StemCells Prices Public Offering Of 11.17 Mln Units At $1.45 Per Unit

(RTTNews) - StemCells Inc. (STEM) announced that it has priced an underwritten public offering of an aggregate of 11.17 million units at a public offering price of $1.45 per unit.

Each unit consists of one share of common stock, par value $0.01 per share, and a warrant to purchase one half share of common stock. The warrants have an exercise price of $1.80 per share, are exercisable immediately, and will expire five years from the date of issuance.

The company said it expects to receive gross proceeds of about $16.2 million, before deducting underwriting discounts and commissions and other estimated offering expenses. The Company has also granted the underwriters a 30 day option to purchase up to an additional 1.67 million units to cover over allotments, if any.

The offering is expected to close on or about October 7, 2013, subject to customary closing conditions.

The company noted that it intends to use the net proceeds of the offering for general corporate purposes, including working capital and operational purposes, including product development.