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Vancouver biotech NervGen raises $23M in bought deal

Bought deal raise of $23 million to fund ongoing trials of nerve regenerating drug
NervGen drug shows promises in treating spinal cord injuries.

A Vancouver biotech that has a drug candidate for repairing damaged nerves in spinal cord injuries has raised $23 million to help move the drug through clinical trials.

On March 21, NervGen Pharma Corp. (TSX-V:NGEN, OTCQX:NGENF) announced that a syndicate of underwriters led by Stifel Canada, Canaccord Genuity and PI Financial had agreed to buy 8,515,000 units in company at $2.35 per unit, with each unit including one common share and one-half of one common share purchase warrant.

Each warrant entitles the holder to buy one common share at $3 per share at any time up to 36 months following the closing date of the offering. They also had the option to purchase up to an additional 15 per cent of the units to cover over-allotments,

On March 28, NervGen announced the closing of the offering, which included the full exercise of the over-allotment option, for a total raise of $23 million.

NervGen said it plans to use the proceeds of the deal for ongoing Phase 1b/2a clinical trials for its drug candidate for NVG-29, “as well as, development and manufacturing activities for NVG-291, working capital and general corporate purposes.”

As BIV News reported last year, NervGen received Food and Drug Administration (FDA) fast tack designation for NVG-291.

The company said testing of the drug in rodents was found to promote nervous system repair and “functional recovery” in spinal cord injury, peripheral nerve injury, multiple sclerosis and stroke.

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