Deal sells common stock, preferreds to Tianjin Pharmaceutical Holding
By Devika Patel
Knoxville, Tenn., Sept. 12 – Neuralstem Inc. arranged a $20 million private placement of stock and preferreds with Tianjin Pharmaceutical Holding Group on Sept. 7, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell 28.5 million common shares at $0.253 apiece. The purchase price is a 1.2% premium to the Sept. 6 closing share price of $0.25.
The investor also will buy 1 million 4.5% series A convertible preferred shares at $12.7895 per preferred. The preferreds are immediately convertible into 50,551,383 common shares at $0.253 per share, also a 1.2% premium to the Sept. 6 closing share price.
Settlement is expected during the fourth quarter of 2016.
Proceeds will be used for clinical research and development and general corporate purposes.
Based in Rockville, Md., Neuralstem develops technologies to transplant human neural stem cells.
| Issuer: | Neuralstem Inc.
|
| Issue: | Common stock, series A convertible preferred shares
|
| Amount: | $20 million
|
| Price: | $11.25
|
| Warrants: | No
|
| Investor: | Tianjin Pharmaceutical Holding Group
|
| Pricing date: | Sept. 7
|
| Settlement date: | Sept. 7
|
| Stock symbol: | Nasdaq: CUR
|
| Stock price: | $0.25 at close Sept. 6
|
| Market capitalization: | $39.89 million
|
|
|
| Common shares
|
| Amount: | $7,210,500
|
| Shares: | 28.5 million
|
| Price: | $0.253
|
|
|
| Preferreds
|
| Amount: | $12,789,500
|
| Preferreds: | 1 million
|
| Price: | $12.7895
|
| Dividends: | 4.5%
|
| Conversion price: | $0.253
|
| Conversion ratio: | Into 50,551,383 common shares
|
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