OptiBiotix Health Regulatory News (OPTI)

27 August 2015

OptiBiotix Health Plc

("OptiBiotix" or the "Company")

Half Yearly Report

OptiBiotix Health plc (AIM: OPTI), a Life Sciences business developing compounds to tackle obesity, high cholesterol and diabetes, announces its results for the six months ended 31 May 2015.

OptiBiotix continues to make progress on its strategy of developing compounds which modify the human microbiome and commercialising these through partnering with food, health, and wellbeing companies.

Highlights

• The appointment of Jim Laird as Commercial Director to the Board to increase commercial capacity and capability

• The completion of preclinical studies and ethics approval received to enable human clinical studies to begin for the Company's cholesterol lowering product

• Expansion of the OptiBiotic® platform to a wider range of microbial species broadening the number of product and partner opportunities

• The filing of four new patents

• Creating a joint venture with Nizo Food Research to develop, manufacture and distribute weight management yoghurts to global markets

Post-period end highlights

• Announcement of an option agreement with a multinational consumer goods company for the cholesterol lowering product

· Strategic alliance with Venture Life

· Agreement with Spanish National Research Council

Stephen O'Hara, CEO of OptiBiotix commented: "I am delighted with the progress OptiBiotix has made since joining AIM in August 2014. In a short space of time we have moved one of our development programmes into clinical studies, progressed our sugar programme designed to create low calorie, sweet oligosaccharides to reduce chronic lifestyle disease such as heart disease, obesity and diabetes, built on our IP portfolio, and reached agreements with a number of commercial partners. During the period, we strengthened the Board with the appointment of Jim Laird, who has brought industry specific commercial and corporate expertise to the Company. I would like to thank our investors for their support since we joined AIM, and look forward to an exciting and rewarding rest of 2015."

 For further information:

About OptiBiotix Health PLC - www.optibiotix.com

OptiBiotix was formed in March 2012 to develop compounds which modify the human microbiome - the collective genome of the microbes in the body - to prevent and manage human disease. The aim of OptiBiotix is to discover and develop microbial strains, compounds and formulations, which modulate the human microbiome and can be used as food ingredients and supplements or active compounds for the prevention and management of human metabolic diseases, examples of which include obesity, cholesterol and lipid distribution and diabetes.

OptiBiotix has established a pipeline of microbiome modulators that can impact on lipid and cholesterol management, energy harvest and appetite suppression. The development pipeline is fuelled by its proprietary OptiScreen® and OptiBiotic® platform technologies designed to identify metabolic pathways and compounds that impact on human physiology and bring potential health benefits. These platforms are applicable across a wider range of other human diseases.

Chairman's and CEO's Report

The last six months has seen increased industry, media, and investor interest in the microbiome with a number of news items on the radio, television and national newspapers. This has been fuelled by the growing number of research publications showing the potential of the human microbiome to prevent and treat a wide range of diseases. As awareness of the health potential of the human microbiome grows, we anticipate further media, industry and investor interest in companies in this field.

OptiBiotix has a number of exciting development programmes designed to create commercial products with an established scientific evidence base and proof of human efficacy.

Our cholesterol product is in human studies designed to establish product safety, consumer compliance and the extent of its cholesterol lowering potential in this group of volunteers is now complete. We anticipate reporting on this in September 2015 as originally planned.

We have de-risked a number of the technical challenges in our sugar development programme and identified the potential to produce novel sugars in a wider range of species than initially anticipated. This has led to a number of new patent filings which adds to our 'toolbox' of approaches to manage weight gain. We anticipate further additions to this 'toolbox' in the coming year. During the development process we have improved the ability of the OptiBiotic® discovery platform to predict the likelihood of microbial strains producing new sugars with novel structures. This creates the ability to screen a greater range of species and strains with the same resources. The Board believes these advances broaden the range of application, product and partnering opportunities, and make a significant contribution to building shareholder value and a sustainable business.

As our development programmes progress towards commercialisation, we anticipate increasing partner interest. We will work with our advisors to enhance awareness of OptiBiotix and share news with prospective and existing investors.

In the last six months we have added to our existing IP portfolio and anticipate filing further patents and registering additional microbial strains where we feel there is commercial value. We will continue to explore opportunities to in-license or acquire new technologies or IP to support our continued growth.

