Herantis Pharma launches its initial public offering and applies for listing on First North

Herantis Pharma Plc
Company release 12 May 2014 at 9:00 a.m.
Not  for release or distribution  or publication in whole  or in part in or into
Australia,  South-Africa, Hong Kong,  Japan, Canada or  The United States or any
other  jurisdiction in which  the release, distribution  or publication would be

Helsinki  12 May 2014 -  Herantis Pharma  Plc ("Herantis"  or the  "company") is
launching  its initial public offering and will  apply for listing of its shares
on First North Finland ("First North"), a multilateral trading facility operated
by  NASDAQ  OMX  Helsinki  Ltd.  Herantis  was  formed  by combining two Finnish
pharmaceutical companies, Hermo Pharma Ltd and Laurantis Pharma Ltd, on 29 April

Herantis  is a Finnish pharmaceutical company  that researches and creates drugs
for inflammatory, central nervous system and lymphatic diseases. The emphasis in
its  development  operations  is  in  diseases  with a clear unmet clinical need
according  to  the  company's  assessment.  Herantis  focuses  on early clinical
development  and  on  drug  candidates,  which  are  based  on  solid scientific
research.  Herantis  aims  at  forming  commercial partnerships with domestic or
foreign pharmaceutical companies for later stage development.

The  Board of Directors of Herantis has  on 8 May 2014 decided, as authorised by
the  company's shareholders, to launch a directed share issue in which a maximum
of  1,600,000 new  shares,  with  an  over-allotment  option  of  a  maximum  of
1,000,000 new shares, will be issued for subscription ("offering"). In addition,
the company will apply for listing of its shares on First North.

"The  company has  three independent  drug development  programs, and a Board of
Directors  and management with experience in every stage of drug development all
the  way up  to the  top management  of an international pharmaceutical company"
says  Pekka Simula,  the Managing  Director of  Herantis. "We  believe that this
makes  the company an interesting investment  opportunity in a field of business
where product development always contains significant risks."

The  subscription  period  begins  on  14 May  2014. The  subscription  price is
EUR 10.50  per  share,  and  the  estimated  net proceedings of the offering are
expected  to  be  approximately  EUR 16.0  million,  without  the over-allotment
option, and approximately EUR 26.1 million, if also the over-allotment option is
fully  subscribed.  The offering proceedings are intended to be used for product
development  of Herantis,  in particular  for the  clinical studies of the three
main  drug  candidates.  These  drug  candidates  are  being  developed  for the
treatment  of  dry  eye  syndrome,  Parkinson's disease and secondary lymphedema
resulting from breast cancer.

"Drug   development   programs   are  typically  lengthy  projects  and  require
significant  investment. The offering is launched  in order to finance Herantis'
planned drug development until the end of the year 2017, at which time we expect
our  operations to become  profitable.  This requires,  among other things, that
the  company succeeds in concluding at least  one commercial contract for one of
its  main drug  candidates", says  Pekka Mattila,  the Chairman  of the Board of
Directors  of  Herantis.  "We  particularly  value  the  fact  that  the current
shareholders  of the company are not selling their shares in connection with the

The  main shareholders of Herantis currently are Inveni Life Sciences Fund I Ky,
Helsingin  yliopiston  rahastot  (Helsinki  University Funds) and Aloitusrahasto
Vera Ltd, an investment fund of Finnvera.

UB  Securities Ltd  acts as  the Lead  Arranger and  as the  subscription place.
Subscriptions  can  be  submitted  at  the  offices  of  UB  Securities  Ltd  at
Aleksanterinkatu  21 A, 00100 Helsinki and  at the website www.unitedbankers.fi.
The  company's Certified Adviser under the First  North rules is UB Capital Ltd.
Krogerus Attorneys Ltd is acting as legal adviser to the company.

Herantis has compiled a prospectus relating to the offering and the contemplated
listing of its shares on First North, which is available at the above website of
the  Lead  Arranger,  at  the  company's  website at www.herantis.com/ipo and at
Herantis headquarters at Viikinkaari 4, 00790 Helsinki on or about 14 May 2014.

Key terms and conditions

The  subscription period starts on 14 May 2014 at 9:30 a.m. and ends on or about
30 May  2014 at 4:30 p.m. In case of  oversubscription the Board of Directors of
the  company has the right to end the subscription period no earlier than 28 May
2014, however not during banking hours, i.e., between 9:30 a.m. and 4:30 p.m.

