MultiCell Technologies Completes $4 Million Private Placement
Monday February 14, 9:02 am ET
Funding to be used to Accelerate Stem Cell Technology Development
SAN DIEGO--(BUSINESS WIRE)--Feb. 14, 2005--MultiCell Technologies, Inc. (OTCBB: MUCL - News), a leading supplier of functional non-tumorigenic immortalized human hepatocytes, announced today that it has completed a $4 million private placement with institutional and other accredited investors. "The completion of this financing will allow us to develop our stem cell technology," said Jerry Newmin, MultiCell's Co-Chairman and Chief Executive Officer. "We believe our approach to obtaining stem cells from adult liver tissue is unique, and avoids many of the ethical issues often associated with embryonic stem cells. We realize that utilization of liver stem cells for regenerative medicine is most likely years away and mandates FDA approval; therefore, the Company will continue to generate revenues from its stem cell program by pursuing immediate market opportunities in drug discovery. Indeed, our reputation as a leading provider of highly functional immortalized human hepatocytes for evaluating lead compounds and toxicology testing will facilitate the introduction of our stem cell products to the pharmaceutical industry."
The company issued 26,666,666 shares of common stock at $0.15 per share, three-year warrants to purchase 18 million shares of common stock at $0.20 per share and three-year warrants to purchase an additional 8 million shares of common stock at $0.30 per share. The shares of common stock and shares underlying the warrants have not been registered. The company expects to use the proceeds from the private placement to further develop its stem cell technology and for general corporate purposes. Mercator Group Advisors LLC and Marr Group were the lead investors in the placement.
The common stock and the warrants have not been registered under the Securities Act of 1933 or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption. MultiCell has agreed to file a registration statement covering resales of the common stock and exercise of the warrants, and is subject to penalties if the registration statement is not effective within 150 days of filing, subject to certain exceptions.
MultiCell is developing novel strategies for isolation of adult human liver stem cells, on which it holds a patent. Liver stem cells may play a key role in transplantation for tissue regeneration as well as other diagnostic and therapeutic applications. The use of liver stem cells to treat diseases, such as Hepatitis C, may greatly enhance quality of life and obviate the need for costly whole organ liver transplantation. MultiCell believes its stem cell technology creates a unique position within the cell therapy market. Since stem cells will be obtained from adult tissues, the company's methodology also avoids the controversy associated with the use of embryonic stem cells.
For information about MultiCell call 401-738-7560 or see www.multicelltech.com.
The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission including the Company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.
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Contact:
MultiCell Technologies, Inc.
Jerry Newmin, 401-738-7560
or
CEOcast, Inc. for MultiCell
Ed Lewis, 212-732-4300, ext. 225
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Source: MultiCell Technologies, Inc.
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