Cortex to raise $14.3 million

California, USA-based Cortex Pharmaceuticals says that it has obtained commitments from several institutional investors to purchase shares of its common stock and warrants to purchase common stock in a registered direct offering for an aggregate of around $14.2 million. Under the terms of the transaction, Cortex expects to sell an aggregate of about 7.075 million shares of its common stock and warrants to purchase approximately 2.83 million shares. The warrants will have an exercise price of $2.64 each and, subject to the terms therein, will be exercisable at any time after the six-month anniversary of and before the fifth anniversary of the closing of the transaction. The closing of the offering is expected to take place on August 29, subject to the satisfaction of customary conditions including final approval for listing of the shares of common stock (including shares of common stock underlying the warrants) by the American Stock Exchange.

JMP Securities acted as lead placement agent and Rodman & Renshaw was co-placement agent for the transaction.

Cortex plans to use the net proceeds from this financing to accelerate development of its trade-marked Ampakine technology, licensing activities, working capital, capital expenditures and other general corporate purposes.