CNS Response Provides
Third Quarter Corporate Update
Annual Meeting of Stockholders to be Held September
2009
Costa
Mesa, CA – July 2, 2009 – CNS
Response, Inc. (OTCBB: CNSO), today announced that its
annual meeting of stockholders will be held in September 2009. The specific date, time
and location will be
provided within the coming weeks, along with the proxy statement and
other relevant documents as required by the SEC.
“We have made much progress over the last
10 weeks and, with the completion of our fiscal third
quarter ended June 30, we believe a corporate update is timely,” said CNS Response CEO George
Carpenter.
Quarterly Highlights
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In mid-April, the CNS Response board of
directors appointed George Carpenter as the Company’s new chief executive officer to
head up the Company’s expansion and commercialization of its
Referenced-EEG®
product. Mr. Carpenter replaced Len Brandt, who was terminated by the
Board of Directors on April 10,
2009.
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With the new management team in place, the
Company took immediate steps to improve its balance sheet. These steps culminated in a much needed cash infusion of
$1.2 million in convertible bridge financing from well known healthcare
investor John Pappajohn and current CNS Response investor,
SAIL Venture
Partners, after almost 18 months of seeking
additional investment. CNS Response believes it is now better
positioned to identify additional equity financing to support the
Company’s
growth.
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Enrollment of the
Company’s treatment-resistant depression trial in 14 study sites has been completed. The Company expects to
announce top-line
results in November 2009.
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We have commenced a two-year
product plan, dependent upon receipt of additional capital, to
significantly enhance Referenced-EEG® service and outcomes
database.
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Mr. Carpenter noted, “Additional funding is needed to continue the recent momentum of the last three months
and drive our two-year product enhancement plan. We cannot stop strengthening
our balance sheet. With results of our trial pending, now is a good time to enhance our cash reserves and
complete the development of our product. We are taking all necessary steps to build our business, advance our
corporate governance and control systems, and bring CNS Response to the next
level.”
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CNS Response Provides Third Quarter
Corporate Update
Page 2
Additional Information and Where to Find
It
This release may be deemed to be
solicitation material in respect of the matters to be considered at the
Company’s 2009 Annual Meeting of Stockholders
and/or the purported special meeting called by Mr. Len Brandt. The Company intends to file a proxy
statement with the Securities and Exchange Commission (“SEC”). SECURITYHOLDERS ARE URGED TO READ THE
PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED
WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Security
holders will be able to
receive the proxy statement and other relevant documents free of charge at the
SEC’s Web site at www.sec.gov or from the
Company at 2755 Bristol Street, Suite 285, Costa Mesa, CA 92626.
Participants in
Solicitation
CNS and its directors and executive
officers and other members of management and employees may be deemed to be
participants in the solicitation of proxies in respect of the matters to be
considered at the Company’s 2009 Annual Meeting of Stockholders
and/or the purported special meeting called by Mr. Len Brandt. Information
regarding the interests of the Company’s directors and executive officers in
the proxy contest will be included in its definitive proxy statement.
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.
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