Pluristem Announces Private Equity Investment of $8M
NEW YORK, Feb 14, 2007 (BUSINESS WIRE) -- Pluristem Life Systems, Inc. (OTCBB:PLRS), a cell therapy Company dedicated to the commercialization of stem cell products for a variety of indications, today announced that it has signed a binding term sheet with new investors for a private equity investment in the amount of $8,000,000. The first payment of funds totaling $1,250,000 has been received.
The investors will receive Pluristem restricted common stock at a price of $0.0125 per share and a warrant to purchase additional shares at an exercise price of $0.025 per share. The final agreement is expected to be completed by March 15, 2007.
Mr. Zami Aberman, CEO of Pluristem Life Systems stated: "We are delighted these new investors have shown their confidence in Pluristem. Our business strategy targets a potential $30 billion market by capitalizing on our proprietary PLacenta eXpanded (PLX I) and 3D PluriX(TM) technologies and our unique business model of "supply-on-demand" cells for a variety of clinical indications. This financing enables us to fund our activities for the next 2 years and generate the clinical data we believe will support the therapeutic effects of PLX-I in the treatment of hematological malignancies. In addition, we will explore the use of PLX-I in new clinical applications."
Pluristem developed PLX I as an allogeneic product, based on supplementing the umbilical cord blood cells with supportive cells that improve the effectiveness of engraftments and shorten recovery times. PLX I mesenchymal stem cells were proven to increase the umbilical cord blood stem cells effectiveness by 3-5 times in a pre-clinical study. |
