First Day of Dealings on AIM

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, AUSTRALIA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION MAY CONTRAVENE LOCAL SECURITIES LAWS OR REGULATIONS.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction in which such offer or solicitation is unlawful. Investors should not purchase any transferable securities referred to in this announcement except on the basis of the information in the admission document (the "Admission Document") published by Quantum Pharma Plc (the "Company") in connection with the proposed admission of its ordinary shares ("Ordinary Shares") to trading on the AIM Market of the London Stock Exchange plc ("Admission"). Copies of the Admission Document are available at the registered office of the Company, subject to applicable securities laws or regulations.

Quantum Pharma Plc

First Day of Dealings on AIM

Quantum Pharma Plc ("Quantum", the "Company" or the "Group"), a growing manufacturer, supplier and service provider to pharmaceutical wholesalers, retail pharmacy, hospitals, pharmaceutical companies, homecare and care home markets, is pleased to announce the commencement at 08.00 a.m. today of dealings in its Ordinary Shares on AIM, a market operated by the London Stock Exchange plc. Zeus Capital acted as Nominated Adviser and Broker to the Company. The Company's ticker is 'QP.'.

The Company, together with Zeus Capital, successfully raised £106.1 million (before expenses) by placing 106.1 million vendor and new ordinary shares with investors at a placing price of 100 pence per ordinary share (the "Placing"). Quantum's market capitalisation on admission, based on the placing price, is approximately £125 million. The net proceeds of the Placing will be used by the Group to repay a proportion of the debt within the business; enable it to acquire the remaining shares in Colonis Pharma Limited, the specialist pharmaceutical product development business, that it does not already own; and help accelerate the execution of the Group's strategy. Admission will provide Quantum with increased reputation and profile, the ability to incentivise key employees and provide access to the capital markets for further equity funding in the future, should it be required.

Andrew Scaife, Chief Executive Officer of Quantum Pharma Plc, said: "The response from investors has been excellent and we are delighted with the success of our AIM listing and the acquisition of Colonis. This was a milestone event for us at Quantum and the Board and entire team joins me in welcoming all of our new shareholders. We look forward to implementing our strategy as we move to the next stage of our development as a quoted company."

The Company's admission document can be found under the Investors section at www.quantumpharmaplc.com.

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Notes to Editors

Quantum Pharma is a growing manufacturer, supplier and service provider to the wholesale and retail pharmacy, hospital, homecare and care home markets. Based in a purpose-built facility in Burnopfield, County Durham, the Group manufactures and sources non-standard pharmaceutical products. Formed in 2004, Quantum has grown significantly in recent years (both organically and by acquisition) and now employs over 320 people. The Group operates through five business units.

Quantum Pharmaceutical, the Group's core business, manufactures and supplies Specials and Special Obtains to the majority of the large retail pharmacy chains and pharmaceutical wholesalers in the UK, hospitals, independent pharmacies and dispensing doctors. Specials and Special Obtains are medicines and medicinal products that are difficult for pharmacies to source from wholesale pharmacy suppliers. Quantum has a product range of over 22,000 Special and Special Obtain products. It regularly services around 6,500 pharmacies and over 240 hospital accounts across the UK.

U L Medicines ("ULM") is a supplier of unlicensed imports (over 450 imported medicines), over 100 batch made Specials and bespoke Specials with a focus on the hospital market. ULM has a diverse customer base and supplies over 240 hospital accounts, as well as wholesalers and retail pharmacies in the UK and wholesalers overseas.

Colonis is a specialist pharmaceutical product development business, which focuses on achieving the relevant regulated status for medicines and medical devices. Colonis expects to receive the Marketing Authorisation for its first two medicines by mid-December 2014, and expects to launch these shortly thereafter. The development programme is currently working on a significant pipeline of products across 15 therapeutic areas.

Biodose isa patent protected medicine delivery system ("MDS") which consists of a tray, 28 medication pods and a seal, which is used to manage pre-prepared medication regimes for patients. These assist with patient specific medicine administration and adherence to medication regimes. The Biodose system is currently sold to around 175 pharmacy customers, through whom around 50,000 care home residents use Biodose.

