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. -----------------
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.
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