Destiny Pharma. Regulatory News (DEST)

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Destiny Pharma plc

("Destiny Pharma" or "the Company")

Admission and First Day of Dealings on AIM

Successful placing raising £15.3 million

Brighton, United Kingdom - 4 September 2017 - Destiny Pharma, a clinical stage biotechnology company focused on the development of novel anti-microbial drugs, which address the global problem of anti-microbial resistance (AMR), is pleased to announce the admission ("Admission") of its ordinary shares ("Ordinary Shares") to trading on AIM, a market operated by London Stock Exchange plc, from 8:00am today under the ticker "DEST" (ISIN GB00BDHSP575).

The Company has raised gross proceeds of £15.3 million through a placing ("Placing") with existing and new institutional and other investors of 9,733,770 Ordinary Shares at a placing price of 157 pence per Ordinary Share ("Placing Price"). The Company is very pleased to have raised an additional £1.8 million to the £13.5 million published in the admission document on 29 August due to increased institutional demand. Pursuant to the Placing a total of 41,651,770 Ordinary Shares will be in issue immediately following Admission, giving a market capitalisation of approximately £65.4 million at the Placing Price.

Destiny Pharma has also entered into a binding framework agreement detailing a collaboration with a wholly-owned subsidiary of China Medical System Holdings Ltd ("CMS") to enable the development and commercialisation of the Company's assets in China and certain other Asian countries, excluding Japan (see separate release announced today). A&B (HK) Company Ltd, a company with a controlling shareholder in common with CMS, has invested £3 million in the Placing.

Neil Clark, Chief Executive Officer of Destiny Pharma, commented:

"The successful placing and admission of our shares to trading on AIM are major milestones for Destiny Pharma. The funds raised will primarily be used to progress our lead drug candidate, XF-73, through an important Phase IIb clinical trial in the prevention of post-surgical Staphylococcus aureus infections (including MRSA) over the next two years. If successful, XF-73 will then be ready for Phase III clinical development which will be a major value inflection point.

"XF-73 could be the first drug to be specifically labelled for a new US FDA sanctioned indication, namely the prevention of post-surgical infections; a market we believe to be worth a billion dollars in the US alone and growing.

"We would like to thank our new and existing shareholders for their support and we look forward to updating the market with our progress as we continue to advance XF-73 and our proprietary XF drug development platform."

Highlights of Destiny Pharma

· A clinical stage biotechnology company - lead asset (XF-73) targets post-surgical bacterial infections in hospitals

· XF drugs have shown in studies to be safe, fast acting and have a unique low/no resistance profile

· XF-73 has multiple drivers for adoption in an area of global unmet medical need, with a potentially "fast track" route to regulatory approval in the US market

· XF-73 is significantly de-risked - five successful Phase I/IIa clinical trials completed to date showing rapid antibacterial action combined with evidence of a no/low resistance profile; next major clinical trial is Phase IIb in the US

· XF-73 is part of the Company's proprietary, anti-microbial drug platform "XF Drugs" with a new mechanism of rapid action - Destiny Pharma also has several earlier stage programmes

· Destiny Pharma has market exclusivity, including robust IP protection that potentially extends into 2030

· Clearly defined value creation opportunity, significant addressable markets, including blockbuster potential for XF-73's lead indication

· £15.3 million gross proceeds will be used primarily to advance XF-73 to complete a Phase IIb clinical trial

The admission document and supplementary admission document, along with the information required by AIM Rule 26, are available on the Company's website, www.destinypharma.com.

Cantor Fitzgerald Europe ("Cantor Fitzgerald"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser and broker to the Company.

For further information, please contact:

Destiny Pharma

Neil Clark, CEO

Simon Sacerdoti, CFO

pressoffice@destinypharma.com

+44 (0)1273 704 440

FTI Consulting

Simon Conway / Victoria Foster Mitchell / Hanna Skeppner

destinypharma@fticonsulting.com 

+44 (0) 20 3727 1000

Cantor Fitzgerald Europe

Philip Davies / Will Goode, Corporate Finance

pdavies@cantor.co.uk

+44 (0)20 7894 8337

About Destiny Pharma

Destiny Pharma is an established, clinical stage, innovative biotechnology company focused on the development of novel medicines that represent a new approach to the treatment of infectious disease. These potential new medicines are being developed to address the need for new drugs for the prevention and treatment of life-threatening infections caused by antibiotic resistant (AR) bacteria, often referred to as "superbugs". Tackling anti-microbial resistance has become a global imperative recognised by the WHO and the United Nations, as well as the G7 and the G20 countries. For more information, please visit https://www.destinypharma.com 

Important information

This announcement is for information purposes only and does not itself constitute an offer or invitation to underwrite, subscribe for or otherwise acquire or dispose of any securities in the Company and does not constitute investment advice.

