SAREUM HOLDINGS PLC : Issue of Equity

(AIM: SAR)

13 June 2014

SAREUM HOLDINGS PLC

("Sareum" or the "Company")

Issue of Equity

Sareum Holdings Plc (AIM: SAR) announces a conditional funding of £550,000 by way of a Placing and an Equity Swap Agreement with YA Global Master SPV, Ltd. ("YAGM") at 0.50 pence per share. 

Dr Tim Mitchell, Sareum's CEO, commented: "Our three core research programmes continue to progress by means of the collaborations we announced in 2013. We are very pleased to benefit from further working capital and programme funding through our relationship with YAGM, first announced in September 2012. "

Placing:

YAGM have subscribed for a total of 110,000,000 new ordinary shares (the "Subscription Shares") in the Company at a price of 0.50p per share ("Placing Price") for a gross consideration of £550,000.

Equity Swap Agreement:

The Company and YAGM have entered into an equity swap agreement ("the Equity Swap Agreement") covering 78,750,000 ordinary shares, pursuant to which the Company will pay YAGM £200,000. In consideration for this payment, the Company will receive twelve monthly payments of £16,667, amounting to £200,000 in aggregate, between the date of the Equity Swap Agreement and 30 June 2015. The monthly payments can be adjusted either:

• up, if the average of the lowest 10 day VWAP during the relevant one month period is greater than 0.55p, being a 10% premium to the Placing Price; or
• down, if the average of the lowest 10 day VWAP during the relevant one month period is lower than or equal to 0.55p. This would result in the Company receiving less funds from YAGM in any relevant one month period.

Thus the funds received by the Company from the Equity Swap Agreement will be dependent on the future price performance of the Company's ordinary shares.

YAGM may elect to terminate the Equity Swap Agreement and accelerate the payments due under it in certain circumstances.

YAGM has agreed that it and its affiliates will refrain from holding any net short position in respect of the Company's ordinary shares until the expiry or, if earlier, termination of the Equity Swap Agreement.

It is expected that admission will occur and that trading in the Subscription Shares will commence on AIM at 8.00 am on 20 June 2014. These Subscription Shares will rank pari passu in all respects with the Company's existing issued ordinary shares.

Following the admission of the Subscription Shares the Company will have a total of 1,910,038,273 ordinary shares in issue. Of these, YAGM hold 5.76%

Enquiries: Sareum Holdings plc
Tim Mitchell	01223 497 700
Sanlam  Securities UK Limited (Nomad)
Simon Clements / James Thomas	020 7628 2200
Hybridan LLP (Broker)
Claire Noyce / William Lynne	0203 713 4581/ 4582
The Communications Portfolio (Media enquiries)
Ariane Comstive [e-mail]	020 7536 2028

Notes for editors:

About Sareum Holdings plc

Sareum is a drug discovery and development company delivering targeted small molecule therapeutics, focusing on cancer and autoimmune disease, for licensing to pharmaceutical and biotechnology companies at the pre-clinical or early clinical trials stage.

Sareum operates an outsourced research model, working with collaborators (SRI International, the CRT Pioneer Fund and Hebei Medical University Biomedical Engineering Center) and a world-wide network of research providers.  Its research pipeline includes two programmes undergoing pre-clinical IND-enabling studies.

SKIL® (Sareum Kinase Inhibitor Library) is Sareum's drug discovery technology platform that has so far produced the Company's Aurora+FLT3, Aurora+ALK, VEGFR-3, FLT3 & TYK2 kinase cancer and auto-immune disease research programmes. SKIL® can also generate drug research programmes against other kinase targets.

Sareum Holdings plc is listed on the AIM market of the London Stock Exchange, trading under the symbol SAR. For further information, please visit www.sareum.co.uk

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SAREUM HOLDINGS PLC via Globenewswire

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