ProMIS Neurosciences closes $3.72M first tranche of private placement

News Release

ProMIS Neurosciences Completes First Closing of Private Placement


TORONTO, ONTARIO – August 9, 2017 – ProMIS Neurosciences Inc. (“ProMIS” or the “Company”) (TSX:PMN; OTCPK:ARFX.F; DB:23J) is pleased to announce that, further to its news releases dated July 20, 2017 and August 2, 2017, it has completed the first closing of its previously announced $6 million private placement (the “Offering”) of units of the Company for gross proceeds of approximately $3.72 million. The balance of the $6 million Offering is expected to close on or about August 23, 2017.

In the first closing, the Company issued 14,884,306 units at a price of $0.25 per unit. Each unit consisted of one common share of the Company and one-half of one share purchase warrant of the Company. Each warrant is exercisable to acquire one share at an exercise price of $0.30 per common share for a period of 60 months, subject to acceleration. The expiry date of the warrants is subject to acceleration such that if following the four month anniversary of issuance, the volume weighted average trading price of the shares on the Toronto Stock Exchange exceeds $0.90 for ten consecutive trading days, at which time the Company may accelerate the expiry date of the warrants by issuing a press release announcing the reduced warrant term whereupon the warrants will expire on the 30th calendar day after the date of such press release.

In connection with the Offering in Canada, Mackie Research Capital Corporation received a cash commission equal to 7% of the gross proceeds of the Offering placed in Canada, not including subscriptions received from insiders and certain finders, and 2% of the aggregate gross proceeds of the Offering on subscriptions received from certain finders. As additional compensation, the Company issued to Mackie compensation options (the “Compensation Options”) to purchase up to 811,480 shares for a period of 60 months following the date of issuance at an exercise price of $0.285 per share.

Noble Capital Markets, Inc., which is acting as the exclusive placement agent for subscribers residing in the United States, received a cash commission equal to 7% of the gross proceeds of the Offering placed with US subscribers (not including subscriptions received from insiders) and was issued Compensation Options to purchase up to 199,330 shares in respect of such US subscribers.

The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes. All securities issued in connection with the first tranche of the Offering are subject to a four month hold period that expires on December 9, 2017.

Four insiders of the Company subscribed for 372,724 units, which constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuances to the insiders are exempt from the formal valuation and the minority shareholder approval requirements of MI 61-101 as the fair market value of the units issued to or the consideration paid by such persons did not exceed 25% of the Company’s market capitalization.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities issued, or to be issued, under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About ProMIS Neurosciences Inc.

ProMIS Neurosciences is a Toronto Stock Exchange (TSX) listed biotechnology company (trading symbol: PMN.TO), headquartered in Toronto, Ontario with offices in Cambridge, Massachusetts. The Company’s mission is to discover and develop precision medicine therapeutics for effective treatment of neurodegenerative diseases, in particular Alzheimer’s disease and amyotrophic lateral sclerosis (ALS). ProMIS Neurosciences’ proprietary target discovery engine is based on the use of two, complementary techniques. The Company applies its thermodynamic, computational discovery platform—ProMIS™ and Collective Coordinates — to predict novel targets known as Disease Specific Epitopes (DSEs) on the molecular surface of misfolded proteins. Using this unique “precision medicine” approach, ProMIS Neurosciences is developing novel antibody therapeutics and specific companion diagnostics for Alzheimer’s disease and ALS. The company has also developed two proprietary technologies to specifically identify very low levels of misfolded proteins in a biological sample. In addition, ProMIS Neurosciences owns a portfolio of therapeutic and diagnostic patents relating to misfolded SOD1 in ALS, and currently has a preclinical monoclonal antibody therapeutic against this target.

For media inquiries, please contact:

Scott Santiamo
Tel.718 344-5843

David Schull
Tel. 858 717-2310

Dr. Elliot Goldstein
President and Chief Executive Officer
ProMIS Neurosciences Inc.
Tel. 415 341-5783