NLS Pharmaceutics AG (NasdaqCM:NLSP) (the ?Company?) announced that it is conducting an ongoing process to explore strategic alternatives to maximize shareholder value. In response to the ever-evolving biotech and pharmaceutical landscape and driven by a commitment to innovation, NLS has initiated a comprehensive exploration of new opportunities that align with its core values and strengths. This strategic move aims to diversify NLS revenue streams, mitigate risks, and create lasting value for our stakeholders.

As part of this process, the Company plans to consider a wide range of options with a focus on maximizing shareholder value, including strategic partnerships, out licensing assets of the Company, and other future strategic actions. Initial steps taken: NLS Pharmaceutics has selected a strategic partner and executed a non-binding term sheet for the out licensing of its intellectual property, including its key asset Mazindol. The financial terms of the term sheet have not yet been finalized.

The Company intends to close this transaction in the first quarter of 2024. NLS has secured additional bridge financing in the amount of approximately $1 million to extend the Company's cash runway until the second quarter of 2024. The bridge financing has been provided by company insiders, including Ronald Hafner, the Company's Chairman, Felix Grisard, Jürgen Bauer and Maria Nayvalt.

Such bridge loans will mature upon the earlier of June 30, 2024 or a liquidity event with a strategic partner. NLS previously received a bridge loan of 500,000 CFH from Mr. Hafner, which has also been extended To mature at the same time as the second loan, or until June 30, 2024. In conjunction with the ongoing strategic process, NLS has implemented a workforce reduction of approximately 50%.

This includes a pause on consulting agreements, reduction in non-clinical staff, reduction in non-esstential operating expenses. Alex Zwyer, Chief Executive Officer and Co-Founder of NLS Pharmaceutics notes, ?We invite stakeholders, customers and partners to follow our journey as we explore new opportunities now and in the coming months. Regular updates and progress reports will be shared to keep everyone informed about the exciting developments stemming from this strategic exploration.?

NLS remains committed to maintaining the highest standards of quality and integrity throughout this exploration process. The Company's leadership is confident that these strategic initiatives will not only contribute to sustainable growth but also fortify our position as an emerging leader in innovative therapies for patients with rare and complex central nervous system disorders.