COSTA MESA, CA -- 11/02/09 --
CNS Response, Inc. (OTCBB: CNSO) (the
"Company" or "CNS") announced that the Delaware Chancery Court had granted
the Company relief from certain of the terms of the Court's Status Quo
Order originally issued on September 28, 2009. Those terms prohibited the
Company, among other things, from issuing any securities or completing any
securities offering until the resolution of claims asserted by Leonard
Brandt, the Company's former CEO, in connection with his purported
stockholders meeting of September 4, 2009.
The relief granted by the Court on October 29, 2009, will allow CNS to
complete part of its previously-announced financing by releasing from an
escrow account certain funds that had been delivered into escrow by
potential investors. If this portion of the financing is completed, the
proceeds received will be in addition to the approximately $1.8 million the
Company received upon the initial closing of the private placement offering
on August 26.
The Company also announced that it will hold a conference call to discuss
the top-line results of its recently completed clinical study. CNS
stockholders are encouraged to participate in the conference call, which
will be held Tuesday, November 3, at 8:00 a.m. PST. Please call Suzanne
Schnitzer at 949.553.9748 to register for the call. You will be given the
toll-free dial-in number and access code to the conference call, along with
the login instructions to join the simultaneous web conference.
"With the announcement of our top-line clinical results today, the Company
is at a crucial stage in its development," said CNS Response CEO George
Carpenter. "We are grateful for the support of stockholders, including our
most recent investors, who provided the financing to complete this
important research. We are at a point our stockholders have waited years
for, and we intend to make the most of it."
This press release does not constitute an offer to sell or the solicitation
of an offer to buy nor will there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws
of such state or jurisdiction. There can be no assurance that the Company
will receive any of the proceeds that are currently being held in the
escrow account.
About CNS Response
Today, most physicians are able to base treatment on objective test data,
such as EKGs, MRIs, blood tests, etc. Broadly speaking, such advances have
not yet come to those physicians practicing psychiatry.
CNS Response has developed a patented data-analysis capability that, with
the help of a simple, non-invasive EEG, will analyze a patient's brain
waves and compare the results to an extensive patient outcomes database.
The process produces a rEEG® report providing a psychiatrist with guidance
to personalize medication regimens for a patient, based on the patient's
own brain physiology. To read more about the benefits this patented
technology provides physicians, patients and insurers, please visit the CNS
Response website, www.cnsresponse.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995
Except for the historical information contained herein, the matters
discussed are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995, as
amended. These statements involve risks and uncertainties as set forth in
the Company's filings with the Securities and Exchange Commission. These
risks and uncertainties could cause actual results to differ materially
from any forward-looking statements made herein.
Investor Relations:
Marty Tullio
Managing Partner
McCloud Communications, LLC
949.553.9748
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