GlobeNewswire Inc | Nov 8, 2021 09:00AM EST

November 08, 2021

Application Approval Will Further Extend Current Operating Runway to Over Three Years

To date, through the New Jersey Technology Business Tax Certificate Transfer (NOL) Program,Celsion has raised over $14 million in Non-Dilutive Capital

LAWRENCEVILLE, N.J., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Celsion Corporation(NASDAQ: CLSN), a clinical-stage development company focused on DNA-based immunotherapy and next-generation vaccines, today announced it was notified by the New Jersey Economic Development Authority (NJEDA) that the Companys application to sell $1.5 million of its unusedNew Jerseynet operating losses (NOLs) for the tax year 2020 under the Technology Business Tax Certificate Transfer (NOL) program has been approved the NJEDAs Board of Directors. The Company anticipates it will be able to transfer this credit to a qualified company and receive approximately$1.4 millionof net cash proceeds. With this additional funding, the Company expects to report over$62 millionin cash and investments at end of the third quarter endedSeptember 30, 2021.

This competitive program, administered by the NJEDA, enables qualified companies to sell their unusedNew Jerseynet operating losses and R&D tax credits to unaffiliated, profit-generating corporate taxpayers in the state ofNew Jersey, up to a current maximum lifetime benefit of$20 millionper company. This allows technology and biotechnology companies with NOLs to turn their tax losses and credits into cash proceeds to fund more R&D, expand its workforce, and cover other allowable expenditures.Celsion is one of several qualifying biotechnology/technology companies to share in the funding this year.

The NJEDAs NOL program reinforces our belief in the State of New Jerseys commitment to biotechnology research. With theNew Jersey State Legislatureincreasing the maximum lifetime benefit per company from$15 millionto$20 million, this has allowed Celsion to continue participating in this innovative funding program, saidMichael H. Tardugno, Celsion Corporations chairman, president and chief executive officer. The proceeds from the NOL sale will help augment our strong cash position, and together with recentcommon stock only financings inthe first half of 2021, at the current spending rate, extends our operating runway through 2024. With this non-dilutive funding, we are positioned to continue to advance our DNA vaccine initiative. Additionally, we expect these funds to cover full patient enrollment and primary efficacy read-out of the Phase II OVATION 2 Study for GEN-1, depending upon the extent to which Progression Free Survival (PFS) is achieved. We appreciate the support and commitment of the NJEDA in facilitating our continued innovation and applaud their efforts to foster continued investment and growth for businesses in New Jersey.

Throughout the course of 2021,Celsionhas sought innovative ways to finance our clinical development programs and research initiatives. Balancing the high cost of research and drug development without losing focus on our shareholders is reflected in our successful application to sell$16.5 millionof our New Jersey NOLs over the past four years, saidJeffrey W. Church, Celsion Corporations executive vice president and chief financial officer. With the support of our shareholders and the State of New Jersey, we look forward to an exciting and promising year ahead.

For more details on this funding for this years NOL program, please visitwww.njeda.com.

AboutCelsion Corporation

Celsionis a fully integrated, clinical stage biotechnology company focused on advancing a portfolio of innovative cancer treatments, including immunotherapies and DNA-based therapies; and a platform for the development of nucleic acid vaccines currently focused on SARS-CoV2. The companys product pipeline includes GEN-1, a DNA-based immunotherapy for the localized treatment of ovarian cancer. Celsionalso has two platform technologies for the development of novel nucleic acid-based immunotherapies and other anti-cancer DNA or RNA therapies. Both are novel synthetic, non-viral vectors with demonstrated capability in nucleic acid cellular transfection. Celsions wholly owned subsidiary, Celsion GmbH, is managing ThermoDox, a proprietary heat-activated liposomal encapsulation of doxorubicin, which is under investigator-sponsored development for several cancer indications. For more information onCelsion, visitwww.celsion.com and www.celsiongmbh.com.

Forward-looking Statements

Forward-looking statements in this news release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of risks and uncertainties, many of which are difficult to predict, including, unforeseen changes in the course of research and development activities and in clinical trials; the uncertainties of and difficulties in analyzing interim clinical data, particularly in small subgroups that are not statistically significant; FDA andregulatory uncertainties and risks; the significant expense, time and risk of failure of conducting clinical trials; the need forCelsionto evaluate its future development plans; possible acquisitions or licenses of other technologies, assets or businesses; possible actions by customers, suppliers, competitors or regulatory authorities; and other risks detailed from time to time in theCelsion'speriodic filings with theSecurities and Exchange Commission.Celsionassumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

Celsion Investor ContactJeffrey W. Church609-482-2455jchurch@celsion.com

LHA Investor RelationsKim Sutton Golodetz212-838-3777kgolodetz@lhai.com

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