BRAIN share successfully starts trading

A total of 32.5 million Euros (including over-allotments) were placed in the context of the offering, from which the Company receives gross proceeds of 31.5 million. BRAIN AG intends to use these proceeds, after deduction of the IPO expenses, primarily to fund the development of new products and to enhance the marketing of its own products, such as enzymes, performance microorganisms and bioactive compounds.

“Many of our initial share subscribers - among them institutional and private investors from Germany and Europe - have recognized the growth potential offered by a bio-based economy. We do not want to disappoint the trust placed in us and will continue our industrialisation strategy at full throttle. Our pipeline of bio-based solutions, which will make industrial processes more sustainable, efficient, natural and healthier, is strong thanks to a current total of 15 programmes. We will consistently continue to develop them with the proceeds from the IPO,” says Dr Jürgen Eck, CEO of BRAIN AG.

BRAIN AG is one of Europe’s leading technology companies in the field of industrial or “white” biotechnology, the core discipline of the bioeconomy. A particular growth potential is seen in large parts of the chemical industry, where experts foresee a rising share of biotechnology products and procedures. Here, BRAIN AG focuses on the specialty chemicals and the consumer chemicals divisions, with an emphasis on nutrition, cosmetics and wound care.

Based on these business activities, BRAIN was classified by Deutsche Börse as belonging to the Speciality Chemicals sector of the Prime Standard segment. This sector of the German capital market is characterised by a remarkable concentration of expertise, something BRAIN may benefit from as a publicly listed company.

“We are pleased to welcome BRAIN to the Frankfurt Stock Exchange. BRAIN is the first company form the field of bioeconomy to enrich our stock exchange list,” says Hauke Stars, Member of the Executive Board at Deutsche Boerse AG.

The BRAIN transaction was the first IPO in Germany this year. The capital increase of 3.5 million shares was fully placed. Approximately 19 per cent of the placed shares were allocated to retail investors. The remaining shares were placed with top-class institutional investors from Germany and different European countries.

“With the floatation of BRAIN we have implemented Germany’s first IPO of the year. Acting as Sole Global Coordinator and Bookrunner, we reached out to a large circle of European investors even beyond our Franco-German domestic markets. Thanks to our highly experienced and committed sales team, we have been able to convey the BRAIN equity story and the bio-based economy as a whole to the investment community,” says René Parmantier, CEO of ODDO SEYDLER BANK AG, which managed the IPO transaction.“Despite a highly volatile capital market environment, the final issue price was fixed within the initial bookbuilding range. We are very happy about this successful transaction, which may possibly help break the ice for further IPO transactions,” adds Parmantier.

ODDO SEYDLER Bank AG acted as Sole Global Coordinator and Bookrunner in the BRAIN IPO transaction. Blaettchen Financial Advisory GmbH supported the Company as IPO consultant, the law firm Hoffmann Liebs Fritsch & Partner acted as issuer’s counsel, and Instinctif Partners supported in the areas of investor relations & financial communication.

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Disclaimer

This document and the information contained herein are for information purposes only. This press release does not constitute an offer to sell, or the solicitation of an offer to buy or subscribe for securities. A public offer in the Federal Republic of Germany and in the Republic of Austria was made exclusively by means of and on the basis of an English-language prospectus together with a German-language translation of the summary. The prospectus was published on the website of the Company and is also available in printed form free of charge from the Company (Fax +49-6251-9331-11) and from ODDO SEYDLER BANK AG (Fax +49-69-920-54902). This press release does not constitute an offer to sell, or the solicitation of an offer to buy or subscribe for securities in or into the United States of America, Australia, Canada or Japan or to other jurisdictions in which publication, release or distribution would be unlawful. Any securities referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (“U.S. Securities Act”). Such securities may not be offered, sold or delivered within the United States absent from registration under or an applicable exemption from the registration requirements of the U.S. Securities Act. Neither BRAIN AG nor any of its shareholders intends to register the securities referred to in this press release in the United States. The securities referred to in this press release have not been, and will not be, registered under the applicable securities laws of Australia, Canada or Japan. Subject to certain exceptions, the securities may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. There will be no public offering of securities in the United States or anywhere outside of the Federal Republic of Germany and the Republic of Austria. This press release does not constitute an offer document or an offer of transferable securities to the public in the United Kingdom to which Section 85 of the U.K. Financial Services and Markets Act 2000 applies and should not be considered as a recommendation that any person should subscribe for or purchase any securities as part of the transaction. This press release is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Section 19 (5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (iii) high net worth entities, unincorporated associations and other persons or entities falling within Section 49 (2), (a) to (d) of the Order (all such persons together being referred to as “relevant persons”). This press release or its contents must not be acted or relied on by persons who are not relevant persons. Any investment or investment activity to which this press release relates is available only to relevant persons and will be engaged in only with relevant persons. This release (or parts thereof) may not be published, reproduced, distributed or made available to third parties in any other way without the prior consent of BRAIN AG. This press release contains forward-looking statements. These statements reflect the current views, expectations, and assumptions of the management of BRAIN AG and are based on information currently available to the management. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. There are numerous factors which could influence the future performance by and future developments at BRAIN AG and the BRAIN group of companies. Such factors include, but are not limited to, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, and other factors. BRAIN AG does not undertake any obligation to update or revise any forward-looking statements.