Allon Therapeutics, Inc. announced that it expects to receive CAD 10 million in funding from NDI Capital and other investors.
April 16, 2012 at 12:00 am EDT
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Allon Therapeutics, Inc. (TSX:NPC) announced a brokered private placement of 40,000,000 units and subscription receipts at a price of CAD 0.25 per unit for the total gross proceeds of CAD 10,000,000 on April 16, 2012. Each unit consists of one common share and one half of one common share purchase warrant. Each share purchase warrant will entitle the holder to acquire one common share at a price of CAD 0.40 for a period of 60 months from the closing date of the transaction. Subject to the approval of shareholders meeting to be held on June 13, 2012, subscription receipts which are about half the total offering will get converted into identical units. Returning investor, Neuro Discovery II Limited Partnership, a fund managed by NDI Capital will participate in the transaction through the purchase of at least CAD 2,500,000 of subscription receipts. Bloom Burton & Co. will act as a placement agent for the transaction and will receive cash commission and agent's warrants on a portion of the placement. The company intends to close this placement on or about April 19, 2012.
Allon Therapeutics, Inc. is a Canada-based Company, which develops treatments for neurodegenerative diseases. The Company is engaged in pre-clinical and clinical development of proprietary neuroprotective compounds which may be applied for the potential treatment of Alzheimer's Disease, Parkinson's Disease, senile dementia, glaucoma, traumatic head injury, neuronal damage due to stroke and other conditions involving neurodegeneration. The Company's drug, davunetide, is proceeding in a pivotal Phase 2/3 clinical trial in an orphan indication, progressive supranuclear palsy (PSP), under a Special Protocol Assessment (SPA) with the Food and Drug Administration (FDA).
ALLON THERAPEUTICS INC. 
