EQS-Adhoc: PAION AG to issue approximately 4.8 million shares in capital increase with subscription rights

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Ad-hoc Announcement

Inside information according to Article 17 EU Market Abuse Regulation (MAR)

PAION AG to issue approximately 4.8 million shares at EUR 1.90 per share in capital increase with subscription rights

Aachen, 19 October 2023 - The Management Board of the specialty pharmaceutical company PAION AG (ISIN DE000A3E5EG5; Frankfurt Stock Exchange, Prime Standard: PA8) has, following PAION AG’s announcement of 13 October 2023, today resolved with the approval of the Supervisory Board of the same day, to increase the Company's registered share capital against contributions in cash by partial utilization of the authorized capital with subscription rights for existing shareholders on the basis of a securities prospectus to be approved by Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) from EUR 7,133,699 by EUR 4,755,798.00 to EUR 11,889,497.00 by issuing 4,755,798 new ordinary bearer shares with no par value with a notional value of EUR 1.00 each (the “New Shares”), each with full dividend entitlement as of the fiscal year beginning 01 January 2023.

ODDO BHF SE, Frankfurt, has undertaken vis-à-vis the Company to offer the New Shares to the existing shareholders at a subscription ratio of 3:2 (indirect subscription right). This means that 3 old shares entitle the holder to subscribe for 2 new shares. The subscription price is EUR 1.90 per share. Shareholders may subscribe for the New Shares in the subscription offer during the subscription period, which is expected to commence on and including 24 October 2023 and end on and including 06 November 2023. The subscription rights to the New Shares (ISIN DE000A37FUA4/WKN A37FUA) are expected to be traded on the regulated market (XFRA Continuous Auction with Special Auction) of the Frankfurt Stock Exchange under the stock exchange symbol PA8B in the period from and including 24 October 2023 up to 01 November 2023.

For further details on the capital increase with subscription rights, please see the subscription offer provisionally planned to be published in the electronic Federal Gazette on 23 October 2023 and on the website of PAION AG (www.paion.com).

PAION will receive gross proceeds of about EUR 9 million for the capital increase with subscription rights. PAION will use the net proceeds from the capital increase for investments in its commercial infrastructure, the launch of Byfavo^® in general anesthesia in Europe, for product life cycle management and fulfillment of development obligations as well as for repayments and interest under the loan agreement with the European Investment Bank and for general corporate purposes.

End of inside information