NEW YORK, March 18 /PRNewswire-Asia-FirstCall/ -- NeoStem, Inc. ( NBS) ("NeoStem" or the "Company"), an international biopharmaceutical company with operations in the U.S. and China, is pleased to announce the exercise of a warrant by a principal shareholder, RimAsia Capital Partners, LP ("RimAsia").
RimAsia has exercised its NeoStem warrant to purchase 1,000,000 shares, issued to RimAsia in a September 2008 private placement ("2008 Warrant"), at a price of $1.75 per share for gross proceeds to the Company of $1,750,000. RimAsia is currently subject to a lock-up agreement. The transaction was approved by the Company's board of directors and the Company's independent audit committee on March 11, 2010. On this date the Company's common stock closed at $1.42. Eric Wei is a member of the Company's board of directors and a managing partner of RimAsia.
The Company intends to put the proceeds from the exercise of the warrant towards the funding of the Company's various initiatives, including assisting in the funding of the relocation of the manufacturing facility of Suzhou Erye Pharmaceutical Co. Ltd. ("Erye"), the Company's 51% owned subsidiary.
"We would like to thank RimAsia for its continued support of NeoStem and confidence in our strategic growth outlook," said Robin Smith, M.D., NeoStem's CEO and Chairman of the board of directors. "These additional funds, together with some of the proceeds from our recent equity offering, will help to advance the significant expansion of Erye's production capacity to meet rising demand in the Chinese pharmaceutical market.
In consideration for RimAsia's early exercise of the 2008 Warrant, which had an expiration date of September 2013, NeoStem amended the terms of RimAsia's warrant to purchase 4,000,000 shares of the Company's common stock issued in an April 2009 private placement ("Series D Warrant"). The amendment extends the termination date of the warrant through April 2017 and increases the average closing price that triggers the Company's option to redeem the Series D Warrant from $3.50 to $5.00.
About NeoStem, Inc.
NeoStem, Inc. is engaged in the development of stem cell-based therapies, pursuit of anti-aging initiatives and building of a network of adult stem cell collection centers in the U.S. and China that are focused on enabling people to donate and store their own (autologous) stem cells for their personal use in times of future medical need. The Company also has licensed various stem cell technologies, including a worldwide exclusive license to VSEL(TM) technology which uses very small embryonic-like stem cells, shown to have several physical characteristics that are generally found in embryonic stem cells, and is pursuing the licensing of other technologies for therapeutic use. NeoStem's majority-controlled Chinese pharmaceutical operation, Suzhou Erye, manufactures and distributes generic antibiotics in China. 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. Forward looking statements include statements herein with respect to expansion of the Company's operation and success of other initiatives, about which no assurances can be given. 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 Registration Statement on Form S-1 filed with the Securities and Exchange Commission on as well as periodic filings made 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.
For more information, please contact: NeoStem, Inc. Robin Smith, CEO Phone: +1-212-584-4174 Email: email@example.com Web: http://www.neostem.com CCG Investor Relations, Inc. Lei Huang, Account Manager Phone: +1-646-833-3417 Email: firstname.lastname@example.org Web: http://www.ccgirasia.com Crocker Coulson, President Phone: +1-646-213-1915 Email: email@example.com
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