Onxeo Implements an Equity Line Financing Including an Incentive Program with Nice & Green SA

Regulatory News:

Onxeo S.A. (Euronext Paris, NASDAQ Copenhagen: ONXEO), (“Onxeo”
or “the Company”), a biotechnology company specializing in the
development of innovative drugs in oncology, in particular against rare
or resistant cancers, today announces the initiation of an equity
financing line through the issuance of new shares over a 10-month period
representing a maximum amount of €5.4 million. This financing extends
the Company’s cash horizon to Q3 2020.

Acting upon delegation of the Board of Directors and in accordance with
the 22nd resolution of the Extraordinary Shareholders’
Meeting held on May 24, 20171, the Company implemented this
equity line financing with Nice & Green SA, a private company that
specializes in financing solutions tailored to the requirements of
listed companies.

The amounts received will be allocated to the ongoing clinical
development of the Company’s lead program, AsiDNA™, a first-in-class
molecule in DDR (DNA Damage Response) of which the original mechanism of
action prevents the tumor from repairing its DNA breaks. Furthermore,
the strengthening of the Company’s cash position w enable it to
accelerate the development of the next drug candidates sourced from its
PlatON™ decoy oligonucleotide platform, from which the first compound is
expected to enter preclinical development at the end of 2018.

Pursuant to the terms of the agreement, Nice & Green, acting as a
private specialized investor who has no intention of remaining a
shareholder in the Company, provided a full and firm commitment, over a
10-month period, to subscribe to and exercise each month, at the
Company’s directive, a number of share warrants corresponding to a
minimum monthly financing of €500,000, within the limit of 4,700,000
shares over the duration of the contract. This phasing will provide the
Company with regular financing while limiting the impact on the share

The shares will be issued based on the average of the volume weighted
average share price of the three trading days preceding each issuance,
minus a maximum discount of 5.0%. Should the equity line facility be
used in full2, a shareholder owning a 1.00% stake in Onxeo’s
share capital prior to the transaction would see this stake reduced to
0.92%3. Onxeo retains the option of suspending or terminating
this agreement at any time.

The new shares issued pursuant to this agreement will be admitted to
trading on Euronext Paris and Nasdaq Copenhagen. These issuances will be
posted on Onxeo’s website (in the section Investors / Regulated
information / Total number of voting rights and shares).

Furthermore, Nice & Green and Onxeo have agreed to an incentive program
designed to grant Onxeo, as a cash allowance, a percentage of realized
gains from the sale, by Nice & Green, of the shares resulting from the
exercise of the warrants. This program is based on the premise that the
resources made available to the Company by Nice & Green will help
accelerate the development of its lead programs and increase their value.

Nicolas Fellmann, Chief Financial Officer of Onxeo, says: “This
transaction strengthens Onxeo’s mid-term financial structure and secures
the ongoing development of our lead assets. The flexibility of the
approach provided by Nice & Green allows a monthly financing that
corresponds to our needs, with the possibility of benefiting from a
portion of the financial profits. Onxeo now has the necessary resources
to reach the significant milestones expected with the AsiDNA™ program,
and to explore new drug candidates from PlatON™”.


About Onxeo

Onxeo (Euronext Paris, NASDAQ Copenhagen: ONXEO) is a French
biotechnology company developing innovative oncology drugs based on
DNA-targeting and epigenetics, two of the most sought-after mechanisms
of action in cancer treatment today. The Company is focused on bringing
early-stage first-in-class or disruptive compounds (proprietary,
acquired or in-licensed) from translational research to clinical
proof-of-concept, a value-creating inflection point appealing to
potential partners.

Onxeo’s R&D pipeline includes belinostat, an HDAC inhibitor
(epigenetics) currently being developed in oral form to be used in
combination with other anti-cancer agents for liquid or solid tumors.
Belinostat is already conditionally FDA-approved in the US as a 2nd
line treatment for patients with peripheral T cell lymphoma and marketed
in the US by Onxeo’s partner, Spectrum Pharmaceuticals, under the name
Beleodaq® (belinostat IV form).

Onxeo is also developing AsiDNA™, a first-in-class DNA break
repair inhibitor based on a unique decoy mechanism. AsiDNA™ has already
successfully completed a Phase I trial in metastatic melanoma via local
administration and is currently being developed for systemic (IV)
administration in solid tumors.

AsiDNA™ is the first compound generated from platON™, the
Company’s proprietary chemistry platform of decoy oligonucleotides based
on three components, a sequence of double strand oligonucleotides, a
linker and a cellular uptake facilitator. PlatON™ will continue to
generate new compounds that will broaden Onxeo’s pipeline.

For further information, please visit www.onxeo.com.

Forward looking statementsThis communication expressly or
implicitly contains certain forward-looking statements concerning Onxeo
and its business. Such statements involve certain known and unknown
risks, uncertainties and other factors, which could cause the actual
results, financial condition, performance or achievements of Onxeo to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Onxeo is providing this communication as of this date and does not
undertake to update any forward-looking statements contained herein as a
result of new information, future events or otherwise. For a discussion
of risks and uncertainties which could cause actual results, financial
condition, performance or achievements of Onxeo to differ from those
contained in the forward-looking statements, please refer to the section “Risk Factors” (“Facteurs de Risque”) of the 2017
reference document filed with the Autorité des marchés financiers
on April 25, 2018 under number D.18-0389, which is available on the Autorité
des marchés financiers website (www.amf-france.org)
or on the Company’s website (www.onxeo.com).

1 Capital increase without preferential subscription rights
for a category of persons within the framework of an equity financing
line limited to 10% of the Company’s capital.2 In this
case, 4,700,000 new shares would be issued.3 Based on
the 50,695,653 shares making up Onxeo’s share capital at December 31,

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