SKIN.L Regulatory News (SKIN)

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE (IN WHOLE OR IN PART), DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR AUSTRALIA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO PUBLISH, DISTRIBUTE OR RELEASE THIS ANNOUNCEMENT

Integumen plc

("Integumen", the "Company", or the "Group")

First Day of Dealings

Integumen, the personal health care company developing and commercialising technology and products for the human integumentary system that may improve physical appearance, hygiene and general health outcomes, today announces that the admission of its Ordinary Shares to trading on AIM will commence today at 8.00 a.m. under the ticker symbol "SKIN" with ISIN GB00BYWJ6269. The Company's AIM Admission Document is available on its website, www.integumenplc.com.

Key Statistics

SPARK Advisory Partners Limited is acting as Nominated Adviser, and Turner Pope Investments (TPI) Ltd as Broker, to the Company.

The funds raised will primarily enable the Company to fund the development and sales and marketing of its products in addition to providing working capital.

Declan Service, CEO of Integumen said:

"I am delighted that Integumen is joining AIM today. This is an important and transformational step for the Company and we believe our AIM listing will unlock the value of our portfolio of products, technologies and know-how in the growing markets of wound care, oral care and skincare. Integumen has a well-defined strategy and we are now focused on further developing our products and commercialisation."

Key highlights

· The Company has assembled a portfolio of products, technologies and associated know-how, which broadly focus on applications with identified and growing markets within skincare, oral care and wound care. The Directors believe that owning a range of products, technologies and know-how provides a portfolio approach that reduces the risk for investors of any one product or technology.

· The Company's 3-dimensional human skin equivalent ("Labskin") and oral care products ("TS1") have made commercial sales.

· The Company has a strong management team with individual members having significant experience in a particular aspect of the Group's business, and having demonstrated success in either bringing products to market (in the personal goods/healthcare sector), or realising value for shareholders.

· The Directors estimate that to date, approximately £15 million of investment has been made in total in the Group's products and technologies which are at the late stages of development, meaning the risk associated with commercialisation, such as the remaining cost of development, and timeframe to launch, is mitigated.

· The Group operates largely in markets in which products do not need regulatory approvals or clearances or medical trials to be conducted. Some of Integumen's products have been, and in future will be, subject to clinical studies. However, the purpose of these clinical studies, which are typically much cheaper than medical trials and take a shorter time to conduct, is pre-dominantly to produce efficacy data, or to demonstrate a comparison with competitor products, in order to support marketing claims.

Commercialisation Strategy

· Integumen has purposefully assembled businesses which possess products, technologies and know-how which are generally in advanced stages of development or at an early stage of commercialisation.

· The Company aims to apply the Board's collective experience, market knowledge and contacts to demonstrate the commercial potential of these products, technologies and know-how in the most effective way, given its resources. This approach could involve:

o Direct product sales by Integumen and its subsidiaries;

o Product sales through marketing and distribution partners with existing and proven infrastructure; and/or

o Selectively seeking licensing partners, once value has been added through development activity, brand creation or early market adoption.

· Once a product has been launched, and a sales track record has been established, the Directors believe that the Company has the potential for an outright sale (or license) of such products or technologies to third party buyers.

· The Directors are aware that in recent years a number of "niche" brands, or owners of such brands, in the skincare and cosmeceutical markets have been acquired by larger industry players, particularly in the US, once a sales record has been demonstrated.

Intellectual property/Clinical trials

· Integumen operates predominantly in the non-prescription health and personal care market. At present, no product within Integumen's portfolio needs costly and time-consuming regulatory approvals, which would be required for pharmacological products, or those products claiming medical efficacy.

· Intellectual property is regarded by the Directors as important as a marketing tool but not business critical. The Directors believe that the key to successful exploitation and value generation of its products and technologies lies in the marketing, branding and positioning of the products. Conducting studies versus competitor products, and the provision of trial data, allows the marketing team to differentiate Integumen's products in the market.

Unless otherwise defined herein, terms defined in the Company's AIM Admission Document dated 30 March 2017 shall have the same meanings in this announcement.