$6M Equity Financing, StemCells (NASDAQ: STEM)
STEM has entered into an agreement to sell 7M shares of its common stock to Seaside 88, LP (“Seaside”), a private investment partnership, at a price of $0.865 per share, which represents a 12.6% discount to the closing price per share of 6/29/10. No warrants will be issued in this offering. The offering is expected to close on 6/30/10, subject to customary closing conditions.
The shares are being offered under STEM’s effective shelf registration statement previously filed with the SEC. As part of the agreement, Seaside has agreed to purchase an additional 5M shares of common stock 12 weeks after the initial closing, although STEM may elect not to sell the additional shares. In the event of a second closing, the purchase price will be calculated using the then-current trading price and no warrants would be issued.
StemCells expects to receive net proceeds from the initial sale of 7M shares, after deducting offering expenses and fees, of approximately $5.7M.
