SOUTH SAN FRANCISCO, CA--(Marketwire - September 06, 2012) - VistaGen Therapeutics, Inc. (OTCBB: VSTA) (OTCQB: VSTA), a biotechnology company applying stem cell technology for drug rescue and novel pharmaceutical assays for predictive heart and liver toxicology and drug metabolism screening, today announced that Platinum Long Term Growth VII, LLC (Platinum) purchased a $750,000 secured convertible promissory note from the Company, supplementing its purchase in July 2012 of a similar note in the principal amount of $500,000. VistaGen currently anticipates that all amounts due under the two notes will be rolled into a proposed financing by Platinum expected to result in gross proceeds to VistaGen of at least $3.25 million, including $1.25 million from the two outstanding notes.
In addition, VistaGen announced the strategic restructuring of approximately $2.38 million of long-term indebtedness to Morrison & Foerster LLP (M&F), its intellectual property counsel. The restructuring is expected to result in VistaGen's issuance of restricted common stock to M&F, at a price of $1.00 per share, as payment for approximately $1.38 million of the principal amount of such long-term indebtedness.
"We are very pleased with these recent endorsements from our largest institutional investor and our highly-regarded, long-time intellectual property counsel," stated Shawn K. Singh, CEO of VistaGen Therapeutics. "Their confidence in our team and stem cell technology platform is a key component of the foundation underlying our core drug rescue, predictive toxicology and drug metabolism screening initiatives."
Further information regarding VistaGen's recent financing and debt restructuring transactions with Platinum Long Term Growth Fund and Morrison & Foerster, respectively, is set forth in the Company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) and available on both the SEC's website at www.sec.gov and the Company's website at www.VistaGen.com.
About VistaGen Therapeutics
VistaGen is a biotechnology company applying human pluripotent stem cell technology for drug rescue and novel pharmaceutical assays for predictive heart and liver toxicology and drug metabolism screening. VistaGen's drug rescue activities are focused on combining its human pluripotent stem cell technology platform, Human Clinical Trials in a Test Tube™, with modern medicinal chemistry to generate new chemical variants (Drug Rescue Variants) of once-promising small-molecule drug candidates. These are drug candidates discontinued due to heart or liver toxicity after substantial development by large pharmaceutical companies, the U.S. National Institutes of Health (NIH) or university laboratories. VistaGen uses its pluripotent stem cell technology to generate early indications, or predictions, of how humans will ultimately respond to new drug candidates before they are ever tested in humans, bringing human biology to the front end of the drug development process.
Additionally, VistaGen's orally-available, small molecule drug candidate, AV-101, is completing Phase 1b development for treatment of neuropathic pain. Neuropathic pain, a serious and chronic condition causing pain after an injury or disease of the peripheral or central nervous system, affects approximately 1.8 million people in the U.S. alone. VistaGen is currently exploring strategic partnering opportunities to leverage its current Phase 1 clinical program and enable Phase 2 clinical development of AV-101 for neuropathic pain, depression and potentially other neurological diseases or conditions. To date, VistaGen has been awarded over $8.5 million from the NIH for development of AV-101.
Visit VistaGen at http://www.VistaGen.com, follow VistaGen at http://www.twitter.com/VistaGen or view VistaGen's Facebook page at http://www.facebook.com/VistaGen.
Cautionary Statement Regarding Forward-Looking Statements
The statements in this press release that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by such statements. Those risks and uncertainties include, but are not limited to, risks related to the successful completion of the Company's ongoing clinical studies involving AV-101, the failure of the Company's future drug rescue programs involving its stem cell technology-based Human Clinical Trial in a Test Tube™ platform, the Company's ability to enter into third-party drug rescue collaborations, risks and uncertainties relating to the availability of substantial additional capital from Platinum or any other investor to support the Company's research, development and commercialization activities, and the success of its research and development plans and strategies, including plans and strategies related to AV-101 and any drug rescue variant identified and developed by VistaGen. These and other risks and uncertainties are identified and described in more detail in VistaGen's filings with the Securities and Exchange Commission (SEC). These filings are available on the SEC's website at www.sec.gov. VistaGen undertakes no obligation to publicly update or revise any forward-looking statements.