StemCells, Inc. Closes $10 Million Debt Financing
NEWARK, Calif., April 9, 2013 (GLOBE NEWSWIRE) -- StemCells, Inc.
(Nasdaq:STEM) today announced that it has closed a $10 million debt financing
from Silicon Valley Bank (SVB). The loan funds will be used for general
corporate purposes, and increase the Company's December 31, 2013 pro forma
cash balance to $34.4 million. This total also includes $2.0 million in net
proceeds received subsequent to the end of the year from the exercise of
warrants and the sale of shares of common stock.
"We are pleased to have secured this loan from Silicon Valley Bank," said
Martin McGlynn, President and CEO of StemCells, Inc. "These funds will extend
our cash runway and provide us with increased financial flexibility.
Sophisticated institutions like SVB are very careful and thoughtful when
making their lending decisions, and we appreciate the confidence shown by SVB
in our company."
The loan has a three-year term and interest will accrue at 6% per annum. For
the first six months, payments will be interest only and then the loan will be
amortized over 30 months. In addition, there will be a final payment at the
end of the term equal to $1 million. In connection with the debt financing,
the Company also issued to SVB a warrant to acquire 293,531 shares of common
stock with an exercise price of $1.7034 per share. The warrant will expire in
About StemCells, Inc.
StemCells, Inc. is engaged in the research, development, and commercialization
of cell-based therapeutics and tools for use in stem cell-based research and
drug discovery. The Company's lead therapeutic product candidate, HuCNS-SC®
cells (purified human neural stem cells), is currently in development as a
potential treatment for a broad range of central nervous system disorders. In
a Phase I clinical trial in Pelizaeus-Merzbacher disease (PMD), a fatal
myelination disorder in children, the Company has shown preliminary evidence
of progressive and durable donor-derived myelination in all four patients
transplanted with HuCNS-SC cells. The Company is also conducting a Phase I/II
clinical trial in chronic spinal cord injury in Switzerland and recently
reported positive data for the first patient cohort. The Company has also
initiated a Phase I/II clinical trial in dry age-related macular degeneration
(AMD), and is pursuing preclinical studies in Alzheimer's disease. StemCells
also markets stem cell research products, including media and reagents, under
the SC Proven® brand. Further information about StemCells is available at
The StemCells, Inc. logo is available at
Apart from statements of historical fact, the text of this press release
constitutes forward-looking statements within the meaning of the Securities
Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended,
and is subject to the safe harbors created therein. These statements include,
but are not limited to, statements regarding the Company's ability to repay
the loan from Silicon Valley Bank and the likely repayment terms; the expected
use of the loan funds; the development and commercialization of the Company's
cell-based technologies; and the future business operations of the Company.
These forward-looking statements speak only as of the date of this news
release. The Company does not undertake to update any of these forward-looking
statements to reflect events or circumstances that occur after the date
hereof. Such statements reflect management's current views and are based on
certain assumptions that may or may not ultimately prove valid. The Company's
actual results may vary materially from those contemplated in such
forward-looking statements due to risks and uncertainties to which the Company
is subject, including the fact that additional trials will be required to
demonstrate the safety and efficacy of the Company's HuCNS-SC cells for the
treatment of any disease or disorder; uncertainties about the Company's
ability to continue to satisfy the lending obligations under the Silicon
Valley Bank loan and repay the loan when due; uncertainties regarding the
Company's ability to obtain the increased capital resources needed to continue
its current and planned research and development operations; and other factors
that are described under the heading "Risk Factors" in the Company's Annual
Report on Form 10‑K for the year ended December 31, 2012, and in its
subsequent reports on Forms 10-Q and 8-K.
CONTACT: Rodney Young
Chief Financial Officer
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