Exhibit 99.01

Neuralstem Reports Second Quarter 2017 Fiscal Results and Provides Clinical and Business Update

GERMANTOWN, Md., Aug. 08, 2017 (GLOBE NEWSWIRE) -- Neuralstem, Inc. (NASDAQ:CUR), a biopharmaceutical company focused on the development of nervous system therapies based on its neural stem cell technology, reported its financial results for the  three and six month periods ended June 30, 2017.             

“Our recent financing of six million dollars has further extended the company’s cash runway to sufficiently support operations and investigation of the mechanism of action,” commented Rich Daly, Chairman and CEO.  “We are encouraged by the emerging clinical profile of NSI-189.  We are continuing to evaluate the full Phase 2 MDD data set and will provide corporate strategy update in the fourth quarter of this year.”

Recent Clinical & Business Highlights

Financial Results for the Second Quarter Ended June 30, 2017

Cash Position and Liquidity:  We had cash, cash equivalents and short-term investments balances of approximately $11.4 million as at June 30, 2017, compared to $16.7 million at March 31, 2017.  The decrease resulted from use of cash to fund our NSI-189 clinical programs and ongoing operations and the repayment in full of our long-term debt.

On August 1, 2017, we closed a public offering of 3,000,000 shares of common stock and 2,250,000 common stock purchase warrants at a public purchase price of $2.00 per share and accompanying warrant.  We received gross proceeds of $6.0 million and approximately $5.4 million of net proceeds from this offering. 

Net Loss:  In the quarter ended June 30, 2017, we reported a net loss of approximately $4.6 million or $0.39 per share, compared to a loss of approximately $3.9 million or $0.47 per share on a split adjusted basis in the quarter ended June 30, 2016. Our operating loss in the quarter ended June 30, 2017 was approximately $4.2 million, compared to a loss of approximately $3.8 million in the quarter ended June 30, 2016.

For the six months ended June 30, 2017, we reported a net loss of approximately $12.2 million or $1.06 per share, compared to a loss of approximately $10.5 million or $1.37 per share on a split adjusted basis in the six months ended June 30, 2016. Our operating loss in the six months ended June 30, 2017 was approximately $8.5 million, compared to a loss of approximately $10.1 million in the six months ended June 30, 2016.

R&D Expenses: The increase of approximately $110,000 or 4% in research and development expenses for the three months ended June 30, 2017 compared to the comparable period of 2016 was primarily attributable to $420,000 increase in clinical trial costs associated with our ongoing Phase 2 MMD study, $170,000 increase in non-cash stock based compensation expense partially offset by a $480,000 decrease in in personnel related costs, internal and external research expenditures and other expenses associated with our May 2016 restructuring.

The decrease of approximately $53,000 or 1% in research and development expenses for the six months ended June 30, 2017 compared to the comparable period of 2016 was primarily attributable to a $2.0 million reduction in employment costs, internal and external research expenditures associated with our May 2016 restructuring almost entirely offset by an increase in clinical trial costs associated with our ongoing Phase 2 MDD study.

G&A Expenses:  The increase of approximately $274,000 or 20% in general and administrative expenses for the three months ended June 30, 2017 compared to the comparable period of 2016 was primarily attributable to a $530,000 increase in personnel related expenses due to severances partially offset by $340,000 decrease in non-cash stock based compensation expense.

The decrease of approximately $1,565,000 or 35% in general and administrative expenses for the six months ended June 30, 2017 compared to the comparable period of 2016 was primarily attributable to personnel related savings associated with our May, 2016 restructuring partially offset by current period severance expenses.

Neuralstem, Inc.
    
Unaudited Condensed Consolidated Balance Sheets
    
 June 30,
 2017
 December 31,
2016
    
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$  6,442,484  $  15,194,949 
Short-term investments   5,000,000     5,000,000 
Trade and other receivables   5,345     10,491 
Current portion of related party receivable, net of discount   -    53,081 
Prepaid expenses   239,309     646,195 
Total current assets   11,687,138     20,904,716 
    
