Attorneys from Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. completed a $24.5 million financing in a private placement of common stock and warrants exercisable for common stock on behalf of Neutotrope, Inc., a company focused on developing drugs to treat neurodegenerative diseases including Alzheimer's disease.
Per the details of the transaction, Neurotrope has agreed to sell shares of its common stock at a purchase price of $.20 per share and five-year warrants to purchase an equal number of the company's shares of common stock, at an exercise price of $0.40 per share. The private placement is being led by new and existing investors.
Neurotrope plans to use net proceeds from the private placement to complete its current Phase 2 trial of bryostatin, a novel drug targeting the activation of PKC epsilon, in the treatment of moderate to severe Alzheimer's. The company is studying plans to initiate an open label extension study treating patients enrolled in the current Phase 2 study. Net proceeds from the private placement will also be deployed to advance bryostatin in a new indication, Fragile X syndrome. Neurotrope also plans to file an application with the Nasdaq Capital Market and is finalizing plans to meet all of the Nasdaq listing requirements.
Neurotrope is dedicated to bringing therapies to market to treat underserved patient populations. The company was founded to develop patented technology from the Blanchette Rockefeller Neuroscience Institute (BRNI). This technology is based on BRNI’s 13 years of research on the use of molecules that activate/upregulate protein kinase C (PKC) for the treatment of memory and learning disorders and to its commitment to identify safe and effective therapies for Alzheimer’s and FXS.
Leading the transaction on behalf of Neurotrope was Kenneth R. Koch, a Member of the firm’s Securities and Capital Markets Practice. The Mintz Levin team also included Jeffrey P. Schultz, a Member of the Securities and Capital Markets Practice, with assistance from Priya K. Agrawal and Stephanie Leopold, attorneys in the Corporate and Securities Practice.