NEW YORK, Aug. 24 /PRNewswire-FirstCall/ -- NeoStem, Inc. (Amex: NBS), which is pioneering the pre-disease collection, processing and long-term storage of adult stem cells for future medical need, announced today that it has qualified as an Emerging Technology Company with the New York Department of Taxation and Finance, for the period ending December 31, 2009.
The Company has notified certain shareholders that, as a result of this designation, they may be eligible for up to a 20% tax credit from the State of New York relating to their direct investment in NeoStem.
In the letter, Robin Smith, M.D., MBA, NeoStem's Chief Executive Officer, also stated, referring to the Company's proposed acquisition of China Biopharmaceuticals Holdings, Inc., "I am pleased to report the acquisition process is progressing and we are on track for closing before year end."
As announced on November 3, 2008, NeoStem has signed an agreement to acquire China Biopharmaceuticals Holdings, Inc. (OTC Bulletin Board: CHBP), together with a 51% controlling interest in Suzhou Erye Pharmaceutical Co. Ltd. ("Erye"), a sino-foreign joint venture and CHBP's operating subsidiary located in Suzhou China. In 2008, Eyre generated revenues of approximately $50 million and netted over $7 million. Erye has been in business for more than 50 years and manufactures over 100 drugs on seven GMP lines, including small molecule drugs. The closing of the acquisition is subject to the prior approval of the shareholders of each of NeoStem and CHBP as well as other customary closing conditions.
About NeoStem, Inc.
NeoStem is developing a network of adult stem cell collection centers that are focused on enabling people to donate and store their own (autologous) stem cells when they are young and healthy for their personal use in times of future medical need. The Company has also entered into research and development through the acquisition of a worldwide exclusive license to technology to identify and isolate VSELs (very small embryonic-like stem cells), which have been shown to have several physical characteristics that are generally found in embryonic stem cells and is pursuing other technologies to advance its position in the field of stem cell tissue regeneration. In 2009, the Company began to expand its operations into China in connection with the development of therapeutic adult stem cell technologies and is seeking to generate revenues through its regenerative medicine programs and technologies in China. For more information, please visit: www.neostem.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the Company's proposed acquisition of CHBP. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and the Company's other periodic filings with the Securities and Exchange Commission. The Company's further development is highly dependent on future medical and research developments and market acceptance, which is outside its control.
The statements contained in this communication were not intended as tax advice, and were not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code. Each taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
CONTACT: NeoStem, Inc. Robin Smith, Chief Executive Officer T: 212-584-4180 E: firstname.lastname@example.org
|SOURCE NeoStem, Inc.|
Copyright©2009 PR Newswire.
All rights reserved