Neuralstem, Inc. (NASDAQ:CUR) shares are climbing nearly 6% after announcing this morning it had entered into an official agreement with Tianjin Pharmaceutical Holding Group, where the firm will garner $20 million in gross proceeds for R&D activities coupled with general corporate developments. Tianjin, in turn, will receive 28.5 million shares of common stock along with Series A convertible preferred stock that can be instantly converted to around 50.6 million shares of common stock, or $0.253 per share.

In reaction, Brean Capital analyst Jonathan Aschoff reiterates a Buy rating on shares of CUR with a $4.00 price target. Aschoff asserts, “Along with the $11.1 million in cash as of the end of 2Q16 and the cost saving plan in place, we believe that the strategic investment from Tianjin lends further support to new management’s dedication to seeing NSI-189 through and should be able to fund the company well into late 2017.”

Additionally, the company presented therapeutic efficacy with NSI-189, the biotech firm’s experimental, novel potential antidepressant pipeline drug designed to treat major depressive disorder (MDD), as well as cognitive impairment and neurodegeneration, at the Annual Meeting of the Diabetic Neuropathy Study Group of the EASD this past weekend. The drug was evaluated in preventing and reversing diabetic neuropathies in mice models, proving positive for CUR. The firm prepares to enroll patients into a multi-side Phase 2 trial, and results are anticipated by the second half of the fiscal year of 2017. Aschoff takes this as a great sign for the firm, as he believes it reveals “preclinical support for NSI-189 beyond MDD.”

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst Jonathan Aschoff is ranked #3,986 out of 4,124 analysts. Aschoff has a 36% success rate and faces a loss of 9.6% in his annual returns. When recommending CUR, Aschoff loses 55.7% in average profits on the stock.

TipRanks analytics exhibit CUR as a Buy. 100% of analysts polled in the last 3 months rate a Buy on CUR. The 12-month average price target stands at $2.60, marking a nearly 713% upside from where the shares last closed.screen-shot-09-12-16-at-08-13-pm