By Devika Patel
Knoxville, Tenn., May 6 - International Stem Cell Corp. gave further details about a $10 million private placement of 10% series F preferred stock with Socius CG II, Ltd. in a prospectus supplement filed Thursday with the Securities and Exchange Commission. The deal priced on May 4.
The company is selling up to 1,000 preferreds at $10,000 each.
The company will determine the time and amount of preferreds to be purchased by the investor. It said it plans to sell all 1,000 preferreds in a single tranche.
Dividends are payable in kind.
Beginning a year after issuance, the preferreds are callable at par plus a redemption premium and accrued dividends. The premium is 26% for redemptions made between the first and second anniversary of issuance, and it declines to zero for redemptions made after the fourth anniversary.
The investor also will received 280,000 shares of common stock as a fee and a warrant to purchase up to 7 million shares. The exercise price of the warrant will be determined based on the company's closing stock price on the day before the preferreds are sold.
Proceeds will be used for research and development and general working capital needs.
International Stem Cell is a biotechnology company based in Oceanside, Calif.
| Issuer: | International Stem Cell Corp.
|
| Issue: | Series F preferred stock
|
| Amount: | $10 million
|
| Preferreds: | 1,000
|
| Price: | $10,000
|
| Dividends: | 10%, payable in kind
|
| Call option: | Beginning one year after issuance at par plus redemption premium of up to 26%
|
| Warrant: | For 7 million shares
|
| Investor: | Socius CG II, Ltd.
|
| Pricing date: | May 4
|
| Stock symbol: | OTCBB: ISCO
|
| Stock price: | $2.19 at close May 4
|
| Market capitalization: | $102 million
|
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