Pluristem Announces Bought Deal Offering
HAIFA, Israel, Jan. 19, 2017 (GLOBE NEWSWIRE) -- Pluristem Therapeutics Inc. (PSTI) (PSTI) announced today that it has entered into an underwriting agreement with H.C. Wainwright & Co., LLC, under which the underwriter has agreed to purchase on a firm commitment basis a minimum of 8,163,265 shares of common stock of the Company, at a price to the public of US$1.225 per share (the “Public Price”) together with warrants to purchase at least 4,897,959 shares of common stock of the Company with an exercise price of US$1.40 per share of common stock (the “Exercise Price”). The warrants have a term of five and a half years exercisable within 6 months from the date of issuance. The aggregate gross proceeds to the Company (assuming no exercise of the warrants) are approximately US$10 million, before deducting underwriting discounts and commissions and estimated offering expenses.
H.C. Wainwright & Co. is acting as the sole book-running manager in connection with this offering.
The Company also has granted to the underwriter a 30-day option (the “Over-Allotment Option”) to purchase up to an additional 1,224,490 shares of common stock at the Public Price and/or with warrants to purchase 734,694 shares of common stock of the Company, for potentially additional aggregate proceeds to the Company of up to approximately US $1.5 million (assuming no exercise of the warrants) before deducting underwriting discounts and commissions and estimated offering expenses. In the event the Over-Allotment Option is exercised in full, the aggregate gross proceeds to the Company (assuming no exercise of the warrants) will be approximately US $11.5 million.
The closing of the offering is expected to occur on or about January 25, 2017, subject to customary closing conditions. The Company intends to use the net proceeds of the offering for research and product development activities, clinical trial activities, investment in capital equipment and for working capital and other general corporate purposes.
