Stem Inc (STEM)

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StemCells, Inc. Announces Proposed Public Offering of Common Stock and Warrants

NEWARK, Calif., Apr 24, 2015 (GLOBE NEWSWIRE via COMTEX) --

StemCells, Inc. STEM, -2.44% today announced the pricing of an underwritten public offering of common stock and warrants with a public offering price of $0.70 for a fixed combination of one share of common stock and a warrant to purchase three-quarters of a share of common stock. The warrants have an exercise price of $0.85 per share, are exercisable immediately, and will expire five years from the date of issuance. The Company expects to receive gross proceeds of approximately $25.0 million, before deducting underwriting discounts and commissions and other estimated offering expenses. The Company has also granted the underwriters a 30 day option to purchase up to an additional 5,357,250 shares of common stock and/or warrants to purchase up to an additional 4,017,938 shares of common stock to cover over-allotments, if any.

The offering is expected to close on or about April 29, 2015, subject to customary closing conditions.

Maxim Group LLC is acting as sole book-running manager and Chardan Capital Markets is acting as co-manager for the offering.

StemCells intends to use the net proceeds of the offering for general corporate purposes, including working capital, capital expenditures and research and development.
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