NeoStem Opens New Boston Area Facility
NEW YORK, Oct. 27 /PRNewswire-FirstCall/ -- NeoStem, Inc. (AMEX: NBS - News), NeoStem, Inc., 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 closed on a private placement financing in the amount of $250,000. The funds will assist the Company in launching its adult stem cell collection network in the New York City market and increasing its research and development activities prior to receipt of the $800,000 in federal funds that have been earmarked by the Department of Defense through the FY09 Appropriations Bill to evaluate the efficacy and potential use of stem cell therapy for treating injuries suffered by U.S. military and first responders.
The private placement financing consists of units priced at $1.25 per unit with each unit consisting of one share of common stock and a warrant to purchase one share of common at $1.75. Dr. Robin Smith, Chairman and CEO of NeoStem commented, "We have felt that our stock price has been undervalued in light of recent stock market conditions and current credit crunch and this $250,000 private investment at above market prices helps to validate our sentiments. We believe we are in an exciting new phase of our development and we take comfort in the fact that this private placement, along with the $800,000 earmark from the US Department of Defense, show confidence in our technology and the importance that adult stem cell therapy may one day represent in medical treatment."
Dr. Smith also took this opportunity to comment on NeoStem's recently expanded relationship with New England Cryogenic Center, Inc. "NECC has been a leader in cryogenics for over 25 years and we have carefully chosen their state of the art facility in which to establish our own stem cell basic research and development capacity to seek to accelerate the development of our very small embryonic like (VSEL) stem cell technology." VSELs have been identified in adult bone marrow and resemble embryonic stem cells both morphologically and transcriptionally. NeoStem's new Boston area facility will focus on quantifying VSEL mobilization and establishing laboratory conditions for their expansion. These research efforts will be aimed at directing VSEL differentiation into various progenitor populations with the goal of developing adult stem cell therapies.
"NeoStem continues to achieve important strategic milestones during this very exciting period of its expansion and growth. We are proud to have them as a partner," said John Rizza, CEO of New England Cryogenic Center, Inc.
The securities sold in the private placement were sold without registration under the Securities Act of 1933, as amended (the "Act") and may not be resold unless subsequently registered under the Act or pursuant to an exemption from registration under the Act.
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 for future medical need. The Company has also recently 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.
For more information, please visit: http://www.neostem.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
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, including any successful
development of its adult stem cell collection network and any successful
development of its VSEL technology into therapies, 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 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.
Robin Smith, Chief Executive Officer
|SOURCE NeoStem, Inc.|
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