MEDIA RELEASE PR35263
NeoStem Raises Additional Funds from Principals of Suzhou Erye Pharmaceuticals Company Ltd.
and U.S. Institutional and Private Investors, Bringing the Total Recent Financings to Over $15
Million
NEW YORK, July 1 /PRNewswire-AsiaNet/ --
Funds Will Support Expansion Activities in the United States and China as
well as Further Development of NeoStem's VSEL and other Licensed Technologies
NeoStem, Inc. (NYSE Amex: NBS) announced today that it has raised
additional gross funds of over $4 million from institutional and private
investors. These funds, together with the $11 million private placement from
three Asia-based investors announced April 13, 2009, bring the total
investment obtained by NeoStem in the past two and half months to over $15
million. In addition, affiliates of Suzhou Erye Pharmaceuticals Company, Ltd.
have increased their overall investment in the Company to over $1,000,000. As
part of its China expansion activities, NeoStem is anticipating, subject to
approval of its shareholders, on closing before year end on the acquisition
of a 51% interest in Suzhou Erye through a merger with its current 51% owner.
The funds will be used to support NeoStem's continuing initiatives in
VSEL (very small embryonic-like) stem cell technology licensed from the
University of Louisville and to advance NeoStem's expansion activities in
China, as well as other general corporate purposes. A portion of the funds
also will be used to expand U.S.-based operations and add seasoned management
to the NeoStem team with experience in clinical drug development in
pharmaceutical and biotechnology industry and administration of overseas
based clinical trials.
The terms and conditions of the current financing are the same as those
of the earlier April round. Units are priced at $12.50 per unit, with each
unit consisting of one share of the Company's Series D Convertible Redeemable
Preferred Stock, convertible into ten shares of common stock and ten warrants
each to purchase one share of common stock. The warrants have a per share
exercise price equal to $2.50 and are callable by the Company if the common
stock trades at a price equal to $3.50. Subject to the affirmative vote of
the Company's shareholders and the rules of the NYSE Amex, the warrants will
become exercisable for a period of five years and each share of Series D
Convertible Redeemable Preferred Sock will automatically convert into ten
shares of Common Stock.
Dr. Robin Smith, Chairman and CEO of NeoStem, stated, "We are very
pleased to receive this additional investment from a group of institutional
and private onshore investors who recognize the many recent achievements of
NeoStem under our multi-faceted business plan. Our growing stem cell
technology base and our expanding relationships with key business partners in
the U.S. and China open the way to new markets, distribution channels and
production capabilities in the world's two largest economies. By successfully
leveraging both the medical and commercial potential of emerging adult stem
cell therapies, NeoStem is establishing an international leadership position
in this rapidly developing field." She added, "We are also excited that the
principals of Suzhou Erye have made a second investment in our future, which
we believe solidifies their commitment to our post-merger endeavors."
The securities sold were sold without registration under the Securities
Act of 1933, as amended (the "Act") pursuant to Regulation S or Regulation D,
each 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 and is
pursuing other technologies to advance its position in the field of adult
stem cell tissue regeneration.
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 the Company's expansion activities in China
and the future for the commercial use of stem cell therapies and the
Company's VSEL technology. 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 those projected in forward-looking statements include
the "Risk Factors" described in the Company's Annual Report on Form 10-K for
its fiscal year ended December 31, 2008 and the Company's other 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 are outside its control.
Contact:
NeoStem, Inc.
Robin Smith, Chief Executive Officer
T: 212-584-4180
E: rsmith@neostem.com
SOURCE: NeoStem, Inc.
CONTACT: NeoStem, Inc.
Robin Smith
Chief Executive Officer
+1-212-584-4180
rsmith@neostem.com
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