|
StemCells, Inc. (ticker: STEM, exchange: NASDAQ) News Release - 11-May-2001
StemCells, Inc. Secures Equity Line Financing of Up to $30,000,000
PALO ALTO, Calif. -- (BW HealthWire) -- May 11, 2001 -- StemCells, Inc.
(Nasdaq: STEM) announced today that it has entered into a definitive
agreement with an institutional investor to provide the company with
up to $30,000,000 in equity financing.
Under the 30-month agreement, StemCells will have the right, but
not the obligation, to obtain the financing through the issuance of
common stock to the investor in a series of periodic draw downs at a
discount to the market price at the time of sale. The shares may be
sold to the investor during this period at times and in amounts,
subject to certain minimum and maximum volumes, determined at the
company's discretion. StemCells has agreed to file a registration
statement for resale of any shares purchased under this equity line
and to maintain the effectiveness of the registration statement to
permit the resale. If StemCells chooses to draw down on the equity
line, it will use the proceeds of the financing for general corporate
purposes.
In connection with the entry into the equity line agreement,
StemCells issued a three-year stock purchase warrant to the investor
to purchase up to an additional 250,000 shares of StemCells common
stock.
The shares referred to in this press release may not be sold nor
may offers to buy be accepted prior to the time a registration
statement relating to the resale of the shares has been filed and
becomes effective. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
#########################
|
