Transworld Capital Group Announces First Round Capital Raise and Commercialization Agreement for Magceutics, Inc.
TCG Press Release
June 9, 2011
LOS ANGELES - Transworld Capital Group (TCG) is pleased to announce the successful conclusion of first round fundraising and limited channel licensing for Magceutics, Inc. Based in Hayward, California, Magceutics has developed a revolutionary solution to memory loss and Alzheimer’s Disease originally discovered by renowned neuroscientist Dr. Guosong Liu at both MIT and Tsinghua University. The product, known as magnesium l-threonate, has been shown in extensive animal studies to prevent and even reverse memory loss and cognitive decline associated with Alzheimer’s Disease.
Per the terms of the deal, AIDP, Inc., a City of Industry, California-based manufacturer and distributor of raw materials for the nutrition and dietary supplements industry, has made a cash investment in Magceutics and additionally will maintain the exclusive license to manufacture and distribute magnesium l-threonate for use in dietary supplements and nutraceuticals worldwide except in the People’s Republic of China. This agreement marks Magceutics’ first commercial partnering arrangement, and is expected to generate significant royalty income as the company continues magnesium l-threonate pharmaceutical drug research and prepares to launch human clinical trials. This comes at an opportune time, with magnesium l-threonate having also recently concluded its self-affirmation as GRAS (Generally Recognized As Safe) by Seattle-based AIBMR Life Sciences. The GRAS self-affirmation in itself represents a regulatory milestone in terms of safety and will help drive sales significantly.
As part owner of Magceutics and a core business advisor, TCG played a critical role in negotiating this new agreement with AIDP. TCG will remain involved in the day-to-day management of Magceutics’ operations, strategic business development, and fundraising activities. Jack Z. Chen, TCG Founder & CEO remarked: “This investment and strategic partnership are crucial to the growth of Magceutics and will help transform magnesium threonate from a groundbreaking scientific discovery into a viable and successful commercial product.”
Magceutics is a biopharmaceutical company engaged in developing products for improving human memory and learning, and for the treatment of cognitive declines associated with aging, mild cognitive impairment (MCI) and Alzheimer’s Disease (AD). The Company’s technology is based on the groundbreaking research of Professor Guosong Liu, initiated while he was at the Massachusetts Institute of Technology (MIT). Based on his work in understanding basic neural mechanisms of synaptic density underlying learning and memory, Magceutics was founded to design and develop products for the treatment of memory associated disorders. The Company has identified a proprietary compound, magnesium l-threonate, that is safe and, as demonstrated by extensive preclinical testing, is highly effective in improving memory functions of healthy rats, aging rats and transgenic AD mice. For more information, please visit www.magceutics.com.
AIDP, Inc. provides a full line of vitamins, amino acids, minerals and specialty ingredients to the dietary supplement industry. Specializing not only in commodity and specialty ingredients, the company, since its founding in 1996, has built a reputation for customized products that meet customers’ particular needs. For more information, please visit: www.aidp.com.
About Transworld Capital Group
Transworld Capital Group is a financial advisory and investment firm specializing in cross border transactions between the Western World and Greater China. The company advises both on M&A and capital-raising transactions as well as partnerships to help businesses access the China market. More information can be found at www.transworldgroups.com.