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$25M Common Stock Financing Agreement, International Stem Cell Corporation (ISCO.OB)

ISCO.OB entered into an agreement with Aspire Capital Fund, LLC, to provide up to $25M of equity capital over 3 years. 

Aspire purchased, upon execution of the agreement, 333,333 shares of ISCO common stock at a price of $1.50 per share, a 7% premium over $1.40 per share (12/10/10 closing).                                                                      

  • Pricing of future sales under the agreement will be determined each time ISCO.OB elects to sell shares to Aspire by a formula that is based on the actual sale prices of the stock over the 12 days preceding each sale;
  • ISCO.OB will control the timing and amount of any sales of its common stock;  
  • Aspire has no right to require any sales, but is obligated to make purchases as directed in accordance with the purchase agreement with the right to terminate the agreement at any time;
  • The agreement does not restrict other financings.

This transaction is designed to provide both a source of working capital and maximum flexibility in determining the pricing and timing of any future financing it elects to use under this agreement. It provides access to capital that will be adequate to fund research activities for an extended period of time, but does not preclude pursuing additional financing during the term of the agreement.

  • Because of the pricing flexibility this facility, ISCO.OB believes that this agreement will provide both the lowest cost of capital currently available, plus maximum flexibility in meeting future financing needs.

ISCO.OB opened 12/14/10 at $1.50 down $0.01 (-0.66%).