Cellular Biomedicine Group Announces Closing Of $19.6 Million Private Placement Offering
SHANGHAI, China and PALO ALTO, Calif., April 7, 2015 (GLOBE NEWSWIRE) -- Cellular Biomedicine Group Inc. (Nasdaq:CBMG) ("CBMG" or the "Company"), a biomedicine firm engaged in the development of effective treatments for degenerative and cancerous diseases, today announced the closing of a private placement transaction under which it sold an aggregate of 515,789 shares (the "Shares") of the Company's common stock, par value $0.001 per share (the "Common Stock"), to selected private investors (the "Investors") at $38.00 per share, for total gross proceeds of approximately $19.6 Million.
The Company intends to use the proceeds from the Private Placement to fund clinical trials, pursue international strategic acquisitions, invest in new product development and expand the Company's research and development and production facilities in China.
The issuance of the Shares was made in reliance on the exemption from registration provided by Regulation S under the Securities Act of 1933, as amended.
Tony Liu, Chief Financial Officer for the Company, commented, "We are pleased that new and existing investors, including veteran Hong Kong investment banker Mr. Francis Leung, continue to show long-term support for our plans for ongoing clinical trials for our Chimeric Antigen Receptor T Cell (CAR-T) and human adipose-derived mesenchymal progenitor cell (haMPC) platforms. With a healthy balance sheet, we will continue to execute on the Company's milestones and expect to build a world-class innovative cell-therapy company that delivers value to our shareholders."
"We are very excited by the successful closure of this Private Placement," added William (Wei) Cao, PhD, BM, Chief Executive Officer for the Company. "With a stronger balance sheet we are in a position to expedite our clinical trials of therapies for Acute Lymphocytic Leukemia (B-cell ALL), Advanced Diffuse Large B Cell Lymphoma (DLBCL), Hodgkin's Lymphoma, Advanced Lung Cancer and Knee Osteoarthritis, and to rapidly expand our Immuno-Oncology research and development programs and increase production capacity of stem cells, T cells, and genetically modified T cells."
For a complete description of the private placement and all related documents, please refer to the Company's Form 8-K that will be filed in connection with the transaction.
About Cellular Biomedicine Group
Cellular Biomedicine Group, Inc. develops proprietary cell therapies for the treatment of certain degenerative diseases and cancers. Our developmental stem cell, progenitor cell, and immune cell projects are the result of research and development by scientists and doctors from China and the United States. Our flagship GMP facility in China, consisting of eight independent cell production lines, is designed, certified and managed according to U.S. standards. To learn more about CBMG, please visit: www.cellbiomedgroup.com.
Statements 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, but are not limited to, risk factors inherent in doing business. 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.
CONTACT: Sarah Kelly Director of Corporate Communications, CBMG +1 650 566-5064 email@example.com Vivian Chen Managing Director Investor Relations, Grayling +1 347 481-3711 firstname.lastname@example.org
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