Relmada Therapeutics, Inc. (OTCQB: RLMD), a clinical-stage company developing novel therapies for the treatment of central nervous system (CNS) diseases, today announced a private placement of convertible promissory notes and warrants to new and existing accredited investors, which will result in total gross proceeds of approximately $6.9 million.
"We are very pleased to announce this private placement, which is a reflection of continued investor interest in the progress and potential of our development programs," said Sergio Traversa, chief executive officer of Relmada. "Funding from this financing will allow us to advance dextromethadone into a Phase 2a human proof-of-concept study to assess its safety and activity for the adjunctive treatment of major depressive disorder.
Under the terms of the offering, Relmada will issue $6,890,000 in 7% convertible promissory notes, with a two year term that automatically converts into common stock in a future equity financing, and 4,593,333 seven-year warrants exercisable at $1.50 per share.
Alexander Capital, LP. a FINRA-registered broker dealer, acted as the exclusive placement agent in the offering.
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
The foregoing is not a complete summary of the terms of the transactions contemplated by the Note and Warrant Purchase Agreement and reference is made to Relmada's Form 8-K filed with the Securities and Exchange Commission on October 4, 2017, and to the complete text of the Note and Warrant Purchase Agreement, Form of Convertible Promissory Note and Form of Warrant, which will be filed as exhibits to Relmada's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017.
About dextromethadone (d-methadone, REL 1017)
Relmada's dextromethadone is being developed as a rapidly acting oral agent for the treatment of depression with the potential to treat an array of additional neurologic disorders. Working through the same brain mechanisms as ketamine, a non-competitive NMDA channel antagonist, but potentially lacking its adverse side effects, dextromethadone is fundamentally differentiated from all currently FDA-approved antidepressants, as well as all atypical antipsychotics used adjunctively. In April 2017, the FDA granted Fast Track designation for dextromethadone for the adjunctive treatment of major depressive disorder.
About Relmada Therapeutics, Inc.
Relmada Therapeutics is a clinical-stage, publicly traded biotechnology company developing novel medicines that potentially address areas of high unmet medical need in the treatment of central nervous system (CNS) diseases. The Company has a diversified portfolio of products at various stages of development. Relmada's lead program, d-Methadone (dextromethadone, REL-1017), is an N-methyl-D-aspartate (NMDA) receptor antagonist. NMDA receptor antagonists may have potential in the treatment of a range of psychiatric and neurological disorders associated with a variety of cognitive, neurological and behavioral symptoms. For more information, please visit Relmada's website at www.relmada.com.