Qbiotics concludes successful $85 million capital raise

• Capital raise nets $85 million from Existing Shareholders, Existing Institutional Investors, and cornerstone investor TDM Growth Partners.
• Funding to enable human clinical development of the Company's anticancer drug candidate tigilanol tiglate and its wound healing drug candidate EBC-1013.

BRISBANE, Australia, June 28, 2021 /PRNewswire/ -- QBiotics Group Limited (QBiotics), a life sciences company developing novel small molecule anticancer and wound healing pharmaceuticals, is pleased to announce that it has concluded an $85 million capital raise, having closed the final stage of the capital raise being an Offer of Shares to Existing Shareholders on Monday 21 June 2021, pursuant to the Prospectus lodged on 17 May 2021. A total of $12.5 million was raised in the oversubscribed Offer to Existing Shareholders. The Board authorised and approved the issue and allotment of 13,888,872 Shares at an issue price of $0.90 per Share to the subscribers under the Offer, effective Friday 25 June 2021.

This now concludes the Company's $85 million capital raise which commenced in March 2021 and consisted of three parts, including:

• A $50 million placement to cornerstone investors, global investment firm TDM Growth Partners in March 2021;
• A $22.55 million placement to Existing Sophisticated Investor in April 2021; and
• A $12.5 million placement to Existing Shareholders completed on 25 June 2021.

Funding from this capital raise will enable QBiotics to fund further human clinical development of the anticancer drug candidate tigilanol tiglate, expand the market for the anticancer veterinary pharmaceutical STELFONTA^®, support human and veterinary clinical development of QBiotics' wound healing drug candidate EBC-1013, and strengthen the QBiotics team.

CEO and Managing Director, Dr Victoria Gordon commented, "We have been delighted with the support shown by our existing shareholders through this capital raise. Welcoming TDM Growth Partners as a cornerstone investor has met a major milestone for QBiotics and one which recognises the strong growth potential in the company.

This funding underpins the next stage in QBiotics' corporate evolution and supports a step-change in the pace at which our programmes can be brought forward."

Now that the Offer is closed and the share placement has been finalised, the trading of QBiotics' shares via the "Buying & selling shares process" set out on the QBiotics website will recommence.

MEDIA                                  JANE LOWE, IR DEPARTMENT

ENQUIRIES                          jane.lowe@irdepartment.com.au or +61 411 117 774

ABOUT QBIOTICS

QBiotics is a public unlisted Australian life sciences company which discovers, develops and commercialises novel anticancer and wound healing pharmaceuticals for human and veterinary markets. Its lead molecule, tigilanol tiglate, is a small molecule anticancer pharmaceutical targeting a range of solid tumours across multiple species. QBiotics' business model is to develop products that have application in both veterinary and human markets. Success in the veterinary programs validates QBiotics technology and de-risks human development, while generating early, non-diluting revenues. https://qbiotics.com

ABOUT TIGILANOL TIGLATE

Tigilanol tiglate is a small molecule being developed as an intratumoural treatment for solid tumours. It has a multimodal action that involves injected tumour responses as well as systemic responses in non-injected tumours. Complete destruction of the injected tumour is mediated via tumour vascular disruption, death of tumour cells by oncosis and immune-mediated mechanisms^.[1] Following tumour destruction, rapid wound healing has been shown to ensue.  A human clinical Phase I tigilanol tiglate monotherapy trial (QB46C-H01/2) has been completed in 22 patients.  QBiotics currently has two human clinical trials underway in head and neck squamous cell carcinoma (monotherapy QB46C-H03) and unresectable, Stage IIIB to IV M1c melanoma (in combination with Keytruda^® NCT04834973)

A veterinary pharmaceutical containing tigilanol tiglate (STELFONTA^®) is approved to treat canine mast cell tumours. STELFONTA^® is marketed in Europe, the United Kingdom and USA by QBiotics partner Virbac, a global animal health company.  STELFONTA^® is also under review by the Australian Pesticides and Veterinary Medicines Authority. In a pivotal US study, a single injection of STELFONTA^® induced a 75% complete response, and an 88% complete response with two injections.^[2] There was no tumour recurrence in 89% of evaluable cases 12 months post-treatment.^[3]

ABOUT EBC-1013

EBC-1013 is a novel, semi-synthetic small molecule being developed as a topical treatment for a range of wound types.  EBC-1013 has a multifactorial mode of action that targets different phases of the wound healing process through (i) disrupting recalcitrant microbial biofilms which frequently impair healing, (ii) stimulating migration and recolonisation of the wound bed by the surrounding dermal, epidermal and immune cells, and (iii) modifying the properties of the extracellular matrix in the remodelled wound bed resulting in good functionality and reduced scarring.  EBC-1013 is currently in preclinical development for human applications and early clinical development as a veterinary product.