Faron Pharmaceuticals Ltd

("Faron" or the "Company")

Grant of options

Company announcement, September 22, 2022 at 09:00 AM (EEST) / 07:00 AM (BST) / 02:00 AM (EST)

TURKU, FINLAND/BOSTON, MA -Faron Pharmaceuticals Ltd(AIM: FARN, First North: FARON), a clinical stage biopharmaceutical company focused on building the future of immunotherapy by harnessing the power of the immune system to tackle cancer and inflammation,announces that the Board of Faron has confirmed the grant of a total of 129,000 options options over ordinary shares in the Company ("Options") under Company's Share Option Plan 2019 (including its UK and US sub plans).

The Options have been allocated under the Share Option Plan 2019 and are exercisable between 24 August 2023 and 24 August 2027, vesting 25% per annum over a period of four years. The exercise price for Options allocated under the Share Option plan is €2.50 per share (£2.11), which is calculated based on the average price per share at which the ordinary shares in the Company have been traded on AIM for 90 days preceding the allocation date of 24 August 2022. The exercise price for Options allocated under the US sub plan is €2.38 per share (£2.01), which is calculated based on the average price per share at which the ordinary shares in the Company have been traded on AIM for 30 days preceding the allocation date of 24 August 2022. The terms of the Share Option Plan 2019 are available on the Company's website at https://www.faron.com/investors/general-meetings/2020. 

The granted Options entitle the option holders to subscribe for a total of 129,000 new ordinary shares in the Company, if exercised in full, and represent 0.23 % of the fully-diluted ordinary share capital of the Company.

Included in the number of Options granted are the following Options which were issued to a director or other persons discharging managerial responsibilities ("PDMRs"):

Director Options granted

Erik Ostrowski (U.S Sub-Plan) 30,000

Other PDMRs

Vesa Karvonen (Share Option plan) 30,000
Juuso Vakkuri (Share Option plan) 20,000

For more information please contact:

Investor Contact

Faron Pharmaceuticals

Julia Balanova

VP, Investor Relations

Julia.balanova@faron.com

investor.relations@faron.com

Phone: +1 (917) 306-6096

Media Contact

Faron Pharmaceuticals

Eric Van Zanten

VP, Communications

eric.vanzanten@faron.com

Phone: +1 (610) 529-6219

Cairn Financial Advisers LLP, Nomad

Sandy Jamieson, Jo Turner

Phone: +44 (0) 207 213 0880

Peel Hunt LLP, Broker

Christopher Golden, James Steel

Phone: +44 (0) 20 7418 8900

Sisu Partners Oy, Certified Adviser on Nasdaq First North

Juha Karttunen

Phone: +358 (0)40 555 4727

Jukka Järvelä

Phone: +358 (0)50 553 8990

Consilium Strategic Communications

Mary-Jane Elliott, David Daley, Lindsey Neville

faron@consilium-comms.com

Phone: +44 (0)20 3709 5700

About Faron Pharmaceuticals Oy

Faron (AIM: FARN, First North: FARON) is a clinical stage biopharmaceutical company developing novel treatments for medical conditions with significant unmet needs caused by dysfunction of our immune system. The Company currently has a pipeline based on the receptors involved in regulation of immune response in oncology, organ damage and bone marrow regeneration. Bexmarilimab, a novel anti-Clever-1 humanized antibody, is its investigative precision immunotherapy with the potential to provide permanent immune stimulation for difficult-to-treat cancers through targeting myeloid function. Currently in Phase I/II clinical development as a potential therapy for patients with untreatable solid tumors, bexmarilimab has potential as a single-agent therapy or in combination with other standard treatments including immune checkpoint molecules. Traumakine is an investigational intravenous (IV) interferon beta-1a therapy for the treatment of acute respiratory distress syndrome (ARDS) and other ischemic or hyperinflammatory conditions. Traumakine is currently being evaluated in global trials as a potential treatment for hospitalized patients with COVID-19 and with the 59th Medical Wing of the US Air Force and the US Department of Defense for the prevention of multiple organ dysfunction syndrome (MODS) after ischemia-reperfusion injury caused by a major trauma. Faron is based in Turku, Finland. Further information is available at www.faron.com.

Notification
of a
Transaction
pursuant to
Article
19(1) of
Regulation
(EU) No.
596/2014
1 Details of the person
discharging managerial
responsibilities/person
closely associated
a. Name a)       Erik
Ostrowski

b)       Vesa
Karvonen

c)       Juuso
Vakkuri
2 Reason for notification
a. Position/Status Person discharging
managerial
responsibilities
b. Initial notification/ Initial Notification

Amendment
3 Details of the issuer,
emission allowance market
participant, auction
platform, auctioneer or
auction monitor
a. Name Faron
Pharmaceuticals Oy
b. LEI 7437009H31TO1DC0EB42
4 Details of the
transaction(s): section to be
repeated for (i) each type of
instrument; (ii) each type of
transaction; (iii) each date;
and (iv) each place where
transactions have been
conducted
a. Description of the financial Options over
instrument, type of ordinary shares
instrument ISIN: FI4000153309
Identification Code
b. Nature of the transaction Grant of options
made pursuant to the
Faron 2019 Option
Plan
c. Price(s) and volume(s)
Price(s) Volume(s)
a)       a)       30,000
€2.38(£2.01)
b)       30,000
b)      
€2.50(£2.11) c)       20,000

c)      
€2.50(£2.11)

d. Aggregated information Nil

- Aggregated Volume

- Price
e. Date of the transaction 19 September 2022
f. Place of the transaction Turku