"The loan matures in September 2018 and the additional $5 million disbursement is available in the event of the Company’s consummation of a partnering transaction around the Company’s NBS10 development program for post acute myocardial infarction (“AMI”) patients. Oxford will have a security interest in substantially all the Company’s real and personal property, excluding intellectual property. No warrants or common stock were issued in connection with this financing."
Collateral is basically all of NeoStem (non-intellectual property). And they will get the final 25% (a substantial withholding on the loan) once they have PARTNERED for their AMR-001. Why would NeoStem agree to such a risk? If results are negative, they will have a very difficult time repaying that loan, nor will they be able to acquire a partner for their AMR-001 (obviously). And they will encounter difficulty in financing their Ph III NBS20 trial.
Well why not just wait until results are posted and then enter financing? Wouldn't they get better terms (provided results are positive)? They were expecting results some time ago. After full enrollment the most common statement from management was "6-8 months from now" or Q3 2014. It seems they were expecting and hoping for results by July-early August. Now they just absolutely NEED the money and couldn't wait any longer. That's all it is, imo. I think they are VERY confident the data will be positive though, as the terms would crush them if they are not (if they were in doubt, they would have diluted).
One thing's for sure though, they do NOT have data and are sitting on it, and making financing deals without disclosing this information. That would be an illegal practice. They are still waiting like all of us. Only the wait simply cannot be much longer. They have probably been assured by investigators that it will be by the Nov conference. And so they are saying "we expect data readout sometime before this." GL
News 
Market Data 
Discover 
