IDP.L Regulatory News (IDP)

This announcement must not be sent or transmitted, directly or indirectly, into the United States, Australia, Canada or Japan and is not for distribution, directly or indirectly in the United States, Australia, Canada or Japan or any other jurisdiction where the extension or availability of the Fundraising (and any other transaction contemplated thereby) would (i) result in a requirement to comply with any governmental or other consent or any registration filing or other formality which InnovaDerma regards as unduly onerous, or (ii) otherwise breach any applicable law or regulation.

InnovaDerma PLC

("InnovaDerma" or the "Company")

Placing and Fundraising

InnovaDerma (LON: IDP), a UK developer of 'at-home' and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation, is pleased to announce that it has raised £539,999.60 before expenses, through the placing by Hybridan LLP of 771,428 new ordinary shares (the "Placing Shares") at a placing price of 70 pence per share with new institutional shareholders.

Use of proceeds

The net proceeds of the fundraising will provide the Company with working capital to fund growth into European and US markets and improve supply chain management to meet growing demand for Skinny Tan, a premium self-tanner brand that contains a natural tanning active, to tan and reduce the visible appearance of cellulite*

As announced on 31 October 2016, the Company has successfully entered the US market and secured retail and online retailer distribution deals for Skinny Tan with GNC Holdings, Inc., Quidsi, Inc., a subsidiary of Amazon.com, Inc. and Jet.com, a subsidiary of Wal-Mart Stores, Inc. The Company has also established a US subsidiary in order to accelerate growth in the US market.

In the UK, Skinny Tan was launched at Superdrug in February 2016, and by July 2016 it became the No.1 selling brand in its category by revenue and continues to be in the top three tanning brands by revenue. On 24 October 2016, the Company announced that as a result of the success of Skinny Tan and as part of its expansion plans in UK and Europe, it will be moving a significant part of its production to the UK, from Australia. The production move to the UK is expected to significantly improve the Company's supply chain to its most important growth markets which include the UK and the US. Production in the UK is expected to begin in December 2016.

*Based on Skinny Tan Consumer research trial results.

Haris Chaudhry, Executive Chairman said:

"We are pleased to have received this level of support from our new institutional shareholders in this placing; the funds raised put us in a strong position at a key stage of the Company's development as we seek to grow our business in the UK and the US and meet growing demand for Skinny Tan."

Details of the Placing

Estimated timetable of principal events

Settlements and Dealings

Applications will be made for the Placing Shares to be admitted to the Standard Listing segment of the UK Listing Authority and to trading on the Main Market of the London Stock Exchange. Admission of the Placing Shares is expected to become effective on 9 December 2016 and the Placing Shares will rank pari passu with the existing ordinary shares of the Company. Following Admission, the Company will have11,116,963 ordinary shares in issue. This figure (11,116,693), is the number which may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interests in, the Company under the FCA's Disclosure and Transparency Rules.

Further enquiries:

About InnovaDerma:

InnovaDerma PLC (LSE: IDP) specializes in the research, manufacture and marketing of clinically proven products in hair loss, anti-ageing and beauty sectors. InnovaDerma has presence in the UK, US, Australia, New Zealand, Philippines, South Africa, Hong Kong and South Korea.

www.innovaderma.com