StemCells, Inc. Announces Pricing of Public Offering to Raise $16.2 Million
NEWARK, Calif., Oct. 2, 2013 (GLOBE NEWSWIRE) -- StemCells, Inc. (Nasdaq:STEM)
today announced the pricing of an underwritten public offering of an aggregate
of 11,170,000 units at a public offering price of $1.45 per unit. Each unit
consists of one share of common stock, par value $.01 per share, and a warrant
to purchase one half share of common stock.The warrants have an exercise
price of $1.80 per share, are exercisable immediately, and will expire five
years from the date of issuance.The Company expects to receive gross proceeds
of approximately $16.2 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
1,675,500 units to cover over allotments, if any.
The offering is expected to close on or about October 7, 2013, subject to
customary closing conditions.
Chardan Capital Markets is acting as sole bookrunner for the offering and
Maxim Group LLC is acting as co-manager on the deal.
StemCells intends to use the net proceeds of the offering for general
corporate purposes, including working capital and operational purposes,
including product 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 Securities and Exchange Commission (SEC) at http://www.sec.gov. Electronic
copies of the preliminary prospectus also may be obtained from Chardan Capital
Markets, LLC Capital Markets, 17 State Street, Suite 1600, New York, NY 10004,
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 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, Canada and the
United States, 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) in the United States.In addition, the
Company is pursuing preclinical studies in Alzheimer's disease, with support
from the California Institute for Regenerative Medicine (CIRM).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"); the Company's
intention and ability to complete the offering and the expected use of net
proceeds; and the prospect for continued clinical development of the Company's
HuCNS-SC cells in CNS disorders.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
regarding the Company's ability to obtain the increased capital resources
needed to continue its current and planned research and development
operations; uncertainties regarding the Company's ability to commercialize a
therapeutic product and its ability to successfully compete with other
products on the market; 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 Form 10-Q and Form 8-K.
CONTACT: Rodney Young
Chief Financial Officer
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