Novus Therapeutics Announces Closing of $10.7 Million Registered Direct Offering Priced At-the-Market

Novus Therapeutics, Inc. (NASDAQ: NVUS), a specialty pharmaceutical company focused on developing products for patients with disorders of the ear, nose, and throat (ENT), today announced the closing of its previously announced registered direct offering of 3,449,112 shares of its common stock, at a purchase price per share of $3.095, priced at-the-market, to healthcare-focused institutional investors, led by OrbiMed, BVF Partners L.P., and Armistice Capital.

Novus also issued unregistered warrants to purchase up to 6,898,224 shares of common stock. The warrants were issued in two tranches. The first tranche of warrants to purchase up to 3,449,112 shares of common stock have an exercise price of $4.00 per share, are immediately exercisable, and will expire eighteen months from the issue date. The second tranche of warrants to purchase up to 3,449,112 shares of common stock have an exercise price of $4.00 per share, will become exercisable only upon the exercise of the first tranche of warrants, and will expire five years from the issue date.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

LifeSci Capital LLC acted as financial advisor to the company in connection with the offering.

The gross proceeds to Novus, before deducting placement agent fees and other offering expenses, are approximately $10.7 million. The potential gross proceeds from the exercise of the first tranche of warrants, if fully exercised on a cash basis, will be approximately $13.8 million. No assurance can be given that any of the warrants will be exercised. Novus intends to use the net proceeds from the offering to fund expansion of the ongoing phase 2a clinical trial in acute otitis media from 50 to approximately 140 patients, as well as for working capital and other general corporate purposes.

The shares of common stock described above (but not the warrants or the shares of common stock underlying the warrants) were offered pursuant to a "shelf" registration statement (File 333-226286) filed with the Securities and Exchange Commission (SEC) and declared effective on July 31, 2018. Such shares of common stock may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A prospectus supplement and the accompanying prospectus relating to the offering have been filed with the SEC. Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained on the SEC's website at http://www.sec.gov or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by emailing [e-mail] or by calling 646-975-6996.