Biostage, Inc. (OTCQB: BSTG), a biotechnology company developing bioengineered organ implants to treat conditions of the esophagus, bronchus and trachea, today announced the previously disclosed Securities Purchase Agreement with Jinhui Liuhas fully funded and closed. Mr. Liu purchased in a private placement 302,115 shares of the Company's common stock, par value $0.01 per share at a purchase price of $3.31 per share for gross proceeds to the Company of $1,000,000. The shares were sold without warrants. The purchase price was the closing market price on the day preceding the signing of the Securities Purchase Agreement.

Biostage CEO Jim McGorry, commented, "This most recent round of funding build on the December 2017 funding and the January investment from Connecticut Children's and demonstrates Biostage's continuing ability to fund our technology's advancement. We believe that Mr. Liu's investment at market price and without warrants, indicates that investors are once again seeing the medical value inherent in our technology and its significant market opportunities."

About Biostage, Inc.

Biostage is a biotechnology company developing bioengineered organ implants based on the Company's Cellframe™ technology which combines a proprietary biocompatible scaffold with a patient's own stem cells to create Cellspan organ implants. Cellspan implants are being developed to treat life-threatening conditions of the esophagus, bronchus or trachea with the hope of dramatically improving the treatment paradigm for patients. Based on its preclinical data, Biostage has selected life-threatening conditions of the esophagus as the initial clinical application of its technology.

For more information, please visit www.biostage.com and connect with the Company on Twitter and LinkedIn.