OptiBiotix Health Regulatory News (OPTI)

17 April 2020

OptiBiotix Health plc

("OptiBiotix" or the "Company")

Placing and Related Party Transaction

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes, announces that the Company has raised £1.0 million through the issue of 2,500,000 new ordinary shares of 2 pence each in the Company ("Ordinary Shares") (the "New Ordinary Shares") at a price of 40 pence per share (the "Placing").

Application will be made to the London Stock Exchange to admit the 2,500,000 New Ordinary Shares to trading on AIM. Admission of the New Ordinary Shares is expected to occur on or around 23 April 2020 ("Admission"). The New Ordinary Shares will rank pari passu with the existing Ordinary Shares.

Certain directors, listed below, have subscribed for in aggregate 128,750 of the New Ordinary Shares as part of the Placing.

Directors' participation in the Placing

Related Party Transaction

The participation of the directors in the Placing (the "Transaction") is a related party transaction pursuant to AIM Rule 13. The directors independent of the Transaction, having consulted with the Company's nominated adviser believe that the terms of the Transaction are fair and reasonable insofar as shareholders are concerned.

Use of Proceeds

In the last few months, the Company has launched products and signed commercial deals with a number of large corporate partners. This has extended the presence of its products to over seventy countries and led to growing revenues.

The Company has ongoing discussions with a number of corporate and large retail partners on its products and a high level of corporate interest in its SweetBiotix® products across multiple applications.  The net proceeds of the Fundraising will allow OptiBiotix to pursue these and other commercial opportunities to help grow the business with the aim of achieving profitability.  The Company believes that it has a window of opportunity to fully exploit this interest to enhance shareholder value and intends to use the funds raised to:-

- Launch its award-winning products in China, the USA, and India with partners who have an international reputation and significant retail network. Large retail partners deliver large volume sales but require a reliable and highly flexible supply chain and often have long payment terms. This requires OptiBiotix to build higher than anticipated stock levels to support upfront manufacturing and stocking costs;

- Support the launch of product lines extensions with existing partners (Alfasigma, Holland and Barrett, and Agropur) and new product launches planned for Australia with Optipharm;

- Scale up additional SweetBiotix products®. OptiBiotix has developed a number of natural sweet fibres (SweetBiotix®) with a clean flavour profile which increase the diversity of microbial species associated with good gut health. One of these products has undergone manufacturing scale up with a US corporate partner. Discussions are ongoing with a number of corporate partners who want to use different SweetBiotix® products in a range of dairy, cereal, and beverage applications. To enable OptiBiotix to meet multiple partner needs and to fully exploit the wide range of applications opportunities OptiBiotix wishes to scale up additional SweetBiotix products,

- Expand the presence and awareness of its products in the USA. As previously announced, the Company continues to explore the potential for a dual listing in those markets where there is potential for greater liquidity and valuation. To support this opportunity, create market interest, and improve international research coverage it intends to increase the presence and awareness of its brands and products in the USA.

Total Voting Rights

For the purpose of the Disclosure and Transparency Rules, following the issue of shares detailed above the enlarged issued share capital of the Company will comprise 87,940,551 Ordinary Shares. The above figure 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 interest in, the Company, under the Disclosure and Transparency Rules.

Stephen O'Hara, CEO of OptiBiotix, said: "The Company has received a high level of partner interest in its technology and products across new application areas and new territories (e.g. China), that have the potential for significant value uplift. It has become clear that there is a window of opportunity to exploit interest in SweetBiotix® across multiple applications and the potential for listing existing products with major retailers in large international markets. This may not be achievable in the short term with the current resources. Rather than delay these opportunities until OptiBiotix has sufficient revenues to cover costs, the Board has decided to take additional funds to capitalise on these growth opportunities and build shareholder value. The Company has limited the funds received to ensure it remains focused on value creation and is delighted to have added a number of new institutional investors to the share register."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

About OptiBiotix - www.optibiotix.com

OptiBiotix Health plc (AIM: OPTI), which was formed in March 2012, brings science to the development of compounds which modify the human microbiome - the collective genome of the microbes in the body - in order to prevent and manage human disease and promote wellness.

OptiBiotix has an extensive R&D program working with leading academics in the development of microbial strains, compounds, and formulations which are used as active ingredients and supplements. More than twenty international food and healthcare supplement companies have signed agreements with OptiBiotix to incorporate their human microbiome modulators into a wide range of food products and drinks.

OptiBiotix is also developing its own range of consumer supplements and health products. The Company's current areas of focus include obesity, cardiovascular health, and diabetes.