Neuralstem Announces Plan of Reorganization to Further Align Business with Strategic Intent

GERMANTOWN, Md., May 20, 2016

"This reorganization is necessary to efficiently allocate our resources on the company's refocused strategy thereby creating value for all stakeholders," said Rich Daly, Neuralstem CEO. "Taking these steps will enable us to continue to execute on our clinical development plan for NSI-189 while retaining our core proprietary stem cell technology. Additionally, I would like to express my gratitude to those members of our team affected by the action. Our entire team has worked with passion to develop therapeutic alternatives for people suffering with challenging CNS afflictions. We are proud of the work they have done to bring hope and answers to patients, their families and caregivers."

Neuralstem announced the implementation of a refocused clinical and corporate strategy in January 2016.  The company's refocused strategy emphasizes its commitment to prioritize the small molecule platform, undertake business development efforts to secure alternative funding and partnerships for its stem cell assets and to enhance the company's visibility in the capital markets.  Accordingly, the corporate reorganization includes a workforce reduction across all divisions that will result in significantly lower operating expenses while retaining the expertise needed to implement the company's refocused strategy.

About Neuralstem

Neuralstem's patented technology enables the commercial-scale production of multiple types of central nervous system stem cells, which are being developed as potential therapies for multiple central nervous system diseases and conditions.

Neuralstem's ability to generate neural stem cell lines from human hippocampus, which were used for systematic chemical screening for neurogenesis effect, has led to the discovery and patenting of molecules that Neuralstem believes may stimulate the brain's capacity to generate new neurons, potentially reversing pathophysiologies associated with certain central nervous system (CNS) conditions.

The Company has completed Phase 1a and 1b trials evaluating NSI-189, its first neurogenic small molecule product candidate, for the treatment of major depressive disorder or MDD, and is currently conducting a Phase 2 efficacy study for MDD.