$16 Million Capital Raise to Progress Bionomics BNC210 PTSD Trial

Commitments received for a placement of A$15,991,634 at A$0.145 per share
Significant participation from North American and European institutional and sophisticated investors
This capital raising enables proceeding with the Phase 2b PTSD trial in mid-2021 as planned and sees the Company well capitalised

ADELAIDE, Australia, Feb. 10, 2021 /PRNewswire/ -- Bionomics Limited (ASX: BNO, OTCQB: BNOEF, Germany: AU000000BNO5), a global, clinical stage biopharmaceutical company, is pleased to announce that it has entered into placement agreements with a number of North American and European institutional and sophisticated investors, to raise A$15,991,634. The Company used its 15% placement capacity under Listing Rule 7.1 of 110,287,132 shares.

The new shares will be issued at $0.145 per share representing a 263% premium to the Company's capital raise in September 2020 and a 20% discount to the 30-day volume weighted average price (VWAP) as of 5 February 2021. Completion of the placement is anticipated to be 26 February 2021.

Following completion of the placement, the Company will commence an Entitlement Offer allowing eligible shareholders the opportunity to acquire new shares at the same price. Further details of the Entitlement Offer will be provided in a subsequent announcement. Under the Subscription Agreement dated 2 June 2020 with Apeiron Investment Group Limited (Apeiron), the family office of entrepreneur and investor Christian Angermayer, Apeiron agreed to recapitalise the Company and assist in securing further equity capital (Subscription Agreement) to fund the Company's BNC210 Phase 2b Clinical trial for the treatment of post-traumatic stress disorder (PTSD).

As part of the capital raising activities approved by shareholders at the General Meeting on 26 August 2020, Apeiron agreed to underwrite the further raising to the amount of A$15,000,000 at a minimum price of A$0.06 per share. This underwriting obligation has been fully fulfilled by this capital increase.

Dr. Errol De Souza, Executive Chairman of Bionomics said, "We are pleased to have gained further support from overseas investors as we pursue a treatment for patients suffering from PTSD. The placement was strongly oversubscribed and, as such, we were able to substantially minimize dilution to all our current shareholders by limiting the placement to 15% of the outstanding shares versus the shareholder approved sale of up to 250 million shares. We were pleased that a number of well-known specialist life sciences investment funds participated adding to a very strong shareholder base, which includes Apeiron Investments, Biotech Value Fund, Merck, Peter Thiel and Mike Novagratz. We remain on track to the completion of our ongoing 7-day dosing pharmacokinetic study of our novel BNC210 tablet formulation in 1Q CY2021 and starting the Phase 2b PTSD trial in mid-2021".

Apeiron founder Mr Christian Angermayer said "We are pleased to support Bionomics both as an underwriter in this placement and as a long-term shareholder of the Company. We look forward to participating in the Entitlement Offer alongside other investors. PTSD and other mental health disorders are enormous burdens for those that live with them. Bionomics' lead drug BNC210 has already received Fast Track Designation from the FDA and I am confident of the strong potential of the upcoming Phase 2b PTSD trial to drive value for both patients and shareholders."

AUTHORISED BY THE BOARD

About Bionomics Limited

Bionomics (ASX: BNO, OTCQB: BNOEF) is a global, clinical stage biopharmaceutical company leveraging its proprietary platform technologies to discover and develop a deep pipeline of best in class, novel drug candidates. Bionomics' lead drug candidate BNC210, currently in development for initiation of a second Phase 2 trial for the treatment of PTSD, is a novel, proprietary negative allosteric modulator of the alpha-7 (α7) nicotinic acetylcholine receptor. Beyond BNC210, Bionomics has a strategic partnership with Merck & Co., Inc (known as MSD outside the United States and Canada).

www.bionomics.com.au ^[1]

Factors Affecting Future Performance

This announcement contains "forward-looking" statements within the meaning of the United States' Private Securities Litigation Reform Act of 1995. Any statements contained in this announcement that relate to prospective events or developments, including, without limitation, statements made regarding Bionomics' drug candidates (including BNC210), its licensing agreements with Merck & Co. and any milestone or royalty payments thereunder, drug discovery programs, ongoing and future clinical trials, and timing of the receipt of clinical data for our drug candidates are deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "projects," "forecasts," "will" and similar expressions are intended to identify forward-looking statements.

There are a number of important factors that could cause actual results or events to differ materially from those indicated by these forward-looking statements, including unexpected safety or efficacy data, unexpected side effects observed in clinical trials, risks related to our available funds or existing funding arrangements, our failure to introduce new drug candidates or platform technologies or obtain regulatory approvals in a timely manner or at all, regulatory changes, inability to protect our intellectual property, risks related to our international operations, our inability to integrate acquired businesses and technologies into our existing business and to our competitive advantage, as well as other factors. Results of studies performed on our drug candidates and competitors' drugs and drug candidates may vary from those reported when tested in different settings.

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