Cellular Biomedicine Group Announces a $43.13 Million Strategic Investment From Dangdai International Group Co., Limited, a W...
February 04 2016 - 9:09AM
Cellular Biomedicine Group Inc. (NASDAQ:CBMG) (“CBMG” or the
“Company”), a biomedicine firm engaged in the development of
effective stem cell therapies for degenerative diseases and
immunotherapies for cancer, today announced Wuhan Dangdai
Science & Technology Industries Group Inc. (“DANGDAI”) has
agreed to invest $43.13 million in 2.27 million shares of the
Company’s common stock, a 19.4% stake investment, at $19 per share,
representing a premium of 10.4% over yesterday’s closing price.
Based in Wuhan, China, DANGDAI is a conglomerate with a substantial
medical and pharmaceutical portfolio in China.
The Company has received $5 million and issued
263,158 shares to DANGDAI. Hubei Province Department of Commerce is
processing DANGDAI’s remaining funding of $38.13 million as an
outbound foreign direct investment. The Company expects funding
completion before April 15, 2016. As part of the consideration,
CBMG has extended an invitation to DANGDAI to occupy an observer
seat on the Company’s Board of Directors.
“We appreciate the huge vote of confidence from
DANGDAI. We are delighted that such an astute, established
conglomerate with a major pharmaceutical presence is making this
strategic investment in CBMG. Their pharmaceutical portfolio
company has a large direct sales force in China with access to
thousands of hospitals. The funding will augment resources for our
long-term clinical trials in stem cell indications and multiple
T-cell Chimeric Antigen Receptor (“CAR-T”) trials in liquid and
solid tumor cancers,” said Tony (Bizuo) Liu, incoming Chief
Executive Officer (current CFO) of CBMG.
“We are pleased about our strategic investment
in CBMG. This is an innovative company with technological
sophistication and a seasoned management team who seek to turn
translational medicine into clinical benefits. With their strong
China presence and budding foray into the U.S., we are confident
that the team will monetize their translational medicine pipeline
to improve patients’ quality of life. I am confidant CBMG will
emerge as a biomedicine leader,” commented Zhou Han Sheng, Chief
Executive Officer of DANGDAI.
About Cellular Biomedicine
GroupCellular Biomedicine Group, Inc. develops proprietary
cell therapies for the treatment of certain degenerative and
cancerous diseases. Our developmental stem cell and
Immuno-Oncology projects are the result of research and development
by scientists and doctors from China and the United
States. Our GMP facilities in China, consisting of nine independent
cell production lines, are designed, certified and managed
according to U.S. standards. To learn more about CBMG, please
visit: www.cellbiomedgroup.com
About Wuhan Dangdai Science &
Technology Industries Group Inc.Founded in 1988, Wuhan
Dangdai Science & Technology Industries Group
Inc. (“DANGDAI”) is a China based privately held
conglomerate managed by a savvy leadership team. DANGDAI’s business
ethics focus is on innovation, pragmatism, transparency,
governance, collaboration, and prudence; and has
a strong sense of social responsibility. Its
portfolio companies are comprised of several Chinese publicly
listed entities and private companies in North America and Africa.
DANGDAI’s diverse enterprise includes
biopharmaceuticals, media, entertainment, real estate
development, tourism, agriculture, textile and financial
services.
Forward-Looking
StatementsStatements in this press release relating to
plans, strategies, trends, specific activities or investments, and
other statements that are not descriptions of historical facts may
be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
information is inherently subject to risks and uncertainties, and
actual results could differ materially from those currently
anticipated due to a number of factors, which include risks
inherent in doing business, trends affecting the global economy,
including the devaluation of the RMB by China in August 2015 and
other risks detailed from time to time in CBMG’s reports filed with
the Securities and Exchange Commission, quarterly reports on form
10-Q, current reports on form 8-K and annual reports on form 10-K.
Forward-looking statements may be identified by terms such as
"may," "will," "expects," "plans," "intends," "estimates,"
"potential," or "continue," or similar terms or the negative of
these terms. Although CBMG believes the expectations reflected in
the forward-looking statements are reasonable, they cannot
guarantee that future results, levels of activity, performance or
achievements will be obtained. CBMG does not have any obligation to
update these forward-looking statements other than as required by
law.
Contacts:
Sarah Kelly
Director of Corporate Communications, CBMG
+1 408-973-7884
sarah.kelly@cellbiomedgroup.com
Vivian Chen
Managing Director Investor Relations, Grayling
+1 347 481-3711
vivian.chen@grayling.com
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