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Fennec Announces $7.6 Million Private Placement of Common Shares Led by venBio Select Advisor

Fennec Announces $7.6 Million Private Placement of Common Shares Led by venBio
Select Advisor

— Fennec Pharmaceuticals Inc. (TSX: FRX)(OTCQB: FENCF) (the
“Company” or “Fennec”), a specialty pharmaceutical company focused on
the development of Sodium Thiosulfate (STS) for the prevention of
platinum-induced chemotherapy ototoxicity in pediatric patients,
announced today that it has completed a non-brokered private
placement (the “Offering”) of 1,900,000 common shares for gross
proceeds of US$7,600,000. The common shares of the Company (the
“Shares”) were issued at a price of US$4.00 per Share. The current
number of outstanding Shares prior to giving effect to the Offering,
was 13,707,306.

“We are very pleased to announce this important financing as we
prepare for the regulatory submissions of STS pending favorable
SIOPEL 6 hearing results in October this year,” said Rosty Raykov,
CEO of Fennec. “The investment and support received by both existing
and new investors, including venBio Select Advisor, significantly
strengthens the Company’s balance sheet and further validates the
potential benefit STS can have for pediatric cancer patients.”

The issue price of the Shares represents approximately a 2% discount
on the market price of the Shares on the date of a binding agreement,
as defined by the Toronto Stock Exchange. For Canadian securities law
purposes, the Shares issued in the Offering are subject to a hold
period, which will expire four months plus one day from the date of
closing. For United States securities law purposes, the Shares issued
in the Offering have not been registered under the Securities Act of
1933, as amended (the “1933 Act”), and may not be offered or sold in
the United States absent registration under the 1933 Act or an
applicable exemption from the registration requirements of the 1933

It is anticipated that the net proceeds of the Offering will be used
by the Company for the development of STS and general working capital

In connection with the Offering, Essetifin SpA, which owned 2,631,579
Shares prior to completion of the Offering (representing 19.2% of
Fennec’s issued and outstanding Shares prior to giving effect to the
Offering) purchased an additional 300,000 Shares. Following the
Offering, Essetifin SpA owns 2,931,579 Shares (representing 21.4% of
Fennec’s issued and outstanding Shares after giving effect to the
Offering and 18.8% of Fennec’s issued and outstanding Shares upon
issuance having regard to the Offering). In connection with its Share
ownership, Essetifin SpA may be deemed under the Securities Act
(Ontario) to be an associated entity of Fennec.

Such participation by Essetifin SpA may be considered a “related
party transaction”, as defined under Multilateral Instrument 61-101
(“MI 61-101”). The transaction will be exempt from the formal
valuation and minority shareholder approval requirements of MI 61-101
as neither the fair market value of any units issued to or the
consideration paid by such entity will exceed 25% of the Company’s
market capitalization. A material change report in respect of the
transaction was not filed 21 days in advance of the expected closing
of the Offering. The shorter period was necessary in order to permit
the Company to close the Offering in a timeframe consistent with
usual market practice for transactions of this nature.

The number of Shares issued in connection with the Offering is
1,900,000 Shares, which represents 13.9% of Fennec’s issued and
outstanding Shares prior to giving effect to the Offering. The
Offering has been negotiated at arm’s length and will not affect
control of the Company.

Upcoming Investor Events
— Jefferies 2017 Global Healthcare Conference – Rosty Raykov, CEO of
Fennec, will provide an overview of the Company’s business on Friday,
June 9, 2017 at 9:00 am at the Jefferies 2017 Global Healthcare
Conference being held in New York City. The Fennec presentation will be
webcast live and can be accessed by visiting the investors relations
sections of the Company’s website at
http://fennecpharma.com/investors/presentations-events/. A replay of the
presentation will also be available and archived on the site for ninety

— Annual Meeting of Shareholders – Fennec would like to invite all
shareholders to attend its Annual General and Special Meeting on
Tuesday, June 27, 2017 at 10 am at the New York Palace Hotel in the
Chairman’s Office, 455 Madison Avenue, New York, New York.

About Sodium Thiosulfate (STS)

Cisplatin and other platinum compounds are essential chemotherapeutic
components for many pediatric malignancies. Unfortunately,
platinum-based therapies cause hearing loss or ototoxicity in many
patients, and are particularly harmful to the survivors of pediatric

In the U.S. and Europe there is estimated that 7,000 children are
diagnosed with local cancers that may receive platinum based
chemotherapy. Localized cancers have overall survival rates of
greater than 80%, further emphasizing the importance of quality of
life after treatment. The incidence of hearing loss in these children
depends upon the dose and duration of chemotherapy, but it affects at
least 60% of the patients. Many of these children require lifelong
hearing aids and technically difficult and sub-optimal cochlear
(inner ear) implants that have been shown to provide some marginal
benefit. Post platinum exposure, infants and young children at
critical stages of development lack speech language development and
literacy, and older children and adolescents lack social-emotional
development and educational achievement.

STS has been studied by cooperative groups in two Phase 3 clinical
studies of reduction of ototoxicity, The Clinical Oncology Group
Protocol ACCL0431 and SIOPEL 6. Both studies are closed to
recruitment. The COG ACCL0431 protocol enrolled one of five childhood
cancers typically treated with intensive cisplatin therapy for
localized and disseminated disease, including newly diagnosed
hepatoblastoma, germ cell tumor, osteosarcoma, neuroblastoma, and
medulloblastoma. SIOPEL 6 enrolled only hepatoblastoma patients with
localized tumors.

About Fennec Pharmaceuticals

Fennec Pharmaceuticals, Inc. is a specialty pharmaceutical company
focused on the development of Sodium Thiosulfate (STS) for the
prevention of platinum-induced chemotherapy ototoxicity in pediatric
patients. STS has received Orphan Drug Designation in the US in this
setting. For more information, please visit www.fennecpharma.com.

Forward-Looking Statement Disclaimer

Except for historical information described in this press release,
all other statements are forward-looking, including statements or
assumptions about the anticipated use of proceeds and any other
statements regarding the Company’s objectives (and strategies to
achieve such objectives), future expectations, beliefs, goals or
prospects. Forward-looking statements are subject to certain risks
and uncertainties inherent in the Company’s business that could cause
actual results to vary, including such risks relating to the
anticipated use and sufficiency of the proceeds of the Offering:
risks that a material adverse change occurs in respect of the
Company; that regulatory and guideline developments may change; that
scientific data may not be sufficient to meet regulatory standards or
receipt of required regulatory clearances or approvals; that clinical
results may not be replicated in actual patient settings; that
protection offered by the Company’s patents and patent applications
may be challenged, invalidated or circumvented by its competitors;
that the available market for the Company’s products will not be as
large as expected; that the Company’s products will not be able to
penetrate one or more targeted markets; that revenues will not be
sufficient to fund further development and clinical studies; that the
Company may not meet its future capital requirements in different
countries and municipalities, and other risks detailed from time to
time in the Company’s filings with the Securities and Exchange
Commission including its Annual Report on Form 10-K for the year
ended December 31, 2016. Fennec Pharmaceuticals Inc. disclaims any
obligation to update these forward-looking statements except as
required by law.

For a more detailed discussion of related risk factors, please refer
to our public filings available at www.sec.gov and www.sedar.com.

Rosty Raykov
Chief Executive Officer
Fennec Pharmaceuticals Inc.
(919) 636-5144