StemCells, Inc. Secures $30 Million Financing Commitment From Lincoln Park
Includes Initial $3 Million Investment
NEWARK, Calif., June 4, 2013 (GLOBE NEWSWIRE) -- StemCells, Inc.
(Nasdaq:STEM), a leading stem cell company developing and commercializing
novel cell-based therapeutics and tools for use in stem cell-based research
and drug discovery, has entered into an agreement with Lincoln Park Capital
Fund, LLC ("Lincoln Park"), an institutional investor based in Chicago,
Illinois, under which the Company has the right to sell up to $30.0 million of
common stock to Lincoln Park. Proceeds from any sales of stock will be used
for general corporate purposes.
Under the terms of the agreement, Lincoln Park will immediately purchase $3.0
million in shares of StemCells common stock at a purchase price of $1.823 per
share, which was the average of the prior ten trading days' volume weighted
average price.Furthermore, for a period of three years, the Company has the
right, at its sole discretion, to sell additional amounts up to $27.0 million
of common stock to Lincoln Park subject to certain limitations.
The Company will control the timing of any future sales and the amount of
shares to be sold.Lincoln Park has no right to require any sales and is
obligated to purchase the common stock as directed by the Company, subject to
certain limitations set forth in the purchase agreement.The agreement may be
terminated by the Company at any time without any cost or penalty.No warrants
will be issued in this transaction.All shares to be sold or issued to Lincoln
Park under the purchase agreement are the subject of a prospectus supplement
pursuant to the Company's effective shelf registration statement and base
prospectus contained therein.
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 PhaseI 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 conducting a Phase I/II
clinical trial in chronic spinal cord injury in Switzerland and has reported
positive interim data for the first three patients.The Company is also
conducting 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.
Apart from statements of historical fact, the text of this press release
constitutes forward-looking statements within the meaning of the U.S.
securities laws, and is subject to the safe harbors created therein. These
statements include, but are not limited to, statements regarding the future
business operations of StemCells, Inc. (the "Company") and the timing and
prospects associated with the issuance of shares to LPC and the Company's
ability to terminate the purchase agreement without any cost or penalty. 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 uncertainties with respect to the fact that additional trials will
be required to confirm the safety and demonstrate the efficacy of the
Company's HuCNS-SC cells; uncertainties regarding the Company's ability to
obtain the increased capital resources needed to continue its current and
planned research and development operations, including such operations of the
Company for non-therapeutic applications, and to conduct the research,
preclinical development and clinical trials necessary for regulatory
approvals; uncertainty as to whether HuCNS-SC cells and any products that may
be generated in the future in the Company's cell-based programs will prove
safe and clinically effective and not cause tumors or other adverse side
effects; uncertainties regarding the validity and enforceability of the
Company's patents; uncertainties as to whether the Company will become
profitable; and other factors that are described under the heading "Risk
Factors" disclosed in Part I, Item 1A in the Company's Annual Report on Form
10-K for the year ended December 31, 2012 and in its subsequent reports on
Form 10-Q and Form 8-K.
CONTACT: Rodney Young
Chief Financial Officer
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