GERMANTOWN, Md., May 3, 2016 /PRNewswire/ -- Neuralstem, Inc.
(Nasdaq: CUR), a biopharmaceutical company focused on the
development of central nervous system therapies based on its neural
stem cell technology, today announced the pricing of an
underwritten public offering of 20,000,000 shares of its common
stock at a public offering price of $0.40 per share and warrants to purchase
20,000,000 shares of common stock. The warrants have an
exercise price of $0.40 per share,
are immediately exercisable and expire on the fifth anniversary of
the date of issuance. The shares of common stock and warrants are
immediately separable and will be issued separately.
The offering is expected to close on May
6, 2016, subject to customary closing conditions. Roth
Capital Partners is acting as sole book-runner and Brean Capital is
acting as co-manager in the offering.
The gross proceeds of the offering are expected to be
approximately $8 million, before
deducting underwriting discounts and commissions and other
estimated offering expenses, excluding the exercise of any
warrants. Neuralstem intends to use the net proceeds from this
underwritten offering to fund regulatory, pre-clinical and clinical
activities and general corporate purposes, including working
capital and the repayment of debt.
The securities described above are being offered by Neuralstem
pursuant to a shelf registration statement on Form S-3, previously
filed with and subsequently declared effective by the Securities
and Exchange Commission (the "SEC"). A preliminary prospectus
supplement related to the offering has been filed with the SEC. A
final prospectus supplement related to the offering will be filed
with the SEC and available on the SEC's website at www.sec.gov.
Copies of the preliminary prospectus supplement and
accompanying base prospectus relating to this offering may be
obtained from Roth Capital Partners, 888 San Clemente Drive, Suite
400, Newport Beach, CA 92660,
(800) 678-9147.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Neuralstem
Neuralstem's patented technology
enables the commercial-scale production of multiple types of
central nervous system stem cells, which are being developed as
potential therapies for multiple central nervous system diseases
and conditions.
Neuralstem's ability to generate neural stem cell lines from
human hippocampus, which were used for systematic chemical
screening for neurogenesis effect, has led to the discovery and
patenting of molecules that Neuralstem believes may stimulate the
brain's capacity to generate new neurons, potentially reversing
pathophysiologies associated with certain central nervous system
(CNS) conditions.
The Company has completed Phase 1a and 1b trials evaluating
NSI-189, its first neurogenic small molecule product candidate, for
the treatment of major depressive disorder (MDD), and is currently
conducting a Phase 2 efficacy study for MDD.
Neuralstem's first stem cell product candidate, NSI-566, a
spinal cord-derived neural stem cell line, is under development for
treatment of amyotrophic lateral sclerosis (ALS). Neuralstem has
completed two clinical studies, in a total of thirty patients,
which met primary safety endpoints. In addition to ALS,
NSI-566 is also in a Phase 1 study to treat paralysis due to
chronic spinal cord injury, as well as in a Phase 1 study to treat
paralysis from ischemic stroke.
Cautionary Statement Regarding Forward Looking
Information
This press release contains "forward-looking
statements" made pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, including
statements regarding the proposed public offering and the intended
use of proceeds from the offering. The offering is subject to
market and other conditions and there can be no assurance as to
whether or when the offering may be completed or as to the actual
size or terms of the offering. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially, including market conditions, risks associated
with the cash requirements of our business and other risks detailed
from time to time in our filings with the SEC, and represent our
views only as of the date they are made and should not be relied
upon as representing our views as of any subsequent date. Such
forward-looking statements relate to future, not past, events and
may often be identified by words such as "expect," "anticipate,"
"intend," "estimate," "plan," "believe," "seek," "may" or "will."
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. Specific risks and
uncertainties that could cause our actual results to differ
materially from those expressed in our forward-looking statements
include 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,
2015, and filed with the Securities and Exchange Commission
(SEC) on March 14, 2016, and in other
reports filed with the SEC. We do not assume any obligation to
update any forward-looking statements.
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SOURCE Neuralstem, Inc.