Quantum Aseptics' facility at Burnopfield became operational in April 2013 after receiving an MHRA aseptic special manufacturing licence. This facility, which the Director's believe to be is one of the most advanced aseptics units in the UK, provides Quantum Aseptics (a division of Quantum Pharmaceutical) with the ability to aseptically prepare and supply intravenous dosage form aseptic products, whilst complementing the existing core business product offering by providing the ability to prepare these sterile Specials for the Group's other business units and third parties.

Directors

John Clarke - Non-executive Chairman (Aged 65)

John has extensive experience of the healthcare sector, having worked at GlaxoSmithKline plc for more than 35 years. John was global President of GSK Consumer Healthcare from 2006 to 2011, and was a member of the GlaxoSmithKline plc Corporate Executive Team until March 2012. Under John's leadership, GSK Consumer Healthcare was the fastest-growing business in the industry, growing by 60% and reaching sales of £5 billion, despite recessionary environments in the majority of its business' markets. John was responsible for the Lucozade brand (including strategy, innovation programme, portfolio and global expansion) for 15 years from 1996 to 2011. Lucozade achieved growth of 13% CAGR throughout this period. John is currently non-executive chairman of Futura Medical plc and Science in Sport plc.

Andrew Scaife - Chief Executive Officer (Aged 38)

Andrew joined Quantum as Finance Director as part of the MBO in 2009, and became Managing Director in 2010. Since then, Andrew has guided the business through a period of significant organic and acquisitive growth, as well as setting and delivering the strategy which is currently being followed. Prior to joining Quantum, Andrew spent 12 years at KPMG, qualifying as a Chartered Accountant in 1999, following which he spent 10 years in the corporate finance team, latterly leading KPMG's corporate finance business in Newcastle. 

Martin Such - Chief Financial Officer (Aged 40)

Martin is a CIMA qualified accountant and has 17 years' experience in various manufacturing sectors including steel, oil and gas, plastics and electric vehicles before moving to Quantum and the pharmaceutical sector. Immediately prior to joining Quantum, Martin spent a year at the AIM quoted Tanfield Group as head of management accounting. Martin joined Quantum in 2008 as financial controller and was promoted to Finance Director in 2009.

Sheila Kelly OBE - Non-executive Director (Aged 66)

Sheila has over 40 years' experience in healthcare policy regulation. She was chief executive of the Proprietary Association of Great Britain ("PAGB"), the trade association for over the counter manufacturers, of medicines and food supplements for 24 years and was a member of the boards of the European and World bodies representing this sector. Sheila led the Cabinet office Red Tape Challenge programme for the pharmaceutical sector working with the MHRA to reduce the regulatory burden on industry. A pharmacist by training, before she joined PAGB she worked with the medicines regulatory agency for five years and spent five years with Glaxo in pharmaceutical development bringing to market several major dermatological products. Her contribution to the pharmaceutical industry was recognised in 2008 when she was made an OBE.

For further information, please visit www.quantumpharmaplc.com.

FORWARD-LOOKING STATEMENTS

This announcement includes forward-looking statements relating to the Group's future prospects, developments and strategies and are based on the Directors' current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements are sometimes identified by the use of terms and phrases such as "believe", "expects", "envisage", "may", "will", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues", "assumes", "positioned", "targets" or "anticipates" or the negative thereof, variations or comparable expressions, including reference to assumptions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the Directors or the Group relating to the Group's future prospects, developments and strategies and are based on assumptions and estimates and involve risks, uncertainties and other factors that may cause the actual results, financial condition, performance or achievements of the Group or industry results to be materially different from any future results, performance or achievement expressed or implied by such forward looking statements. No assurance can be given that such future results will be achieved. New factors may emerge from time to time that could cause the Group's business not to develop as it expects and it is not possible for the Group to predict all such factors. Each forward-looking statement contained in this announcement speaks only as of the date of the particular statement. The Company, the Directors, selling shareholders and the Nominated Adviser expressly disclaim any obligation to update these forward-looking statements contained in this announcement to reflect any change in their expectations or any change in future events or developments on which such statements are based unless required to do so by applicable law or regulation, the AIM Rules for Companies or the AIM Rules for Nominated Advisers.

