Investor Relations:
Marty Tullio, Managing
Partner
McCloud Communications,
LLC
marty@mccloudcommunications.com
Delaware Chancery Court Allows CNS
Response
to Continue Financing
Costa
Mesa, CA – November 2,
2009 – 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.
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Delaware Chancery Court Allows CNS
Response to Continue Financing
Page 2
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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