The  offering consists of a maximum of 1,600,000 new shares and additionally, in
case of oversubscription, an over-allotment option of a maximum of 1,000,000 new
shares.  The maximum amount of new  shares equals approximately 37.3 per cent of
the  company's shares and votes after the offering, assuming that all shares are
subscribed,  and approximately  49.1 per cent  assuming that  the over-allotment
option is also fully subscribed.

The  company expects to announce the result of  the offering by way of a company
release  on or  about 2 June  2014. The new  shares issued  in the  offering are
expected  to be registered with  the Trade Register on  or about 6 June 2014 and
trading  in the company's  shares on First  North is expected  to commence on or
about 11 June 2014. The trading code is HRTIS.

The  terms and conditions of the offering  are attached in their entirety to the
company release in Finnish.

Herantis Pharma Plc
Board of directors

Further information:

Herantis Pharma Plc, Pekka Simula, Managing Director, mobile: +358 40 7300 445
UB   Securities   Ltd,   Herman   Segercrantz,   Head  of  Equities,  telephone:
+358 9 2538 0220, email: dealing@unitedbankers.fi

Herantis Pharma Plc
Herantis  Pharma  Plc  is  a  pharmaceutical company specialising in introducing
early  stage clinical  research results  for the  purposes of  clinical research
aiming  at  developing  new  drugs.  The  company  focuses on diseases for which
treatment  is not  known or  known treatments  are insufficient.  These diseases
include  for  example  dry  eye  syndrome,  Parkinson's  disease,  and secondary


This press release is not a prospectus. The information contained herein does
not constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities referred to herein in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to registration,
exemption from registration or qualification under the securities laws of any
jurisdiction. Any such offer will be made solely on the basis of a prospectus to
be published and registered with the Finnish Financial Supervisory Authority.

This document is not an offer for sale nor a solicitation of an offer to buy any
securities in the United States or outside the European Economic Area . The
securities may not be offered or sold in or into the United States of America
absent registration or an exemption from registration under the U.S. Securities
Act of 1933, as amended. Herantis has not registered and will not register any
part of its offering in the United States nor will it offer securities to the
public in the United States.

This communication is only being distributed to and is directed only at (i)
persons who are outside the United Kingdom, or (ii) investment professionals
falling within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order") and (iii) high net worth
entities, and other persons to whom it may lawfully be communicated, falling
within Article 49(2) of the Order, and (iv) other persons to whom it may
otherwise lawfully be communicated (all such persons together being referred to
as "relevant persons"). Any investment or investment activity to which this
communication relates will only be available to and will only be engaged in
with, relevant persons. Any person who is not a relevant person should not act
or rely on this document or any of its contents.

Securities in the company have not been, and will not be, registered under the
applicable securities laws of Australia, Canada or Japan and may not be offered
or sold within Australia, Canada or Japan or to, or for the account or benefit
of, citizens or residents of Australia, Canada or Japan except under
circumstances which will result in full compliance with the applicable laws and
regulations promulgated by the relevant regulatory authorities in effect at the
relevant time.

The company does not offer securities to the public in any Member State of the
European Economic Area other than Finland. With respect to each Member State of
the European Economic Area other than Finland (each, a "Relevant Member State"),
no action has been undertaken to date to make an offer to the public of the
securities requiring a publication of a prospectus in any Relevant Member State.
As a result, the shares may only be offered in Relevant Member States in
circumstances not requiring the company to publish a prospectus as provided
under the Directive 2003/71/EC.

This company release contains forward looking statements. These forward looking
statements include statements that are not historical facts and statements
concerning inter alia Herantis' future revenues, financial position, financial
standing, prospects, growth, strategies and its plans, beliefs and current
expectations in relation to its field of business. By their very nature, forward
looking statements involve inherent risks and uncertainties, since they relate
to events or result from circumstances that may or may not occur in the future,
and therefore they only describe the circumstances prevailing when the statement
is given. Herantis cautions that forward looking statements or historical facts
do not guarantee future performance and that its true revenues, financial
position and financial standing and the development of the industry may
significantly differ from the forward looking statements presented in this
release.  The company does not intend and does not assume any obligation to
update any forward looking statement contained herein.