4SC raises funds for further development of its current product pipeline

Nov 16 2009

Ad hoc announcement in accordance with §15 WpHG [Securities Trading Act]

4SC AG (Frankfurt, Prime Standard: VSC), a drug discovery and development company, today announced the successful completion of a capital increase, after the Management Board, with the approval of the Supervisory Board, passed a resolution to authorise an increase of share capital on 23 October, 2009. The capital increase from the authorised capital included a collateral rights offering to existing shareholders at a subscription price of EUR3.00 per share. The remaining unsubscribed shares were allocated through a private placement in order to raise in the range of EUR25 to 30 million proceeds. The capital raising was completed at the top of the range and generated EUR30 million gross proceeds. The subscribed shares were not fully allocated.

The proceeds will be used to secure the further development of 4SC's current product pipeline. In particular, the focus will be on the further development of the Company's clinical compounds against auto-immune and cancer indications. Proof-of-concept is expected to be achieved within the next 24 months for the small molecule 4SC-101 in rheumatoid arthritis and the HDAC inhibitor 4SC-201 in hepatocellular carcinoma (liver cancer). In addition, preclinical projects will be developed to the stage where they can be advanced into the clinical pipeline, can provide further value generation and will ensure risk diversification in the Company's product portfolio.

Following the completion of the capital increase, a total of 10 million new shares were placed. As a result of the capital increase, 4SC AG's subscribed capital increased to EUR38,502,739.00. The free float will be approximately 19.02% of issued share capital. The approval of the new shares for trading at the Frankfurt Stock Exchange is expected in December 2009.

The capital increase was accompanied by Conrad Hinrich Donner Bank AG, Hamburg, Germany.

End of ad hoc notification