Aequus Announces Change to Proposed $300,000 Equity Financing

VANCOUVER, BC—(Marketwired – January 25, 2018) –

NOT FOR DISTRIBUTION OR DISSEMINATION INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Aequus Pharmaceuticals Inc. (TSX VENTURE: AQS) (OTCQB: AQSZF) (“Aequus” or the “Company“), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products, is pleased to announce that, further to its news release dated January 11, 2018 announcing a proposed $300,000 equity financing, it now intends to complete the equity financing of 1,000,000 units of the Company (the “Units”) at a price of $0.30 per Unit (the “Offering Price”), for aggregate gross proceeds of $300,000 (the “Offering”) to a single subscriber that has recently been engaged by Aequus as a branding and marketing consultant under a prospectus supplement to the Company's base shelf prospectus dated August 15, 2017, which prospectus supplement will be filed in the provinces of British Columbia, Alberta, Ontario, Saskatchewan and Manitoba. Each Unit shall consist of one common share of the Company and one non–transferrable common share purchase warrant (each, a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one common share at an exercise price of $0.50 for a period of twenty–four (24) months following the Closing Date. The Warrants will include an acceleration provision, exercisable at the Company's option, if the Company's daily volume weighted average share price is greater than $0.85 for 10 consecutive trading days.

Aequus intends to use the net proceeds of the Offering for general corporate purposes, including branding and marketing. Securities issued under the Offering will be “restricted securities” as defined in U.S. federal securities laws. The Offering is expected to close on or about the week of January 29, 2018. Completion of the Offering subject to a number of conditions, including the execution of definitive documentation and receipt of any required regulatory approvals, including receipt of the approval of the TSX Venture Exchange for the listing of the common shares issuable on closing and issuable upon the exercise of the Warrants.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Aequus Pharmaceuticals

Aequus Pharmaceuticals Inc. (TSX VENTURE: AQS) (OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus' development stage pipeline includes several products in neurology and psychiatry with a goal of addressing the need for improved medication adherence through enhanced delivery systems. Aequus intends to commercialize its internal programs in Canada alongside its current portfolio of marketed established medicines and will look to form strategic partnerships that would maximize the reach of its product candidates worldwide. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.

Forward–Looking Statements:

This release may contain forward–looking statements or forward–looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential” and similar expressions. Forward–looking statements are necessarily based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as the factors we believe are appropriate. Forward–looking statements in this release include but are not limited to statements relating to: the Offering, including the use of proceeds of the Offering and the successful completion of the Offering; and the Company's intention to commercialize its internal programs in Canada, form strategic partnerships and build its Canadian commercial platform. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Aequus, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward–looking statements. In making the forward–looking statements included in this release, the Company has made various material assumptions, including, but not limited to: obtaining positive results of clinical trials, obtaining regulatory approvals, general business and economic conditions, the Company's ability to successfully market it services and in–license and develop new products, the assumption that the Company's current good relationships with third party suppliers or service providers will be maintained, the availability of financing on reasonable terms, the Company's ability to attract and retain skilled staff, market competition, the products and technology offered by the Company's competitors and the Company's ability to protect patents and proprietary rights. In evaluating forward–looking statements, current and prospective shareholders should specifically consider various factors set out under the heading “Risk Factors” in the Company's Annual Information Form dated May 1, 2017, a copy of which is available on Aequus' profile on the SEDAR website at www.sedar.com, and as otherwise disclosed from time to time on Aequus' SEDAR profile. Should one or more of these risks or uncertainties, or a risk that is not currently known to us materialize, or should assumptions underlying those forward–looking statements prove incorrect, actual results may vary materially from those described herein. These forward–looking statements are made as of the date of this release and we do not intend, and do not assume any obligation, to update these forward–looking statements, except as required by applicable securities laws. Investors are cautioned that forward–looking statements are not guarantees of future performance and are inherently uncertain. Accordingly, investors are cautioned not to put undue reliance on forward–looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Avaya Announces Preliminary Revenue for the First Quarter of Fiscal 2018

SANTA CLARA, CA—(Marketwired – January 25, 2018) – Avaya Holdings Corp. (NYSE: AVYA) today announced preliminary unaudited revenue for the first quarter of fiscal 2018 ended December 31, 2017. Due to the complexities of applying fresh start accounting as of December 15, 2017 as the result of our emergence from bankruptcy, Avaya expects to provide complete first quarter of fiscal 2018 results the week of February 26, 2018. The company will provide conference call and webcast details at a future date.

