Neuralstem (AMEX: CUR) is set to raise $5.2M in a registered direct offering through T.R. Winston & Company. The company announced the agreement for a registered direct placement (5.2M shares of common) at a price of $1.00 per share or "at the market". Each investor will also receive a warrant to purchase a number of shares of common stock equal to the number of shares purchased by the investor in the offering or 1:1, with the offering set to close February 10, 2012.
Neuralstem is working on Fetal Derived cells for Lou Gehrig’s disease. The company received a lot of press on this program a few years ago when CNN (Sanjay Gupta) featured the treatment. Our concern in that this is a very tough disease to show efficacy and the regulatory pathway is anything but clear, certainly long and expensive. While ALL (Lou Gehrig’s Disease) is an unmet medical need, and the payoff could be large, it’s more likely than not, that the effect will be modest (this is a very debilitating, progressive, fatal disease) so definitive proof of concept will likely require a lot of patients and time.
