NEW YORK, Sept. 3 /PRNewswire-FirstCall/ -- NeoStem, Inc. announced today that it has completed a $1,250,000 private placement financing from RimAsia Capital Partners, a pan-Asia private equity firm.
The financing consists of units priced at $1.25 per unit with each unit consisting of one share of common stock and a warrant to purchase one share of common stock at $1.75.
Dr. Robin Smith, Chairman and CEO of NeoStem stated, "We are thrilled to have an investment from a fund that operates in partnership with a regional network of strategic investors drawn from leading Asian families and companies. With extensive investment expertise and experience, RimAsia invests in businesses with strong prospects that could benefit from its capital and guidance. We believe this investment from RimAsia is the first step in our gaining exposure in the global markets, furthers our plans for expansion overseas and opens the door to future acquisition targets."
Dr. Smith further commented, "As we transition from an early stage company to one which is focused on generating revenue, we intend to place emphasis on a national marketing, public relations and sales campaign to alert the media and general public as to the importance of collecting and storing their own adult stem cells. An important part of this program will involve Company spokesperson Suzanne Somers who writes about the Company in her new book "Breakthrough: Eight Steps to Wellness" being released this month.
Asia has been a leading example to the world as to the importance and efficacy of stem cell therapy and other breakthrough medical advancements. More and more individuals have been traveling outside the United States to receive stem cell treatment for various illnesses and diseases.
RimAsia's portfolio companies include investments in PRC companies that are engaged in pharmaceutical manufacturing, drug delivery systems, coal blending, print media and semiconductor design.
Eric Wei, Managing Partner of RimAsia Capital Partners, said, "We are extremely excited by the growth prospects for NeoStem, particularly the development of the Company's very small embryonic-like (VSEL) stem cell technology which we believe one day could be the non-embryonic stem cell solution to treating many diseases that affect people worldwide. We believe there is strong potential for collaborating with NeoStem in introducing the VSEL technology to the PRC market, as well as commercializing a number of the other current businesses of the Company in China.
The securities sold were sold without registration under the Securities Act of 1933, as amended (the "Act") pursuant to Regulation S promulgated under the Act and may not be resold in the United States or to U.S. persons unless registered under the Act or pursuant to an exemption from registration under the Act. Hedging transactions involving such securities may not be conducted unless in compliance with the Act.
About NeoStem, Inc.
NeoStem is managing a network of adult stem cell collection centers in major metropolitan areas in the United States, enabling people to donate and store their own (autologous) stem cells when they are young and healthy for their personal use in times of future medical need. The Company also has entered into research and development through the acquisition of a worldwide exclusive license of technology to identify and isolate VSEL(very small embryonic-like) stem cells, which have been shown to have several physical characteristics that are generally found in embryonic stem cells.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding potential collaboration between NeoStem and RimAsia or other parties. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. 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 periodic filings with the Securities and Exchange Commission. The Company's further development is highly dependent on future medical and research developments and market acceptance which is outside its control.
CONTACT: Robin Smith, Chief Executive Officer of NeoStem, Inc.,
+1-212-584-4180, rsmith@neostem.com
Web site: http://www.neostem.com/
