Delaware Chancery Court Allows CNS Response to Continue Financing

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Mon Nov 2, 2009 12:27pm EST

  COSTA MESA, CA, Nov 02 (MARKET WIRE) -- 
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.

    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(R) 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.

    

Investor Relations:
Marty Tullio
Managing Partner
McCloud Communications, LLC
949.553.9748
Email Contact

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