Neurobiological Technologies, Inc. Announces Stock Price in Private Financing
RICHMOND, Calif., April 19 /PRNewswire/ -- Neurobiological Technologies, Inc. (NIT®) (OTC Bulletin Board: NTII) today announced that the price in its private financing was $5.30 per share of common stock. NTI® announced earlier today that it has raised $6,360,000 in private financing to continue its clinical development of two neuroprotective drug candidates. The investors include Capital Research Company and Gotham Capital Management. AmeriCal Securities, Inc. of San Francisco acted as the placement agent.
NTI® is a drug development company focused on neuroscience-based drug candidates that target major unmet medical needs. The company is currently involved with the development of applications for Memantine, a compound that protects the brain by reducing damaging influxes of abnormal amounts of calcium while allowing normal signal transmission between cells. NTI® is investigating Memantine's potential use in treating neuropathic pain in diabetes and AIDS-related dementia.
"We appreciate the interest, support and trust from out new investors in our therapeutic initiatives," said Paul Freiman, NTI® president and chief executive officer. "The additional capital will allow us to conduct further clinical trials of our two products and provide a margin of comfort in financing the ongoing operations of the company."
NTI® expects to announce the complete results of the Phase IIB human trials of Memantine as a treatment for pain from diabetic neuropathy at the 52nd Annual Meeting of the American Academy of Neurology being held in San Diego from April 29 - May 6, 2000. The company reported positive preliminary results in the press release dated January 19, 2000. In February 2000, the company's corporate collaborator, Merz + Co. GmbH & Co. announced positive results in its Phase III trials in treating moderately to severely impaired Alzheimer's patients. Merz also announced positive results in clinical trials of Memantine for vascular dementia in several Phase III European trials. The compound also is being investigated in a Phase II trial to treat AIDS-related dementia by the AIDS Clinical Trial Group of the National Institutes of Health.
The company's second product, XERECEPT™, is in a Phase II trial to treat swelling caused by brain tumors. The company has seen positive results in an interim analysis and will use some of the funds to support further manufacturing and clinical work.
Note: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including NTI's ability to properly design, implement and complete planned trials and meet regulatory requirements, dependence on third parties and future capital needs and the uncertainty of additional financing, as well as other risks detailed from time to time in the company's Securities and Exchange Commission filings. Actual results may differ materially from those projected. These forward-looking statements represent the company's judgment as of the date of the release. The company disclaims, however, any intent or obligation to update these forward-looking statements.
SOURCE Neurobiological Technologies, Inc.
Web site: http: //www.ntii.com
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CONTACT: Paul E. Freiman, President and Chief Executive Officer of Neurobiological Technologies, Inc., 510-215-8000; or Jacqueline Bitowt of Russell-Welsh, Inc., 650-312-0700, ext. 15, for Neurobiological Technologies, Inc.