ASLAN Pharmaceuticals Announces $20M Private Placement Led by BVF Partners L.P. With the Potential to Receive Up to an Additional $80M

• ASLAN to receive $20 million in financing with the potential to receive up to an additional $80 million for an aggregate of $100 million to continue advancing the clinical development of eblasakimab and farudodstat
• ASLAN’s expected cash runway extended through at least the second quarter of 2024, and potentially further in accordance with additional warrants exercisable following topline data readouts from the TREK-AD study in early July 2023 and the planned farudodstat proof of concept trial in 2024
• Farudodstat proof of concept trial in autoimmune skin disease expected to be fully funded to completion

SAN MATEO, Calif. and SINGAPORE, Feb. 24, 2023 (GLOBE NEWSWIRE) — ASLAN Pharmaceuticals (“ASLAN”, Nasdaq: ASLN), a clinical-stage, immunology-focused biopharmaceutical company developing innovative treatments to transform the lives of patients, today announced that it has entered into a definitive purchase agreement (“Purchase Agreement”) to raise gross proceeds of approximately $20 million resulting from the sale of its ordinary shares (or pre-funded warrants) and accompanying purchase warrants, at a purchase price of $0.178 per ordinary share (or the equivalent of $0.89 per American Depositary Share (“ADS”)) to BVF Partners L.P., K2 HealthVentures and certain existing investors (the “Investors”). In addition, ASLAN will have the potential to receive up to an additional $80 million if all purchase warrants being issued in connection with the Purchase Agreement are fully exercised.

“We are extremely pleased to have the support of BVF Partners and our existing investors to help to advance both of our therapeutic programs and strengthen our balance sheet ahead of the expected readout of topline data from our TREK-AD study of eblasakimab in early July this year,” said Dr Carl Firth, CEO, ASLAN Pharmaceuticals. “The financial support from such prominent specialist investors is a strong endorsement of both eblasakimab’s potential as a novel, differentiated therapeutic for atopic dermatitis patients and farudodstat’s potential as a potent next-generation oral inhibitor of DHODH in autoimmune skin disease.”

The financing, which is subject to customary closing conditions, is expected to close on or about February 27, 2023. Pursuant to the terms of the Purchase Agreement, ASLAN will issue an aggregate of 112,359,550 ordinary shares (or pre-funded warrants), equivalent to 22,471,910 ADSs, at an equivalent price of $0.89 per ADS, which represents a 15% premium to the ADSs’ ten-day volume-weighted average price (VWAP) of $0.77 per ADS. ASLAN intends to use the net proceeds from the private placement for working capital and general corporate purposes, including the clinical development of eblasakimab and farudodstat.

As part of the financing, the Investors will also receive two tranches of warrants initially exercisable in the aggregate for up to 55,309,112 ADSs (or pre-funded warrants). The first tranche of warrants is comprised (i) 50% of purchase warrants that are exercisable upon issuance and until sixty days after the public announcement of ASLAN’s topline data from its TREK-AD Phase 2b clinical trial investigating eblasakimab in atopic dermatitis at an exercise price of $1.30 per ADS and (ii) 50% of purchase warrants which can only be exercised within sixty days after the public announcement of ASLAN’s topline data from its TREK-AD Phase 2b clinical trial investigating eblasakimab in atopic dermatitis at an exercise price based on the higher of $1.30 and a 50% discount to the ADS VWAP measured across a specified period after the public announcement of data. The second tranche of warrants is similarly comprised (i) 50% of purchase warrants that are exercisable upon issuance until sixty days after the public announcement of topline interim data from ASLAN’s planned Phase 2 proof of concept trial investigating farudodstat at an exercise price of $1.63 per ADS and (ii) 50% of purchase warrants which can only be exercised within sixty days after the public announcement of topline interim data from ASLAN’s planned phase 2 proof of concept trial investigating farudodstat at an exercise price based on the higher of $1.63 and a 50% discount to the ADS VWAP measured across a specified period after the public announcement of data. Both tranches of the purchase warrants also include a mandatory exercise provision subject to the satisfaction of certain pre-specified conditions.

The securities to be sold in the private placement, including the warrants and the securities issuable upon exercise of the warrants, have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. The Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) registering the resale of the securities issued in the private placement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.

About ASLAN Pharmaceuticals

ASLAN Pharmaceuticals (Nasdaq: ASLN) is a clinical-stage, immunology-focused biopharmaceutical company developing innovative treatments to transform the lives of patients. ASLAN is developing eblasakimab, a potential first-in-class antibody targeting the IL-13 receptor in moderate-to-severe atopic dermatitis (AD) with the potential to improve upon current biologics used to treat allergic disease. Eblasakimab is being investigated in the global Phase 2b TREK-AD trial of moderate-to-severe AD patients and the Phase 2 TREK-DX trial in dupilumab-experienced AD patients. ASLAN is also developing farudodstat, a potent next-generation oral inhibitor of the enzyme DHODH, and plans to initiate a Phase 2 trial in an autoimmune skin disease in the first half of 2023. ASLAN has teams in San Mateo, California, and in Singapore. For additional information please visit www.aslanpharma.com or follow ASLAN on LinkedIn.

Forward looking statements

This release contains forward-looking statements. These statements are based on the current beliefs and expectations of the management of ASLAN Pharmaceuticals Limited and/or its affiliates (the “Company”). These forward-looking statements may include, but are not limited to, the timing, terms and completion of the proposed private placement; the expected gross proceeds from the proposed private placement and any additional proceeds that may be received by the Company upon exercise, if any, of the warrants issued in the private placement; statements regarding the Company’s business strategy and clinical development plans; the Company’s plans to develop and commercialize eblasakimab and farudodstat; the safety and efficacy of eblasakimab and farudodstat; the Company’s plans and expected timing with respect to clinical trials, clinical trial enrolment and clinical trial results for eblasakimab and farudodstat; the potential of eblasakimab as a first-in-class treatment for atopic dermatitis and of farudodstat as a treatment for autoimmune disease; and the Company’s cash runway. The Company’s estimates, projections and other forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations, or financial performance, and inherently involve significant known and unknown risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of many risks and uncertainties, which include, unexpected safety or efficacy data observed during preclinical or clinical studies; clinical site activation rates or clinical trial enrolment rates that are lower than expected; the impact of the COVID-19 pandemic or the ongoing conflict between Ukraine and Russia on the Company’s business and the global economy; general market conditions; changes in the competitive landscape; and the Company’s ability to obtain sufficient financing to fund its strategic and clinical development plans. Other factors that may cause actual results to differ from those expressed or implied in such forward-looking statements are described in the Company’s SEC filings and reports (Commission File No. 001- 38475), including the Company’s Annual Report on Form 20-F filed with the SEC on March 25, 2022. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections, and other forward-looking statements. Estimates, projections, and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement.

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