Aeterna Zentaris urges shareholders to vote for proposed share consolidation

Aeterna Zentaris announced that its Virtual Annual General and Special Meeting of shareholders will be held on June 21, 2022, at 10:00 a.m. Management and the board of directors urge the Company's shareholders of record to vote "FOR" the resolution authorizing the Board to approve a share consolidation of the Company's issued and outstanding common shares. The platform for the virtual AGM will provide shareholders the ability to listen to the AGM live, submit questions and submit their vote during the AGM. Online check-in will begin 15 minutes prior to the start of the AGM, at 9:45 a.m. The AGM will begin promptly at 10:00 a.m. on June 21, 2022. A management information circular describing the proposed share consolidation and other items of business to be considered at the AGM will be mailed to shareholders in the coming days. Remaining on the Nasdaq Capital Market is a critical piece of the Company's performance, corporate visibility and overall awareness of Aeterna Zentaris to the investor base. If the Company fails to meet a minimum bid price for its common shares above US$1.00, for a minimum of at least 10 consecutive days before July 26, 2022, the Company could be delisted from The Nasdaq Stock Market, which could have serious consequences for the Company. Accordingly, the Company expects to file a management information circular in the coming days which will include a resolution for shareholders to provide the Board with the authority to consolidate the common shares at a ratio within the range of between five and 25 pre-consolidation common shares for every one post-consolidation common share. The Company expects that the Share Consolidation will allow for the common shares to continue to be listed on the Nasdaq, and ensure compliance with the Nasdaq's continued listing standard that common shares maintain a minimum bid price of US$1.00 per share. As previously announced, on July 28, 2021, the Company received a letter from the Listing Qualifications Department of the Nasdaq, indicating that, based upon a closing bid price of less than $1.00 per share for the Company's common shares for the prior 30 consecutive business day period, the Company no longer satisfied Nasdaq Listing Rule 5550(a)(2). In accordance with the Nasdaq Listing Rule 5810(c)(3)(A), the Company was granted a grace period of 180 calendar days, through January 24, 2022. On January 26, 2022, the Company announced that the Nasdaq granted the Company an additional 180 calendar day period, through July 26, 2022, to comply with the Standard. In advance of the Deadline, the Board believes it is in the best interests of the Company to obtain shareholder approval at the Meeting to implement the Share Consolidation.