Stem Inc (STEM)

[AntiOne]

StemCells, Inc. Announces Proposed $20 Million Offering


StemCells, Inc. (Nasdaq:STEM), today announced its intent to offer and sell 11,299,435 shares of common stock and short term warrants for the purchase of up to 9,604,520 additional shares of common stock to two well recognized institutional biotechnology investors, subject to market and other conditions, for gross proceeds of $20 million, before deducting placement fees and other offering expenses. StemCells intends to use the net proceeds of the offering for general corporate purposes, including working capital, product development and capital expenditures.
The common stock and warrants will be sold in units, with each unit consisting of one share of common stock and a warrant to purchase 0.85 of a share of common stock at an offering price of $1.77 per unit. The warrants will first be exercisable six months from the date of issuance at an initial exercise price of $2.17 per share. The warrants will expire at the close of business on the date that is 13 months from the date of issuance.

The offering is expected to close on or before July 18, 2014, subject to customary closing conditions. Ascendiant Capital Markets, LLC is acting as financial advisor and placement agent for the offering.

The units are being offered under the Company's effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC) by means of a prospectus supplement and accompanying prospectus, forming a part of the effective registration statement, which was filed with the SEC on July 15, 2014. A copy of the prospectus supplement may be obtained at the website of the Securities and Exchange Commission (SEC) at http://www.sec.gov.