Allon Therapeutics Inc.

Allon Therapeutics Inc.

November 14, 2006 16:55 ET

Allon Therapeutics Completes $9.0 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) - Allon Therapeutics Inc. (TSX:NPC), The Neuro Protection Company™, today announced it has successfully concluded a first closing of a private placement by issuing 11,250,000 units at a price of $0.80 per unit generating total gross proceeds of $9.0 million. On Wednesday, October 25th, 2006 the Company had announced the launch of an $8.0 million private placement and the company agreed to increase the offering to meet this demand.

"We believe that investors appreciate the focus on generating results. This financing will allow us to create value by advancing our drugs that appear to halt or prevent serious degenerative diseases and injury to the central nervous system - in contrast to the therapies currently available that address only the symptoms," said Gordon C. McCauley, President and CEO of Allon Therapeutics.

The proceeds will be used to support the Company's ongoing Phase II trial in Mild Cognitive Impairment after Coronary Artery Bypass Graft (MCI-CABG) surgery, and its Phase II trial in an Alzheimer's condition that is expected to begin before the end of 2006, as well as general corporate purposes.

The offering was completed through a syndicate of agents co-led by Blackmont Capital and Clarus Securities that also included 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. One insider of the Company, Neuro Discovery Limited Partnership, participated in the placement to the extent of approximately 27% which is consistent with its current proportion of shareholdings. 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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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.

Contact Information

  • Allon Therapeutics Inc.
    Investor and Media contact: Aaron Keay
    Manager, Investor Relations
    (604) 742 2540 or Cell: (604) 323 6911