Due to the company's emergence from bankruptcy on December 15, 2017, the results for the quarter are required to be presented separately as the predecessor period from October 1, 2017 through December 15, 2017 (the “Predecessor Period”) and the successor period from December 16, 2017 through December 31, 2017 (the “Successor Period”). GAAP revenue for the first quarter of fiscal 2018 is expected to be in the range of $600 to $604 million for the Predecessor Period and $146 to $150 million for the Successor Period. For comparative purposes, GAAP revenue for the quarter ending September 30, 2017 was $790 million, including $5 million related to the Networking business and $875 million for the quarter ending December 31, 2016, including $66 million related to the Networking business. The company sold its Networking business on July 14, 2017.

Non–GAAP revenue for the quarter ended December 31, 2017 is expected in the range of $769 to $779 million, a decline of approximately 1% to 2% sequentially, excluding the Networking business, and 4% to 5% lower than the first quarter of the prior fiscal year, excluding the Networking business.

         
Revenue (in millions):        
         
October 1, 2017 – December 15, 2017 (Predecessor Period)     $600–604  
         
December 16, 2017 – December 31, 2017   $146–150    
         
Preliminary adjustment to revenue due to fresh start accounting for the period December 16, 2017 – December 31, 2017   23–25    
         
Total Successor Period     169–175  
         
First Quarter Non–GAAP revenue     $769–779  
         

The company noted that the revenue for the first quarter ended December 31, 2017 is preliminary and subject to the completion of financial closing and review procedures performed by its independent registered public accounting firm. There can be no assurance that the company's final revenue will not differ from these preliminary estimates as a result of quarter–end closing, review procedures, or review adjustments, and any such changes could be material.

“I'm pleased with our preliminary revenue given Avaya's emergence was not until the last two weeks of the quarter and we continue to stabilize our business,” said Jim Chirico, president and CEO. “This is a great start to fiscal year 2018 as we emerge a stronger company with an enhanced capital structure that positions us well for the growth opportunities in front of us.”

About Avaya

Avaya enables the mission critical, real–time communication applications of the world's most important operations. As a global leader in delivering superior communications experiences, Avaya provides a complete portfolio of software and services for contact center and unified communications — offered on premises, in the cloud, or a hybrid. Today's digital world requires communications enablement, and no other company is better positioned to do this than Avaya. For more information, please visit www.avaya.com

Use of non–GAAP (Adjusted) Financial Measures

The information furnished in this release includes non–GAAP financial measures that differ from measures calculated in accordance with generally accepted accounting principles in the United States of America (“GAAP”), including non–GAAP revenue.

We believe that including supplementary information concerning non–GAAP revenue is appropriate because such information provides more comparability between our historical results. Accordingly, we present our financial performance in a way that can be more easily compared to prior quarters or fiscal years.

Cautionary Note Regarding Forward–Looking Statements

This document contains certain “forward–looking statements.” All statements other than statements of historical fact are “forward–looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “our vision,” “plan,” “potential,” “preliminary,” “predict,” “should,” “will,” or “would” or the negative thereof or other variations thereof or comparable terminology and include, but are not limited to, expected first quarter revenue results and estimated fresh start accounting adjustments to revenue. The company has based these forward–looking statements on its current expectations, assumptions, estimates and projections. While the company believes these expectations, assumptions, estimates and projections are reasonable, such forward–looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. These factors are discussed in the company's Registration Statement on Form 10 filed with the Securities and Exchange Commission (the “SEC”), may cause its actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward–looking statements. For a further list and description of such risks and uncertainties, please refer to the company's filings with the SEC that are available at www.sec.gov. The company cautions you that the list of important factors included in the company's SEC filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward–looking statements contained in this report may not in fact occur. The company undertakes no obligation to publicly update or revise any forward–looking statement as a result of new information, future events or otherwise, except as otherwise required by law

Source: Avaya Newsroom

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