Newron Pharmaceuticals S.p.A. (Newron), a research and development company focused on novel CNS and pain therapies, announces that it has completed a private placement of 209,364 shares with a leading US-based biotechnology and healthcare specialist fund, raising gross proceeds of 5.4 million US$/CHF. The Financing will support clinical development of Sarizotan for patients with Rett Syndrome, a Rare Neurodevelopmental disease.
The subscription price was set at CHF 25.60 per share. Under the agreement, the fund holds an option to subscribe to another 209,364 newly issued shares no later than June 30, 2016, governed by the March 24, 2015 EGM authorization.
“The investment by this specialized institutional fund is a strong validation of our strategy to advance innovative CNS therapies for rare diseases where there are limited or no viable treatment options,” said Stefan Weber, CEO of Newron. “The proceeds will accelerate the advancement of the recently announced planned international pivotal trial with sarizotan for the treatment of patients with Rett syndrome.”
Weber added, “With Xadago (safinamide) approved in the EU and in Switzerland for the treatment of Parkinson’s disease and a current US. PDUFA date of March 29, 2016, Newron is focused on accelerating the clinical development of sarizotan and building relationships with key opinion leaders, patient advocacy and other key stakeholders in the Rett’s community.”
The capital increase was approved at the Company’s Extraordinary Shareholder’s Meeting on March 24, 2015. Once issued, the new shares will be immediately and freely tradable. Closing of the transaction will be subject to customary Italian and Swiss regulatory requirements. The new shares will be listed and traded on the six Swiss Exchange under the same ISIN as the Company’s existing shares (ISIN: IT0004147952) on or around November 25, 2015.