Press Release
Announcement of the Acceptance of the Third Party Allocation of New Shares by Advanced Immunotherapy, Co., Ltd. (Acquisition of the Ownership) GreenPeptide Co., Ltd. wishes to announce that its board, at a meeting held on November 20, 2016, decided to accept the third-party allocation of new shares by Advanced Immunotherapy, Co., Ltd. (Representative President: Genjiro Miwa, HQ: Minato-ku, Tokyo, hereafter, "AIT") and acquire ownership. On the same day, we executed a capital subscription contract with AIT. 1. Purpose of accepting the third-party allocation of new shares We currently possess two key pipelines comprising ITK-1 in prostate cancer, which was out-licensed to FUJIFILM Corporation, and GRN-1201 in melanoma, which is an overseas strategic product. In order to pursue additional growth, we are expanding new seeds and platform technology for drug discovery. As part of this effort, we have explored starting T-cell therapy research, in which the synergy with current R&D themes is high and there is high potential for cancer immunotherapy. At AIT, we have decided to acquire the ownership of highly novel technology in the field of regenerative medicine/cell therapy using iPS technology. This company was established to commercialize the inventions, which have been made by Dr. Hiromitsu Nakauchi, Professor at the Institute of Medical Science, University of Tokyo and Professor at Stanford University, et al., in Japan and Asian countries. The company has engaged in research and development towards the first global commercialization of iPS technology-based regenerative medicine for cancer immunotherapy. The company possesses the technology to regenerate (rejuvenize) T cells using iPS technology, thereby preventing the exhaustion of T cells that attack cancer cells, which has been a challenge in cancer immunotherapy for many years. Similarly, the company possesses unique technology to avoid adverse reactions that may occur in various processes when iPS cell therapy is conducted, which is also regarded as another challenge. Finally, by utilizing non-self T cells using iPS technology (use of T cells from a subject other than a patient), we expect that significant cost reduction can be achieved in cancer immunotherapy, for which treatment costs are typically very high. Furthermore, our various technologies and information related to cancer peptide vaccines and the peptide library may synergistically affect the analysis of epitopes that recognize antigen-specific T cells, which can be developed by iPS technology, and the discovery of T cells with high treatment efficacy. Including iCELL Inc., a patent management company for various inventions by Professor Hiromitsu Nakauchi, we have agreed to make milestone payments to shareholders prior to the third-party allocation of new shares by AIT based on the progress of product development activities at AIT. We would like to position the acquisition of AIT as a stepping-stone for expanding our development pipeline and entering the cutting-edge field of regenerative medicine/cell therapy. Moreover, we would like to become the leading company in cancer immunotherapy.
3. Status of the shares after acquisition We plan to acquire 67% of the shares issued by AIT.
4. Future prospects

5. Future prospect
Acquisition of the shares will have minimum impact on business performance ending in March 2017.
About Advanced Immunotherapy, Co., Ltd.
Advanced Immunotherapy, Co., Ltd. is a biopharmaceutical venture company that develops cancer immunotherapeutics against viruses based on research findings by Professor Hiromitsu Nakauchi at the Institute of Medical Science, University of Tokyo. Professor Nakauchi established iPS cells from T cells that recognize specific antigens and, for the first time, successfully induced T cells rejuvenated functionally at a high efficiency while maintaining antigen specificity (Cell Stem Cell, 2013). Based on a series of developed technologies, he filed 2 international patents (PCT/JP2011/052260, PCT/JP2013/064291). A patent was granted in one case (US 9,206,394 B2) (Applicant: The University of Tokyo). Furthermore, by incorporating a suicide gene (induced caspase 9) which can induce apoptosis, he successfully improved the safety of iPS cell-derived T cell therapy (Stem Cell Reports, 2015). Based on these research achievements, the company acquired the exclusive right to the patent at presumed markets. The company is preparing for a clinical study to examine the treatment of virus-related tumors by antigen-specific rejuvenated T cells.
About GreenPeptide Co., Ltd.
