Lanstead Australia Announcement

Lanstead invests A$10 million in support of Rett syndrome Phase 3 trial

June 29, 2017 / POSTED BY / CATEGORY: Announcements

Global investment firm Lanstead has today announced its A$10 million investment in Australian biotechnology firm Neuren Pharmaceuticals Ltd (“Neuren”) (ASX: NEU) ahead of an upcoming Rett syndrome Phase 3 trial.

Neuren is developing novel new therapies for brain injuries, neurodevelopmental and neurodegenerative disorders. It currently has a clinical stage molecule, Trofinetide, in Phase 2 clinical trials as well as NNZ-2591 in pre-clinical development.

Neuren will receive A$1.5 million from Lanstead in July 2017. The remaining A$8.5 million from Lanstead will be invested in a Sharing Agreement, which will enable Neuren to receive those proceeds on a pro-rata monthly basis over 18 months.

“We believe that Neuren is on the cusp of a major medical breakthrough in the treatment of a range of neurological conditions through the development of Trofinetide. We like the potential of its biotechnology, and the capabilities and credibility of the Neuren team,” Lanstead’s Co-Founder Greg Kofford said.

“This investment represents an opportunity to diversify our exposure, while capitalising on the innovative world-leading research being done by Australian biotech leaders that we see in Neuren’s team.”

The Sharing Agreement is subject to adjustments upwards and downwards each month depending on Neuren’s share price at the time, providing Neuren with the opportunity to benefit from positive future share price performance.

“This is a very important financing for Neuren and the Rett syndrome community. We greatly appreciate the continuing strong partnership with Rettsyndrome.org. We are also pleased to have Lanstead as a new supportive institutional shareholder,” Neuren Executive Chairman Richard Treagus said.

“This agreement enables Neuren to benefit if we achieve share price appreciation. We can now focus on our meeting with the FDA and the preparations for a Phase 3 trial.”

Lanstead is a global investment firm that provides funding for ongoing business objectives to listed small and mid-cap growth companies. Lanstead focuses on equity investments in companies already listed on the ASX, LSE/AIM or European exchanges and on management teams with a clear growth strategy.

Since 2007, Lanstead has completed over 40 equity placings with our accompanying sharing agreement to reward growth.

Many of the companies with Lanstead on the shareholder register have benefited substantially from the accompanying sharing agreement, receiving more cash than the original placement proceeds without having to issue any additional shares.

View the official press release here.

Forward-looking statements

This announcement contains forward-looking statements that are subject to risks and uncertainties. Such statements involve known and unknown risks and important factors that may cause the actual results, performance or achievements of the investments to be materially different from the statements in this announcement.

Kyle Henrie

Kyle Henrie

Head of Marketing & Communications at Lanstead. For more information about this article or Lanstead please email pr@lanstead.com.