Aug. 7, 2000--StemCells, Inc. (Nasdaq: STEM - news) announced today that it has completed a $4 million common stock financing transaction with a prominent investment fund with more than a billion dollars in assets under management. StemCells received $3 million of the purchase price at the closing and will receive the remaining $1 million upon effectiveness of a registration statement covering the shares owned by the Fund.
The Fund purchased the Company's common stock at $4.33 per share. The Fund will be entitled to receive additional shares of common stock on eight dates beginning six months from the closing and every three months thereafter. The number of additional shares to which the Fund will be entitled on each date will be based on the number of shares of the common stock the Fund continues to hold on each date and the market price of the Company's common stock over a period prior to each date. The Company will have the right, under certain circumstances, to cap the number of additional shares by purchasing part of the entitlement from the Fund. The Fund also received a warrant to purchase up to 101,587 shares of common stock at $4.725 per share. This warrant is callable by StemCells at $8.6625 per underlying share. In addition, the Fund has the option for twelve months to purchase up to $3 million of additional common stock.
``We are pleased with this financing, which we believe will give us adequate short term resources as we improve the funding of our research programs,'' stated George Dunbar, Acting President and CEO of StemCells. ``We are also pleased about the very successful IPO of Modex Therapeutics Ltd, of which we own approximately 126,000 shares.'' StemCells, Inc. (then known as CytoTherapeutics, Inc.) was one of the founders of Modex, a Swiss biotherapeutics company established in 1996 to pursue encapsulated cell technologies related to former programs of the Company. Modex's share price has risen over 40% to date from its June 23 Initial Public Offering on the Swiss Neue Markt. The performance of the stock since its IPO does not predict its future value. |
