Nemus Bioscience Inc (OTCMKTS:NMUS)
Nemus Bioscience Inc (OTCMKTS:NMUS), headquartered in Costa Mesa, CA, today announced the signing of a private placement with an affiliate of Schneider Brothers Ltd for the sale of 1,000,000 shares of Series E Preferred Stock of the Company for gross proceeds of $20,000,000. News motivated the market to send NMUS shares up 30% on volumes over ten times their 30-day daily average. 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 research and development activities of its product candidates and for other general corporate and working capital purposes. The transaction is expected to in Q2 2017 – 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 Nemus Bioscience Inc (OTCMKTS:NMUS) that guarantees the payment of the $20,000,000 investment.
In 2016, the total net assets of the Schneider Brothers Ltd was about 407 million GBP, and the total amount of funds under management is about 707 million GBP. In 2016, Schneider Brothers Ltd had exposure to issued debt for the total amount of 100 million Euros.
Nemus Bioscience Inc (OTCMKTS:NMUS) provides pharmaceutical research and development services focused on discovering, developing, and commercializing new chemical entities from a class of chemically diverse compounds. The company develops novel and proprietary classes of product candidates that are designed to improve therapeutic options through enhanced chemical engineering that allow drug candidates to have more predictable bioavailability and pharmacokinetics leading to optimized efficacy and safety.
Nemus Bioscience Inc (OTCMKTS:NMUS) has two drugs in pre-clinical trials. NB1111 is being tested for the indication of Glaucoma. Glaucoma has a projected market size of over $8 billion. Also in pre-clinical trials is NB1222 for the indication of chemotherapy induced nausea and vomiting – a $2 billion market. Nemus Bioscience Inc (OTCMKTS:NMUS) also has three drugs in the research phase.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance