NeoStem (AMEX:NBS) said Thursday it has closed the previously announced underwritten public offering, raising gross proceeds of $6.8 million.
The company issued 15.0 million units, plus an additional 2.0 million
units under the exercise of the over-allotment option, for a total of
17.0 million units priced at 40 cents each.
Each unit consists of one share of common stock and a warrant to purchase one share at a price of 51 cents.
management remains focused on our key objectives of expanding our stem
cell therapeutic contract manufacturing business, enrolling the PreSERVE
AMR-001 Phase 2 clinical trial for preserving heart function after a
heart attack and monetizing our China pharmaceutical subsidiary through
divestiture," said chairman and CEO Dr. Robin Smith.
Gross proceeds were $6.8 million, prior to deducting underwriting
discounts and commissions and offering expenses, the company said.
The new funds will be used for working capital purposes, including
research and development of cell therapeutic product candidates,
expansion of business units, strategic transactions and other general
has continued to devote its resources to its cell therapy business,
including manufacturing, therapeutic development, and related
activities. 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
For 2011, the company reported revenues of $73.7 million, compared to $69.8 million in 2010.
company is focused on accelerating the development of proprietary
cellular therapies and becoming a single source for collection, storage,
manufacturing, therapeutic development and transportation of cells for
cell-based medicine and regenerative science globally.
mid-October last year, the company completed the acquisition of
Amorcyte, taking ownership of a strong patent portfolio covering the use
of stem cells for cardiac disease treatment.
product candidate, AMR-001, is currently in phase two studies. The
product is an autologous cell therapy designed to prevent heart tissue
damage and further major adverse cardiac events following a heart
Because the treatment is autologous, meaning cells are
taken from the same individual that they're transplanted into, it has no
risk of rejection and can provide support for an extended period of
The phase two study, for which enrollment began in January,
is a randomized, double-blind, placebo-controlled clinical trial to
evaluate the safety and efficacy of AMR-001. The trial, which will
include 160 subjects aged 18 and older, will be supported by Progenitor
Aside from its operations in the US, NeoStem
has a network of adult stem cell therapeutic providers in China as well
as a 51 percent ownership interest in a Chinese generic pharmaceutical
manufacturing company, Suzhou Erye Pharmaceutical Co.
said, however, that since opportunities in the cell therapy space are
growing, it sees this as an opportunistic time to sell its 51 percent
stake in Suzhou, and to bolster its cell therapy business.