Aspire Capital, a Chicago-based fund that invests directly in public companies, has agreed to invest as much as $20 million in San Diego-based MediciNova (NASDAQ: MNOV) over the next two years. Aspire agreed to pay the market price at the time of each purchase, with the company controlling the timing and number of shares sold.
In a statement this evening, MediciNova says the Aspire Capital Fund sealed the deal with an initial purchase of 606,060 common shares of MediciNova for $1 million. MediciNova says it issued an unspecified allotment of additional shares to Aspire Capital as consideration for the deal.
MediciNova says it plans to use the net proceeds to advance its two lead drug candidates, bedoradrine sulfate and ibudilast.
Earlier this year, MediciNova CEO Yuichi Iwaki outlined the company’s development of bedoradrine sulfate as an emergency room treatment for acute asthma and chronic obstructive pulmonary disease. The company has been developing ibudilast for the treatment of progressive multiple sclerosis, drug addiction, and chronic pain.
MediciNova executives have scheduled a meeting with FDA officials on Oct. 22 to review its latest mid-stage trial of bedoradrine sulfate, which sent the price of MediciNova shares plummeting after the company disclosed mixed results in May. MediciNova says it also expects to finalize plans for advancing ibudilast to mid-stage development later this year.