Further Subscription to raise £1,000,000

Cambridge, UK, 21 October 2024 - Sareum Holdings plc (AIM: SAR), a clinical-stage biotechnology company developing next-generation kinase inhibitors for autoimmune disease and cancer, is pleased to announce that, further to the fundraise announced on 11 October 2024, it has raised a further £1.0 million (before expenses), from certain investors including the institution that participated in the 11 October 2024 fundraise (the "Subscribers"), via a subscription for a total of 4,444,444 new ordinary shares of 1.25 pence each in the capital of the Company ("Ordinary Shares") at a price of 22.5 pence per new Ordinary Share (the "Subscription Price") (the "Subscription"). This funding, alongside the funds from the subscription that was announced on 11 October 2024, will enable the Company to conduct further development of SDC-1801 to prepare the asset for Phase 2 clinical trials, and also undertake further translation and preclinical development on its SDC-1802 cancer/immunotherapy programme, thereby enhancing their potential values.

Under the terms of the Subscription, each subscriber will also be issued one five-year warrant, exercisable at the Subscription Price, for every Subscription Share issued (the "Subscription Warrants"). The Subscription Price represents a discount of approximately 17 per cent. to the closing middle market price for Sareum shares on 18 October 2024. In the event that the Company completes a future equity fundraise while the warrants remain exercisable at a price lower than 22.5p per new Ordinary Share, the exercise price of the unexercised Subscription Warrants will be automatically rebased to an exercise price equivalent to such lower issue price.

Additionally, the Company has issued a further 536,111 Ordinary Shares to certain advisers in lieu of payment for advisory fees.

Admission, Total Voting Rights and other terms

The Company has applied for 4,980,555 new Ordinary Shares to be to be admitted to trading on AIM ("Admission") by 8.00 a.m. on or around 24 October 2024.

The new Ordinary Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares of the Company including the right to receive all dividends or other distributions made, paid or declared in respect of such shares after Admission.

Following Admission, the total number of Ordinary Shares in issue will be 124,746,338 and the total number of voting rights will thereafter be 124,746,338 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Dr Stephen Parker, Executive Chairman of Sareum, commented:

"We are delighted to secure this additional funding which, together with £2.36M funding announced last week, enables us to progress our lead programme, SDC-1801, towards Phase 2 readiness and accelerate the preclinical development of SDC-1802.

"We believe these two novel TYK2/JAK1 programmes have the potential to offer differentiated therapies in a number of autoimmune and cancer conditions where there is significant unmet medical need. The data generated from this funding is expected add to the data packages already generated for these two programmes, adding to their value to potential licence partners."