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Neuralstem secures USD8m in debt financing from Hercules

Neuralstem has secured USD8m in debt financing with Hercules Technology Growth Capital to fund the company’s capital budget through late 2014.

 
"This debt financing extends our cash runway well into late 2014 at a critical time in our clinical product development cycle. We have multiple NSI-566 cell therapy clinical trials planned this year, building on our successful ALS Phase I trial, including the upcoming phase II ALS in the US; both chronic and acute spinal cord injury in the US and South Korea, respectively; ALS in Mexico, and stroke in China, in addition to completing the NSI-189/Phase Ib trial in major depressive disorder," says Neuralstem’s president and chief executive Richard Garr. "We are pleased to have the support of leading life sciences and technology investor, Hercules."
 
"Neuralstem’s unique stem cell platform has the potential to address a serious unmet medical need in the ALS and spinal cord injury patient populations, as well as other indications. The team’s progress to date is the result of years of meticulous research and development. We are proud to be a strong financial partner," says Chad Norman, managing director at Hercules.
 
The funding of USD8m, which closed on 22 March, is in the form of a secured note which is repayable in instalments over 42 months following an interest-only period of nine months and up to 12 months upon funding of a second tranche. The note bears interest at a prime-based variable rate. In addition, Neuralstem issued Hercules 648,798 warrants to purchase shares of Neuralstem common stock at an exercise price of USD1.08 per share. The second tranche of USD2m will be made available to the company, at the company’s option until 30 September 2013, subject to certain conditions. 

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