partners,
including Sihuan Pharmaceutical in China. The company will focus on developing
NeuroVive’s leading products CicloMulsion® and NeuroSTAT® within the framework
of the licensing rights in Asia, alongside a strong research and development
operation in order to create value for shareholders, not least NeuroVive
Pharmaceutical AB,” commented Michael l. Huang, CEO of NeuroVive Pharmaceutical
Asia, Inc.

Group structure after restructuring

[image]

The new group structure consists of parent company NeuroVive Pharmaceutical AB
(publ) and subsidiary NeuroVive Asia, with its registered office in Taiwan. In
turn, NeuroVive Asia has two wholly-owned subsidiaries, NeuroVive Hong Kong and
NeuroVive Taiwan, with their registered offices in Hong Kong and Taiwan
respectively.

About NeuroVive
NeuroVive Pharmaceutical AB (publ), the mitochondrial medicine company, is
developing a portfolio of products to treat acute cardiovascular and
neurological conditions through mitochondrial protection. These medical
conditions are characterized by a pressing medical need and have no approved
pharmaceutical treatment options at present. NeuroVive’s products CicloMulsion®
(myocardial infarct) and NeuroSTAT® (traumatic brain injury) are currently being
evaluated in phase III and phase II studies, respectively. NeuroVive’s research
programs also include products for the treatment of brain cell injury in stroke
patients, and drug candidates for cellular protection and treating mitochondria
-related energy regulation diseases. NeuroVive’s shares are listed on NASDAQ
OMX, Stockholm, Sweden.

For Investor Relations and media questions, please contact:
Ingmar Rentzhog, Laika Consulting (http://www.laika.se), Tel: +46 (0)46 275 62
21 or ir@neurovive.se It is also possible to arrange an interview with
NeuroVive’s CEO Mikael Brönnegård or COO Jan Nilsson at the above contact.

NeuroVive Pharmaceutical AB (publ)
Medicon Village, SE-223 81 Lund, Sweden, Tel: +46 (0)46 275 62 20 (switchboard),
Fax: +46 (0)46 888 83 48, info@neurovive.se, www.neurovive.se

NeuroVive Pharmaceutical AB (publ) is required to publish the information in
this news release under The Swedish Securities Market Act. The information was
submitted for publication on 11 February, 2015, at 2.00 p.m. CET.
NeuroVive Pharmaceutical AB (publ) - the mitochondrial medicine company. The
company is listed on NASDAQ OMX Stockholm, Small Cap, under the ticker symbol
NVP. The share is also traded on the OTC market in the US. NeuroVive
Pharmaceutical (OTC: NEVPF) trades on the OTC Grey Market. Investors can find
Real-Time quotes and market information for the company
at www.otcmarkets.com/stock/NEVPF/quote (http://htt://www.otcmarkets.com/stock/N
E 
VPF/quot)