Aachen, 05 April 2006 - The Management Board of the German biopharmaceutical company PAION AG (Frankfurt Stock Exchange, Prime Standard: PA8), with approval of the Supervisory Board, has decided to increase the share capital of the company from EUR 15,755,552 by EUR 1,000,000 to EUR 16,755,552. The 1,000,000 new shares are being issued from the Authorised Capital against a contribution in cash.
The new shares will be issued within a private placement excluding subscription rights for existing shareholders. The issuing price of EUR 9.44 was calculated as the average of the last five XETRA closing prices of the PAION shares at the Frankfurt Stock Exchange.
Within the course of the capital increase, PAION will therefore be able to raise up to approximately EUR 9.4 million. Certain US and European institutional investors have irrevocably committed to subscribe to the new shares.
The capital increase will expand PAION's financial flexibility and increase its liquid funds to approximately EUR 61 million.
