Verseon announces security token offering

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (596/2014/EU) ("MAR"). WITH THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

March 18, 2019

Verseon Corporation

("Verseon" or the "Company")

Verseon announces security token offering to accelerate the development of its drug pipelineand proposed subscription strengthening working capital position

FREMONT, Calif.-Verseon, the clinical-stage pharmaceutical company developing disruptive life-science technologies to advance global health, today announces that it intends to undertake a security token offering ("STO") in 2019. The offering is expected to raise funds from a global investor base to accelerate the development of the Company's diverse pipeline of novel drug candidates.

Using its computationally driven drug discovery platform, Verseon has built a rapidly growing pipeline of promising drug candidates that are now entering clinical trials. In keeping with Verseon's philosophy of approaching problems from new perspectives, the Company is also pioneering the use of blockchain technology to create a new funding model for the 21st century. Verseon's STO is expected to use the technology and services of the Company's subsidiary BlockRules Ltd. to facilitate a regulations-compliant offering across various global jurisdictions.

"We believe that blockchain technology has the potential to transform fundraising by bringing greater efficiency, cost savings, and additional liquidity to capital markets," said Eniko Fodor, COO of Verseon. "Regulations-compliant STOs can give companies a new way to support their growth and connect with a global investor community."

It is expected that each Verseon security token will be a form of preferred share that grants its holder rights to a percentage of the Company's future drug program revenues. Initially, Verseon intends to conduct a private offering of its security token, followed by a public token sale upon approval of a prospectus.

Working with its advisors and legal counsel, Verseon is currently producing the prospectus for its security token. Once approved by the appropriate regulators, the Company expects its security token to be available to investors in the UK and EU and to investors in certain other jurisdictions, subject to the Company receiving additional approval from local regulators. The token will also be available to accredited investors, including those in the US. The BlockRules Compliance Engine will enforce ongoing regulations-compliance for any token transfer.

While the Company executes this strategy, Verseon intends to raise approximately US$ 10 million for working capital through a subscription of its common shares. Further details of the subscription are expected to be released shortly. The Company continues to have a strong balance sheet with approximately US$ 25 million in net assets (unaudited) as of December 31, 2018, comprising primarily of real-estate holdings in the form of its research and development facility which can be utilized to realize additional liquidity if desired.

"We are structuring our STO as one of the first truly global offerings backed by a prospectus," said Adityo Prakash, CEO of Verseon. "We are excited to pioneer this new funding model and share the rewards of our growing drug pipeline with investors worldwide."

About Verseon

Verseon Corporation (AIM:VERS; note that, as of today, Verseon's ticker is changing from VSN to VERS) is developing disruptive life-science technology to advance global health. The clinical-stage company is using its proprietary, computational drug discovery platform to discover new drug candidates that are unlikely to be found using conventional methods. Pairing its computational engines with a comprehensive in-house chemistry and biology workflow, the company has built a growing pipeline of drug programs. Verseon currently has four active drug programs in the areas of anticoagulation, diabetic macular edema, hereditary angioedema, and oncology.

Find Verseon on Twitter and LinkedIn.

About BlockRules Ltd.

BlockRules Ltd., a wholly owned subsidiary of Verseon Corporation, is a blockchain technology company supporting the regulations-compliant sale, launch, and trading of tokenized securities. The company's Compliance Engine can enforce multijurisdictional regulatory compliance directly on the blockchain. In this way, BlockRules facilitates issuance and decentralized trading that is secure, transparent, and verifiable.

Find BlockRules on Twitter, Telegram and LinkedIn.

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