News Article

StemCells Inc. (STEM) Announces Closing of $20 Million Offering
Date: Jul 21, 2014
Source: Globe Newswire ( click here to go to the source)

Featured firm in this article: Microbot Medical Inc of Hingham, MA



StemCells, Inc. (Nasdaq:STEM), today announced that it has closed its previously announced offering of common stock and short term warrants. The Company sold a total of 11,299,435 units to two well recognized institutional biotechnology investors and received total proceeds, net of offering expenses and placement agent fees, of approximately $18.7 million. Each unit consists of one share of common stock and a warrant to purchase 0.85 of a share of common stock at a price of $1.77 per unit. The warrants will first be exercisable six months from the date of issuance at an initial exercise price of $2.17 per share. The warrants will expire at the close of business on August 17, 2015.

"Two sophisticated investors approached us to provide $20 million of capital based upon the strength of our interim clinical data, and our ongoing translation agenda," said Greg Schiffman, chief financial officer of StemCells, Inc. "Moreover, this transaction was structured with a short term warrant which provides the investors with the potential to provide approximately $20 million in additional capital next year. The proceeds from this financing, combined with the funds from the warrants, should they be exercised, would provide sufficient capital to finance our projected 2015 operating expenditures, by which time we expect to have final data from our Phase I/II clinical programs in spinal cord injury and dry age related macular degeneration and should have initiated controlled proof of concept Phase II clinical programs in both of these indications."

Ascendiant Capital Markets, LLC acted as financial advisor and placement agent for the offering.