Sensorion Successfully Closes an €8 Million International Private Placement to Accelerate Its Development Strategy

Regulatory News:

Sensorion (Paris:ALSEN) (FR0012596468 – ALSEN) – Sensorion, a biotech specialising in the treatment of inner ear diseases (the "Company”), announces that it has today carried out a capital increase via an €8 million international private placement.

Following its IPO on the Alternext market in Paris in April, Sensorion raises additional funds to support the Company’s development through a private placement with an international family office specialised in life sciences.

The Company has thus issued 800,000 new shares at a nominal value of €0.10 each for a total of €8,000,000.

Laurent Nguyen, CEO of Sensorion, says: "We are very pleased with this additional capital increase carried out just 3 months after our Initial Public Offering. It enables us to accelerate the development of our clinical programmes under optimal conditions and in the interest of all our shareholders.”

Patrick Langlois, Sensorion’s Chairman of the Board, adds: "The Sensorion team has seized an excellent opportunity to strengthen its financial structure within the context of an uncertain financial market environment. The internationalisation of Sensorion’s shareholding illustrates growing interest in its unique know-how in the field of the Inner Ear, and without doubt represents a milestone in this high potential French biotech’s development.”

Purpose of this capital increase

Sensorion is mainly looking to accelerate the clinical development of its products. The R&D portfolio currently comprises three products: SENS-111 for treating severe bouts of vertigo, SENS-218 for treating medium and long-term complications associated with progressive lesions of the inner ear and SENS-300 for protecting the inner ear from the toxicity resulting from chemotherapy using platinum salts.

The proceeds from the recent Initial Public Offering allowed the Company to initiate a first phase 2 programme for a first product. Thanks to this new capital increase, the Company will be able to put in place a second phase 2 programme, or phase 2/3 for an orphan indication, for a second product. Furthermore, the Company will continue its innovation efforts associated with its "Inner Ear” technological platform.

Terms of the operation

This operation was carried out following the decisions adopted by the Board meetings of July 7 and 17, 2015 in accordance with the delegation of powers granted by the Shareholders’ Meeting of September 12, 2014 and at a negotiated price representing a 20% discount on the average closing price of the Company’s share over the last 45 trading days prior to the launch of the operation.

The capital increase was carried out via the issuance of ordinary shares without preferential subscription rights through a private placement amongst qualified investors in accordance with article L. 225-136 of the French Commercial Code and article L. 411-2 II of the Monetary and Financial Code.

The new shares carry dividend rights and were immediately admitted to trading on the Alternext regulated market in Paris under ISIN FR0012596468 and ticker ALSEN.

Within the framework of this capital increase, Sensorion signed a lock-up commitment regarding the Company’s shares of 90 days from July 17, 2015, subject to certain usual exceptions.

Sensorion’s share capital now consists of 5,878,990 shares. For information, a shareholder holding 1.00% of the Company’s share capital prior to the operation would now hold 0.86% of its share capital.

Information available to the public

This operation will not lead to the drafting of a prospectus requiring a visa from the AMF (Autorité des Marchés Financiers, the French stock market authority). Detailed information about Sensorion, notably regarding its activity, results, outlook and related risk factors, are laid out in the Company’s reference document registered with the AMF on March 12, 2015 under reference number I.15-011, and can be found, along with other regulated information and all of the Company’s press releases, on Sensorion’s website (http://www.sensorion-pharma.com/en/).

About Sensorion

Spun off from Inserm (the French institute of health and medical research) in 2009, Sensorion is a biotech that specialises in the treatment of pathologies of the inner ear such as acute vertigo, tinnitus and hearing loss. Backed by its pharmaceutical R&D experience and a comprehensive technology platform, Sensorion is developing three drug candidate programmes for treating the symptoms of vertigo or tinnitus, for preventing complications associated with progressive lesions in the inner ear and for preventing the toxicity of chemotherapy in the inner ear. Based in Montpellier, southern France, within the university and hospital hub, Sensorion has a portfolio of 7 patent families, employs 15 staff and receives financial support from Bpifrance, through the InnoBio fund, and Inserm Transfert Initiative.

For more information: www.sensorion-pharma.com

Name: SENSORION
ISIN code: FR0012596468
Ticker: ALSEN

Important notice

This press release does not, and shall not, in any circumstances, constitute a public offering nor an invitation in any jurisdiction in connection with any offer.

This press release does not constitute or form part of an offer or solicitation of an offer to purchase or subscribe for securities in France. The securities referred to herein may not be and will not be offered or sold to the public in France except to qualified investors ("investisseurs qualifiés") and/or to a limited group of investors ("cercle restreint d’investisseurs") acting for their own account, as defined 3 in, and in accordance with Articles L. 411-2 and D. 411-1 to D. 411-3 of the French Monetary and Financial Code.

This press release is only being distributed to, and is only directed at, persons in the United Kingdom that (i) are "investment professionals” falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Order"), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations, etc.") of the Order, or (iii) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons"). This press release is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons.

This press release has been prepared on the basis that any offer of securities in any Member State of the European Economic Area ("EEA") which has implemented the Prospectus Directive (2003/71/EC) (each, a "Relevant Member State") will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to publish a prospectus. Accordingly any person making or intending to make any offer in that Relevant Member State of securities which are the subject of the placement contemplated in this document may only do so in circumstances in which no obligation arises for Sensorion or any of the financial intermediaries to publish a prospectus pursuant to Article 3 of the Prospectus Directive, as amended by the Amending Prospectus Directive (2010/73/UE) in relation to such offer. Sensorion has not authorized, nor do it authorizes, the making of any offer of the new shares in circumstances in which an obligation arises for Sensorion to publish prospectus for such offer. This document is an advertisement and not a prospectus for the purposes of applicable measures implementing Directive 2003/71/EC.

This press release is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be sold or offered in the United States unless they are registered or are exempt from registration under the U.S. Securities Act of 1933, as amended. Sensorion does not intend to register any such securities in the United States or to conduct a public offering of such securities in the United States. Copies of this press release are not being, and should not be, distributed in or sent into the United States. It may be unlawful to distribute these materials in certain jurisdictions.

These materials are not for distribution in Canada, Japan or Australia. The information in these materials does not constitute an offer of securities for sale in the United States, Canada, Japan or Australia.

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