By Devika Patel
Knoxville, Tenn., May 19 - Neostem, Inc. negotiated a $20 million two-year equity financing agreement with Commerce Court Small Cap Value Fund, Ltd. on May 19, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company may draw the funds in tranches of up to 2.5% of its market capitalization for any 10 consecutive trading day period. The shares will be sold at a purchase price equal to 95% of the volume-weighted average price of the company's common stock during the 10-day period following the advance notice.
The company may issue up to 24 drawdown notices, with at least five trading days between each drawdown.
The investor received 63,792 shares as a commitment fee.
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: | Equity financing agreement
|
| Amount: | $20 million
|
| Tenor: | Two years
|
| Price: | 95% of the volume-weighted average price of the company's common stock
|
| Warrants: | No
|
| Fees: | 63,792 shares
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| Investor: | Commerce Court Small Cap Value Fund, Ltd.
|
| Settlement date: | May 19
|
| Stock symbol: | Amex: NBS
|
| Stock price: | $3.16 at close May 18
|
| Market capitalization: | $129 million
|
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