Scimitar Equity Blog

 BTIM has received $8 M from 2 investors. The purpose of the discount offer is to accelerate the raising of additional capital, without significant dilution of the ownership interests of existing  BTIM security holders, by providing warrant holders with an incentive to exercise their warrants prior to the 10/31/10 warrant expiration date. BTIM intends to use the capital raised through the warrant exercises to strengthen its working capital reserves and for the expansion of its stem cell product development projects.

Two (2) investors have elected to exercise early and in full, at a discounted exercise price, the stock purchase warrants that they had acquired under their May 2009 stock and warrant purchase agreements. The two investors, Broadwood Partners L.P. and Mr. George Karfunkel, have each acquired 2.2 M BTIM common shares by exercising 2.2 M warrants at a discounted exercise price of $1.818 per share, representing a discount of $0.182 per share from the original warrant exercise price of $2.00. The discount of slightly less than 9% was offered to these investors as an inducement for early exercise so as to enable the company to raise capital and accelerate the implementation of its business plans.

BTIM intends to offer to all of the holders of its outstanding common share purchase warrants having an exercise price of $2.00 per share and an expiration date of 10/31/10 the opportunity to exercise their warrants at the same discounted exercise price of $1.818 for a period of 60 days following the effective date of a registration statement that it plans to file soon with the SEC. BTIM presently has 7,574,801 of the warrants outstanding, most of which are presently listed on the NYSE Amex and trade under the symbol BTIM.WS. The warrants may not be exercised at the discounted price until the registration statement becomes effective. Before the registration statement becomes effective and after the discount offer expires, the warrants will be exercisable at the original exercise price of $2.00 per share. The new warrant discount offer will replace BTIM’s previously announced planned offer that would have allowed holders of its warrants to exercise up to 3 M warrants at a price of $1.70 per share.

BTIM had approximately $11.2 M of cash and cash equivalents on hand at 3/31/10. In early May BioTime received $8 M from Broadwood Partners, L.P. and Mr. Karfunkel through the exercise of their warrants. If all of the warrants subject to the discount offer are exercised, BTIM would receive an additional approximately $13.8 M and would have more than $30 M of cash on hand and virtually no debt.