Proceeds will fund development of cell therapeutic product candidates
By Devika Patel
Knoxville, Tenn., Oct. 8 - NeoStem, Inc. said the underwriters for its public sale of common stock opted to exercise the deal's $5.25 million greenshoe in full for total proceeds of $40.25 million. The deal priced for $35 million with the greenshoe on Oct. 3.
The company sold 5.75 million shares for $7.00 each, a 14.6% discount to its $8.20 closing share price on Oct. 2. Of the shares, 750,000 were part of the fully exercised greenshoe.
Aegis Capital Corp. was the bookrunner.
Proceeds will be used for working capital, including research and development of AMR-001 and other cell therapeutic product candidates, expansion of business units, strategic transactions and other general corporate purposes.
The New York-based company collects, processes and stores adult stem cells for autologous use in the treatment of cardiac disease, autoimmune disorders and other conditions.
| Issuer: | NeoStem, Inc.
|
| Issue: | Common stock
|
| Amount: | $40.25 million (including $5.25 million greenshoe)
|
| Shares: | 5.75 million
|
| Price: | $7.00
|
| Warrants: | No
|
| Bookrunner: | Aegis Capital Corp.
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| Pricing date: | Oct. 3
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| Settlement date: | Oct. 8
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| Stock symbol: | Nasdaq: NBS
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| Stock price: | $7.84 at close Oct. 3
|
| Market capitalization: | $129.34 million
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