Neither this announcement nor any copy of it may be taken or transmitted, reproduced, published or distributed, or the contents otherwise divulged, directly or indirectly, in whole or in part, into the United States, Canada, Australia, the Republic of South Africa or Japan or to any persons in any of those jurisdictions or any other jurisdiction where to do so would constitute a violation of the relevant securities laws of such jurisdiction. Any failure to comply with this restriction may constitute a violation of United States, Australian, New Zealand, Canadian, Japanese or South African securities laws. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about, and observe any such restrictions.

This announcement does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any Ordinary Shares or other securities in the United States, Canada, Australia, the Republic of South Africa or Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The Placing and the distribution of this announcement and other information in connection with the Placing and Admission in certain jurisdictions may be restricted by law and persons into whose possession this announcement, any document or other information referred to herein, comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Neither this announcement nor any part of it nor the fact of its distribution shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this announcement.

The securities referred to herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "US Securities Act") nor under any securities laws or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered, sold, transferred or delivered, directly or indirectly, in the United States unless registered under the US Securities Act or offered and sold in a transaction exempt from, or not subject to, the registration requirements of the US Securities Act and in accordance with any applicable securities laws of any state or other jurisdiction of the United States. The securities are offered and sold (i) outside the United States only to non-US persons (within the meaning of the Securities Act) in accordance with Regulation S under the US Securities Act and (ii) within the United States only to a limited number of eligible investors pursuant to an exemption from the registration requirements of the US Securities Act. The securities referred to herein have not been and will not be registered under the US Securities Act or under the applicable securities laws of Canada, Australia, the Republic of South Africa or Japan.

Cantor Fitzgerald is acting exclusively as nominated adviser and broker to the Company and for no-one else in connection with the Placing and Admission and is not acting for and will not be responsible to any person other than the Company in connection with the Placing and Admission including for providing the protections afforded to clients of Cantor Fitzgerald or for providing advice in connection with Admission, the Placing or the contents of this announcement including any transaction, matter or arrangement referred to in this announcement. Cantor Fitzgerald's responsibilities as the Company's nominated adviser and broker under the AIM Rules for Nominated Advisers are owed solely to the London Stock Exchange and are not owed to the Company or to any Director or to any other person in respect of a decision to acquire shares in the Company in reliance on any part of this announcement.

Apart from the responsibilities and liabilities, if any, which may be imposed on Cantor Fitzgerald by the Financial Services and Markets Act 2000 (as amended) or the regulatory regime established thereunder, Cantor Fitzgerald does not accept any responsibility whatsoever for the contents of this announcement, including its accuracy, completeness or verification or for any other statement made or purported to be made by it, or on its behalf, in connection with the Company, the Ordinary Shares, Admission or the Placing. Cantor Fitzgerald has not authorised the contents of, or any part of, this announcement and no liability whatsoever is accepted by Cantor Fitzgerald nor does it make any representation or warranty, express or implied, for the accuracy of any information or opinion contained in this announcement or for the omission of any information. Cantor Fitzgerald accordingly disclaims all and any responsibility or liability whether arising in tort, contract or otherwise (save as referred to above) which it might otherwise have in respect of this announcement or any such statement. The contents of this announcement, which has been prepared by and is the sole responsibility of the Company.

Forward-looking statements

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the directors' current intentions, beliefs or expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies and the Company's markets.

Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement are based on certain factors and assumptions, including the directors' current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's operations, results of operations, growth strategy and liquidity. While the directors consider these assumptions to be reasonable based upon information currently available, they may prove to be incorrect. Save as required by law or by the AIM Rules for Companies, neither the Company nor Cantor Fitzgerald undertakes any obligation to publicly release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in the directors' expectations or to reflect events or circumstances after the date of this announcement.