Allon Therapeutics Inc.

Allon Therapeutics Inc.

November 29, 2006 19:38 ET

Allon Therapeutics Announces Final Closing of $10-Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 29, 2006) - Allon Therapeutics Inc. (TSX:NPC), The Neuro Protection Company™, today announced that it has completed the second and final closing of its recently announced private placement. The Company increased the size of this placement to $10.02 million by issuing an additional 1,275,000 units at a price of $0.80 per unit generating additional proceeds of $1.02 million. On November 14th, 2006 the Company announced the completion of a first closing of the private placement issuing 11,250,000 for proceeds of $9.0 million after agreeing to increase the initial $8.0 million offering to meet demand.

This second closing facilitated the inclusion of two new institutional investors in addition to those that participated in the first closing. After completing the final closing today, the Company issued a total of 12,525,000 units for total gross proceeds $10.02 million.

Gordon McCauley, President and CEO of Allon Therapeutics, stated, "We look forward to utilising our resources wisely to advance our multiple Phase II programs. We believe this financing positions Allon effectively to realize the potential in our programs."

The offering was completed through a syndicate of agents co-led by Blackmont Capital and Clarus Securities and Sprott Securities. Each unit consists of one common share and one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one common share of Allon at a price of $1.00 for a period of 24 months from closing. The securities were sold pursuant to exemption and registration exemptions in Canada and the US and will not be registered under the US securities Act of 1933. Accordingly, all shares, warrants and any shares issued upon exercise of the warrants will be subject to a hold period of four months plus one day from the date of issuance in Canada and will also be restricted under applicable US law for resale in the United States.

About Allon

Allon Therapeutics Inc. is a clinical-stage Canadian biotechnology company developing drugs that protect against neurodegenerative conditions such as Alzheimer's, cognitive impairment, stroke, traumatic brain injury, multiple sclerosis and neuropathy. The Company is listed on the Toronto Stock Exchange under the trading symbol "NPC" (Neuro Protection Company™) and based in Vancouver.

Forward-Looking Statements

There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes", "may", "plans", "will", "estimate", "continue", "anticipates", "intends", "expects", and similar expressions. Such forward-looking statements involve 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 such forward-looking statements. Such factors include, among others, Allon's stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market Allon's products, the ability to protect its intellectual property and dependence on collaborative partners. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.

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