VistaGen Therapeutics, a biotechnology company applying stem cell technology for drug rescue and novel pharmaceutical assays for predictive heart and liver toxicology and drug metabolism screening, announced that Platinum Long Term Growth VII, LLC purchased a $750,000 secured convertible promissory note, supplementing its purchase of a similar note earlier this year in the principal amount of $500,000. All amounts due under the two notes are expected to be rolled into a proposed financing by Platinum anticipated to result in gross proceeds to VistaGen of at least $3.25 million, including $1.25 million from the two outstanding notes.
VistaGen also told investors of the strategic restructuring of approximately $2.38 million of long-term indebtedness to Morrison & Foerster LLP (M&F), its intellectual property counsel. The restructuring is expected to result in VistaGen’s issuance of restricted common stock to M&F, at a price of $1.00 per share, as payment for approximately $1.38 million of the principal amount of such long-term indebtedness.
“We are very pleased with these recent endorsements from our largest institutional investor and our highly-regarded, long-time intellectual property counsel,” stated Shawn K. Singh, CEO of VistaGen Therapeutics. ”Their confidence in our team and stem cell technology platform is a key component of the foundation underlying our core drug rescue, predictive toxicology and drug metabolism screening initiatives.”
Those who wish to review further information regarding VistaGen’s recent financing and debt restructuring transactions with Platinum Long Term Growth Fund and Morrison & Foerster, respectively, should visit the company’s website to find the Form 8-K filed with the U.S. Securities and Exchange Commission (SEC).
To learn more about VistaGen and its stem cell technology, visit www.VistaGen.com
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