Biotech Values

[DonShimoda]

This financing is highly dilutive but I believe it significantly changes the risk profile of the company. Frankly, I didn't think they would be able to raise this amount of funding. Also, nice to see some quality names in the deal.
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STEM CELL THERAPEUTICS COMPLETES $33 MILLION PRIVATE PLACEMENT

Toronto, Canada – December 13, 2013 – Stem Cell Therapeutics Corp. (TSX-V:
SSS; OTCQX: SCTPF), an immuno-oncology company developing cancer stem cellrelated
therapeutics, is pleased to announce that it has raised gross proceeds of $33
million through a private placement of units. The financing proceeds will be used to
advance the Company’s CD47 cancer stem cell program through IND-enabling studies,
manufacturing and phase 1 clinical trials.

“The transformation of Stem Cell Therapeutics into a global competitor in the immunooncology
space requires a value-driving asset backed by world class science, access to
significant capital, experienced leadership, as well as a strong and knowledgeable
investor base. As of today we have all those components,” commented the company’s
CEO, Dr. Niclas Stiernholm.

The financing was led by a prominent U.S. healthcare fund, with participation from
several other premier U.S. healthcare institutional investors, including Special Situations
Funds, Ridgeback Capital, Merlin Nexus, Sabby Capital, venBio, Opaleye Management
and HSMR Advisors. Bloom Burton & Co. acted as lead agent for the private placement.
ROTH Capital Partners, LLC acted as placement agent in the United States.

“The significant investment and validating sponsorship from these reputable life sciencefocused
funds is the result of a concentrated effort to introduce the U.S. investment
community to our CD47 immune checkpoint program since the acquisition of Trillium
Therapeutics in April 2013,” added Dr. Stiernholm.

In connection with the offering, the Company issued 157,142,858 units at a price of $0.21
each. The units consisted of either one common share and three-quarters of a common
share purchase warrant (“Common Share Units”) or one Series 1 Non-Voting First Preferred Share and three-quarters of a common share purchase warrant (“Preferred Share Unit”). Of the total Units issued, 79,247,693 units were Common Share Units and 77,895,165 units were Preferred Shares Units. Each whole warrant entitles the holder to purchase one common share at a price of $0.28 at any time prior to expiry on December 13, 2018. Following the offering, the Company has 121,752,380 common shares issued
and outstanding (144,031,618 on a fully diluted basis.

http://bit.ly/18qAIT8