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8-K - PALISADE BIO, INC. | v189532_8k.htm |
Exhibit
99.01
Contact:
Meg
McElroy, Shareholder Relations
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301.366.4960
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Deanne
Eagle, Planet Communications, Media
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917.837.5866
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NEURALSTEM COMPLETES
$10 MILLION REGISTERED DIRECT OFFERING
Financing Solidifies Clinical Platform
Into 2012
ROCKVILLE, Maryland, June 30,
2010 – Neuralstem, Inc. (NYSE Amex: CUR) announced that it has completed
its previously announced registered direct offering of $10 million of units to
institutional investors. The units were priced at $2.80 and consisted of: (i)
one share of common stock, and (ii) ¾ common stock purchase
warrant. The warrants have an exercise price of $3.25 and a term of
three years. Net proceeds from this offering, after deducting placement agent
fees and other offering expenses, total approximately $9.2 million. All of the
securities were offered pursuant to an effective shelf registration
statement.
Neuralstem
intends to use the net proceeds from the offering for working capital and
general corporate purposes.
“This
offering will provide funding of pre-clinical work and planned clinical programs
for both our rapidly advancing biotherapeutics and pharmaceutical initiatives,
which makes this is an important and timely raise for us,” said
Neuralstem President & CEO, Richard Garr. “These funds, combined with our
expected second quarter ending cash position of approximately $5 million, meet
our budget and support our aggressive clinical plans into 2012.”
Dr. Karl
Johe, Neuralstem’s Chairman and Chief Scientific Officer provided an update on
Neuralstem’s programs, “Our ongoing spinal cord stem cell trial for Amyotrophic
Lateral Sclerosis (ALS), commonly known as Lou Gehrig’s disease, is approaching
the completion of treatment of the late-stage ALS cohort, with our sixth patient
planned for a mid-July transplant. The trial is expected to commence into
treating the mid-stage ALS cohort, pending SMB approval. With this
financing, our scientific and clinical research teams are now assured that we
can move forward with our plans for additional FDA clinical trial submissions.
We anticipate that the first of these will be an Investigational New Drug (IND)
submission for a multi-site Phase I clinical trial for chronic spinal cord
injury. Internationally, our cell therapy work is focused on starting operations
in China; supporting our Korean partner, Cheil Jedang
Corporation, as it moves to launch its first Asian markets
clinical trial; and continued work on the Huntington’s disease project with our
collaborators at Albert-Ludwigs-University in Freiburg, Germany.
On the
pharmaceutical front, our scientists will be completing the pre-clinical work to
submit INDs to the FDA for Phase I clinical trials for our first-in-class
neurogenic small molecule drug.”
Dr. Johe
also noted, “We are continuing to pursue other indications in cell therapy.
These include Alzheimer’s disease and glioblastoma. We are also working on
pre-clinical pharmaceutical programs with our small-molecule drug compounds for
Alzheimer’s disease and major depression. By this time next year, we
believe that our transition from the laboratory to the clinic should be well
advanced, with multiple cell therapy trials and a pharmaceutical/small molecule
drug clinical trial underway.”
Mr. Garr
concluded, “It is very encouraging for our management team and our clinical
research partners to see the capital markets reward their continued achievement
of milestones and scientific advancement with solid financial
support.”
Noble
Financial Capital Markets acted as the sole placement agent for the offering and
National Securities participated as a financial advisor in the
offering.
This
press release does not constitute an offer to sell or the solicitation of an
offer to buy the shares of common stock. No offer, solicitation or sale will be
made in any jurisdiction in which such offer, solicitation or sale is unlawful.
Any offer will be made only by means of a prospectus, including a prospectus
supplement, forming a part of the effective registration statement. Copies of
the final prospectus supplement together with the accompanying prospectus can be
obtained at the SEC's website at www.sec.gov
or from Noble Financial Capital Markets, 6501 Congress Avenue, Boca Raton, FL
33487.
About
Neuralstem
Neuralstem's
patented technology enables the ability to produce neural stem cells of the
human brain and spinal cord in commercial quantities, and the ability to control
the differentiation of these cells constitutively into mature, physiologically
relevant human neurons and glia. Neuralstem is in a Phase I safety clinical
trial for Amyotrophic Lateral Sclerosis (ALS), often referred to as Lou Gehrig's
disease. The company is also targeting major central nervous system diseases in
addition to ALS, including traumatic spinal cord injury, ischemic spastic
paraplegia, and Huntington’s disease.
Through
its proprietary screening technology, Neuralstem has discovered and patented
compounds that may stimulate the brain’s capacity to generate new neurons,
possibly reversing the pathologies of some central nervous
system conditions. The company plans to initiate clinical trials to
treat Alzheimer’s disease and major depression with its lead compound, as well
as pursue additional indications, including traumatic brain injury, post
traumatic stress syndrome, stroke and schizophrenia.
For more
information, please go to www.neuralstem.com
Cautionary Statement
Regarding Forward Looking Information
This news
release may contain forward-looking statements made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements in this press
release regarding potential applications of Neuralstem's technologies constitute
forward-looking statements that involve risks and uncertainties, including,
without limitation, risks inherent in the development and commercialization of
potential products, uncertainty of clinical trial results or regulatory
approvals or clearances, need for future capital, dependence upon collaborators
and maintenance of our intellectual property rights. Actual results may differ
materially from the results anticipated in these forward- looking statements.
Additional information on potential factors that could affect our results and
other risks and uncertainties are detailed from time to time in Neuralstem's
periodic reports, including the annual report on Form 10-K for the year ended
December 31, 2009, and in it’s quarterly report on Form 10-Q for the period
ended March 31, 2010.
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