ValiRx Regulatory News (VAL)

16 September 2015

ValiRx Plc

("ValiRx" or the "Company")

Subscription and Equity Swap

ValiRx Plc (AIM: VAL), a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, is pleased to announce that it has raised, in aggregate, £2,450,000, before expenses, through the subscription by YA Global Master SPV Ltd ("Yorkville") of 8,161,637 new ordinary shares ("Subscription Shares") at 30.018p per share ("Subscription Price") pursuant to a subscription agreement between the Company and Yorkville ("Subscription Agreement") ("the Subscription"). The net proceeds of the Subscription will be used to advance the Company's therapeutic developments, biomarker programmes and intellectual property creation and for general working capital purposes.

In conjunction with the Subscription, the Company has entered into an equity swap agreement (the "Equity Swap") with Yorkville concerning 6,430,872 of the Subscription Shares ("Swap Shares"). Pursuant to the Equity Swap, in return for a payment by the Company to Yorkville of £1,000,000 (the "Swap Payment"), Yorkville shall make twelve monthly settlement payments of £83,333.33 adjusted by reference to a formula related to the difference between the prevailing market price of the Company's ordinary shares in any month and a benchmark price of 34.21 pence. Thus, the net funds received by the Company in respect of the Swap Shares will be dependent on the future price performance of the Ordinary Shares.

Application will be made for the Subscription Shares to be admitted to trading on AIM and it is anticipated that dealings will commence on 21 September 2015 ("Admission"). On Admission, the Company will have in issue 38,338,851 ordinary shares of 0.1 pence each.

Following Admission, Yorkville will be interested in 8,161,637 ordinary shares in the Company, representing 21.3 per cent. of the enlarged issued share capital and voting rights of the Company.

Satu Vainikka, CEO of ValiRx, commented: "We have successfully worked with Yorkville previously and, at this key stage in the Company's development, we are appreciative of the benefit their support gives to the continued rollout and progression of our drug development programmes."

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Notes for Editors

ValiRx Plc

ValiRx Plc is a biopharmaceutical company developing novel technologies and products in oncology therapeutics and diagnostics. The product focus is in the epigenomic analysis and treatment of cancer, but the technologies can be applied to other fields as well, such as neurology and inflammatory diseases.

The Company has undertaken to develop a novel and groundbreaking class of therapeutics across a number of fields in oncology and has taken its lead compound, Val201, into Phase I/II clinical trials. The Company listed on the Alternative Investment Market ("AIM") of the London Stock Exchange in October 2006.

The Company has a pipeline of other therapeutic drugs, which are currently progressing towards clinical trials. The product focus is in the targeted analysis and treatment of cancer, but the technologies can be applied to other fields as well, such as neurology and inflammatory diseases.

It actively manages projects within its portfolio as a trading company. The ValiRx business model spreads the risks of life science technology development by minimising financial exposure and running a set of projects to defined commercial endpoints. This maximises returns to shareholders by adding value at the earlier stages where value increases per investment unit are the greatest.

The Company operates through the following divisional companies:

1. ValiPharma is the therapeutics division, with two embedded technologies primarily directed at the treatment of cancers.

2. ValiFinn is the biomarkers and diagnostic development division. ValiRx acquired through its ValiFinn subsidiary, the complimentary TRAC technology later in the year to strengthen the portfolio.

3. ValiSeek is a joint venture between ValiRx and Tangent Ltd to develop Val401 in lung cancer and potentially other indications.