StemCells, Inc. Announces Pricing of Public Offering to Raise $25 Million
April 24 2015 - 9:25AM
StemCells, Inc. (Nasdaq:STEM) today announced the pricing of an
underwritten public offering of common stock and warrants with a
public offering price of $0.70 for a fixed combination of one share
of common stock and a warrant to purchase three-quarters of a share
of common stock. The warrants have an exercise price of $0.85 per
share, are exercisable immediately, and will expire five years from
the date of issuance. The Company expects to receive gross proceeds
of approximately $25.0 million, before deducting underwriting
discounts and commissions and other estimated offering expenses.
The Company has also granted the underwriters a 30 day option to
purchase up to an additional 5,357,250 shares of common stock
and/or warrants to purchase up to an additional 4,017,938 shares of
common stock to cover over-allotments, if any.
The offering is expected to close on or about April 29, 2015,
subject to customary closing conditions.
Maxim Group LLC is acting as sole book-running manager and
Chardan Capital Markets is acting as co-manager for the
offering.
StemCells intends to use the net proceeds of the offering for
general corporate purposes, including working capital, capital
expenditures and research and development.
The securities are being offered by means of a prospectus
supplement and accompanying prospectus, forming a part of the
effective registration statement, a copy of which may be obtained,
when available, at the website of the SEC at
http://www.sec.gov. Electronic copies of the preliminary
prospectus may be obtained from Maxim Group LLC, 405 Lexington
Avenue, 2nd Floor, New York, NY 10174, at 212-895-3745. A
final prospectus supplement related to the offering will be filed
with the SEC.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction.
About StemCells, Inc.
StemCells, Inc. is currently engaged in clinical development of
its platform technology, HuCNS-SCĀ® (purified human neural stem
cells) as a potential treatment for disorders of the central
nervous system (CNS). Interim data from the Company's
Phase I/II clinical trial in thoracic spinal cord injury (SCI)
shows measurable gains involving multiple sensory modalities and
segments, including the conversion of 2 of 7 patients enrolled in
the study with complete injuries (AIS A) converting to incomplete
injuries (AIS B), post-transplant. Enrollment has recently
commenced in the Company's Phase II clinical trial in cervical SCI.
StemCells, Inc. has also completed enrollment and treatment in its
Phase I/II clinical trial in geographic atrophy of age-related
macular degeneration (GA-AMD), the most severe form of dry AMD,
which is the leading cause of blindness in the elderly. Based upon
interim results for subjects with twelve months data, the Company
reported a 70 percent reduction in the rate of disease progression
as compared to the control (untreated) eye and a 65 percent
reduction in the rate of disease progression as compared to the
expected natural history of the disease. In a Phase I clinical
trial in Pelizaeus-Merzbacher disease (PMD), a fatal myelination
disorder in children, the Company showed preliminary evidence of
progressive and durable donor-derived myelination in all four
patients transplanted with HuCNS-SC cells.
Certain statements contained herein, including the Company's
intention to complete the offering and the expected use of net
proceeds, are not based on historical fact and are "forward-looking
statements" within the meaning of the applicable securities laws
and regulations. Owing to the uncertainties inherent in
forward-looking statements, actual events or results could differ
materially from those stated here. These forward-looking statements
reflect management's expectations as of the date of this press
release and are subject to certain risks and uncertainties,
including the expected gross proceeds of the offering, the expected
closing date and other factors. The Company does not undertake to
revise these statements to reflect subsequent developments.
CONTACT: Greg Schiffman
StemCells, Inc.
Executive Vice President and Chief Financial Officer
(510) 456-4128
Lena Evans
Russo Partners
(212) 845-4262
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