Neuralstem

Kurta Law is investigating recommendations of Neuralstem stock (NYSE: CUR). Investors who lost money on this investment should know that it was an extremely risky investment. Overly risky investments violate FINRA Rule 2111 and Regulation Best Interest. Both of these securities regulations require brokers to consider their investor’s risk tolerance, as well as other investor characteristics. Investors who suffered losses as a result of broker misconduct should speak with a securities attorney. Call (877) 600-0098.  

The Offering  

The prospectus dated August 14, 2012, announced that Neuralstem was offering 6,000,000 shares of common stock. The public offering price was $0.40 per share. Penny stocks that trade for less than $1.00 are always high risk. As of April 11, 2024, Neuralstem has been de-listed from the stock exchange.  

About Neuralstem  

According to the prospectus, Neuralstem is focused on the development and commercialization of treatments based on human neuronal stem cells and the development and commercialization of treatments using small molecule compounds.  

Risks Related to Shares of Neuralstem 

The following risks are clearly identified in the prospectus. Brokers either knew or should have known about these risks.  

History of Losses 

From 1996 to 2012, Neuralstem accumulated losses of $100,925,439. There were several hurdles for the business to achieve profitability. Neuralstem needed to develop products, achieve regulatory approval, manufacture, market, and sell its new therapies.  

Raising Additional Capital  

Neuralstem relied on the sale of securities, the exercise of investor warrants, and to a lesser degree on grants and research contracts to fund its operations. The prospectus discloses that Neuralstem cannot be certain that it would be able to secure additional financing.  

Risks Related to Business 

The business was dependent on the success of two product candidates, both of which were in Phase 1 of clinical trials. Regulations or other developmental issues could easily delay the process of bringing these drugs to market or cause the business to fail to complete clinical trials. Further, these failures might depress stock prices and prevent Neuralstem from raising additional funds.  

Emerging Technologies  

Neuralstem focused its research on stem cell and small molecule technologies. The business’s ability to generate revenue depended on the development of technologies for human applications. Human applications may be limited. These are novel therapies, and the path forward for these technologies is always fraught with uncertainty.  

Stem Cell Storage  

At the time of the prospectus, Neuralstem relied on a third-party manufacturer for stem-cell storage. Neuralstem’s inability to manufacture stem cells in-house could adversely impact its business.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

Kurta Law Can Help  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.