NeoStem, Inc. Accesses $30 Million Equity Facility With Aspire Capital
6/3/2014 6:57:28 AM
NeoStem Announces Access to New $30 Million Equity Facility With Aspire Capital to Replace the Fully Drawn Facility
NEW YORK, June 3, 2014 (GLOBE NEWSWIRE) -- NeoStem, Inc. (NBS) ("NeoStem" or the "Company"), a leader in the emerging cellular therapy industry, today announced that it has filed today with the U.S. Securities and Exchange Commission a prospectus supplement to its shelf registration statement enabling it to access its new equity facility with Aspire Capital Fund, LLC which replaced the prior agreement under which the Company received the full $20 million in equity funding. Under the new agreement, NeoStem has the right to sell up to $30 million in shares of common stock to Aspire Capital subject to certain terms and conditions over a two-year period. The agreement represents an additional tool to provide the Company with additional capital and flexibility. As of the March 31, 2014, the Company had approximately $41 million of cash and cash equivalents available to fund operations.
"The prior agreement worked very well to complement our business, fundraising and operational activities and enabled us to sell shares from time-to-time on market-based terms to a committed, long-time investor with substantial share ownership," commented Dr. Robin L. Smith, Chairman and CEO of NeoStem. "As we have done in the past, we would intend to use the facility when we feel it is appropriate to help support the achievement of our clinical development pipeline and operational objectives and strengthen our cash position. This is a continuation of our relationship with Aspire that now goes back 4 years."
The elements of the new facility are similar to the prior one and include:
The Company controls the timing and amount of any sales of common stock to Aspire Capital at a known price;
Aspire Capital cannot require the Company to make sales, but is obligated to make purchases as the Company directs in accordance with the terms of the agreement;
No limitations on use of proceeds, financial covenants, restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages;
No warrants are associated with this facility.
More information is available in the Company's prospectus supplement filed today with the U.S. Securities and Exchange Commission.
NeoStem is a leader in the emerging cellular therapy industry, pursuing the preservation and enhancement of human health globally through the development of cell based therapeutics that prevent, treat or cure disease by repairing and replacing damaged or aged tissue, cells and organs and restoring their normal function. The business includes the development of novel proprietary cell therapy products as well as a revenue-generating contract development and manufacturing service business. This combination has created an organization with unique capabilities for cost effective in-house product development and immediate revenue and cash flow generation. www.neostem.com
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward-looking statements include statements herein with respect to the successful execution of the Company's business strategy, the Company's ability to develop and grow its business, the successful development of cellular therapies with respect to the Company's research and development and clinical evaluation efforts in connection with the Company's Targeted Immunotherapy Program, CD34 Cell Program, T Regulatory Cell Program and other cell therapies, the future of the regenerative medicine industry and the role of stem cells and cellular therapy in that industry and the performance and planned expansion of the Company's contract development and manufacturing business. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 13, 2014, the Company's Current Report on Form 8-K filed with the SEC on May 8, 2014 and in the Company's other periodic filings with the SEC. The Company's further development is highly dependent on future medical and research developments and market acceptance, which is outside its control.
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