PAION AG ANNOUNCES SUCCESSFUL COMPLETION OF CAPITAL INCREASE WITH SUBSCRIPTION RIGHTS

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.


PAION AG ANNOUNCES SUCCESSFUL COMPLETION OF CAPITAL INCREASE WITH SUBSCRIPTION RIGHTS

- All new shares were placed

- Subscription rate of 92.41%

Aachen (Germany), 07 April 2021 - The specialty pharmaceutical company PAION AG (PA8; ISIN DE000A0B65S3; Frankfurt Stock Exchange, Prime Standard) today announces that the Company has successfully completed its rights offering. The subscription price was EUR 1.54 per new share. The subscription rate was 92.41%. The remaining shares were successfully placed, in great demand, with institutional investors at the subscription price. A total of 5,095,499 new shares were subscribed and issued under this transaction. The U.S. institutional investor, which has supported the capital increase through a commitment to subscribe all shares not subscribed for by existing shareholders or other investors in connection with the rights offering or sold in connection with the rump placement, has not taken over any new shares.

At completion of this transaction, the Company's share capital will be increased from EUR 66,241,493.00 by EUR 5,095,499.00 to EUR 71,336,992.00 by issuing 5,095,499 new shares. The offering partly utilized existing authorized capital created by resolution at the Annual General Meeting on 27 May 2020. PAION has received gross proceeds of EUR 7.8 million from the rights offering.

PAION will use the net proceeds from the capital increase to prepare commercial launches for its product portfolio in selected European countries and for general corporate purposes.

The transaction was accompanied by ODDO BHF AG.

PAION AG's CEO Dr. Jim Phillips commented: "We appreciate the great interest in the capital increase. This is a clear signal that our shareholders support our path to be a leading specialty pharmaceutical company in the fields of anesthesia and critical care with three products for self-marketing."

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About PAION
PAION AG is a publicly listed specialty pharmaceutical company with innovative drugs to be used in hospital-based sedation, anesthesia and critical care services. PAION's lead compound is remimazolam, an intravenous, ultra-short-acting and controllable benzodiazepine sedative/anesthetic. Remimazolam is partnered in multiple territories outside of Europe. Remimazolam is approved in the U.S., the EU/EEA and China for procedural sedation and in Japan and South Korea for general anesthesia.

In addition to Byfavo^(R) (remimazolam), PAION is preparing to launch the two products GIAPREZA^(R) (Angiotensin II) and XERAVA^(R) (Eravacycline) in Europe. GIAPREZA^(R) is a vasoconstrictor indicated for the treatment of refractory hypotension in adults with septic or other distributive shock who remain hypotensive despite adequate volume restitution and application of catecholamines and other available vasopressor therapies. XERAVA^(R) is a novel fluorocycline indicated for the treatment of complicated intra-abdominal infections in adults.

PAION's mission is to be a leading specialty pharmaceutical company in the fields of anesthesia and critical care by bringing novel products to market to benefit patients, doctors and other stakeholders in healthcare.

PAION is headquartered in Aachen (Germany).

Contact
Ralf Penner
Vice President Investor Relations/Public Relations
PAION AG
Heussstrasse 25
52078 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.