Investor Group Buys NeoTherapeutics Stock

Irvine drug developer NeoTherapeutics Inc. announced Friday that it has completed the sale of 400,000 shares of common stock and the rights to an additional 80,000 to a group of investors for $4 million.

Proceeds from the private placement will allow the company to continue work on Neotrofin, a potential treatment for Alzheimer’s disease, said Sam Gulko, NeoTherapeutics’ chief financial officer.

NeoTherapeutics also is developing drugs to treat other neurological diseases and conditions, including spinal cord injuries, strokes and Parkinson’s disease.

In Friday’s deal, investors paid $50 for a package of five shares of common stock and one warrant exercisable over a five-year period at $15 per share. The company may call the warrant if the stock’s closing price remains at or above $30 per share for 20 of 30 consecutive trading days.