Important Notices

The contents of this announcement, which has been prepared by and is the sole responsibility of the Company, have been approved by Zeus Capital Limited ("Zeus") solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 (as amended).

Neither this announcement nor any copy of it may be taken or transmitted, published or distributed, directly or indirectly, in, into or from the United States of America (including its territories and possessions, any state of the United States and the District of Columbia (the "United States" or the "US")), Australia, Canada, Japan or South Africa or to any persons in any of those jurisdictions or any other jurisdiction where to do so would constitute a violation of the relevant securities laws of such jurisdiction (each a "Restricted Jurisdiction"). Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian, Japanese or South African securities laws.

This announcement does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or other securities in any Restricted Jurisdiction. The Placing and the distribution of this announcement and other information in connection with the Placing and Admission in certain jurisdictions may be restricted by law and persons into whose possession this announcement, any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Neither this announcement nor any part of it nor the fact of its distribution shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.

This announcement is directed only at persons whose ordinary activities involve them in acquiring, holding, managing and disposing of investments (as principal or agent) for the purposes of their business and who have professional experience in matters relating to investments and are: (i) if in a member state of the European Economic Area, qualified investors within the meaning of article 2(1)(e) of the Prospectus Directive ("Qualified Investors"); or (ii) if in the United Kingdom, Qualified Investors and fall within: (a) article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"); or (b) article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Order (all such persons together being referred to as "Relevant Persons"). The term "Prospectus Directive" means Directive 2003/71/EC as amended and includes any relevant implementing measures in each member state of the European Economic Area.

This announcement must not be acted on or relied on by persons who are not Relevant Persons. Persons distributing this announcement must satisfy themselves that it is lawful to do so. Any investment or investment activity to which this announcement relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This announcement does not itself constitute an offer for sale or subscription of any securities in the Company.

The Ordinary Shares referred to in this Announcement have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or under the securities laws of any state or other jurisdiction of the United States, and may not be offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. The Ordinary Shares have not been and will not be approved or disapproved by the US Securities and Exchange Commission, any state securities commission or other regulatory authority in the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of the Placing or the accuracy or adequacy of this announcement. Any representation to the contrary is a criminal offence in the United States.

Any subscription for or purchase of Ordinary Shares in the proposed Placing should be made solely on the basis of the information contained in the final Admission Document published by the Company in connection with the Placing and Admission. The information in this announcement is for background purposes only and does not purport to be full or complete. No reliance may or should be placed for any purposes whatsoever on the information contained in this announcement or its accuracy, completeness or fairness. The information in this announcement is subject to change. However, the Company does not undertake to provide the recipient of this announcement with any additional information, or to update this announcement or to correct any inaccuracies, and the distribution of this announcement shall not be deemed to be any form of commitment on the part of the Company to proceed with the Placing or any transaction or arrangement referred to in this announcement. This announcement has not been approved by any competent regulatory authority.

In connection with the Placing, Zeus and any of their respective affiliates, acting as investors for their own accounts, may subscribe for or purchase Ordinary Shares and in that capacity may retain, purchase, sell, offer to sell or otherwise deal for their own accounts in such Ordinary Shares and other securities of the Company or related investments in connection with the Placing or otherwise. Accordingly, references in the Admission Document to the Ordinary Shares being offered, subscribed, acquired, placed or otherwise dealt in should be read as including any offer to, or subscription, acquisition, placing or dealing by Zeus and any of their respective affiliates acting as investors for their own accounts. In addition, Zeus or their respective affiliates may enter into financing arrangements and swaps in connection with which Zeus or their respective affiliates may from time to time acquire, hold or dispose of Ordinary Shares. Zeus does not have any intention to disclose the extent of any such investment or transactions otherwise than in accordance with any legal or regulatory obligations to do so.

Zeus which is authorised and regulated by the Financial Conduct Authority in the United Kingdom is acting exclusively for the Company and no one else in connection with the Placing and Admission will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Placing and Admission or any other matters referred to in this announcement.

Neither Zeus nor any of its subsidiary undertakings, affiliates or any of its partners, directors, officers, employees, advisers, agents or any other person accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy, completeness or fairness of the information or opinions in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith.

The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares. Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this announcement.

Certain figures in this announcement, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this announcement may not conform exactly with the total figure given.