International
Stem Cell Corporation (OTCBB:ISCO),
has entered into a definitive agreement for a $5 million investment
commitment (the "Investment") with a biotechnology-focused fund (the
"Investor") that has offices in New York and California. The Investment
will be used to fund operations and working capital needs of the company
and expand its scientific research. Proceeds of the investment provide a
valuable addition to the company's capital structure. Together with the
private capital already committed to the company and its internally
generated revenue, these funds are expected to provide the capital
needed by ISCO for the balance of 2009 and a significant amount of the
capital expected to be needed in 2010.
The Company may draw down funds from the Investor as it finds a need,
but is not obligated to do so. Funds will be drawn down through the
issuance of Series E Preferred Stock (the "Preferred Stock"). The
Preferred Stock will not be convertible into common stock and may be
redeemed by the Company after one year. Each issue of Preferred Stock
will be accompanied by the issuance of five-year warrants to purchase
common stock at 100% of the closing price of the company's common stock
on the day prior to the date the company gives notice of its election to
draw funds. The total exercise value of warrants issued will equal 135%
of the drawdown amount. Dividends on the Preferred Stock are payable in
additional shares of non-convertible Preferred Stock at the rate of 10%
per annum. A commitment fee of $250,000, payable in shares of common
stock, was made to the Investor.
"The flexibility of this financing will add greatly to our financial
strength," commented Kenneth Aldrich, CEO and Chairman of ISCO. "We are
pleased that we have secured a financing source that will be available
to us at the time of our own choosing over the next year."
For more news and information on International Stem Cell Corporation
please visit www.IRGnews.com/coi/ISCO
where you can find the CEO's video, a fact sheet on the company,
investor presentations, and more. 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.
To subscribe to receive ongoing corporate communications please click on
the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.
FORWARD-LOOKING STATEMENTS: Statements pertaining to anticipated future financial and/or
operating results, future growth in research, technology, clinical
development and potential joint venture and other 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, application of capital resources among competing uses,
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.
Key Words: Stem Cells, Biotechnology, Parthenogenesis
International Stem Cell Corporation Kenneth C. Aldrich, Chairman,
CEO 760-940-6383 kaldrich@intlstemcell.com or The
Investor Relations Group 212-825-3210 Investor Relations: Adam
S. Holdsworth aholdsworth@investorrelationsgroup.com or Media
Relations: Laura Colontrelle lcolontrelle@investorrelationsgroup.com |