NeoStem, Inc. (NYSE Amex:NBS) is engaged in the development and manufacturing of cell-based therapies in the U.S. Its January 2011 acquisition of Progenitor Cell Therapy, LLC ("PCT") is central to the Company's strategic mission of capturing the paradigm shift to cell therapy. The Company has announced "the pricing of an underwritten public offering of 15,000,000 units at $0.40 per unit. Each unit consists of one share of common stock and a warrant to purchase one share of common stock with a per share exercise price of $0.51. Maxim Group LLC acted as sole bookrunner. The Company expects to receive $6,000,000 in gross proceeds, prior to deducting underwriting discounts and commissions and offering expenses payable by the Company."
These funds will be used for working capital purposes such as the research and development of cell therapeutic product candidates, as well as the expansion of business units, strategic transactions and other general corporate purposes. Neostem "has granted the underwriters a 45-day option to purchase up to an additional 2,250,000 units to cover over-allotments."
The financing is expected to close on or about April 3, 2012, subject to the satisfaction of customary closing conditions.