4SC AG — Share Issue/Capital Change 2007

Aug 20, 2007

News Details

Corporate | 20 August 2007 10:00

4SC AG decides on an increase in share capital

Planegg-Martinsried, Germany, 20 August 2007 – Today, the Management Board of the Martinsried-based drug discovery and development company 4SC AG (Frankfurt, Prime Standard: VSC), with the approval of the Supervisory Board, decided to increase the share capital from EUR 12,667,884.00 to up to EUR 19,001,826.00, by issuing up to 6,333,942 zero par value common bearer shares from the authorised capital.

The new shares are to be offered to the shareholders at a subscription price of EUR 2.65 per new share. An investment confirmation has already been received for up to 5,174,206 shares. By means of this decision on capital increase, the company is responding to the substantial demand of an investor. The proceeds are to be used to further develop the existing project pipeline and to add further projects. The subscription rights of the shareholders are complied with. The shareholders can subscribe to the new shares with dividend rights from 1 January 2007 in a 2:1 ratio starting from 22 August until probably 5 September 2007. Unsubscribed shares are to be offered to selected investors.

A public offer for the purchase of the new shares is not planned. The approval of the new shares for trading at the Frankfurt Stock Exchange is not expected before week 42.

Further details of the capital increase will be provided in the subscription offer expected to be published in the electronic Federal Gazette on 21 August 2007.

End of ad hoc notification

Information and explanations from the issuer about this announcement:

The establishment of a comprehensive, effective pipeline with drug candidates that are attractive for the pharmaceutical industry is and will remain the primary goal of 4SC AG and a major lever for increasing the company value. With the planned capital increase, 4SC AG will not only further develop the existing project pipeline, but also add other projects that provide additional potential for added value and that will further diversify the risk in the project portfolio to the development pipeline. 4SC AG’s lead compound SC12267, which is currently in the clinical phase IIa study, is progressing according to schedule. The results are anticipated for the fourth quarter of 2007. Moreover, the drug candidates SC68896 against haematopoietic and solid tumours and SC71570 from the NFkB project against chronic inflammatory bowel diseases are currently undergoing advanced pre-clinical studies and will shortly be ready for clinical studies. The proceeds from the capital measure will help to exploit the potential of the company’s own pipeline even better.

About 4SC AG:

4SC AG (ISIN DE0005753818) has been listed in the Prime Standard of Frankfurt Stock Exchange since 15 December 2005. Founded in 1997 and now with a staff of 61, the company develops novel drug candidates for inflammatory diseases and cancer using a cheminformatics based technology platform. Traditional high throughput screening of therapeutic agents has been transferred from the lab to the computer. Thus, the company offers substantial cost and time advantages as well as increased success rates in drug development. 4SC AG uses its patented technology platform to create a sustainable product pipeline for active agents that are developed in early clinical phases (‘proof of concept’) and subsequently result in upfront and milestone payments as well as participation in sales generated by out-licensed products to the pharmaceutical industry. There are currently six projects in the pipeline. The first project on the treatment of rheumatoid arthritis is currently undergoing clinical phase IIa. Four other product candidates are in preclinical development and another project is in the research stage. Furthermore, the company has its technology platform in co-operation projects with biotech and pharma companies and is already generating initial revenues.

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