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StemCells to Raise $5.7M in Private Placement

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – StemCells Inc. today announced that it will raise $5.7 million through a private placement of its common stock with Seaside 88, a private investment limited partnership.

The Palo Alto, Calif.-based firm said that it will sell 7 million shares to Seaside 88 at a price of $.865 per share, representing a 12.6 percent discount to its closing price on June 29. The company expects to close the deal today.

As part of the agreement, Seaside 88 agreed to purchase an additional 5 million shares of common stock 12 weeks after the initial closing. However, StemCells has the right to not sell the additional shares. If the second placement is made, a purchase price will be calculated using the then-current trading price.

StemCells did not disclose its intended uses for the proceeds from the offering. The firm is developing stem cell-based assay platforms for use in drug discovery, research, and development. It also is developing stem cell therapeutics.

Shares of StemCells closed at $.99 in trade yesterday on the Nasdaq.

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