NEW YORK, June 25 NeoStem, Inc. (NYSEAmex: NBS) ("NeoStem" or the "Company"), an international biopharmaceuticalcompany with operations in the U.S. and China, announced today that theCompany has entered into definitive agreements with certain accreditedinvestors (the "Investors") to sell in a registered direct offering 2,325,582units with an aggregate gross offering price of $5 million. Each unit waspriced at $2.15 and consists of one share of common stock and a warrant whichwill allow the Investor, for a period of two years, to purchase .25 share ofcommon stock at a per share price of $2.75. The warrants may be called by theCompany in the event that the common stock trades over $4.50 for 10consecutive trading days. If fully exercised the warrants would result inadditional gross proceeds to the Company of $1,598,837.
On the conclusion of the direct offering, Dr. Robin Smith, Chairman andCEO noted, "We were pleased by the participation of new institutionalinvestors. We remain committed to expanding our revenue opportunities in China,both through our pharmaceutical business and recently launched adult stem cellinitiatives." The Company intends to use the net proceeds from this offeringfor the construction of lab facilities in China, stem cell-related researchand development projects, development and licensing of new pharmaceuticalproducts in China, and for working capital and general corporate purposes andthe Company's future growth through potential acquisitions.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & RenshawCapital Group, Inc. (Nasdaq: RODM), acted as the Company's exclusive placementagent in connection with the offering.
The Company expects to use the net proceeds for general working capitalpurposes. The offering is expected to close on or around June 30, 2010,subject to customary closing conditions.
The shares and warrants in this offering are being issued under a shelfregistration statement declared effective by the Securities and ExchangeCommission (the "SEC") on May 11, 2010. A prospectus supplement related to thepublic offering will be filed with the SEC. Copies of the final prospectussupplement and accompanying prospectus relating to the offering may beobtained from Rodman & Renshaw, LLC, 1251 Avenue of the Americas 20th Floor,New York, NY 10020 or by calling (212) 356-0549. An electronic copy of theprospectus is also available on the SEC's web-site at http://www.sec.gov .
For more detailed information on this financing, please refer to theCompany's Form 8-K and related exhibits to be filed with the SEC on or aroundJune 25, 2010.
This press release shall not constitute an offer to sell or thesolicitation of an offer to buy, nor shall there be any sale of thesesecurities in any state or jurisdiction in which such offer, solicitation orsale would be unlawful prior to registration or qualification under thesecurities laws of any such state or jurisdiction.
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 cellcollection centers in the U.S. and China that enable people to donate andstore their own (autologous) stem cells for potential personal use in times offuture medical need. The Company is also the licensee of various stem celltechnologies, including a worldwide exclusive license to VSEL(TM) Technology,which uses very small embryonic-like stem cells shown to have several physicalcharacteristics that are generally found in embryonic stem cells, and ispursuing the licensing of other technologies for therapeutic use. NeoStem'smajority-controlled Chinese pharmaceutical operation, Suzhou Erye,manufactures and distributes generic antibiotics in China. For moreinformation, please visit: http://www.neostem.com .
This press release contains forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995. Forward-lookingstatements reflect management's current expectations, as of the date of thispress release, and involve certain risks and uncertainties. Forward lookingstatements include statements herein with respect to the success of labconstruction, new stem cell projects and new pharmaceutical development andlicensing, about which no assurances can be given. The Company's actualresults could differ materially from those anticipated in theseforward- looking statements as a result of various factors. Factors that couldcause future results to materially differ from the recent results or thoseprojected in forward-looking statements include the "Risk Factors" describedin the Company's Annual Report on Form 10-K filed with the Securities andExchange Commission on March 31, 2010 as well as other periodic filings madewith the Securities and Exchange Commission. The Company's further developmentis highly dependent on future medical and research developments and marketacceptance, which is outside its control.For more information, please contact: NeoStem, Inc. Robin Smith, CEO Phone: +1-212-584-4174 Email: firstname.lastname@example.org Web: http://www.neostem.com CCG Investor Relations, Inc. Crocker Coulson, President Phone: +1-646-213-1915 Email: email@example.com Web: http://www.ccgirasia.com
SOURCE NeoStem, Inc.