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NeoStem Announces Access To New $30 Million Equity Facility With Aspire Capital To Replace The Fully Drawn Facility

NEW YORK, June 3, 2014 (GLOBE NEWSWIRE) -- NeoStem, Inc. (Nasdaq:NBS) ("NeoStem" or the "Company"), a leader in the emerging cellular therapy industry, today announced that it has filed today with the U.S. Securities and Exchange Commission a prospectus supplement to its shelf registration statement enabling it to access its new equity facility with Aspire Capital Fund, LLC which replaced the prior agreement under which the Company received the full $20 million in equity funding. Under the new agreement, NeoStem has the right to sell up to $30 million in shares of common stock to Aspire Capital subject to certain terms and conditions over a two-year period. The agreement represents an additional tool to provide the Company with additional capital and flexibility. As of the March 31, 2014, the Company had approximately $41 million of cash and cash equivalents available to fund operations.

"The prior agreement worked very well to complement our business, fundraising and operational activities and enabled us to sell shares from time-to-time on market-based terms to a committed, long-time investor with substantial share ownership," commented Dr. Robin L. Smith, Chairman and CEO of NeoStem. "As we have done in the past, we would intend to use the facility when we feel it is appropriate to help support the achievement of our clinical development pipeline and operational objectives and strengthen our cash position. This is a continuation of our relationship with Aspire that now goes back 4 years."

The elements of the new facility are similar to the prior one and include:
  • The Company controls the timing and amount of any sales of common stock to Aspire Capital at a known price;
  • Aspire Capital cannot require the Company to make sales, but is obligated to make purchases as the Company directs in accordance with the terms of the agreement;
  • No limitations on use of proceeds, financial covenants, restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages;
  • No warrants are associated with this facility.

More information is available in the Company's prospectus supplement filed today with the U.S. Securities and Exchange Commission.

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