<![CDATA[[Press release] NEMUS Bioscience, Inc. (OTCQB: NMUS) (the “Company”) today announced the signing of a private placement with an affiliate of Schneider Brothers Ltd, a global closed investment fund with over USD$500 million in assets, for the sale of 1,000,000 shares of Series E Preferred Stock of the Company for gross proceeds of $20,000,000. Each share of preferred stock is convertible into shares of the Company’s common stock at an effective conversion price of $0.30 per share.
The Company plans to use the net proceeds from the private placement to fund the research and development activities of its product candidates and for other general corporate and working capital purposes. The transaction is expected to close within the second quarter and there are no conditions precedent or further obligations prior to the close. An affiliate of Schneider Brothers Ltd has entered into a guaranty to the benefit of the Company that guarantees the payment of the $20,000,000 investment.
“We are grateful to have this significant investment from Schneider Brothers,” stated Cosmas N. Lykos, Co-Founder and Executive Chairman of Nemus. “With its global presence, vast resources and long-term approach to investing, we believe that Schneider Brothers is the ideal investment partner for Nemus. Together with Schneider Brothers, we look forward to utilizing this cash infusion to execute on our strategic initiatives and increase shareholder value.”
John A. “Corky” Severson, Director and Partner for Schneider Brothers stated, “Our investment firm views the cannabinoid therapeutic space as a transformative and disruptive opportunity in drug development. We were attracted to Nemus based on the vision and progress achieved by the management team, as well as the Company’s strategic relationship with the University of Mississippi and the associated intellectual capital that collaboration provides. We believe that there is significant value in Nemus and we look forward to unlocking the true potential of the product pipeline.”
“This Series E round completes our financing strategy that was announced at the end of 2016 and the proceeds will enable us to now focus on advancing the pipeline across multiple, potential indications,” stated Brian Murphy, M.D., C.E.O. and Chief Medical Officer of Nemus. “To our knowledge, this is one of the largest single investments in a cannabinoid-based biotech at our stage of development. Parallel to our goals of reaching clinical stage testing of our candidate molecules, is to achieve strategic partnerships with larger pharmaceutical companies that can enhance their product portfolio with a new class of therapeutics that possess a global IP footprint for both composition of matter and methods of use.”
Source: Cannabis Business Times