NLS Pharmaceutics closes initial tranche of $10M purchase agreement

NLS Pharmaceutics announced the closing of its previously publicized purchase agreement with BVF Partners comprised of an initial closing of $10M in exchange for 11,494,253 common shares, representing a purchase price per share of $0.87. As part of the financing, in a second potential closing, BVF will have the right, following a successful end of phase 2 meeting with the U.S. Food and Drug Administration, among other closing conditions, to purchase units at a per unit purchase price of $1.50, which units will consist of common shares, as well as a common share warrant to purchase up to one and a half common shares at an exercise price of $2.03 per share. If this option is exercised in full, BVF will receive 20 million common shares plus common share warrants to purchase 20 million NLS common shares at $2.03 per share. Laidlaw & Company Ltd. acted as exclusive introducing broker for the offering. NLS intends to use the net proceeds from the offering to accelerate the ongoing clinical development of its lead product, Mazindol ER for the treatment of narcolepsy, to advance NLS-4 and other product candidates, to support business development and licensing activities, and for general corporate purposes. With this financing, NLS expects to be able to fund its operations through 2025, beyond the anticipated submission of its New Drug Application for Mazindol ER in narcolepsy, expected in late 2024 or early 2025.