Skip to main content
Premium Trial:

Request an Annual Quote

StemCells Seeks $20M in Stock Placement with Investors

NEW YORK (GenomeWeb) – StemCells today said that it intends to place common stock and warrants with two institutional investors with the aim of raising $20 million in gross proceeds.

The Newark, Calif.-based developer of stem cell therapies and research tools said that the offer includes the sale of around 11.3 million shares of common stock and short-term warrants for the purchase of up to an additional 9.6 million shares of common stock. It didn't name the two institutional investors.

StemCells said the stock and warrants will be sold in units. Each unit will consist of one share of common stock and a warrant to purchase 0.85 of a share of common stock at an offering price of $1.77 per unit. The warrants will initially be exercisable six months from the date of issuance at an exercise price of $2.17 per share and will expire at the close of business on the date that is 13 months from the date of issuance.

The firm said that it will use the net proceeds for working capital, product development, and capital expenditures.

The offering, which is being made under an effective shelf registration statement previously filed with the US Securities and Exchange Commission, is expected to close on or before July 18.

In Tuesday morning trade on the Nasdaq, shares of StemCells were down around 6 percent at $1.89.

The Scan

Steps for Quick Review

The US Food and Drug Administration is preparing for the quick review of drugs and vaccines for the Omicron variant, according to the Wall Street Journal.

Moving Away From Using Term 'Race'

A new analysis finds that geneticists are using the term "race" in their papers less than in years past, as Science reports.

Point of the Program

The Guardian writes that some scientists have called the design of a UK newborn sequencing program into question.

Science Papers Present Multi-Omic Analysis of Lung Cells, Regulation of Cardiomyocyte Proliferation

In Science this week: a multi-omic analysis of lung cells focuses on RIT1-regulated pathways, and more.