VistaGen Therapeutics, a biotechnology company with stem cell technology designed to improve the predictability of the drug development cycle and lower the cost of new drug R&D, just announced the signing of a strategic financing agreement with the European subsidiary of Bergamo Acquisition, a global diversified investment holding company.
Bergamo's European subsidiary has agreed to invest $36 million in VistaGen in exchange for 72 million shares of restricted VistaGen Common Stock at a price of $0.50 per share. A self-placed strategic financing without any warrants or investment banking fees, this transaction is scheduled to close on or before the last day of this month. At closing, Bergamo will hold the majority of the issued and outstanding shares of VistaGen's Common Stock.
VistaGen will be using the proceeds of this financing to accelerate and expand its stem cell technology-based drug rescue programs. Using its innovative CardioSafe™ 3D and LiverSafe™ 3D bioassay systems and modern medicinal chemistry, the company is focused on generating new, safer, proprietary variants (Drug Rescue Variants) of once-promising small molecule drug candidates discontinued in development by large pharmaceutical companies due to heart or liver safety issues. In collaboration with co-founder and renowned stem cell research scientist, Dr. Gordon Keller, as well as long-term strategic partner, the University Health Network in Toronto, and several other leading academic and corporate collaborators, VistaGen also plans to advance new pilot nonclinical regenerative cell therapy programs and certain other emerging commercial opportunities related to its Human Clinical Trials in a Test Tube™ platform.
"Since our inception nearly 15 years ago, we have carefully deployed more than $53 million, including over $15 million from grant awards and collaboration revenue, to successfully develop innovative stem cell technology and bioassay systems capable of bringing clinically relevant human heart and liver biology to the front end of the drug development process," commented Shawn K. Singh, VistaGen's Chief Executive Officer. "Upon the closing of this transformative financing, our strong long-term financial position will enhance substantially our ability to drive our core programs to valuable commercial outcomes."
For more information, visit www.VistaGen.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html