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$19M Concurrent Offerings, NeoStem (Amex: NBS)

NBS announced concurrently 6.337M common stock offering with a warrant at $1.45  and a  registered direct offering of 10,582,011 preferred units.

From the 2 offerings, which are running concurrently, NBS expects to receive $19M in gross proceeds prior to deducting underwriting discounts and commissions, placement agent fees and offering expenses.

These funds will give NBS the ability to proceed with its acquisition of Progenitor Cell Therapy LLC and focus on growing the cord blood and adult stem cell banking, cellular manufacturing and therapeutic business as well as expanding its businesses in Asia and other countries. Additionally, NBS will be able to continue to develop its intellectual property and acquire new technology. The financings include:

  •  A concurrent registered direct offering of 10,582,011 preferred units with each unit consists of 1 share of series E 7% senior convertible preferred stock convertible at $2.0004, maturing May 20, 2013, a warrant to purchase 0.25 of a share of common stock with a per share exercise price of $2.0874 and 0.0155 shares of common stock;
  • The common stock offering consists of 1 share of common stock and a warrant to purchase 0.5 of a share with a per share exercise price of $1.85;  
  • $2.5M will be placed in escrow pursuant to the terms of the offering;
  • The transactions are expected to close on or about 11/19/10;
  • Cowen and Company acted as sole book-running manager and Maxim Group  and National Securities Corporation acted as co-managers for the offering with LifeTech Capital (Aurora Capital) as a co-placement agent for the registered direct offering.

NBS has operations in 3 distinct business units, US adult stem cells, China adult stem cells, and China pharmaceuticals today announced the pricing of concurrent offerings.