Neostem, Inc. (AMEX: NBS) is a bit soft this morning after making two separate share sale filings with the SEC. The company has filed to sell shares for existing holders and it has filed to raise cash for itself as well, just one more chapter of what has been a long decade-plus saga for stem cell investors.
The first SEC filing is to allow existing shareholders to sell up to 19,072,245 shares of common stock from time to time. This includes 3,842,001 shares of common stock and also includes an aggregate of 15,230,244 shares issuable upon the exercise of warrants, which if exercised for cash would result in gross proceeds to the Company of $36,584,227.00.
A second filing from the company is for the sale of any combination of common stock, preferred stock, debt securities, warrants and units, with a value of up to $75,000,000.00 in total. The company also listed the use of proceeds from the company’s sale of securities as being for general corporate purposes, which includes working capital and/or possible investments or acquisitions.
Neostem has recently transformed since its January 2011 completion of its acquisition of Progenitor Cell Therapy, LLC. The company’s origins began in the adult stem cell research, collection and storage service business, and this PCT acquisition transforms it to a therapeutics company which can attract world-renowned clients. NeoStem today is working with PCT on the development of the company’s VSEL platform and on the Athelos Corporation’s T-Reg cell therapy in immunology.
Shares are indicated down 3% at $1.88 on more than 50,000 shares in the first fifteen minutes of trading. The company’s 52-week trading range is $1.10 to $3.50 and the current market cap before the effects of any offering is listed as about $148 million.
JON C. OGG
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