Property and equipment, net   219,382     269,557 
Patents, net   945,066     990,153 
Related party receivable, net of discount and current portion   402,965     424,240 
Other assets 13,696   15,662 
Total assets$  13,268,247  $  22,604,328 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
CURRENT LIABILITIES   
Accounts payable and accrued expenses$  2,235,908  $  2,343,936 
Accrued bonuses    852,963 
Current portion of long-term debt, net of fees and discount   -    3,705,787 
Other current liabilities 67,992   430,738 
Total current liabilities 2,303,900   7,333,424 
    
Derivative instruments 3,267,408   3,921,917 
Other long-term liabilities   4,136    18,209 
Total liabilities  5,575,444    11,273,550 
    
Commitments and contingencies (Note 6)   
    
STOCKHOLDERS' EQUITY   
Convertible preferred stock, 7,000,000 shares authorized, $0.01 par value; 1,000,000  shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively   10,000    10,000 
Common stock, $0.01 par value; 300 million shares authorized, 12,012,877 and 11,032,858 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively   120,129     110,329 
Additional paid-in capital   212,809,063     204,239,837 
Accumulated other comprehensive income   3,350     3,905 
Accumulated deficit  (205,249,739)  (193,033,293)
Total stockholders' equity   7,692,803     11,330,778 
Total liabilities and stockholders' equity  $  13,268,247      $  22,604,328 
    



Neuralstem, Inc. 
 
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss 
     
 Three Months Ended June 30, Six Months Ended June 30, 
  2017   2016   2017   2016  
         
Revenues$  2,500  $  2,500  $  5,000  $  5,000  
         
Operating expenses:        
Research and development expenses   2,585,079     2,474,629     5,487,165     5,540,219  
General and administrative expenses   1,635,652     1,362,140     2,968,073     4,532,662  
Total operating expenses   4,220,731     3,836,769     8,455,238     10,072,881  
Operating loss   (4,218,231)    (3,834,269)    (8,450,238)    (10,067,881) 
         
Other income (expense):        
Interest income 14,013   13,433   34,896   24,569  
Interest expense   (15,728)    (322,407)    (154,460)    (708,913) 
Change in fair value of derivative instruments   (341,611)    757,275     (3,082,925)    757,275  
Fees related to issuance of derivative instruments, warrant inducement and other expenses   (87,635)    (466,541)    (563,719)    (463,342) 
Total other income (expense)   (430,961)   (18,240)    (3,766,208)    (390,411) 
         
Net loss$  (4,649,192) $  (3,852,509) $  (12,216,446) $  (10,458,292) 
         
Net loss per share - basic and diluted$  (0.39) $  (0.47) $  (1.06) $  (1.37) 
         
Weighted average common shares outstanding - basic and diluted   11,906,334     8,141,198     11,525,730     7,606,725  
         
Comprehensive loss:        
Net loss$  (4,649,192) $  (3,852,509) $  (12,216,446) $  (10,458,292) 
Foreign currency translation adjustment  (384)  3,268    (555)  1,495  
Comprehensive loss  $  (4,649,576)     $  (3,849,241)     $  (12,217,001)     $  (10,456,797) 


About Neuralstem

Neuralstem is a clinical-stage biopharmaceutical company developing novel treatments for nervous system diseases of high unmet medical need.  NSI-189 is a small molecule in clinical development for major depressive disorder (MDD) and in preclinical development for Angelman’s syndrome, irradiation-induced cognitive impairment, Type 1 and Type 2 diabetes and stroke.

NSI-566 is a stem cell therapy being tested for treatment of paralysis in stroke, chronic spinal cord injury (cSCI) and Amyotrophic Lateral Sclerosis (ALS).  Neuralstem’s diversified portfolio of product candidates is based on its proprietary neural stem cell technology. 

Cautionary Statement Regarding Forward Looking Information

This news release contains “forward-looking statements” made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and may often be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Specific risks and uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in Neuralstem’s periodic reports, including the Annual Report on Form 10-K for the year ended December 31, 2016, and filed with the Securities and Exchange Commission (SEC) on March 31, 2016, Form 10-Q for the period ended June 30, 2016, and in other reports filed with the SEC.

Contact:

Danielle Spangler
Neuralstem, Director of Investor Relations
301.366.1481
dspangler@neuralstem.com

Kimberly Minarovich
Argot Partners, Investor Relations
212-600-1902
kimberly@argotpartners.com

Lori Rosen
LDR Communications
Public Relations
917.553.6808
lori@ldrcommunications.com