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CNS Response Closes $2.9 Million Financing

^{Published on 2009-12-29 10:00:26 - Market Wire}
 

COSTA MESA, CA--(Marketwire - December 29, 2009) - CNS Response, Inc. (OTCBB: [ CNSO ]) today announced that it has completed a second closing of its private placement, resulting in additional gross proceeds to the Company of approximately $2.65 million. The Company sold approximately 72 Units at a price of $54,000 per Unit. Each Unit consists of 180,000 shares of the Company's Common Stock and a five-year, non-callable warrant to purchase 90,000 shares of the Company's Common Stock at an exercise price of $0.30 per share. The shares of common stock and warrants are immediately separable and will be issued separately.

Proceeds from the transaction will be used for general corporate purposes, including clinical trial expenses, research and development expenses, and general and administrative expenses. A portion of the proceeds will also be used to satisfy obligations relating to legal fees incurred in connection with successfully defending the Company from actions brought in the Delaware Court of Chancery by the Company's former CEO Leonard Brandt.

George Carpenter, CEO of CNS Response, commented, "This financing will support our focus in the coming year on product improvement, research publications, and commercial implementation, with the ultimate goal of making referenced-EEG® the standard of care in treatment-resistant mental disorders. We welcome our new investors and appreciate the continued support of our existing long-term shareholders, as we work toward full commercialization of referenced-EEG."

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. The securities issued in the transaction described in this press release have not been registered.

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 [ 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.