Proceeds used for development of cell therapeutic product candidates
By Devika Patel
Knoxville, Tenn., April 30 - NeoStem, Inc. said the underwriters for its public offering of stock opted to exercise the deal's $1.5 million greenshoe in part for total proceeds of $10.75 million. The deal was announced March 27 and priced for $10 million with the $1.5 million greenshoe on Monday.
The company sold 21.5 million common shares at $0.50 apiece. The price per share is a 21.88% discount to the April 26 closing share price of $0.64. Of the shares, 1.5 million were part of the partially exercised greenshoe.
Aegis Capital Corp. was the bookrunning manager.
Settlement is expected May 3.
Proceeds will be used for working capital, including research and development of cell therapeutic product candidates, including AMR-001, expansion of business units, strategic transactions 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: | Common stock
|
| Amount: | $10.75 million (including $750,000 greenshoe)
|
| Shares: | 21.5 million
|
| Price: | $0.50
|
| Warrants: | No
|
| Bookrunner: | Aegis Capital Corp.
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| Announcement date: | March 27
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| Pricing date: | April 29
|
| Settlement date: | May 3
|
| Stock symbol: | NYSE: NBS
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| Stock price: | $0.64 at close April 26
|
| Market capitalization: | $82.98 million
|
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