NurExone Biologic Announces $2M Private Placement, Closes $1.61M First Tranche

Sept. 26, 2024 -- NurExone Biologic Inc. (TSXV: NRX), (OTCQB: NRXBF), (Germany: J90) ("NurExone"), a biopharmaceutical company specializing in exosome-based treatments for the regenerative medicine market, is pleased to disclose a non-brokered private placement of up to 3,636,363 units ("Units") priced at $0.55 per Unit, totaling up to $2,000,000 in gross proceeds (the "Offering"). With the acceptance of the TSX Venture Exchange ("TSXV"), the company will close the first tranche of the Offering, raising $1,610,147.55. The proceeds will support working capital needs.

Dr. Lior Shaltiel, CEO of NurExone, expressed gratitude for the ongoing backing from existing shareholders. He highlighted the company's progress in advancing exosome-based regenerative therapies targeting acute spinal cord injuries and optic nerve damage. According to Dr. Shaltiel, this shareholder participation underscores confidence in NurExone's strategic path and long-term growth prospects.

Each Unit in the Offering consists of one common share ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant grants the holder the right to purchase an additional Common Share at $0.70 each for 36 months, subject to acceleration. If the daily volume-weighted average trading price of the Common Shares on the TSXV equals or exceeds $1.05 for any 10 consecutive trading days, NurExone can issue an "Acceleration Notice," moving the Warrant expiry date to a minimum of 30 days after the notice. Unexercised Warrants will expire after this accelerated date.

The Offering's completion hinges on receiving all necessary regulatory approvals, including from the TSXV. Additionally, securities issued in the Offering will be subject to a statutory hold period of four months and one day from the closing date. The transaction may be classified as a "related party transaction" under Multilateral Instrument 61-101 – Protection of Minority Shareholders in Special Transactions ("MI 61-101"), as some company insiders may participate. This would usually necessitate minority shareholder approval and a formal valuation. However, NurExone expects these requirements to be exempt, as the insider subscriptions would not surpass 25% of the company's market capitalization.

NurExone has also announced the closing of the first tranche of the Offering, securing $1,610,147.55 through the issuance of 2,927,541 Units. These securities will also adhere to a statutory hold period of four months and one day.

This announcement is not an offer to sell or a solicitation to buy any securities in the United States. These securities are not registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and therefore cannot be offered or sold in the United States or to U.S. persons without proper registration or an applicable exemption.

NurExone Biologic Inc. operates as a TSXV, FSE, and OTCQB listed pharmaceutical company focused on developing biologically-guided exosome-based therapies for non-invasive treatment of Central Nervous System injuries. Their flagship product, ExoPTEN, aims to treat acute spinal cord injuries and has demonstrated a 75% recovery in motor function in lab rats when administered intranasally. The FDA has granted ExoPTEN Orphan Drug Designation. NurExone's platform technology offers innovative drug delivery solutions for various medical conditions, attracting interest from pharmaceutical companies seeking non-invasive targeted drug delivery systems.