Press Release, 5 October 2020

Kuros announces all agenda items were approved at its Extraordinary General Meeting today and launches a discounted rights offering expected to raise up to CHF 15.2 million of gross proceeds

Not for release, publication or distribution in the USA, the United Kingdom, Canada, Japan, Australia or Member States of the European Economic Area (“EEA”).

MEDIA RELEASE

Schlieren (Zurich), Switzerland, October 5, 2020 – Kuros Biosciences (SIX: KURN) (the Company or Kuros) announces that it received approval at today’s Extraordinary General Meeting (EGM) for the proposed increase in the ordinary share capital of up to CHF 9.0 million through the issuance of up to an additional 9,000,000 registered shares with a nominal value of CHF 1.00 each. The EGM took place at the Company’s headquarters in Schlieren. Due to restrictions related to the COVID-19 pandemic, the EGM was held without an audience and voting was exercised entirely through the independent proxy. 11,094,252 shares or 49.4% of the total of 22,469,946 shares, were represented.

Based on the results, the Company’s Board of Directors proposes that up to 8,426,229 new registered shares will be offered to existing shareholders of Kuros at an offer price of CHF 1.80 per share. The capital increase shall be implemented through a discounted rights offering, in which existing shareholders will receive 1 right to pre-emptively subscribe for new registered shares (“Rights”) for each registered share they hold on October 7, 2020 (after market close). 8 Rights will entitle the holder of such Rights to subscribe for 3 newly registered shares subject to certain restrictions under applicable local laws. As from October 8, 2020, registered shares of Kuros will trade “ex Rights”. The Rights will not be admitted to trading on SIX Swiss Exchange.

The Rights are expected to be exercisable from October 8 until October 19, 2020 12:00 noon CEST. Shares for which Rights have not been validly exercised during this period may be sold in a subsequent offering to eligible investors. The listing and the first day of trading of the new registered shares on SIX Swiss Exchange and the delivery of the new registered shares against payment of the offer price, are expected to take place on October 23, 2020. The offering and listing prospectus in connection with the rights offering will be published tomorrow October 6, 2020.

Kuros expects to raise a total amount of up to CHF 15.2 million of gross proceeds through the rights offering, which is in line with its announcement of an up to around CHF 15 million capital increase on September 11, 2020. The Company intends to use the net proceeds to accelerate the commercial roll-out of MagnetOs which, based on current performance, is expected to become cash flow positive by the end of 2022. The net proceeds shall also allow for advancing the clinical development of Fibrin-PTH, which targets a substantial clinical need in orthopedics and neurosurgery and represents a significant potential commercial opportunity. This includes completion of the STRUCTURE clinical Phase 2 study, with the first data expected to be available by early 2022, comparing Fibrin-PTH versus local autograft in spine fusion, as well as preparations for Phase 3 clinical development.

Large existing shareholders as well as potential new investors have indicated their interest in participating in the equity financing. The final number of newly registered shares issued, and the gross proceeds raised via the capital increase will depend on, inter alia, the number of shares subscribed for by existing and new equity investors. If the gross proceeds of the Offering were significantly below CHF 15 million, the Company would have to delay the preparation of the Pivotal Phase 3 study for Fibrin-PTH (KUR-113) until the required funds are available.

Octavian is acting as Placement Agent, Helvetische Bank is acting as Settlement Agent and Ondra LLP is acting as Financial Advisor to the Company.

Expected timetable for the rights offering

About Kuros Biosciences AG

Kuros Biosciences is a leader in next generation synthetic bone graft technologies for targeted and controlled bone healing. Kuros’s bone graft substitute, MagnetOs, is commercialized in the US and UK for use in posterolateral spinal fusions. Kuros’s lead product in development, Fibrin PTH, a drug-biologic combination for spinal interbody fusion, is entering a phase 2 clinical trial in the U.S. Kuros is located in Schlieren (Zurich), Switzerland, Bilthoven, The Netherlands and Burlington (MA), U.S.A. The Company is listed on the SIX Swiss Exchange under the symbol KURN. Visit www.kurosbio.com for additional information on Kuros, its people, science and product pipeline.

