NurExone Announces Closing of a Private Placement for Gross Proceeds of Approximately CAD$2 Million

TORONTO and HAIFA, Israel , Jan. 05, 2024 (GLOBE NEWSWIRE) — NurExone Biologic Inc. (TSXV: NRX) (FSE: J90) (NRX.V) (the “Company” or “NurExone”), a biopharmaceutical company developing biologically-guided exosome therapy for patients with traumatic spinal cord injuries, is pleased to announce that it has closed a non-brokered private placement (the “Private Placement”). An aggregate of 7,091,993 units of the Company (each a “Unit”) were issued and sold under the Private Placement at a price of CAD$0.28 per Unit for aggregate proceeds of CAD$1,985,758.04.

Each Unit consists of (i) one common share in the capital of the Company (each, a “Common Share”), and (ii) one Common Share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share at a price of CAD$0.35 per Common Share for a period of 36 months from the closing of the Private Placement.

The Warrants are subject to accelerated expiration whereby if the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange (“TSXV”) for any period of 20 consecutive trading days equals or exceeds CAD$0.80, the Company may, upon providing written notice to the holders of the Warrants (the “Acceleration Notice”), accelerate the expiry date of the Warrants to a date not less than 30 days following the date of the Acceleration Notice. If the Warrants are not exercised by the applicable accelerated expiry date, the Warrants will expire and be of no further force or effect.

All securities issued under the Private Placement are subject to a statutory hold period of four months and one day from the closing of the Private Placement. The Private Placement is subject to final approval of the TSXV. The Company intends to use the proceeds of the Private Placement for working capital purposes.

Dr. Lior Shaltiel, NurExone CEO stated: “We are truly honored to receive the support of our investors, who have placed their trust in NurExone’s technology and exceptional team. Despite the challenging times in the markets, the fact that we have successfully raised a significant investment demonstrates the strong confidence and trust that the investment community and bio-tech professionals have in NurExone. As we embark on the journey of 2024, we remain committed to advancing the development of our unique assets and eagerly anticipate brighter days ahead.”

“The Company intends to use the proceeds of the Private Placement for advancing the development activities of the Company’s assets, with a particular focus on progressing towards the clinical phase. Additionally, we plan to leverage these funds to expand the company’s intellectual property portfolio and support various general corporate purposes,” said Eran Ovadya, CFO of NurExone.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this news release in the United States. Such securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and, accordingly, may not be offered or sold within the United States, or to or for the account or benefit of persons in the United States or “U.S. Persons”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

About NurExone Biologic Inc.

NurExone Biologic Inc. is a TSXV listed pharmaceutical company developing a platform for biologically-guided ExoTherapy using exosomes as a next generation drug delivery system. The Company’s first product, ExoPTEN, is aimed at neural regeneration and recovery in patients who have suffered acute spinal cord injury. Notably, ExoPTEN has received Orphan Drug Designation by the FDA highlighting its potential significance for these patients. The Company holds an exclusive worldwide license from the Technion and Tel Aviv University for the development and commercialization of the technology.

For additional information, please visit www.nurexone.com or follow NurExone on LinkedIn, Twitter, Facebook, or YouTube.
For more information, please contact:

Dr. Lior Shaltiel
Chief Executive Officer and Director
Phone: +972-52-4803034
Email: info@nurexone.com

Thesis Capital Inc.
Investment Relation – Canada
Phone: +1 905-347-5569
Email: IR@nurexone.com  

Dr. Eva Reuter
Investment Relation – Germany
Phone: +49-69-1532-5857
Email: e.reuter@dr-reuter.eu

FORWARD-LOOKING STATEMENTS

This press release contains certain “forward-looking statements”, that reflect the Company’s current expectations and projections about its future results. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements relating to the use of proceeds of the Private Placement and the receipt of final approval of the TSXV of the Private Placement. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.

In developing the forward-looking statements in this press release, we have applied several material assumptions, including our estimated future expenditures; the general business and economic conditions of the industries and countries in which we operate; the market conditions; inflation will remain stable; and that the results of our studies reflect results that can be extrapolated.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the Company’s early stage of development, lack of revenues to date, government regulation, market acceptance for its products, rapid technological change, dependence on key personnel, protection of the Company’s intellectual property, dependence on the Company’s strategic partners and the risks discussed under the heading “Risk Factors” on pages 29 to 36 of the Company’s Annual Information Form dated March 30, 2023, a copy of which is available under the Company’s SEDAR+ profile at www.sedarplus.ca. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.