Neurobiological Technologies Raises $19.4 Million in Private Equity Financing
March 02 2004 - 8:00AM
PR Newswire (US)
Neurobiological Technologies Raises $19.4 Million in Private Equity
Financing RICHMOND, Calif., March 2 /PRNewswire-FirstCall/ --
Neurobiological Technologies, Inc. (NTI(R)) today announced it has
entered into a definitive agreement for a $19.4 million private
placement of 3,880,000 shares of common stock at a price of $5.00
per share. Investors will also receive warrants to purchase an
additional 582,000 shares of common stock at a price of $6.73 per
share. The transaction is expected to closepromptly upon the
company's receipt of funds. "This financing significantly
strengthens NTI's balance sheet and provides the financial
resources to enable us to actively pursue broadening our pipeline
by in-licensing or acquiring products that should add tangible
value to the company's growth and development," Paul E. Freiman,
President and Chief Executive Officer, said. "We are extremely
pleased with the high caliber of institutional investors
participating in the private placement." Merriman Curhan Ford &
Co. acted as sole placement agent in this transaction. The shares
were offered in reliance on an exemption from the registration
requirements of the Securities Act of 1933 (the "Securities Act").
The offering has not been registered under theSecurities Act or any
state securities laws and the shares may not be offered or sold
absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable
state securities laws. In connection with the offering, NTI agreed,
subject to certain terms and conditions, to file a registration
statement under the Securities Act covering the resale of the
shares purchased and shares issuable upon exercise of the warrants.
This press release does not and shall not constitute an offer to
sell or the solicitation of an offer to buy shares or warrants and
is being issued under Rule 135c under the Securities Act. NTI is an
emerging drug development company focused on the clinical
evaluation and regulatory approval of neuroscience drugs. The
company's strategy is to in-license and develop early-and
later-stage drug candidates that target major medical needs and
that can be rapidly commercialized. The company's management team
oversees the human clinical trials necessary to establish
preliminary evidence of efficacy and seeks partnerships with
pharmaceutical and biotechnology companies to complete development
and marketing of its product candidates. Except for the historical
information contained herein, the matters discussed in this press
release are forward-looking statements that involve risks and
uncertainties, including, but not limited to, the company's ability
to broaden its product pipeline and growth and other risks detailed
from time to time in Securities and Exchange Commission filings.
Actual results may differ materially from those projected. These
forward-looking statements represent management's judgment as of
the date of the release. The company disclaims, however, any intent
or obligation to update these forward-looking statements.
DATASOURCE: Neurobiological Technologies, Inc. CONTACT: Paul E.
Freiman, President & CEO, Neurobiological Technologies, Inc.,
+1-510-262-1730; or Roger Pondel or Rob Whetstone both of
PondelWilkinson MS&L, +1-323-866-6006, for Neurobiological
Technologies, Inc. Web site: http://www.ntii.com/
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