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 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.