VistaGen Therapeutics (NASDAQ: VTGN) Featured Research Report

25 A EGIS C APITAL C ORP. Required Disclosures Price Target Our PT on shares of VTGN is $6.00 Valuation Methodology Our valuation methodology for shares of VTGN is a discounted cash flow analysis with a 25% discount rate. Risk Factors Clinical. VistaGen is a clinical-stage company. It is developing medicines. It's development-stage therapeutic candidates could fail in clinical trials. If this happens, it could have a significant adverse impact on the share price. There is a high failure rate, generally speaking, in biotechnology, and it has historically been difficult and costly to develop new medicines. Financial. VistaGen does not have any revenue. It may never generate revenue. It has negative earnings and cash flow. This is associated with a higher risk profile. Regulatory. Regulators, including but not limited to the FDA, could undertake decisions that could adversely impact the company's development efforts, and/or potential market entry, including blocking these altogether. Dilution. VistaGen does not generate any revenue or cash flow. Therefore, it relies on external sources of financial (e.g. the capital markets). This is inherently a highly dilutive activity. Dilution could come from many sources and reduce the value of existing shareholders' equity claims. Competition. There are many companies that are already selling treatments for the same indications that VistaGen is targeting. There are many others that are also developing new medicines. The competition could gain market share at VistaGen's expense. COVID-19. Is a risk, including from business disruption. Other externalities. Things could happen, external to and outside the control of the company, that could reduce value, and cause material declines in the share price Analytical. We could have made errors in our analysis, or we could have neglected aspects of the story, or underappreciated the risks, all of which could make an equity investment in VTGN more risky than we presupposed and that could lead to losses. Other. There are many risks, both known and unknown, all of which are serious. For important disclosures go to www.aegiscap.com . I, Nathan Weinstein, CFA, hereby certify that the views expressed in this research report accurately reflect my personal views about the subject companies and their securities. I also certify that I have not been, do not, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendations in this report. Research analyst compensation is not dependent upon investment banking revenues received by Aegis Capital Corp. Aegis Capital Corp. intends to seek or expects to receive compensation for investment banking services from the subject company within the next three months. The firm nor the Research Analyst have any material conflict of interest in which the Research Analyst has a reason to know or knows at the time of publication of this research report. As of the report date neither Aegis Capital Corp. or its affiliates beneficially own 1% or more of any class of common equity securities of the subject company of this report. Neither the research analyst who prepared this report or a member of the research analyst’s household has a financial position in the debt or equity securities of the subject company. VistaGen Therapeutics, Inc. October 8, 2020