SanBio : Notice on Conclusion of Committed Credit Line Agreement with MUFG Bank, Ltd

	August 31, 2021
Company name:	SanBio Co., Ltd.
Representative:	Keita Mori, Representative Director and
	President
	(TSE Mothers Code: 4592)
Contact:	Yoshihiro Kakutani, Corporate Officer of
	Management Administration
	(TEL. [phone])

Notice on Conclusion of Committed Credit Line Agreement with MUFG Bank, Ltd.

SanBio Company Limited (hereafter, "the Company") hereby announces that it has entered into a new committed credit line agreement with MUFG Bank, Ltd. The new agreement is to succeed the existing committed credit line agreement the Company concluded with MUFG Bank in November 2018, set to expire in November 2021.

The expiry of the existing committed credit line agreement and the summary of the new agreement between the company and MUFG Bank are outlined below. The funds secured from the new agreement will be allocated to the establishment of post-launch manufacture, distribution, and marketing infrastructure for SB623 indicated for chronic effects of traumatic brain injury (TBI program). The funds will only become available once the Company has filed for regulatory approval of the pipeline drug.

Agreement with MUFG Bank set to expire on November 30, 2021

Loan type	Total committed amount	Agreement	Expiration date	Remarks
(of which, used credit)	date	(repayment date)
Committed credit	2.0 billion yen	Nov. 2018	Nov. 2021	NA
line	(700 million yen)		(Nov. 2021)

New agreement entered with MUFG Bank on August 31, 2021

Loan type	Total committed amount	Agreement	Expiration date	Remarks
(of which, used credit)	date	(repayment date)
Committed credit	2.0 billion yen	Aug. 2021	Nov. 2024	Terms and conditions: The committed
line	(NA)		(Nov. 2024)	credit line will come into effect on
				November 30, 2021,
				and will only become available once the
				Company has filed for approval of SB623
				for chronic effects of traumatic brain
				injury as regenerative medicine in Japan.

The new committed credit line agreement is expected to have only a minor impact on the Company Group's

consolidated earnings performance for the fiscal year ending January 2022.

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References

Summary of fund procurement

Counterparty	Funding method	Amount of funds	Agreement (or		Use of funds
(lender)	procured	approval) date
Mizuho Bank, Ltd.	Committed credit	2.0 billion yen	Dec. 2020	-	Establishment of post-launch
	line with an option				manufacture, distribution, and
	to extend the term				marketing infrastructure for SB623
	of the loan
Mizuho Bank	Term loan with a	2.6 billion yen	Dec. 2020	-	Establishment of post-launch
	commitment period				manufacture, distribution, and
					marketing infrastructure for SB623
		Total 4.6 billion yen

Counterparty	Funding method	Amount of funds	Agreement (or	Use of funds
(lender)	procured	approval) date
	Equity financing	7.1 billion yen		- Increase in the number of contract
	(accelerated book			manufacturers to enhance mass
	building [ABB])			production capabilities in
				anticipation of higher demand in
				Europe and the US
				- Manufacturing to build inventory of
				SB623 for chronic effects of
				traumatic brain injury in Japan

Counterparty	Funding method	Amount of funds	Agreement (or		Use of funds
(lender)	procured	approval) date
Mizuho Bank	Committed credit	2.0 billion yen	Dec. 2018*1	-	Establishment of post-launch
	line				manufacture, distribution, and
					marketing infrastructure for SB623
MUFG Bank	Committed credit	2.0 billion yen	Nov. 2018	-	Establishment of post-launch
	line				manufacture, distribution, and
					marketing infrastructure for SB623
Sumitomo Mitsui	Committed credit	1.0 billion yen	Nov. 2018	-	Establishment of post-launch
Banking Corp.	line				manufacture, distribution, and
					marketing infrastructure for SB623
	Equity financing	11.0 billion yen		-	Establishment of post-launch
	(warrants with a				manufacture, distribution, and
	provision to revise				marketing infrastructure for SB623
	exercise price, via			- Development of SB623 for chronic
	third-party				effects of ischemic stroke in Japan,
	allotment)				and R&D to expand development
					regions for the drug with an eye
					toward future sales
				- R&D to expand indications for
					SB623 and to in-license new
					substances
		Total 16.0 billion yen		-

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Counterparty	Funding method	Amount of funds	Agreement (or	Use of funds
(lender)	procured	approval) date
MUFG Bank*2	Loan	900 million yen	Mar. 2017	- Development of SB623 for chronic
				effects of ischemic stroke in the US,
				and for chronic effects of traumatic
				brain injury in Japan and the US
California Institute	Subsidy	19 million US dollars	Jun. 2017	- Development of SB623 for chronic
for Regenerative				effects of ischemic stroke in the US
Medicine (CIRM)
Mizuho Bank	Committed credit	1.6 billion yen	Aug. 2017*1	- Reserve for development of SB623
	line			for chronic effects of traumatic brain
				injury in Japan and the US
MUFG Bank*2	Committed credit	500 million yen	Oct. 2017*1	- Reserve for development of SB623
	line			for chronic effects of traumatic brain
				injury in Japan and the US
		Total 5.09 billion yen

Counterparty	Funding method	Amount of funds	Agreement (or	Use of funds
(lender)	procured	approval) date
Mizuho Bank	Committed credit	1.0 billion yen	Mar. 2016*1	Reserve for development of SB623 for
	line			chronic effects of traumatic brain injury
				in Japan and the US

Note 1: As of August 31, 2021, these agreements had expired due to the end of their terms.

Note 2: Due to restructuring by function of Mitsubishi UFJ Financial Group, Inc., the counterparty (lender) was changed from Mitsubishi UFJ Trust and Banking Corp. to MUFG Bank, Ltd.

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