The Company will continue to leverage its existing relationships and develop new relationships with research, development, and industry partners to support the commercialisation of our technology and products. This activity will be greatly enhanced by the commercial and corporate expertise of Jim Laird, who joined us in March 2015 from Premier Foods. In the last six months we have made good commercial progress securing a joint venture agreement with Nizo for the weight management product and an option agreement with a global corporate partner for our cholesterol product. Discussions with partners suggest there is growing interest in the microbiome and we anticipate further announcements in the coming year.

The Board believes OptiBiotix is at the leading edge of an immature but emerging market forecast to become one of the world's fastest growth areas. OptiBiotix has made good progress in the last six months and now looks to build on this solid foundation to build a microbiome business with significant value for shareholders.

On behalf of everyone at OptiBiotix Health plc we thank you for your support and look forward to an exciting future. At OptiBiotix we believe that better science equals better health and with your continued support we will strive to ensure this becomes a reality.

Results

OptiBiotix's results for the six months ended 31 May 2015 are set out in the Consolidated Statement of Comprehensive Income. Administrative expenses were £514,431 which reflects the costs of operating a public company and includes the non-cash accounting adjustment of £127,728 share option expense charge. Cashflow remains tightly controlled with a focus on building shareholder value through investment in R&D and IP. The Group's cash position is £2.47m which is sufficient to fund its existing research and development programmes.

Optibiotix Health Plc

Consolidated Statement of Comprehensive Income

For the period to 31 May 2015

Optibiotix Health Plc

Consolidated Statement of Financial Position

For the period to 31 May 2015

Optibiotix Health Plc

Consolidated Statement of Changes in Equity

For six month to 31 May 2015

Optibiotix Health Plc

Consolidated Statement of Cash Flows

For the period to 31 May 2015

Optibiotix Health Plc

Notes to the Interim Financial Information

For the period to 31 May 2015

1. General Information

 Optibiotix Health Plc is a company incorporated and domiciled in England and Wales. The company's offices are in York. The company is listed on the AIM market of the London Stock Exchange (ticker: OPTI).

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The group's statutory financial statements for the year ended 30 November 2014, prepared under International Financial Reporting Standards ("IFRS"), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain statements under Sections 498(2) and 498 (3) of the Companies Act 2006.

Copies of the annual statutory accounts and the interim report can be found on the Company's website at http://www.optibiotix.com/.

2. Basis of preparation and significant accounting policies

This interim report has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, using accounting policies which are consistent with those set out in the financial statements for the year ended 30 November 2014.

New and amended standards adopted by the group

There are no IFRSs or IFRIC interpretations that are effective for the first time in this financial period that would be expected to have a material impact on the group, except for IFRS 9 Financial Instruments

3. Segmental Reporting

In the opinion of the directors, the group has one class of business, being that of research and development. The group's primary reporting format is determined by the geographical segment according to the location of its establishments. There is currently only one geographic reporting segment, which is the UK. All costs are derived from the single segment.

4. Earnings per Share

Basic earnings per share is calculated by dividing the earnings attributable shareholders by the weighted average number of ordinary shares outstanding during the period.

Reconciliations are set out below:

The weighted average number of shares for the six months to 31 May 2014 has been adjusted from 1,008,102,543 to 5,040,513 to reflect the subdivision which occurred during the year to 30 November 2014.

Basic and diluted earnings per share are the same, since where a loss is incurred the effect of outstanding share options and warrants is considered anti-dilutive and is ignored for the purpose of the loss per share calculation. As at 31 May 2015 there were 10,350,387 outstanding share options and 3,482,650 outstanding share warrants.

5. Share Capital

Issued share capital compromises:

On 7 January 2015, 19 January 2015, 19 March 2015, 20 April 2015 and 21 May 2015 the company issued and allotted 125,000, 24,375, 441,807, 479,787 and 25,941 ordinary shares of £0.02 each respectively, exercised at a price of £0.08 per share in the capital of the company following the exercise of warrants.

6. Share options

On 30 March 2015, the Company granted options on 1,717,544 ordinary shares to two directors and one employee. The options vest upon certain performance criteria being met and lapse on the tenth anniversary of the agreements.

The fair value of the share options issued in the current period is £0.12 and was derived using the Black Scholes model. The following assumptions were used in the calculation:

Expected volatility is based on a conservative estimate for an AIM listed entity. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

A charge of £127,728 has been recognised for the share based payments over the vesting period.

7. Events subsequent to 31 May 2015

On 5 June 2015 and 17 June 2015, the company issued and allotted 191,625 and 7,293 ordinary shares of £0.02 each respectively, exercised at a price of £0.08 per share in the capital of the company following the exercise of warrants.