Sareum Regulatory News (SAR)

Sareum Holdings plc

("Sareum" or the "Company")

Subscription to raise £1,000,000 to progress proprietary TYK2/JAK1 programmes into clinical development

Cambridge, UK, 9 August 2021 - Sareum Holdings plc (AIM: SAR), the specialist drug development company, announces that it has raised £1,000,000, before expenses, through a subscription by a high net worth individual (the "Subscriber") for 12,121,212 new ordinary shares of 0.025p each in the capital of the Company ("Ordinary Shares") (the "Subscription Shares") at a price of 8.25p per share (the "Subscription Price") (the "Subscription").

Under the terms of the Subscription, the new Subscriber will also be issued one and a quarter five-year warrants, exercisable at the Subscription Price, for every Subscription Share issued (the "Subscription Warrants"), which can only be exercised following the Company's closing middle market share price being above 10.25p per Ordinary Share for five consecutive days. The Subscription Price represents a discount of approximately 6.8 per cent. to the closing middle market price for Sareum shares on 6 August 2021.

The net proceeds from the Subscription will be used to progress the Company's SDC-1801 and SDC-1802 TYK2/JAK1 inhibitor drug development programmes as well as for working capital purposes. As noted in the Company's Trading Update of 25 May 2021, the Company is targeting the filing of a Clinical Trials Approval for SDC-1801 in Q4 2021, subject to successful progress and no further delays with the final preclinical studies. Clinical trial plans, including priority autoimmune indications and potential Covid-19 application, will also be developed in parallel, subject to additional funding being raised.

Application will be made for the 12,121,212 Subscription Shares, which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on the AIM market of the London Stock Exchange ("AIM") ("Admission"). It is anticipated that Admission will become effective at 8.00 am on 17 August 2021. The Subscription is subject to normal conditions including, inter alia, Admission.

Total Voting Rights

For the purpose of the Disclosure Guidance and Transparency Rules, following the above issue of equity, the issued share capital of the Company will comprise 3,365,701,148 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 Guidance and Transparency Rules.

Dr Tim Mitchell, CEO of Sareum Holdings plc, said: "This new subscription is Sareum's fourth since 1 June this year, reflecting the strong and continuing interest in our proprietary TYK2/JAK1 development programmes in autoimmune diseases, including the immune overreaction to Covid-19, and cancer. With the funds raised during this period now totalling over £4.5 million, our financial position has been significantly strengthened and we are looking forward to completing the preclinical studies with SDC-1801 and advancing it into clinical development, and to progressing the preclinical development of our second TYK2/JAK1 inhibitor SDC-1802."

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

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About Sareum

Sareum is a specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases. The Company aims to generate value through licensing its candidates to international pharmaceutical and biotechnology companies at the preclinical or early clinical trials stage.

Sareum is advancing internal programmes focused on distinct dual tyrosine kinase 2 (TYK2) / Janus kinase 1 (JAK1) inhibitors through preclinical development as therapies for autoimmune diseases, including the 'cytokine storm' immune system overreaction to Covid-19 and other viral infections, (SDC-1801) and cancer immunotherapy (SDC-1802).

Sareum also has an economic interest in SRA737, a clinical-stage oral, selective Checkpoint kinase 1 (Chk1) inhibitor that targets cancer cell replication and DNA damage repair mechanisms. Preliminary Phase 2 and comprehensive preclinical data suggest SRA737 may have broad application in combination with other oncology and immune-oncology drugs in genetically defined patients.

SRA737 was discovered and initially developed by scientists at The Institute of Cancer Research in collaboration with Sareum, and with funding from Sareum and Cancer Research UK. SRA737 was licensed by CRT Pioneer Fund (CPF) to Sierra Oncology Inc. Sierra continues to explore options that would enable the development of SRA737 to advance.

Sareum Holdings plc is listed on the AIM market of the London Stock Exchange, trading under the ticker SAR. For further information, please visit the Company's website at www.sareum.com 

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