WRAP Retail Offer to raise up to £1 million

Arecor Therapeutics (AIM: AREC), the biopharmaceutical group advancing today's therapies to enable healthier lives, is pleased to announce a retail offer via the Winterflood Retail Access Platform ("WRAP") to raise up to £1 million (the "Retail Offer") through the issue of new ordinary shares of 1 pence each in the Company ("Ordinary Shares"). Pursuant to the Retail Offer, up to 1,111,111 new Ordinary Shares will be made available to new and existing retail investors at an issue price of 90 pence per share ("Issue Price").

In addition to the Retail Offer, and as announced today (the "Launch Announcement"), the Company has announced a conditional placing of new Ordinary Shares through a bookbuild process (the "Placing") and a conditional subscription ("Subscription") of new Ordinary Shares to raise in aggregate approximately £6 million (before expenses) at the Issue Price (together with the Retail Offer the "Fundraising"). The Issue Price represents a discount of approximately 2.7 per cent. to the mid-market closing price of 92.5 pence an Ordinary Share on 18 July 2024 (being the latest practicable date prior to the Launch Announcement). If the Retail Offer is taken up in full, the aggregate gross proceeds of the Fundraising will be approximately £7 million.

The Retail Offer is conditional on (a) completion of the Placing and the Subscription; (b) the passing without amendment of all the resolutions (the "Resolutions") required to implement the Fundraising being duly passed by shareholders of the Company at the general meeting proposed to be held on 8 August 2024 (the "General Meeting"); and (c) the new Ordinary Shares to be issued pursuant to the Retail Offer being admitted to trading on AIM ("Admission").

It is anticipated that, subject to, amongst other things, the approval of the Resolutions at the General Meeting, Admission of the new Ordinary Shares to trading on AIM is expected to be effective on or around 8:00 a.m. on 9 August 2024.

A separate announcement has been made (the Launch Announcement) regarding the Placing and the Subscription setting out the terms of the Placing and out the reasons for the Fundraising and use of proceeds. The net proceeds of the Retail Offer will be used towards general working capital and balance sheet strength.

For the avoidance of doubt, the Retail Offer is not part of the Placing or the Subscription. Completion of the Retail Offer is conditional, inter alia, upon completion of the Placing and Subscription but completion of the Placing and Subscription is not conditional on the completion of the Retail Offer.

Retail Offer

The Company values its retail shareholder base and believes that it is appropriate to provide its existing retail shareholders, along with new qualifying retail investors, in the United Kingdom the opportunity to participate in the Fundraising.

The Company is making the Retail Offer open to eligible investors in the United Kingdom, being both new and existing shareholders of the Company, following release of this announcement and through certain financial intermediaries.

The Retail Offer is expected to close at 4:30 p.m. on 22 July 2024, or such later time and date as the Company, Panmure Liberum and Winterflood may agree. Eligible retail investors should note that financial intermediaries may have earlier closing times. The result of the Retail Offer is expected to be announced by the Company on or around 23 July 2024.

There is a minimum subscription of £100 per investor under the Retail Offer. The terms and conditions on which investors subscribe will be provided by the relevant financial intermediaries including relevant commission or fee charges.

The new Ordinary Shares issued pursuant to the Retail Offer will, when issued, be credited as fully paid, and have the right to receive all dividends and other distributions declared, made or paid after their date of issue.

It is a term of the Retail Offer that the total value of the Retail Offer shares available for subscription does not exceed £1,000,000.

Capitalised terms used in this announcement have the meanings given to them as ascribed in Appendix 4 to the Launch Announcement, unless the context provides otherwise.