DGAP-News: MOLOGEN AG: Successful completion of capital increase with substantial oversubscription


DGAP-News: MOLOGEN AG / Key word(s): Capital Increase
MOLOGEN AG: Successful completion of capital increase with substantial
oversubscription

21.10.2016 / 16:55
The issuer is solely responsible for the content of this announcement.

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PRESS RELEASE N  16 / 2016 of 10/21/2016

MOLOGEN AG: Successful completion of capital increase with substantial
oversubscription

  - Issuing of around 11.3 million new shares - Order book oversubscribed

  - Gross proceeds of EUR 13.6 to implement new strategy "Next Level"

Berlin, 21 October 2016 - The Executive Board of the biotechnology company
MOLOGEN AG has successfully placed 11,315,750 new shares with national and
international investors in the context of the capital increase. The share
capital of the company will be increased to EUR 33,947,251. Following the
registration of the capital increase in the commercial register, the new
shares are expected to be admitted for trading on the Frankfurt Stock
Exchange on 26 October 2016. They are expected to be included in the
existing listing with the ISIN DE0006637200 on 27 October 2016.  The
private placement, following the subscription period, was clearly
oversubscribed. The gross proceeds totaling EUR 13.6 million are to be used
to implement the new strategy "Next Level". In view of the oversubscription
of the order book, the TowerCrest Limited Liability Cooperation, Beijing,
(China), ("TowerCrest") has decided, after the approval of MOLOGEN, not to
participate in the capital increase.

"The successful completion of the capital increase and the substantial
oversubscription reflect the confidence of our existing and new
shareholders in our Company. Especially Global Derivative Trading GmbH
supported the capital increase and again made a valuable contribution to
the future development of the Company. With the cash inflow we are able to
continue the implementation of our 'Next Level' strategy program. This
mainly includes the achievement of the next key milestones of our lead
product lefitolimod", says Dr. Mariola Söhngen, Chief Executive Officer of
MOLOGEN AG.

Dero Bank AG, Munich, was the sole bookrunner for the transaction.
Additionally, Blättchen Financial Advisory GmbH, Leonberg, supported
MOLOGEN in the transaction as an advisor.

Gross proceeds of EUR 16.1 million secure the achievement of next key
milestones for lead product lefitolimod
The new shares were issued at a price of EUR 1.20 per new share to existing
shareholders by way of indirect subscription rights as well as to qualified
investors in the context of an international private placement that was
oversubscribed. Within the framework of the subscription period from 4
October to 18 October 2016 8.5 million shares (without oversubscription)
have been allocated to existing shareholders, which corresponds to a ratio
of 75%. The remaining new shares were allocated in the oversubscription and
an international private placement. As a result of the cash capital
increase, MOLOGEN receives gross proceeds totaling approximately EUR 13.6
million.

In addition, MOLOGEN will issue a convertible bond to Global Derivative
Trading GmbH ("GDT")  with a total nominal value of EUR 2.54 million and a
term ending presumably on 29 October 2024. The terms of the convertible
bond include a yearly fixed interest rate of 6% as well as the right for
the investor to convert the convertible bond in up to 1,693,333 company
shares partially using the conditional capital at a conversion price of EUR
1.50. The issuance of the convertible bond is expected to take place until
the end of October 2016.

Through the full placement of the capital increase and the issuance of the
convertible bond, the company receives total gross proceeds of EUR 16.1
million.On the basis of these new financial resources the company's
financing is secured presumably up to the fourth quarter of 2017.

Use of funds primarily for further development of lefitolimod
The cash inflow enables the further implementation of the "Next Level"
strategy program, which was first presented on 9 June 2016. This strategy
program includes focusing on the further development activities on the lead
product, the immunotherapy lefitolimod, and its successor molecules
EnanDIM(R). Lefitolimod is currently being studied in four clinical trials:
The IMPALA pivotal study for colorectal cancer, the phase II IMPULSE study
for small cell lung cancer, the extended phase I TEACH study for HIV and
the combination study for advanced solid tumors. The recruitment of 540
patients for the IMPALA pivotal study is to be completed by the end of 2016
or in the first quarter of 2017. The IMPULSE and TEACH results are expected
in the first half of 2017 respectively in the middle of the year. The
preclinical EnanDIM(R) molecules are to be developed to phase I stage.

The "Next Level" program sets out an enhanced product and market focus,
with the relevant preparations for a possible market launch, initially of
lefitolimod. This includes, in particular, upscaling production - producing
high volumes of the compound in line with market demand. Upscaling is to be
secured by transferring production to specialized external contract
manufacturers. Thus, some of the proceeds from the capital increase will be
used to finance the transfer of the production to a contract manufacturer
and to upscale the production of lefitolimod.

