VistaGen Therapeutics, Inc. Restructures Its Debt, Sells Notes to Raise $3.25 Million
Published: Oct 17, 2012
SOUTH SAN FRANCISCO, CA--(Marketwire - October 16, 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 the completion of the previously announced $3.25 million financing commitment with Platinum Long Term Growth VII, LLC (Platinum) and approximately $3.0 million strategic debt restructuring. The combined transactions involve the Company's three largest institutional shareholders and its patent counsel.
"Today marks a significant turning point for VistaGen. These transactions represent a tremendous vote of confidence by four of our major stakeholders and position us to realize the full measure of our commercial opportunities involving our stem cell technology platform and AV-101 clinical program," said Shawn K. Singh, VistaGen's Chief Executive Officer.
"Our expectations are set very high. Over the next 12 months, we plan to achieve multiple transformative milestones, both in the lab and in the clinic. This funding provided by Platinum, combined with our strategic equity-based restructuring transactions with Cato Research, Morrison & Foerster and University Health Network, will be instrumental in our success," concluded Mr. Singh.
Allen Cato, M.D., Ph.D., co-founder and Chief Executive Officer of Cato Research, stated, "By more closely approximating human biology, VistaGen's stem cell-based bioassay systems can improve the predictability of the drug development cycle and lower the cost of new drug research and development. We are pleased to support VistaGen's efforts to transform the drug development process and to bring safer, more effective therapies to market."
Michael Goldberg, M.D., Portfolio Manager of Platinum Long Term Growth VII, commented, "VistaGen has been, and continues to represent, an excellent investment opportunity for Platinum. Our continued commitment toward supporting VistaGen underscores our confidence in the Company's novel stem cell technologies and AV-101."
Further information regarding the Company's recent financing transaction with Platinum Long Term Growth Fund, and its strategic debt restructuring transactions with Cato Research, Morrison & Foerster and University Health Network, is set forth in the Company's Current Reports 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 investment and 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 1 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 millions of people worldwide. To date, VistaGen has been awarded over $8.5 million from the NIH for development of AV-101.
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 development and commercialization of the Company's stem cell technology platform, successful completion of the Company's Phase 1 clinical development program for AV-101, the failure of the Company's future drug rescue and predictive toxicology programs involving its stem cell technology-based Human Clinical Trial in a Test Tube™ platform, the Company's ability to enter into third-party research, development and 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 or its collaborators. These and other risks and uncertainties are identified and described in more detail in VistaGen's filings with the 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.
For More Information:
Shawn K. Singh, J.D.
Chief Executive Officer
VistaGen Therapeutics, Inc.
Mission Investor Relations