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Newron Completes 5.4 Million USD/CHF Private Placement with U.S. Biotechnology/Healthcare Specialist FundNewron 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 USD/CHF. 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." Mr. Weber added, "With Xadago® (safinamide) approved in the EU and in Switzerland for the treatment of Parkinson's disease and a current U.S. 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. Piper Jaffray acted as exclusive financial advisor to Newron in connection with the transaction.
About Newron Pharmaceuticals
Important Notices By their very nature, such statements and assumptions involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described, assumed or implied therein will not be achieved. Future events and actual results could differ materially from those set out in, contemplated by or underlying the forward-looking statements due to a number of important factors. These factors include (without limitation) (1) uncertainties in the discovery, development or marketing of products, including without limitation negative results of clinical trials or research projects or unexpected side effects, (2) delay or inability in obtaining regulatory approvals or bringing products to market, (3) future market acceptance of products, (4) loss of or inability to obtain adequate protection for intellectual property rights, (5) inability to raise additional funds, (6) success of existing and entry into future collaborations and licensing agreements, (7) litigation, (8) loss of key executive or other employees, (9) adverse publicity and news coverage, and (10) competition, regulatory, legislative and judicial developments or changes in market and/or overall economic conditions. Newron may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements and assumptions underlying any such statements may prove wrong. Investors should therefore not place undue reliance on them. There can be no assurance that actual results of Newron's research programmes, development activities, commercialisation plans, collaborations and operations will not differ materially from the expectations set out in such forward-looking statements or underlying assumptions. Newron does not undertake any obligation to publicly up-date or revise forward looking statements except as may be required by applicable regulations of the SIX Swiss Exchange where the shares of Newron are listed. This document does not contain or constitute an offer or invitation to purchase or subscribe for any securities of Newron and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
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