Investor Aspire Capital to buy company's common shares at 5% discount
By Devika Patel
Knoxville, Tenn., Sept. 30 - NeoStem, Inc. negotiated a $20 million equity purchase agreement with Aspire Capital Fund, LLC, according to a prospectus supplement filed Friday with the Securities and Exchange Commission. The two-year agreement was negotiated on Sept. 28.
Aspire will pay a purchase price equal to 95% of the volume-weighted average price of the common stock on the purchase date.
The shares will be purchased in tranches of up to 100,000 shares or $500,000.
The investor also received 990,099 shares as consideration for the agreement.
The company also cancelled a $20 million equity purchase agreement that was arranged with Commerce Court Small Cap Value Fund, Ltd. in May 2010.
Proceeds will be used for working capital, including research and development of cell therapeutic product candidates, expansion of business units and other general corporate purposes.
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 purchase agreement
|
| Amount: | $20 million
|
| Tenor: | Two years (Sept. 30, 2013)
|
| Price: | 5% discount
|
| Warrants: | No
|
| Investor: | Aspire Capital Fund, LLC
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| Fees: | 990,099 shares
|
| Settlement date: | Sept. 28
|
| Stock symbol: | Amex: NBS
|
| Stock price: | $0.70 at close Sept. 28
|
| Market capitalization: | $63.85 million
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