By Devika Patel
Knoxville, Tenn., July 6 - Neostem, Inc. sold $5 million of its series D convertible redeemable preferred stock on July 6, according to an 8-K filed Monday with the Securities and Exchange Commission. The company raised $11 million on the same terms in an April 13 private placement.
The company sold 400,280 preferred units priced at $12.50 per unit.
Each unit consists of one preferred and 10 warrants. Each preferred will automatically convert into 10 common shares. Each warrant is exercisable at $2.50 for five years.
Proceeds will be used to support the development of NeoStem's very small embryonic-like stem cells technology and help advance the company's expansion activities in China.
The New York-based company collects, processes and stores adult stem cells for autologous use in the treatment of cardiac disease, autoimmune disorders and other conditions.
| Issuer: | Neostem, Inc.
|
| Issue: | Units of one series D convertible redeemable preferred share and 10 warrants
|
| Amount: | $5,003,500
|
| Units: | 400,280
|
| Price: | $12.50
|
| Conversion ratio: | Into 10 common shares (per preferred)
|
| Warrants: | 10 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.50
|
| Settlement date: | July 6
|
| Stock symbol: | Amex: NBS
|
| Stock price: | $1.88 at close July 6
|
| Market capitalization: | $14.9 million
|
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