Mabion S.A. — Share Issue/Capital Change 2021

Mar 17, 2021

Current report no. 25/2021

Drawn up on: 2021-03-16

Abbreviated name of issuer: MABION S.A.

Subject: Cancellation of the Extraordinary General Meeting of MabionS.A. called for 22nd March 2021 and information on the review of theCompany's financing strategy

Legal basis: Article 17(1) of MAR - confidential information

Contents of the report:

In reference to current report no. 3/2020 of 27th January 2021 on theadoption of financial strategy of Mabion S.A. (hereinafter referred toas the "Issuer", "Company") providing for two issues of the Company'sshares, current report no. 11/2021 of 22nd February 2021 on convening anExtraordinary General Meeting ("EGM") of the Company on 22nd March 2021in order to adopt a resolution on the latter above-mentioned issue, andcurrent report no. 23/2021 of 15th March 2021 on the implementation ofthe former above-mentioned issue, i.e. the issue of series U shares, theManagement Board of the Company informs about the decision taken on 16thMarch 2021 on the cancellation of the EGM of the Company which was to beheld on 22nd March 2021 at 12:00 (noon) in Konstantynów Łódzki, ul.Łąkowa 11 (Eureka Technology Park).

The decision of the Issuer's Management Board to cancel the EGM of theCompany results from the need to review the current financial needs as aresult, among others, of the successful issue of series U shares and theconclusion of a framework agreement along with the first order forcontract services with Novavax, Inc. under the COVID-19 vaccinationscheme (about which the Company informed in current report no. 15/2021of 3rd March 2021).

The Issuer's Management Board notes that the acquisition of funds fromthe issue of series U shares and the conclusion of the agreement withNovavax Inc. enable potential access of the Company to additional (notfully available so far) sources of financing, including potential debtfinancing from Polish Development Fund S.A. (PLN 30 million), thegranted and so far not used subsidy from the European RegionalDevelopment Fund (approx. PLN 63 million), and potentially to a creditfrom the European Investment Bank (up to the aggregate amount of EUR 30million, i.e. approx. PLN 138 million) with which the Company isnegotiating. In the current financing strategy, the Company has nottaken into account the potential operating flows related to theco-operation with Novavax, Inc., which may bring additional operatingflows to the Company provided that a specific scenario is followed(including the currently implemented initial stage, i.e. effectivetechnology transfer, production of one technical batch and one testingbatch, and then the next stage of continued co-operation on commercialterms).

Consequently, the decisions on updating the current financial strategyof the Company, including the decision whether or not to possibly carryout another issue of shares, referred to in section 3 of theabove-mentioned report no. 3/2021, will be taken after detailed analyseswith particular consideration of the factors mentioned above. TheCompany will inform about its decisions in a separate current report.