It is part of a series of share issues - via conversion of preferred stock and/or warrants – that could see more than US$100mln of additional funding for the group.
Cash raised will support a Phase 2b clinical trial, which will study 150 patients with moderately severe to severe Alzheimer's disease.
The company has an exclusive license to develop and commercialize bryostatin, which is described as a ‘potent modulator’ of an enzyme call protein kinase C epsilon (PKCe).
PKCe deficit is seen as a potential cause of Alzheimer’s disease. Neurotrope highlights that in animal research the activation of PKCe has shown to improve learning and memory. It also highlighted that PKCe has been studied extensively by the Blanchette Rockefeller Neurosciences Institute (BRNI) as a possible treatment of cognitive disorders.
Initially, the company’s private placement will result in the raise of US$15.3mln with units sold to investors at 60 American cents each. Each unit will comprise one one-hundredth of a preference share (which can be converted later into common stock) and five separate share warrants.
If all warrants were exercised Neurotrope would raise US$136mln on top of the initial US$15.3mln funding.
Subscribers in the private placing will also be given the right to participate in any future equity financings over the next year.