NLS Pharmaceutics receives initial tranche of share sale to BVF
20 December 2022 11:58
NLS Pharmaceutics has announced the closing of the first part of a purchase agreement with the San Francisco-based biotech investor BVF Partners, which has raised a total of 10 million US dollars for the biopharmaceutical firm from Zurich. NLS Pharmaceutics is currently carrying out a Phase II study in the USA with its lead product Mazindol for the treatment of the sleeping disorder narcolepsy.
As part of the financing, BVF is entitled, in a potential second tranche, to acquire units at a purchase price of 1.50 US dollars per unit following a successful end of Phase II meeting with the US Food and Drug Administration (FDA). These units will consist of common shares or their equivalent, as well as a common share warrant to purchase up to one and a half common shares at an exercise price of 2.03 US dollars per share. If exercised in full, BVF will receive 20 million common shares and the corresponding warrants to purchase 20 million NLS common shares at a price of 2.03 US dollars per share.
NLS expects to lodge an approval application with the FDA in late 2024 or early 2025. The company intends to use the funds raised from the purchase agreement with BVF to advance the clinical development of Mazindol and other product candidates. This capital will enable NLS to finance its activities up to 2025.