Preferreds sold at $1,000 with warrants for about 10.8 million shares
By Devika Patel
Knoxville, Tenn., March 10 – International Stem Cell Corp. arranged a $6.31 million private placement of convertible preferred stock on March 9, according to an 8-K filed Thursday with the Securities and Exchange Commission. Rodman & Renshaw is the agent.
The company will sell 2,000 series I-1 preferreds at $1,000 per preferred and 4,310 series I-2 preferreds at $1,000 per preferred. The series I-2 preferreds will be sold to chief executive officer and co-chairman Andrey Semechkin.
Each preferred will initially be convertible into common shares at $1.75 per share.
Investors also will receive series A warrants for about 3.6 million shares, series B warrants for about 3.6 million shares and series C warrants for about 3.6 million shares. The A warrants are exercisable at $3.64 for five years. The B warrants are exercisable at $1.75 for six months. The C warrants are exercisable at $1.75 for one year.
The strike prices and conversion price of $3.84 and $1.75 are 5.21% and 54.43% discounts to the $3.84 closing share price on March 8.
Settlement is expected March 15.
International Stem Cell is a biotechnology company based in Carlsbad, Calif.
| Issuer: | International Stem Cell Corp.
|
| Issue: | Series I-1 convertible preferred stock, series I-2 convertible preferred stock
|
| Amount: | $6.31 million
|
| Price: | $1,000
|
| Conversion price: | $1.75
|
| Warrants: | For about 10.8 million shares
|
| Warrant expiration: | Five years, six months, one year
|
| Warrant strike price: | $3.64, $1.75
|
| Agent: | Rodman & Renshaw
|
| Investor: | Andrey Semechkin (for $4.31 million)
|
| Pricing date: | March 9
|
| Settlement date: | March 15
|
| Stock symbol: | OTCBB: ISCO
|
| Stock price: | $3.84 at close March 8
|
| Market capitalization: | $8.63 million
|
|
|
| Series I-1
|
| Amount: | $2 million
|
| Shares: | 2,000
|
|
|
| Series I-2
|
| Amount: | $4.31 million
|
| Shares: | 4,310
|
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