Lpath goes public through reverse merger with Neighborhood Connections

New York, Dec. 6 - Lpath Therapeutics, Inc. became a publicly traded company via a reverse merger with shell company Neighborhood Connections, Inc.

Lpath Inc. - the new company - will continue to trade on the OTC Bulletin Board using Neighborhood Connections' old ticker symbol "NBHC" until a change can be made.

To execute the transaction, Neighborhood Connections issued 22,023,921 shares of its class A common stock to Lpath's stockholders as a replacement for Lpath's old stock. Warrants and options for 11,637,657 shares were replaced with similar instruments for the new company's stock.

The new company has five directors and Ruth Selmon, the sole director of the old company, resigned after naming Scott Pancoast to the new board. Pancoast named Roger Sabbadini and John Lyon as directors and two vacancies remain.

Lpath bought back 4.92 million shares from Selmon for $10,000.

Following the various transactions, completed on Nov. 30, 1.5 million shares of old Neighborhood Connections stock remain outstanding.

Ahead of the reverse merger, Lpath completed a $5.5 million private placement on Nov. 30.

Neighborhood Connections, incorporated in 2002, had intended to provide management of pay telephones, but was unsuccessful because of increased use of cell phones.

Lpath is based in San Diego and focuses on bioactive signaling lipids as targets for treating and diagnosing important human diseases. It was founded in 1997 as Medlyte Diagnostics, Inc. with a focus on potential sphingolipid-based products in the cardiovascular diagnostic arena.

Since then it has shifted and expanded its areas of work, and now has programs developing therapeutic products for cancer and cardiovascular disease as well as research programs in other therapeutic and diagnostic areas.

Most of its intellectual property, including 26 issued or pending patents, has been developed in-house based on research by Lpath's founder, Sabbadini, on bioactive lipid-signaling.

Lpath's lead product candidate, Sphingomab, is a monoclonal antibody against sphingosine-1-phosphate, an innovative and validated cancer target. Sphingomab is the only monoclonal antibody ever developed against a lysolipid, an important category of bioactive signaling lipids. The compound has demonstrated safety and efficacy against four different types of multi-drug-resistant human cancers in eight separate mouse models.

Lpath believes Sphingomab may also be useful in preventing heart failure after myocardial infarction and has produced pre-clinical data that demonstrate efficacy against that condition. Because of the demonstrated role of -1-phosphate in angiogensis, Lpath is currently studying Sphingomab in animal models of age-related macular degeneration, an important cause of human blindness that features ocular angiogenesis as part of its underlying pathology.

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