Healthcare company StemCells Inc (NASDAQ:STEM) Declares Pricing of Public Offering to Raise $8.1 Million

Stethoscope on a printed sheet of paper

A  USA based company, StemCells, Inc. is presently engaged in clinical development of its HuCNS-SC platform technology (purified human neural stem cells) as a potential treatment for chronic spinal cord injury (SCI). Share of StemCells Inc (NASDAQ:STEM) declined -30.59% and is at $0.260 in the Real-Time trading session. The company opened at $0.30 on Wednesday, and is moving between $0.21 – $0.30.

Today the corporation declared the pricing of an underwritten public offering of common stock, Series A Warrants and Series B Warrants with a public offering price of $0.30 for one share, a Series A Warrant to purchase 0.50 of a share of common stock and a Series B Warrant to purchase 0.75 of a share of common stock. The corporation anticipates to receive gross proceeds of about $8.1 million, before deducting underwriting discounts and commissions and other estimated offering expenses. The corporation has also granted the underwriters a 45 day option to purchase up to an additional 4,000,050 shares of common stock and/or warrants to purchase up to an additional 5,000,063 shares of common stock to cover over-allotments, if any.

The Series A Warrants have an exercise price of $0.30 per share, are exercisable right away, and will expire two years from the date of issuance.

The Series B Warrants have an exercise price of $0.42 per share, are exercisable 12 months from the date of issuance, offered that the Company has sufficient authorized capital to allow all of the Series B Warrants to be exercised in full by the holders, and will expire on the fifth anniversary of the date they become exercisable. The corporation plans to file a registration statement to cover the common stock underlying the Series B warrants upon the 12-month anniversary of the issuance of the Series B warrant, assuming the Company has a sufficient number of authorized shares of its common stock to issue shares following any exercised of the Series B warrants.

The offering is predictable to close on or about March 14, 2016, subject to customary closing conditions.

As the owner ship concerns stocks institutional ownership remained 7.70 % while insider ownership included 7.20%. The share capital of STEM has 108.81 Million outstanding shares amid them 28.29 Million shares have been floated in market.

For investors focus on the performance of the stocks so the STEM showed weekly ahead performance of  -6.25% which was maintained for the month at  13.64%. Correspondingly the negative  performance for the quarter was remained 27.88% and if took notice on yearly performance that was 69.26% whereas the year to date performance halted at 10.71%.

The stock is going backward its 52 week low with -12.03% and lagging behind from its 52 week high price with 80.22%. STEM last month stock price volatility remained 9.05%.

Company’s beta coefficient included 1.47. Beta factors measures the amount of market risk associated with market trade.

 StemCells Inc (NASDAQ:STEM) has received rating from Wall-Street Analysts. Currently the stock has been rated as “Buy” from “5” Analysts. “0” analyst has suggested “Sell” for the company. “0” analysts have rated the company as a “Hold”. Strong Buy rating was given by “0” analysts and Underperform rating was given by “0” analyst.   StemCells, Inc., a biopharmaceutical company, researches, develops, and commercializes cell-based therapeutics and related technologies for stem cell-based research and drug discovery and development. . It engages in clinical development of its platform technology, HuCNS-SC, a purified human neural stem cells used as a potential treatment for disorders of the central nervous system. 

About Travis Garlick 1791 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.