Proceeds used for development of cell therapeutic product candidates
By Devika Patel
Knoxville, Tenn., June 2 – NeoStem, Inc. said the underwriters for its initial public sale of stock opted to exercise the deal’s $3.75 million greenshoe in full, lifting total proceeds of the offering to $28.75 million. The offering was announced May 27 and priced for $25 million with the greenshoe a few hours later.
The company sold 14,375,000 common shares at $2.00 per share. The price per share is a 24.81% discount to the May 26 closing share price of $2.66. Of the shares, 1,875,000 were part of the fully exercised greenshoe.
Aegis Capital Corp. was the bookrunning manager.
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
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| Amount: | $28.75 million, including $3.75 million greenshoe of 1,875,000 shares
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| Shares: | 14,375,000
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| Price: | $2.00
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| Warrants: | No
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| Bookrunner: | Aegis Capital Corp.
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| Announcement date: | May 27
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| Pricing date: | May 27
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| Settlement date: | June 2
|
| Stock symbol: | Nasdaq: NBS
|
| Stock price: | $2.66 at close May 26
|
| Market capitalization: | $90.74 million
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