Aequus Announces Proposed $800,000 Equity Financing To Next Edge Biotech Plus Fund

Jul 23, 2018

VANCOUVER, BC. July 23, 2018 - Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products, is pleased to announce that it intends to complete a proposed equity financing of 4,000,000 units of the Company (the "Units") at a price of $0.20per Unit (the "Offering Price"), for aggregate gross proceeds of $800,000 (the "Offering") to the Next Edge Bio-Tech Plus Fund under a prospectus supplement to the Company’s base shelf prospectus dated August 15, 2017, which prospectus supplement will be filed in the provinces of British Columbia, Alberta, Ontario, Saskatchewan and Manitoba. Each Unit shall consist of one common share of the Company and one-half of one non-transferrable common share purchase warrant (each, a "Warrant"). Each whole Warrant shall entitle the holder thereof to purchase one common share at an exercise price of $0.30 for a period of forty-eight (48) months following the closing date of the Offering. The Warrants will include an acceleration provision, exercisable at the Company’s option, if the Company's daily volume weighted average share price is greater than $0.45 for 10 consecutive trading days.

“The Next Edge Bio-Tech Plus Fund is pleased to support Aequus in its efforts to commercialize essential therapies that address both patient and physician needs in Canada,” said Portfolio Manager Eden Rahim. “In our assessment, Aequus is a promising, emerging Canadian healthcare company with potential for significant growth through commercializing a portfolio of therapeutics targeting, Ophthalmology, Transplant, Women’s Health and Neurology, including the anti-epileptic drugs Trokendi and Oxtellar. We look forward to being their financial partner as they continue to execute on their business plan.”

“Eden Rahim is one of the most successful and experienced biotech investors in Canada and has been so for over two decades”, says Doug Janzen, Aequus Chairman and CEO. “Our business is growing and we are very excited about the future and are delighted to have institutional biotech money like the Next Edge Biotech Fund as a financial partner as we continue to grow our business.”

Aequus intends to use the net proceeds of the Offering forgeneral corporate and working capital purposes, including commercial and marketing activities, advancing internal programs and supporting on-going business development. Securities issued under the Offering will be "restricted securities" as defined in U.S. federal securities laws.The Offering is expected to close on or about the week of July 23, 2018. Completion of the Offering is subject to a number of conditions, including receipt of any required regulatory approvals, including receipt of the approval of the TSX Venture Exchange for the listing of the common shares issuable on closing of the Offering and issuable upon the exercise of the Warrants.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements.This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About the Next Edge Biotech Plus Fund

The Next Edge Bio-Tech Plus Fund (the “Fund”) is invested primarily in US and Canadian biotech and healthcare companies. The Fund is focused on providing capital to help companies conduct late stage clinical trials and commercialization of their therapeutics. Following a discipline refined over two decades, the Fund aspires to deliver superior returns to its unitholders over the long term. The Fund is the only dedicated biotech mutual fund in Canada. The Fund’s Portfolio Manager, Eden Rahim, has over two decades experience managing healthcare mandates. Eden is a regular guest speaker about the biotech industry as a panelist, in press articles and on BNN and Bloomberg TV.

Next Edge Capital Corp. was formed as Man Investments Canada Corp. in July 2006 and was renamed Next Edge Capital Corp. (“Next Edge”) after the spinout of Man Investments Canada Corp. to management from Man Group plc in June 2014. Next Edge is registered as an Exempt Market Dealer, Portfolio Manager and/or Investment Fund Manager in certain jurisdictions. The Next Edge management team have been responsible for raising over CDN $3 Billion of alternative assets in Canada since 2000.

About Aequus Pharmaceuticals

Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus has grown its pipeline to include several commercial products in ophthalmology and transplant, and a development stage pipeline in neurology and psychiatry with a goal of addressing the need for improved medication adherence through enhanced delivery systems. As a complement to its focus in neurology, our most recent addition to the development pipeline was a long-acting form of medical cannabis, where there is a high need for a consistent, predictable and pharmaceutical-grade delivery of products for patients. Aequus intends to commercialize its internal programs in Canada alongside its current portfolio of marketed established medicines and will look to form strategic partnerships that would maximize the reach of its product candidates worldwide. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.

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FORWARD-LOOKING STATEMENT DISCLAIMER
This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential” and similar expressions. Forward- looking statements are necessarily based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Forward-looking statements include but are not limited to statements relating to: the implementation of our business model and strategic plans; revenue growth trends into the future; expected timing for product launches; the Company’s expected revenues; the regulatory approval of its products; the Company’s ability to attract international partners; and ongoing discussions with and the Company’s ability to secure potential partners to further grow our product portfolio. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Aequus, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements. In making the forward looking statements included in this release, the Company has made various material assumptions, including, but not limited to: obtaining regulatory approvals; general business and economic conditions; the Company’s ability to successfully out license or sell its current products and in-license and develop new products; the assumption that the Company’s current good relationships with third parties will be maintained; the availability of financing on reasonable terms; the Company’s ability to attract and retain skilled staff; market competition; the products and technology offered by the Company’s competitors; the impact of the coronavirus (COVID-19) on the Company’s operations; and the Company’s ability to protect patents and proprietary rights. In evaluating forward looking statements, current and prospective shareholders should specifically consider various factors set out herein and under the heading “Risk Factors” in the Company’s Annual Information Form dated April 30, 2021, a copy of which is available on Aequus’ profile on the SEDAR website at www.sedar.com, and as otherwise disclosed from time to time on Aequus’ SEDAR profile. Should one or more of these risks or uncertainties, or a risk that is not currently known to us materialize, or should assumptions underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by applicable securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance and are inherently uncertain. Accordingly, investors are cautioned not to put undue reliance on forward looking statements.
Aequus Contact Information
‍investors@aequuspharma.ca
604-336-7906