Allon Therapeutics Inc.
TSX : NPC

Allon Therapeutics Inc.

January 05, 2011 17:52 ET

Allon Announces Intention to Draw Down $200,000 From SEDA

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 5, 2011) - Allon Therapeutics Inc. (TSX:NPC) announced today it has notified YA Global Master SPV Ltd. ("YA") that it intends to draw down $200,000 under its previously announced $10 million standby equity distribution agreement (SEDA). According to the SEDA provisions, YA will subscribe for common shares at a 5% discount to the five-day weighted average price of Allon shares for the period ending on or about January 12, 2011.

On March 18, 2010, Allon filed a final short form base shelf prospectus (www.sedar.com). To qualify the shares issued to YA under the draw down, Allon will file a prospectus supplement to its short form base shelf prospectus immediately following settlement.

About Allon

Allon Therapeutics Inc. is a clinical-stage biotechnology company developing treatments for major neurodegenerative conditions. Allon's drug davunetide has demonstrated human efficacy in amnestic mild cognitive impairment, a precursor to Alzheimer's disease, and cognitive impairment associated with schizophrenia. Allon has Phase 2 human efficacy programs pursuing large underserved markets, such as Alzheimer's disease and cognitive impairment associated with schizophrenia, and in orphan markets, such as frontotemporal dementias. The Company is listed on the Toronto Stock Exchange under the trading symbol "NPC" (Neuro Protection Company™) and based in Vancouver. For additional information please visit the Company's website: www.allontherapeutics.com.

Forward Looking Statements

Statements contained herein, other than those which are strictly statements of historical fact may include forward-looking information. Such statements will typically contain words such as "believes", "may", "plans", "will", "estimate", "continue", "anticipates", "intends", "expects", and similar expressions. While forward-looking statements represent management's outlook based on assumptions that management believes are reasonable, forward-looking statements by their nature are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by them. Such factors include, among others, the inherent uncertainty involved in scientific research and drug development, Allon's early stage of development, lack of product revenues, its additional capital requirements, the risks associated with successful completion of clinical trials and the long lead-times and high costs associated with obtaining regulatory approval to market any product which Allon may eventually develop. Other risk factors include the limited protections afforded by intellectual property rights, rapid technology and product obsolescence in a highly competitive environment and Allon's dependence on collaborative partners and contract research organizations. These factors can be reviewed in Allon's public filings at www.SEDAR.com and should be considered carefully. Readers are cautioned not to place undue reliance on such forward-looking statements.

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