International Stem Cell Corporation (OTCBB:ISCO) announced today that it
had received the first $1 million tranche of an anticipated private
equity financing of up to $5 million to be funded over the next several
months. The total amount of the financing is intended to allow the
Company to retire its existing secured debt and fund operations of the
Company as it moves forward with planned pre-clinical trials in the
first quarter of 2009. "This is an important vote of confidence by a
sophisticated investor group and we believe it is a major first step on
the path to making our company financially independent," said Kenneth
Aldrich, CEO of the Company.
The financing is in the form of a new class of Convertible Preferred
Stock, convertible into common stock at $0.25/share, a 25% premium over
the closing price on the day of signing the agreement. The new Preferred
Stock carries an initial dividend of 10% per annum, reducing to 6% in
two years. Funding of future tranches is subject to various
contingencies that will be described in more detail in the Form 8-K the
Company intends to file on or before Monday, January 5.
ISCO is the creator and developer of a new class of stem cells that
remove two of the greatest barriers to the therapeutic use of stem
cells: 1) immune rejection and 2) the ethical issues that surround the
use of embryonic stem cells. ISCO makes its cells available to qualified
researchers worldwide, and its technology, called "Parthenogenesis,"
results in the creation of cell lines that may allow cells to be matched
to hundreds of millions of people without destroying a viable human
embryo.
ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):
International Stem Cell Corporation is a California biotechnology
company focused on developing therapeutic and research products. ISCO's
technology, Parthenogenesis, results in the creation of
pluripotent human stem cell lines from unfertilized human eggs. ISCO
scientists have created the first Parthenogenetic homozygous stem
cell line (phSC-Hhom-4) that can be a source of therapeutic cells
that will minimize immune rejection after transplantation into hundreds
of millions of individuals of differing sexes, ages and racial groups.
These advancements offer the potential to create the first true "Stem
Cell Bank" and address ethical issues by eliminating the need to use or
destroy fertilized embryos. ISCO also produces and markets specialized
cells and growth media worldwide for therapeutic research through its
subsidiary Lifeline Cell Technology. For more information, visit the
ISCO website at: www.internationalstemcell.com.
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FORWARD-LOOKING STATEMENTS: Statements pertaining to future financial and/or operating results,
future growth in research, technology, clinical development and
potential opportunities for the company and its subsidiary, along with
other statements about the future expectations, beliefs, goals, plans,
or prospects expressed by management constitute forward-looking
statements. Any statements that are not historical fact (including, but
not limited to statements that contain words such as "will," "believes,"
"plans," "anticipates," "expects," "estimates,") should also be
considered to be forward-looking statements. Forward-looking statements
involve risks and uncertainties, including, without limitation, risks
inherent in the development and/or commercialization of potential
products, uncertainty in the results of clinical trials or regulatory
approvals, need and ability to obtain future capital, and maintenance of
intellectual property rights. Actual results may differ materially from
the results anticipated in these forward-looking statements and as such
should be evaluated together with the many uncertainties that affect the
company's business, particularly those mentioned in the cautionary
statements found in the company's Securities and Exchange Commission
filings. The company disclaims any intent or obligation to update these
forward-looking statements.
International Stem Cell Corporation Kenneth C. Aldrich, Chairman,
CEO, 760-940-6383 kaldrich@intlstemcell.com or William
Adams, Chief Financial Officer, 760-940-6383 wadams@intlstemcell.com or The
Investor Relations Group, 212-825-3210 Investor Relations: Adam S.
Holdsworth or Media Relations: Laura Colontrelle lcolontrelle@investorrelationsgroup.com |