NeoStem to raise $6 mln in public offering to fund strategic transactions

Cancer cell therapy company NeoStem (AMEX:NBS) said Thursday it expects to raise $6 million through an underwritten public offering, as it seeks to fund strategic transactions.

The company provides adult stem cell collection and storage services to allow healthy people to donate and store their stem cells for personal therapeutic use.

NeoStem plans to sell 15 million units priced at 40 cents each. The company added it plans to use the funds for general corporate purposes, research and development of cell therapeutic candidates as well as strategic transactions.

Each unit consists of one common share and a warrant to purchase one share of common stock with an exercise price of 51 cents. Maxim Group LLC acted as sole bookrunner.

NeoStem has granted the underwriters a 45-day option to buy up to an additional 2.25 million units to cover over-allotments.

The offering is slated to close on April 3, and subject to customary closing conditions.

For full-year 2011, the biopharmaceutical company reported sales of $73.7 million up from $69.8 million in the same period last year.

Its revenues are derived from a combination of areas, including the contract manufacturing services performed by the Progenitor Cell Therapy, whose manufacturing base is one of the few accredited facilities available for contracting in the cell therapy industry.

The company also focuses on making a pipeline of regenerative drug therapies, which are focused on orthopaedic conditions, as well as developing cosmetic and anti-aging applications.