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ZÜRICH - NLS Pharmaceutics Ltd. (NASDAQ:NLSP), a Swiss biopharmaceutical company with a current market capitalization of $2.11 million, has finalized a $2 million equity financing deal, with shares priced at a 10% premium over the market rate, as of last Friday. The company’s stock, currently trading at $1.30, has experienced significant volatility, declining nearly 82% over the past year. According to InvestingPro analysis, the stock is currently trading near its Fair Value. This capital raise, involving preferred shares at $1.65 each, may be followed by an additional $1 million funding round, pending shareholder approval.
The proceeds are earmarked for the company’s anticipated merger with Kadimastem Ltd., an entity specializing in cell therapy for neurodegenerative diseases and diabetes. The merger aims to create a leader in regenerative medicine and central nervous system disorder treatments. InvestingPro data reveals the company’s overall financial health score is currently rated as WEAK, with particular challenges in profitability and cash flow metrics. Subscribers can access 8 additional ProTips and comprehensive financial analysis at InvestingPro.
NLS also announced a $25 million committed equity facility agreement to support the merger and subsequent clinical trials for Kadimastem’s AstroRx® for ALS and IseltRx for type 1 diabetes. With a current ratio of 0.15 and short-term obligations exceeding liquid assets, this facility could provide crucial financial support for the company’s operations.
Alex Zwyer, CEO of NLS, expressed confidence in the merger’s transformative potential, citing favorable financing terms as a reflection of investor trust. Ronen Twito, CEO of Kadimastem, echoed this sentiment, highlighting the financing’s role in advancing clinical trials for potential treatments.
The merger, still subject to regulatory and shareholder approvals, follows NLS’s SEC filing amendment to its registration statement on Form F-4.
NLS specializes in developing therapies for sleep disorders, neurodegenerative diseases, and metabolic dysfunctions. Kadimastem’s technology platform focuses on Human Embryonic Stem Cells to produce cell therapies like AstroRx® for ALS and IseltRx for diabetes.
The securities were issued in a private placement under the Securities Act of 1933, and are not registered under the Securities Act or state securities laws, thus limiting their sale in the United States to certain conditions.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy securities.
In other recent news, NLS Pharmaceutics Ltd. has announced promising preclinical results for its drug AEX-2, developed in collaboration with Aexon Labs Inc. The drug is a non-sulfonamide dual orexin receptor agonist aimed at treating narcolepsy and related neurological disorders. The companies highlighted AEX-2’s potential to enhance wakefulness, preserve REM sleep, and reduce cataplexy in orexin-deficient mouse models. These findings suggest that AEX-2 could offer a safer and more targeted treatment compared to existing therapies. Additionally, preclinical studies have indicated potential applications of AEX-2 and another compound, AEX-41, in neurodegenerative and metabolic disorders. NLS Pharmaceutics plans to advance these compounds into IND-enabling studies this year, with first-in-human clinical trials expected by 2026. The company will present detailed results at the American Society for Clinical Psychopharmacology Annual Meeting in 2025.
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