Nurexone Biologic receives patent in Israel

Executive Summary

• Nurexone Biologic Inc. closed a non-brokered private placement of 930,376 units for gross proceeds of $632,655.68, with proceeds designated for working capital.
• The company received a patent grant from the Israel Patent Office for "Production of Extracellular Vesicles from Stem Cells," expanding its international intellectual property portfolio alongside a recent U.S. notice of allowance.
• Management will present at two U.S. conferences (Exosome-Based Therapeutic Development Summit and Bioprocess International Conference) to showcase the ExoTherapy technology and engage potential partners.

Key Details

• Private Placement Structure:
  • Units Sold: 930,376 units.
  • Price: 68 cents per unit.
  • Gross Proceeds: $632,655.68.
  • Use of Proceeds: Working capital to support preclinical pipeline and U.S. manufacturing initiatives.
  • Warrant Terms: Each unit includes one-half of one common share purchase warrant.
  • Warrant Exercise Price: 88 cents per common share.
  • Warrant Term: 36 months, subject to acceleration.
  • Acceleration Clause: If the daily volume-weighted average trading price on the TSX-V equals or exceeds $1.70 for 20 consecutive trading days, the company may accelerate the expiry date to 45 days following written notice.
  • Hold Period: Statutory hold period of four months and one day from closing.
  • Regulatory Status: Subject to TSX Venture Exchange approval.
• Related Party Transaction:
  • Director Jay Richardson acquired 24,854 units in the offering.
  • The company relied on exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, as the fair market value of the transaction involving insiders did not exceed 25% of the company's market capitalization.
  • The transaction was approved by independent directors; no special committee was established.
  • A material change report will be filed with further details.
• Intellectual Property:
  • Israel Patent Office granted the patent for "Production of Extracellular Vesicles from Stem Cells."
  • This aligns with a recently announced U.S. notice of allowance for the same priority family of applications.
  • Clinical and commercial manufacturing of exosomes will be based in the U.S. through the Exo-Top Inc. subsidiary.
• Conference Participation:
  • Dr. Ina Sarel (Head of CMC, Quality and Regulation): Will present on the exosome manufacturing platform and co-host a fireside discussion at the 7th Annual Exosome-Based Therapeutic Development Summit in Boston.
  • Dr. Lior Shaltiel (CEO): Will speak at the Bioprocess International Conference in Boston on "From Antibodies to siRNA-Loaded Exosomes: AbbVie vs. Nurexone in Advancing Spinal Cord Injury Treatments."

Notable Quotes

• "While our clinical and commercial manufacturing of exosomes will be based in the U.S. through our Exo-Top Inc. subsidiary, expanding jurisdictional coverage further strengthens Nurexone's international intellectual property portfolio." — Dr. Lior Shaltiel, CEO
• "The completion of this financing provides incremental capital to support our preclinical pipeline and U.S. manufacturing initiatives. It also positions us well as we prepare to accelerate our growth strategy." — Eran Ovadya, CFO