Tuesday, October 16, 2012

VistaGen Therapeutics, Inc. (VSTA) Secures $3.25 Million Financing and Completes $3.0 Million Debt Restructuring

VistaGen Therapeutics, a biotechnology company applying human pluripotent stem cell technology for drug rescue and novel pharmaceutical assays, just announced the completion of the previously announced $3.25 million financing commitment with Platinum Long Term Growth VII, LLC (Platinum) and approximately $3.0 million strategic debt restructuring. The combined transactions involve the company’s three largest institutional shareholders and its patent counsel.

“Today marks a significant turning point for VistaGen. These transactions represent a tremendous vote of confidence by four of our major stakeholders and position us to realize the full measure of our commercial opportunities involving our stem cell technology platform and AV-101 clinical program,” stated Shawn K. Singh, VistaGen’s Chief Executive Officer.

“Our expectations are set very high. Over the next 12 months, we plan to achieve multiple transformative milestones, both in the lab and in the clinic. This funding provided by Platinum, combined with our strategic equity-based restructuring transactions with Cato Research, Morrison & Foerster and University Health Network, will be instrumental in our success,” concluded Mr. Singh.

Allen Cato, M.D., Ph.D., co-founder and Chief Executive Officer of Cato Research, commented, “By more closely approximating human biology, VistaGen’s stem cell-based bioassay systems can improve the predictability of the drug development cycle and lower the cost of new drug research and development. We are pleased to support VistaGen’s efforts to transform the drug development process and to bring safer, more effective therapies to market.”

Michael Goldberg, M.D., Portfolio Manager of Platinum Long Term Growth VII, added, “VistaGen has been, and continues to represent, an excellent investment opportunity for Platinum. Our continued commitment toward supporting VistaGen underscores our confidence in the Company’s novel stem cell technologies and AV-101.”

Investors who wish to obtain further information regarding these transactions should view the company’s Current Reports on Form 8-K filed with the U.S. Securities and Exchange Commission (SEC).

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