July 7, 2010 (FinancialWire) — Neuralstem, Inc. (AMEX: CUR) said that it has completed a registered direct offering of $10 million of units to institutional investors.

The units were priced at $2.80 and consisted of one share of common stock, and 3/4 common stock purchase warrant.  The warrants have an exercise price of $3.25 and a term of three years.

Neuralstem saw net proceeds of around $9.2 million. The company plans to use the net proceeds for working capital and general corporate purposes.

Neuralstem CEO Richard Garr said, "This offering will provide funding of pre-clinical work and planned clinical programs for both our rapidly advancing biotherapeutics and pharmaceutical initiatives, which makes this is an important and timely raise for us."

He added that the most recent funds, combined with Neuralstem’s expected second quarter ending cash position of around $5 million, meet the company’s budget and support its clinical plans into 2012.

Maryland-based Neuralstem owns patented technology designed to enable the ability to produce neural stem cells of the human brain and spinal cord in commercial quantities, and the ability to control the differentiation of these cells constitutively into mature, physiologically relevant human neurons and glia.

The company is in a Phase I safety clinical trial for Amyotrophic Lateral Sclerosis, often referred to as Lou Gehrig's disease. The company is also targeting major central nervous system diseases in addition to ALS, including traumatic spinal cord injury, ischemic spastic paraplegia, and Huntington's disease.

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