Neuralstem, Inc. (NASDAQ:CUR) announces the closing of Tianjin Pharmaceutical Group International Holdings Co., LTD.’s (TJPH or Tianjin) $20 million strategic investment. Upon the close of the transaction, Tianjin receives 28,500,000 shares of common stock and 1,000,000 shares of Series A convertible preferred stock. The preferred stock is convertible into 50,551,383 shares of the company’s common stock subject to certain beneficial ownership limitations. The transaction was initially announced on September 12, 2016.
“This is a fundamental milestone that further validates the potential of our proprietary technology and provides sufficient funding for our ongoing clinical programs and operations into 2018. We remain committed to presenting the Phase 2 MDD clinical trial results in the second half of 2017,” commented Rich Daly, Neuralstem’s Chairman and CEO. “Additionally, we welcome Tianjin’s expertise as a multinational and multifaceted pharmaceutical company to complement and support Neuralstem’s research and development initiatives.”
Yanchang Lu, Ph.D., Tianjin’s CEO added, “Tianjin is very proud to be one of the five major pharmaceutical enterprises in China and continues to globally target investments in cutting-edge technologies like Neuralstem’s innovative stem cell and small molecule platforms. We look forward to cultivating opportunities for additional partnerships to utilize and advance Neuralstem’s research and development.”
Pursuant to the terms of the investment, Tianjin is entitled to appoint one (1) member to the company’s board of directors. Additionally, shares of the Series A Preferred Stock have no voting rights and cannot be converted if after such conversion, the shares received as a result of the conversion and the common shares received in this transaction would result in Tianjin having voting power in excess of 19.99% of the issued and outstanding shares entitled to vote of the company. For further details regarding the transaction, please refer to the company’s Current Report on Form 8-K which was filed with the United States Securities and Exchange Commission on September 12, 2016. The information contained herein is qualified in its entirety by such Current Report. (Original Source)
Shares of Neuralstem closed last Friday at $0.236, down $0.01 or -2.48%. CUR has a 1-year high of $1.20 and a 1-year low of $0.19. The stock’s 50-day moving average is $0.26 and its 200-day moving average is $0.28.
On the ratings front, Neuralstem has been the subject of a number of recent research reports. In a report issued on November 8, Roth Capital analyst Joseph Pantginis reiterated a Buy rating on CUR, with a price target of $1.20, which implies an upside of 408% from current levels. Separately, on October 4, Aegis’ Jason Wittes reiterated a Buy rating on the stock and has a price target of $4.00ץ
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Joseph Pantginis and Jason Wittes have a yearly average loss of 14.7% and a return of 4.1% respectively. Pantginis has a success rate of 32% and is ranked #4194 out of 4273 analysts, while Wittes has a success rate of 53% and is ranked #846.
Neuralstem, Inc. is a biopharmaceutical company, which is focused on the research, development and commercialization of central nervous system therapies based on human neuronal stem cells and small molecule compounds. Its patented technology enables the commercial-scale production of multiple types of central nervous system stem cells, which are under development for the potential treatment of central nervous system diseases and conditions.