About Fibrin-PTH (KUR-113)

Fibrin-PTH (KUR-113) consists of a natural fibrin-based healing matrix with an immobilized targeted bone growth factor (truncated human parathyroid hormone (PTH) analog). Fibrin-PTH (KUR-113) is designed to be applied directly into and around an intervertebral body fusion device as a gel, where it polymerizes in situ. Fibrin-PTH (KUR-113) functions via the well-established mechanism of action of parathyroid hormone; has been demonstrated in animal models of spinal fusion to be comparable to rhBMP-2; and has been shown in preclinical studies to be easy to use and ideal for open or minimally invasive techniques. The safety & efficacy of Fibrin PTH (KUR-113) has not yet been evaluated for spinal fusion in humans.

About MagnetOs

US indications statement

MagnetOs is an implant intended to fill bony voids or gaps of the skeletal system, i.e., posterolateral spine. MagnetOs must be used with autograft as a bone graft extender in the posterolateral spine. These osseous defects may be surgically created or the result of traumatic injury to the bone and are not intrinsic to the stability of the bony structure.

EU indications statement

MagnetOs is intended for use as bone void filler for voids and gaps that are not intrinsic to the stability of the bony structure. MagnetOs is indicated for use in the treatment of surgically created osseous defects or osseous defects resulting from traumatic injury to the bone. MagnetOs is intended to be packed into bony voids or gaps of the skeletal system (i.e. extremities, spine, cranial, mandible, maxilla and pelvis) and may be combined with autogenous bone. MagnetOs should not be used to treat large defects that in the surgeon’s opinion would fail to heal spontaneously. In load bearing situations, MagnetOs is to be used in conjunction with internal or external fixation devices.

The purpose of this publication is to inform shareholders of Kuros Biosciences AG and the public. This press release does neither constitute an offer to buy or to subscribe to rights or shares of Kuros Biosciences AG nor a prospectus within the meaning of the applicable Swiss law. Investors should make their decision to exercise rights or buy or to subscribe to new shares solely based on the offering and listing prospectus available free of charge at Kuros Biosciences AG, Wagistrasse 25, 8952 Schlieren. Investors are furthermore advised to consult their bank or financial adviser.

This publication may contain specific forward-looking statements, e.g. statements including terms like “believe”, assume”, “expect”, “forecast”, “project”, “may”, “could”, “might”, “will” or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the company and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties, readers should not rely on forward-looking statements. Kuros Biosciences AG assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.

The securities described herein are offered publicly without restrictions in Switzerland only.

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE USA, IN THE UNITED KINGDOM, IN AUSTRALIA, CANADA OR JAPAN AND SHOULD NOT BE DISTRIBUTED TO U.S. PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES, THE UNITED KINGDOM, AUSTRALIA, CANADA OR JAPAN AND MUST NOT BE DISTRIBUTED OR DISSEMINATED TO ONE OF THESE COUNTRIES BY PUBLICATIONS WITH A GENERAL CIRCULATION. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES. THE SECURITIES OF KUROS BIOSCIENCES AG HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 AS AMENDED AND ARE NOT BEING OFFERED IN THE UNITED STATES OR TO U.S. PERSONS.

In relation to the United Kingdom, the communication of this publication is not being made, and this publication has not been approved, by an authorized person for the purposes of Section 21 of the Financial Services and Markets Act 2000. Accordingly, this publication is not being distributed to, and must not be passed on to, the general public in the United Kingdom. Rather, the communication of this publication is being made to, and is directed only at persons outside the United Kingdom. This publication is only available to such persons and the transaction contemplated herein will be available only to, or engaged in only with persons outside the United Kingdom, and this publication must not be acted on or relied upon by any other person.

This publication and the information contained herein does not constitute an “offer of securities to the public” within the meaning of Regulation (EU) 2017/1129, as amended (the “Prospectus Regulation”) of the securities referred to herein in any member state of the European Economic Area (the “EEA”) and the United Kingdom (“U.K.”). Any offers of the securities referred to in this information to persons in the EEA or the U.K. will be made pursuant to an exemption under the Prospectus Regulation from the requirement to produce a prospectus for offers of the Securities. This information is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation and the U.K., i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State or the U.K. (“Qualified Investors”).

The offer referred to in this press release shall not constitute an offer to sell or the solicitation of an offer to buy, in any jurisdiction in which such offer or solicitation would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction.

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