Biostage, Inc. (OTCQB: BSTG), a biotechnology company developing bioengineered organ implants to treat life-threatening conditions of the esophagus, bronchus and trachea, today announced that the Securities Purchase Agreements with Chu Bogang and Zhou Heping previously disclosed on Form 8-K have been fully funded and closed. The rights to the Security Purchase Agreement with Mr. Chu were assigned to Ms. Du Xiaoyu, and Ms. Du and Mr. Zhou each purchased in a private placement 500,000 shares of the Company's common stock, par value $0.01 per share at a purchase price of $3.60 per share for total gross proceeds to the Company of $3.600,000. The shares were sold without warrants and the purchase price was at a premium to the $2.70 closing market price on the day preceding the signing of the Securities Purchase Agreements.

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.