June 27th, 2015

Knight Therapeutics Inc. (TSX:GUD) ("Knight" or the "Company"), a leading Canadian specialty pharmaceutical company, announced today that it has (1) extended a secured loan of US$15 million to Pro Bono Bio PLC ("Pro Bono Bio"), the world's leading healthcare nanotechnology company, and (2) entered into an exclusive distribution agreement with Pro Bono Bio to commercialize its wide range of nanotechnology products, medical devices and drug delivery technologies in select territories.

The secured loan of US$15 million, which matures on June 25, 2018, will bear interest at 12% per annum plus other additional consideration. The interest rate will decrease to 10% if Pro Bono Bio meets certain equity-fundraising targets. The loan is secured by a charge over the assets of Pro Bono Bio and its affiliates which includes but is not limited to Flexiseq™, an innovative topical pain product that has sales of more than 3 million units since its U.K. launch last year.
As part of the license agreement, Knight obtained the exclusive Quebec and Israeli distribution rights to Pro Bono Bio's innovative Flexiseq™ range of pain relief products and its promising SEQuaderma™ derma-cosmetic range of products, both of which are expected to launch in Quebec within the next 12 months. In addition, Knight obtained the exclusive Canadian and Israeli rights to two earlier stage product groups: blood factor products for the treatment of Hemophiliacs, and diagnostic devices designed for the automated detection of peripheral arterial disease.
John Mayo, Chairman and CEO of Pro Bono Bio, said, "We worked night and day to find a good distribution and strategic partner to help our North American team launch our existing products and drive growth. We welcome the good Knight on our quest to deliver to Canadian and American consumers' best-in-class, drug-free nanotechnology products that are safe, effective and of the highest quality: truly the holy grail!"
"When you donate to charity, you always receive back more than you give. I hope this truism also holds true for this Pro Bono world!" said Jonathan Ross Goodman, President and CEO of Knight. "We look forward to the late 2015 launch of Flexiseq™ and SEQuaderma™ in La Belle Province."