SALV.L Regulatory News (SALV)

SalvaRx Group plc

("SalvaRx" or the "Company")

Further Subscriptions for SalvaRx Limited Loan Facility

SalvaRx (LON: SALV), a biotechnology company focused on immunotherapy for cancer, announces further subscriptions for the SalvaRx Limited Loan Facility.

The Company announced on 2 March 2017 that its BVI subsidiary, SalvaRx Limited, had constituted up to US$5 million of unsecured loan notes in order to evaluate and either invest in or acquire further assets in the immuno-oncology sector (the "Loan Notes"). The Loan Notes are repayable on the fourth anniversary following issue and carry a coupon of 7% per annum. In addition, holders of Loan Notes will receive warrants to subscribe for new shares in SalvaRx Limited (the "Warrants"). US$7,500 of Warrants will be issued in respect of each US$10,000 loan note unit. The Warrants will vest in the event of a qualifying transaction (being a transaction or series of transactions whereby SalvaRx Limited obtains additional external equity financing in excess of US$15 million ("Qualifying Event") over a defined period). Further details of the Qualifying Event and pricing of the Warrants are described in the Company's announcement on 2 March 2017.

Mr Mellon and Dr Bailey, who are both directors and substantial shareholders in the Company, have each subscribed for an additional US$0.5 million of the Loan Notes. These additional subscriptions take their holdings of Loan Notes to US$1.5 million each.

In total, SalvaRx Limited has now issued approximately US$4 million of Loan Notes.

Ian Walters, CEO of SalvaRx, said "SalvaRx has now built its pipeline to ten programmes. With this further support from Jim Mellon and Greg Bailey we are able to continue to progress the various development programmes as we continue to assess other fundraising options."

Related Party Transactions

The subscription for the Loan Notes by, and associated grant of Warrants to, Mr Mellon and Dr Bailey constitute related party transactions under Rule 13 of the AIM Rules for Companies. The independent directors, being Ian Walters, Kam Shah, Richard Armstrong and Colin Weinberg, consider, having consulted with Northland Capital Partners Limited, the Company's Nominated Adviser, that the terms of the Loan Notes and the related Warrants are fair and reasonable insofar as the Company's shareholders are concerned.

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For more information please visit: www.salvarx.io