GDT remains major shareholder
The major shareholder GDT had bindingly committed to exercise its
subscription rights already before the capital increase had started.
Furthermore, GDT used the opportunity for an oversubscription and
corresponding allocation of up to 1 million unsubscribed new shares.

Important note:
This announcement does not contain or constitute an offer of, or the
solicitation of an offer to buy or subscribe for, securities to any person
in the United States, Australia, Canada, Japan or in any jurisdiction to
whom or in which such offer or solicitation is unlawful.

This release is not a prospectus. Investors should not purchase or
subscribe for any shares referred to in this press release except on the
basis of information in a prospectus to be issued by the Company in
connection with the offering of such shares.

This release is not an offer of securities for sale in the United States of
America. The securities referred to in this press release have not been,
and will not be, registered under the US Securities Act of 1933, as amended
(the "Securities Act"), and may not be offered or sold in the United States
absent registration or an applicable exemption from registration or in a
transaction not subject to the registration requirements of the Securities
Act. There will be no public offer of the securities in the United States
of America.

Subject to certain exceptions under the Securities Act, the securities
referred to herein may not be offered or sold in Australia, Canada or Japan
or to, or for the account or benefit of, any national, resident or citizen
of Australia, Canada or Japan.

MOLOGEN AG
With new and unique technologies and active substances, the biotech company
MOLOGEN is one of the pioneers in the field of immunotherapy. Alongside a
focus on immuno-oncology, MOLOGEN also develops immunotherapies for the
treatment of infectious diseases.

The cancer immunotherapy lefitolimod (MGN1703) is the company's lead
product and best-in-class TLR9 agonist. Treatment with lefitolimod
(MGN1703) triggers a broad and strong activation of the immune system. Due
to this mode of action, namely to reactivate the monitoring function of the
immune system, lefitolimod (MGN1703) can be recognized as an Immune
Surveillance Reactivator (ISR). It has the potential to be applied to
various indications. ISR lefitolimod (MGN1703) is currently being developed
for first-line maintenance treatment of colorectal cancer (pivotal study)
and small cell lung cancer (randomized controlled trial). Furthermore, it
is also being investigated in an extended phase I study in HIV and a phase
I combination study with the checkpoint inhibitor ipilimumab (Yervoy(R)).
Next to checkpoint inhibitors, lefitolimod is one of the few product
candidates that are in a phase III clinical trial (IMPALA) in the field of
immuno-oncology and close to reaching the market.

MOLOGEN's pipeline focus is on new, innovative immunotherapies to treat
diseases for which there is a high medical need.
www.mologen.com

Memberships in associations:
Biotechnologieverbund Berlin-Brandenburg (bbb) e.V. | BIO Deutschland e.V.
|  DECHEMA - Society for chemical technology and biotechnology e.V.  |
German industrial association of biotechnology (DIB)  |  Association for
the Promotion of Science and Humanities in Germany  |  Association of
German biotechnology companies (VBU)  |  Association of researching
manufacturers of pharmaceuticals e.V. (VFA)  |  Association of the chemical
industry e.V. (VCI)

MIDGE(R), dSLIM(R), EnanDIM(R) and MOLOGEN(R) are registered trademarks of
MOLOGEN AG.
Contact
Claudia Nickolaus
Head of Investor Relations & Corporate Communications
Tel: +49 - 30 - 84 17 88 - 38
Fax: +49 - 30 - 84 17 88 - 50
investor@mologen.com

Note about risk for future predictions
Certain information in this report contains forward-looking statements or
the corresponding statements with negation or versions deviating from this
or comparable terminology. These are described as forward-looking
statements. In addition, all of the information given here that refers to
planned or future results of business areas, key financial figures,
developments of the financial situation or other financial figures or
statistical data, is to be understood as such forward-looking statements.
The company points out to investors that they should not rely on these
forward-looking statements as predictions about actual future events. The
company is not obligated and refuses to accept any liability for the
forward-looking statements and has no obligation to update such statements
in order to accurately reflect the current situation.


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21.10.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Financial/Corporate News and Press Releases.
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   Language:    English                                                    
   Company:     MOLOGEN AG                                                 
                Fabeckstraße 30                                            
                14195 Berlin                                               
                Germany                                                    
   Phone:       030 / 841788-0                                             
   Fax:         030 / 841788-50                                            
   E-mail:      presse@mologen.com                                         
   Internet:    www.mologen.com                                            
   ISIN:        DE0006637200                                               
   WKN:         663720                                                     
   Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated  
                Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
                Stuttgart, Tradegate Exchange                              
 
 
   End of News    DGAP News Service  
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513673 21.10.2016