NeoStem (NYSE MKT: NBS) joins the financing wave with $10 M offering


$10 M raise 

NeoStem, Inc. (NYSE MKT: NBS) intends to offer for sale 20 M shares of itscommon stock in an underwritten public offering.

The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.  Aegis Capital Corp is acting as sole book-running manager in the offering. NBS has granted the underwriters a 45-day option to purchase up to 3,000,000 additional shares of common stock to cover over-allotments, if any.

The number of shares of common stock to be outstanding immediately after this offering as shown above is based on 170,639,542 shares of common stock outstanding as of the close of business on 4/25/13.


The Bottom Line: An offering – on the heels of its subsidiary - Progenitor Cell Therapy – which has … revenue … and today’s announced … execution of a services agreement with Sentien Biotechnologies under which PCT will provide services to support <Sentien’s> development of its cell therapy product, including technology transfer, staff training, and manufacturing.strategic transactions and other general corporate purposes. 

NBS intends to use the net proceeds from this offering for working capital, including R&D of cell therapeutic product candidates, including AMR-001, expansion of business units.   Another RegMed company who needs the cash. The market is what it is … hopefully the “force will be with them”.  I reiterate – many will “balk” at the pricing and the dilution – but only the public markets could offer a redemption if milestones are defined and met. I also said that about ASTM in their announced offering today. 

NBS closed on 4/28/13 $0.01 or -1.56% at $0.63 and is DOWN -$0.07 or –11.11% to $0.56 in the after market. Expect a a $0.50 pricing.

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