Pharmaceutical company Novus Therapeutics Inc (NASDAQ:NVUS) announced on Friday the exercise of certain warrants to purchase up to an aggregate of 5,605,816 shares of common stock having an exercise price of USD4.00 at a reduced exercise price of USD0.84 per share.

These warrants will be exercisable into an aggregate of up to 5,605,816 shares of common stock, at an exercise price of USD0.72 per share and have a term of exercise equal to five and one-half years.

The gross proceeds to the company from the exercise of the warrants are expected to be approximately USD4.7m, prior to deducting placement agent fees and estimated offering expenses.

Net proceeds from the offering may be used by the company to fund the ongoing phase 2a clinical trial in acute otitis media, as well as for working capital and other general corporate purposes.

HC Wainwright & Co is acting as the exclusive placement agent for the offering.