Realm Therapeutics plc (AIM: RLM) Placing of £17.6M to advance drug development programmes

Realm Therapeutics plc (AIM: RLM), a clinical stage biopharmaceutical company focused on leveraging its proprietary immunomodulatory technology, is pleased to announce today that it has successfully secured funding commitments to raise gross proceeds of approximately £19.3 million ($26 million) through a proposed placing (the “Placing”) with new and existing investors, including several healthcare specialist funds based in the US and UK. The Placing is conditional upon shareholder approval and a circular setting out details of the Placing (the “Circular”) and to convene a general meeting to seek approval for the transaction (the “General Meeting”) will be available on the Company’s website shortly and is expected to be posted to Shareholders later today.

Highlights

· Net proceeds of the Placing, approximately £17.6 million ($23.8 million) will be used primarily to advance the Company’s drug development programmes and for general corporate purposes including:

o Further advancing our PR022 atopic dermatitis clinical programme beyond Phase IIa, but results of initial trials in PR022 and PR013 will drive prioritisation among these two lead indications

o Conducting a Phase II proof of concept study in Acne Vulgaris, with PR023 a topical formulation in early development

o Further evaluating the Company’s high concentration hypochlorous acid formulations for application in potential pipeline candidates, including psoriasis and dry eye

· Participating in the Placing are US and UK healthcare specialist funds, and new shareholders to Realm, including OrbiMed, BVF Partners LP, RA Capital Management, Abingworth BioEquities Master Fund Ltd and Polar Capital

· Charles Spicer, Non-Executive Chairman of the Company, and Alex Martin, CEO of the Company, will both participate in the Placing

Alex Martin, Chief Executive Officer of Realm Therapeutics, said:

“We are extremely pleased with the £19.3 million ($26 million) investment commitment from some of the world’s leading healthcare investors to advance our lead programmes in Atopic Dermatitis and Allergic Conjunctivitis and our additional pipeline. Their interest is a strong vote of confidence in our plans, our programmes, and our team, and we look forward to updating the market upon successfully closing the financing.”

Charles Spicer, Non-Executive Chairman of Realm Therapeutics added:

“The Board would like to thank both the proposed new and our existing shareholders for their support of Realm. This impressive syndicate of sector specialists in the financing attests to the potential value of our programmes. Realm remains focused on developing our two lead candidates while also seeking to prioritise further indications in which our proprietary technology may offer promising potential treatment to patients.”

The Placing, which was oversubscribed prior to allocation, will raise gross proceeds of approximately £19.3million ($26 million) through the issue of approximately 66.4 million Units at a price of 29 pence per Unit (each comprising one Placing Share and one Warrant to subscribe for 0.4 ordinary shares). The Placing Price represents the average closing bid price of an Ordinary Share during the five trading days to 19 September 2017, being the last practicable date prior to investors signing their binding Placing commitments. Each Warrant carries an exercise price per Warrant Share of 58 pence, being 200% of the Issue Price and a term of 2.5 years. The Placing Shares are expected to be admitted to trading on AIM at 8.00 am. on 10 October 2017 (with Warrant certificates delivered on or around 17 October 2017).

MTS Securities, LLC is acting as the US placement agent and N+1 Singer is acting as the UK broker and nominated adviser in connection with the Placing.

The Placing is conditional upon, amongst other things, approval by existing shareholders at the General Meeting expected to be held at 10.00 am on 9 October 2017 at the offices of CMS Cameron McKenna Nabarro Olswang LLP, Cannon Place, 78 Cannon Street, London EC4N 6AF. An extract from the Circular to Shareholders is set out below and the full Circular will be available at the Company’s website: www.realmtx.com shortly and is expected to be posted to Shareholders later today. This announcement should be read in conjunction with the Circular in its entirety, which will contain further details on the terms of the Placing and related matters.

Additionally, the Company is proposing to adopt new Articles to facilitate the potential issue of American Depositary Shares (ADSs), in the event that the Company pursues a US listing at some point in the future, and to reflect certain updates in applicable law and changes to best practice.

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