"Kadimastem", a clinical-stage cell therapy company developing and manufacturing "off-the-shelf" allogeneic cell products for the treatment of neurodegenerative diseases and potential cure of diabetes, announce the successful completion of the initial closing of $500,000 of the previously announced $1 million financing between NLS and an accredited investor under a securities purchase agreement dated December 4, 2024, with the approval of certain items in NLS's extraordinary general meeting on January 7, 2025.
As previously detailed in NLS's Report on Form 6-K submitted to the Securities and Exchange Commission on December 4, 2024, this agreement involved no warrants and was executed at a share price of $3.10, representing 48% above the NLS market closing share price as of Jan 6, 2025, the last trading day prior to the date of the NLS's extraordinary general meeting.
This financing, along with the previously announced $3.2 million investment in NLS dated October 2024, is an important step in facilitating the previously announced proposed merger with Kadimastem, which aims to create a combined Nasdaq-traded biotechnology company with product candidates in advanced stages of clinical development.
Additionally, as previously announced, NLS recently filed an F-4 Registration Statement with the U.S. Securities and Exchange Commission (SEC), outlining the details of a proposed merger with Kadimastem. The company intends to convene an extraordinary general meeting to secure the necessary approvals for the merger as part of the closing process.
"With the successful completion of the initial portion of the fundraising, we are further bolstering our capacity to complete the merger with Kadimastem, which we believe will enhance our strategic position in the biotechnology sector," stated Alex Zwyer, Chief Executive Officer of NLS. "We are enthusiastic about the opportunities ahead and remain committed to delivering value to our shareholders and making a significant impact in patient care."
Ronen Twito, Executive Chairman and Chief Executive Officer of Kadimastem, stated, "The successful completion of this financing of NLS marks a significant advancement in our journey toward merging with NLS Pharmaceutics. This funding not only demonstrates confidence in our strategic direction but also positions us to create a powerful new entity in the biotechnology sector. We are excited about the enhanced opportunities this merger will unlock for our shareholders and our commitment to advancing innovative therapies in cell therapy and neuroscience."
About NLS Pharmaceutics Ltd:
NLS is a global development-stage biopharmaceutical company, working with a network of world-class partners and internationally recognized scientists, focused on the discovery and development of innovative therapies for patients with rare and complex central nervous system disorders who have unmet medical needs. Headquartered in Switzerland and founded in 2015, NLS is led by an experienced management team with a track record of developing and commercializing product candidates.
For more information, please visit www.nlspharma.com.
