Provexis Regulatory News (PXS)

3 July 2017

Provexis plc

Funding update

Provexis plc ('Provexis' or the 'Company'), the business that develops, licenses and sells the proprietary, scientifically-proven Fruitflow® heart-health functional food ingredient, is pleased to announce a funding update.

First Subscription - completed in May 2017

The Company confirmed in its results of placing announcement on 10 May 2017 that it had raised a gross £350,000 at 0.50 pence per ordinary share via a placing (the 'First Subscription') of 70,000,000 new ordinary shares of 0.1p each (the 'First Subscription New Provexis Shares') with new and existing investors.

The First Subscription New Provexis Shares were admitted by the London Stock Exchange to trading on AIM on 16 May 2017, following which the Company's enlarged issued share capital currently comprises 1,820,818,174 ordinary shares with voting rights. The Company does not hold any shares in treasury, hence this figure of 1,820,818,174 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Second Subscription - completion expected in July 2017

The Company's RNS announcement of 10 May 2017 also confirmed that the Company was in late stage discussions with a small group of investors in relation to a Second Subscription to raise further working capital for the Company, in connection with which the Company had applied to Her Majesty's Revenue and Customs ('HMRC') for advance assurance that it would be eligible to issue new ordinary shares under HMRC's Enterprise Investment Scheme ('EIS').

The Company has received positive EIS advance assurance clearance from HMRC on a number of previous occasions, most recently in July 2012, and it has previously issued shares under EIS. However, the EIS eligibility rules for companies and investors have undergone a number of changes in recent years hence the need to submit a new advance assurance application, as requested by a number of prospective investors in the planned Second Subscription.

The Company is pleased to confirm that it has now received a new positive EIS advance assurance clearance from HMRC, which is likely to be of interest to new prospective investors in the planned Second Subscription.

Prospective investors in the planned Second Subscription should note that the November 2015 changes to the EIS rules included a restriction on existing shareholders claiming EIS relief, which means that an existing shareholder will only be able to claim relief if all of their existing shares:

· Were issued under EIS; or

· Are subscriber shares ie original shares issued by the Company on incorporation

The Directors currently have non-legally binding indications of interest in the Second Subscription to raise approximately £575,000 at a subscription price of 0.50 pence per ordinary share with no commissions or expenses payable.

The Company highly values its private investor base and believes that it would be appropriate to provide private investors with an opportunity to participate in the Second Subscription at 0.50 pence per ordinary share through the Company's existing access to the PrimaryBid.com platform, later this month. Subscriptions through the PrimaryBid.com platform, which are expected to be eligible for EIS for new shareholders, will be considered by the Company on a 'first come, first served' basis subject to conditions, with any investment request over £40,000 first requiring the Company's consent. The Company will provide further details of this process in due course.

The Second Subscription, to include the PrimaryBid.com element of the Second Subscription, is not being underwritten.

Whilst the final amount which the Company can expect to receive from the Second Subscription cannot yet be determined, total Subscriptions are currently expected to exceed £925,000, an amount which includes the £350,000 confirmed on 10 May 2017 from the completed First Subscription.

Further announcements concerning the planned Second Subscription will be made by the Company at the appropriate time.

Proceeds from the two placings will be used to provide the Company with additional working capital to support its growth plans over the coming years. The Company issued a trading update on 10 May 2017 at www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PXS/13220035.html which included confirmation of significant progress across a number of areas:

· The Company expects to report revenues for the year ended 31 March 2017 of £228k, a 148% year on year increase (2016: £92k).

· The Company and DSM have seen an encouraging increase in brand awareness and customer interest in Fruitflow® in recent months, with the total projected annual sales value of the prospective sales pipeline for Fruitflow standing at an all-time high level;

· The strategic collaboration agreement for Fruitflow® between DSM and Chinese listed BY-HEALTH, focussing on the development of new products that contribute to cardiovascular health in China, and the related announcement by the Company confirming that it had entered into an MOU with BY-HEALTH for a research and collaboration agreement with BY-HEALTH for Fruitflow;

· The planned launch by BY-HEALTH of some Fruitflow® based products in the Chinese market, with the first launch envisaged in the second half of 2017;

· The launch and encouraging initial progress of the Company's Fruitflow® + Omega-3 dietary supplement product, which is expected to provide the Company with an additional long term income and profit stream. Further UK sales channel opportunities for the product are currently being progressed, to include online listings with some major UK retailers, and some international sales channel opportunities in North America and elsewhere are being explored;

· The planned formulation and launch of a Fruitflow® + nitrates dietary supplement product which would be supported by the Company's strong patent position in this area;

· The second stage of the Company's blood pressure pilot study for Fruitflow® which indicated that Fruitflow® significantly lowered blood pressure in waking subjects;

· The Fruitflow® comparison study with aspirin published in the European Journal of Clinical Nutrition, providing strong support for the use of Fruitflow® in the primary prevention of cardiovascular disease, and the detailed scientific study for Fruitflow® which was published in the European Journal of Nutrition in July 2016;

Since the trading update was issued on 10 May 2017 the Company has also:

· Secured a listing with Amazon.co.uk for the Company's Fruitflow® + Omega-3 dietary supplement product; and

· Partnered with World Thrombosis Day (WTD) www.worldthrombosisday.org , a collaborative event which takes place every year on 13 October seeking to increase global awareness of thrombosis, including its causes, risk factors, signs/symptoms and evidence-based prevention and treatment. Ultimately WTD strives to reduce death and disability caused by the condition.

