CNS Response raises $2 million from private placement

US-based healthcare company CNS Response has closed its private placement, resulting in gross proceeds to the company of approximately $2 million.

The company sold approximately 38 units to six investors at a price of $54,000 per unit, with each unit consisting of 180,000 shares of the company's common stock and a five-year, non-callable warrant to purchase 90,000 shares of the company's common stock at an exercise price of $0.30 per share.

Proceeds from the transaction will be used for general corporate purposes, including clinical trial expenses, R&D expenses, and general and administrative expenses.

The company also announced that Tommy Thompson and John Pappajohn have been appointed to the board of directors. Mr Thompson, the former health and human services secretary and four-term governor of Wisconsin, is a partner at the law firm of Akin Gump Strauss Hauer & Feld. He serves on the board of directors of two publicly held companies, CR Bard and Centene, and is the chairman of AGA Medical.

Mr Pappajohn has, since 1969, been the president and owner of Pappajohn Capital Resources, a venture capital firm, and president and owner of Equity Dynamics, a financial consulting firm, both located in Des Moines, Iowa.

George Carpenter, CEO of CNS Response, said: "With the healthcare challenges being faced by patients and payers alike, we think the time has come for objective, personalized medicine in psychiatry. We intend to use these proceeds to expand our research and our commercial capability, with the ultimate goal of making referenced-EEG the standard of care in treatment-resistant mental disorders."

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