GreenPeptide is a drug discovery venture company engaged in the research and development of cancer immunotherapies that make use of the body's immune system to fight cancer. Cancer immunotherapies are expected to be the 4 th therapy when surgery, radiotherapy, and chemotherapy have failed. Currently, we are mainly developing 2 peptide vaccines at clinical stage (ITK-1 for prostate cancer and FRN-1201 for melanoma). We would like to contribute to cancer treatment by developing novel world-class cancer immunotherapeutics originating from Japan.
— Innovation in cancer immune regeneration using iPS cells — s GreenPeptide (Security code: 4594) November 21, 2016
●   Acquire the latest cutting-edge technology in T cell therapy, an important area in cancer immunotherapy. ● Share knowledge related to the technology and clinical development of immune cell activation including cancer vaccines through current research and development programs. ● Expectations as the first clinical application of iPS cell therapy for cancer immunotherapy and anticipation of large impacts in the subsequent development. 2
Compared to current T cell therapies, higher efficacy and significant cost reduction are expected.

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In current cancer immunotherapy, progress has been made in two areas, i.e., activation of antigen-specific immune cells and improvement in the cancer microenvironment (including check point inhibition). This alliance will help establish our presence in the former area in an accelerated manner. Activation of antigen-specific immune cells Improvement of cancer microenvironment GreenPent
For T cell therapy, “Securing sufficient number of T cells with anti-cancer activity” has been challenging. Through the use of iPS technology, an unlimited number of rejuvenated (high-activity) T cells can be supplied. Antigen specificity of T cells is maintained through these steps. Banking by frozen storage cells are selected. (T cells are exhausted at this point.) (iPS cells) (Unlimited proliferation is feasible in the iPS cell stage. (Rejuvenated T cells) areenPentide
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Using an apoptosis-inducing system (safeguard mechanism) programmed by caspase 9, various adverse reactions that may occur during treatment processes can be managed. In case an adverse reaction occurs during treatment (1) T cells (2) Suicide gene Incorporation of Caspase9 Introduction of apoptosis- inducing system Turning the apoptosis-inducing system ON Active removal of the cause of adverse reactions by apoptosis GreenPentide
Initially, development will be conducted in EB virus lymphoma, a type of virus that induces hematological cancer, to demonstrate the proof of concept. In the future, indications with a large market size including solid cancer will be developed. C GreenPeptide 7
●   Using induced pluripotent stem cells (iPS cells), T cells, one type of immune cells, were successfully rejuvenated. ● This was the first successful re-differentiation of T cells from the re-programming of T cells into iPS cells. Moreover, it was confirmed that these T cells were younger than the original T cells. ● This may provide an innovative treatment modality for chronic infections and cancer. Moreover, T-iPS cell banking may be established to help manage various diseases. Immunotherapy may be conducted in an expedited manner in the future. 2013.1.4   Hiromitsu Nakauchi (Professor, Division of Stem Cell Therapy, Center for Stem Cell Biology and Regenerative Medicine, Institute of Medical Science, University of Tokyo) Generation of rejuvenated antigen-specific T cells by reprogramming to pluripotency and redifferentiation. Cell Stem Cell (2013.1.4) Nishimura, et al. ● It was demonstrated that human immune cells (T cells) rejuvenated by iPS cell technology reduced tumors in vivo in mice. ● It was shown in vivo in mice that programming of a suicide gene into T cells could chemically control adverse reactions that may occur at various stages of iPS cell-based T cell therapy. ● This research output may improve the safety of iPS cell-based T cell therapy and is expected to serve as a bridge for research towards clinical application of this therapy.
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●  The information contained in this material indicates future prospects of our company and future planning. Descriptions about these future prospects are based on the current hypothesis about future events and dynamics. There is no guarantee that such hypotheses are correct. Because of various factors, actual business performance may significantly differ from the descriptions in this material. ●  This material is intended to provide investors with information and contains management information and future business plan, etc., and is not for soliciting investments. Investment decisions should be made individually. ●  This material describes information about pharmaceutical products. However, this information is not intended for advertisement or as medical advice. ●   Information described in this material may be changed without prior notice. Any damages as a result of this material are not the responsibility of our company or those who provided the information.