Dawson Buck, Chairman of Provexis, commented:

'The Board is pleased to report non-legally binding indications of interest in a Second Subscription to raise approximately £575,000. The Company highly values its private investor base and it intends to provide private investors with an opportunity to participate in the Second Subscription at 0.50 pence per share, later this month, through the PrimaryBid.com platform.

The total First and Second Subscriptions are currently expected to raise at least £925,000 in total, and the funds raised will be used to provide the Company with additional working capital to support its revenue growth plans over the coming years, to include the strongly positive announcements and initiatives which the Company set out in its recent trading update.'

This announcement contains inside information.

ends-

For further information please contact:

Provexis plc Tel: 07490 391888

Dawson Buck, Chairman enquiries@provexis.com

Ian Ford, Finance Director

Cenkos Securities plc Tel: 020 7397 8900

Bobbie Hilliam

Notes for editors

About Provexis plc

AIM-listed Provexis is focused on the development and licensing of its proprietary, scientifically-proven Fruitflow® heart-health functional food ingredient.

In May 2009, the Company's Fruitflow® technology was the first to be substantiated by the European Food Safety Authority ("EFSA") under the new Article 13(5) for proprietary and emerging science. In December 2009 the European Commission authorised the health claim "Helps maintain normal platelet aggregation, which contributes to healthy blood flow", which was the first wording to be authorised under Article 13(5).

In June 2010 it was announced that the Company had entered into a long-term Alliance Agreement with DSM Nutritional Products to commercialise Fruitflow®, and in June 2015 the Company confirmed it had agreed significantly enhanced financial terms for its Alliance Agreement with DSM for Fruitflow®.

The Company's Alliance partner DSM Nutritional Products has developed the market actively for the Company's novel, patented Fruitflow® heart-health ingredient in all global markets, with over 50 regional consumer healthcare brands now having been launched by direct customers of DSM, and with a number of further regional brands having been launched through DSM's distributor channels.

An increasing number of further commercial projects have been initiated by DSM with prospective customers, including some prospective customers which are part of global businesses, with good prospects for these projects to be launched as consumer products. Interest in the technology exists in all major global markets.

In June 2016 the Company launched a high quality dietary supplement product containing Fruitflow® and Omega-3 which is being sold initially from a separate, dedicated website www.fruitflowplus.com on a mail order basis.

The Company conducted a Key Opinion Leaders' roundtable event for Fruitflow® in London on 29 September 2016, focussed on raising awareness of the importance of blood flow in cardiovascular health, and the effectiveness of dietary antiplatelets. The roundtable was attended by key scientists from Provexis and DSM, along with a number of interested health care professionals with close links to the media. The event was recorded and a video for Fruitflow® + Omega-3 capsules targeting prospective consumers can be seen here www.youtube.com/watch?v=P3HCSdyupEY&t=48s

The Company and DSM are keen to secure greater medical advocacy for Fruitflow® and the roundtable event forms part of this strategy.

The roundtable event is being supported by a broader consumer PR campaign, and the Company's Fruitflow® + Omega-3 dietary supplement product has featured in a number of recent articles in the UK national press which can be seen here www.fruitflowplus.com/fruitflow-in-the-media

The Company has been engaged in a two stage collaboration agreement with the University of Oslo to undertake further research into the relationship between Fruitflow® and blood pressure regulation. In December 2016 the Company announced the results from the second stage of the collaboration, a pilot study which indicated that a standard dose of Fruitflow® in powder format significantly lowered average 24-hour systolic blood pressure compared to placebo. Both systolic and diastolic blood pressure were shown to be significantly lower whilst trial subjects were awake, a clinically relevant reduction in blood pressure which is expected to be of interest to a large number of consumers and patients with a wide range of cardiovascular conditions.

In April 2017 the Company announced that it had entered into a memorandum of understanding with BY-HEALTH Co., Ltd ('BY-HEALTH') which is intended to result in a research and collaboration agreement with BY-HEALTH for Fruitflow®. The Company also confirmed separately that Provexis and DSM are working with BY-HEALTH to support the planned launch of some Fruitflow® based products in the Chinese market, with the first launch envisaged in the second half of 2017.

BY-HEALTH is a substantial Chinese listed dietary supplement business which is currently valued in excess of £2.3bn.

Provexis was founded in 1999 and is headquartered in Reading, Berkshire.

Provexis shares are traded on the AIM market of the London Stock Exchange under the ticker symbol PXS.

For further information, please visit www.provexis.com