Investor Aspire Capital to buy company's common shares at 5% discount
By Devika Patel
Knoxville, Tenn., Aug. 24 - NeoStem, Inc. extended a $20 million equity purchase agreement with Aspire Capital Fund, LLC by another two years to Sept. 30, 2015 on Aug. 23, according to an 8-K filed Friday with the Securities and Exchange Commission. The agreement was negotiated on Sept. 28, 2011 and originally was to expire on Sept. 30, 2013. There have been no shares sold under the deal.
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 received 990,099 shares as consideration for the agreement in September 2011. In consideration for extending the purchase agreement, Inspire was issued a five-year warrant for 1,612,903 shares, which will be exercisable at $0.60, a 14.29% discount to the Sept. 28, 2011 closing share price of $0.70.
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
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| Amount: | $20 million
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| Tenor: | Four years (Sept. 30, 2015)
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| Price: | 5% discount
|
| Warrants: | No
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| Investor: | Aspire Capital Fund, LLC
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| Fees: | 990,099 shares
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| Settlement date: | Sept. 28
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| Amended: | Aug. 23
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| Stock symbol: | Amex: NBS
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| Stock price: | $0.70 at close Sept. 28, 2011
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| Market capitalization: | $63.85 million
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