Minerva Neurosciences Gets Funding Of Up To $200 Mln, Stock Surge Over 166%

(RTTNews) - Minerva Neurosciences, Inc. (NERV), a developer of therapies to treat central nervous system disorders, announced on Tuesday that it has inked a private securities deal with certain institutional investors for up to $200 million in gross proceeds.

The transaction includes initial upfront funding of $80 million in exchange for shares of its Series A preferred stock, par value $0.0001 per share. The additional proceeds of $40 million may be received, if all tranche B warrants are exercised by cash payment upon the achievement of the milestones.

The private placement is expected to be closed on or about October 23.

Minerva expects to use the net proceeds of this private placement to finance to develop Roluperidone for the treatment of negative symptoms in patients with schizophrenia through a phase 3 confirmatory trial and resubmission of its new drug application and preparation for U.S. commercial launch, if approved.

NERV was up by 166.64% at $6.91 on the Nasdaq.