at $1.25 per unit with each unit consisting of one share of common stock and a warrant to purchase one share of common stock at $1.75 per share.
Erye has begun its three year expansion and relocation program which is anticipated to enhance revenues, profits, and manufacturing capabilities. Now one of fastest growing medical markets, the Peoples Republic of China, "We believe NeoStem and its management can guide us in identifying therapeutics and assist us in bringing them to the PRC market in an effort to enhance our drug pipeline," said Madame Zhang Jian, General Manager of Erye.
"We are extremely pleased by the vote of confidence this above market equity purchase demonstrates by our future partner in drug development in China," said Robin Smith, MD, MBA, Chairman and Chief Executive Officer of NeoStem.
"In November 2008, NeoStem agreed to acquire CHBP (OTC Bulletin Board: CHBP), which will give NeoStem a 51% controlling interest in Erye and should help to ultimately provide a stable balance sheet for growth.
NeoStem will not only have an interest in traditional therapies in China through the Erye acquisition, but will be able to expand its therapeutic reach through a second acquisition in China, Shandong New Medicine Research
Institute, which currently administers a multitude of treatments and is a leading provider of regenerative medical therapies in China.
In the meantime, we are wasting no time in moving forward the development of our VSEL
technology and launching our adult stem cell collection network in the important New York City market. We believe one day VSELs could be the basis for individualized stem cell based therapies that could be rolled out in a country such as China that has been more rapidly advancing the use of such therapies," added Dr. Smith. The funds from the financing will be utilized in support of the further development of the VSEL technology, the launch of the NeoStem network adult stem cell collection center in New York City as well as general corporate
purposes.
The securities sold in the private placement were sold without registration under the Securities Act of 1933, as amended and may not be resold unless subsequently registered under the Act or pursuant to an
exemption from registration under the Act.
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