Aevi Genomic Medicine, Inc. (NASDAQ: GNMX) (the "Company") today announced the execution of a definitive agreement to sell shares of common stock and warrants to purchase common stock in a private placement, or PIPE, to certain accredited investors, led by Children's Hospital of Philadelphia Foundation ("the CHOP Foundation").

The Company will sell 22.2 million shares of its common stock with warrants to purchase approximately 4.0 million additional shares of its common stock, for aggregate proceeds of $28.0 million, before expenses. The CHOP Foundation led the financing, with additional participation by other undisclosed existing blue-chip investors. The CHOP Foundation has committed to provide up to an additional $5.0 million of equity financing through June 30, 2018, subject to certain terms and conditions.

"Children's Hospital of Philadelphia is a globally renowned research organization, and they are a tremendously valued partner to the Company," commented Mike Cola, President and Chief Executive Officer of Aevi Genomic Medicine. "We are pleased with its decision to support us in this transaction."

"Aevi Genomic Medicine has been our collaborator in the pursuit of new and effective treatments for severe and debilitating childhood diseases since 2014. We are very hopeful that this investment will yield benefits that will make new treatments quickly available to families," said Bryan Wolf, Executive Vice President and Chief Scientific Officer of Children's Hospital of Philadelphia. "Research happening right now has the potential to revolutionize medicine. We need partners like Aevi Genomic Medicine to help us get us across the finish line faster. We look forward to what the future holds," he said.

The Company intends to use the aggregate net proceeds of the PIPE to further the development of its two lead clinical programs, to support its ongoing collaboration with Children's Hospital of Philadelphia, to develop other product candidates and for general corporate purposes.

Jefferies, LLC served as financial advisor to Aevi Genomic Medicine for the PIPE and Evercore, LLC served as financial advisor to the CHOP Foundation in such transaction.

Subject to the approval of the Company's stockholders and the satisfaction of certain customary closing conditions, the PIPE is expected to close in the fourth quarter of 2017. The Company has not yet set a date for a stockholder meeting to seek the approval of the PIPE. Once a meeting date has been determined, the Company will send a notice and proxy statement relating to the meeting and the approval being sought to its stockholders.

The securities being sold in this PIPE have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and will not be able to be offered or sold in the United States absent registration thereunder or an applicable exemption from the registration requirements. The Company has agreed to file a resale registration statement with the Securities and Exchange Commission within 60 days of the PIPE closing to register the resale of the shares of common stock, including those underlying the warrants, issued in the PIPE.

This notice does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.

About Aevi Genomic Medicine, Inc.

Aevi Genomic Medicine, Inc. is dedicated to unlocking the potential of genomic medicine to translate genetic discoveries into novel therapies. Driven by a commitment to patients with pediatric onset life-altering diseases, the Company's research and development efforts leverage an internal genomics platform and an ongoing collaboration with the Center for Applied Genomics at The Children's Hospital of Philadelphia. Based on discoveries from the genomics collaboration, the Company currently has two programs in clinical development, AEVI-001 for mGLuR+ ADHD and AEVI-002 for severe pediatric onset Crohn's disease.