Stem cell co Pluristem to raise $8m in private placement

Pluristem recently received FDA approval to proceed to Phase I clinical trials of its flagship product.

Israeli stem-cell research company Pluristem Life Systems (OTC BB: PLRS.OB) announced today that it has signed a binding term sheet with new investors for a private equity investment of $8 million, an amount almost equal to the company’s current market cap. The company added that it had already received $1.25 million of this sum.

The investors will receive Pluristem stock at a price of $0.0125 per share and a warrant to purchase additional shares at an exercise price of $0.025 per share. Pluristem’s share price stood at $0.018 when the terms of the deal were agreed, although the announcement of approval by the US Food and Drug Administration (FDA) for the company to begin clinical trials of its PLX 1 drug coupled with news of the impending raising of equity sent the share up again to $0.03, a price that will mean that the warrants have been offered at a discount. The final agreement is likely to be signed by March 15, 2007.

Several days ago, Pluristem received FDA approval for its proposed Pre-Investigation New Drug (PreIND) for its PLX-I product, which will enable it to begin Phase I clinical safety trials on human subjects. PLX-I is a cell that can be used to improve the engraftment of umbilical cord blood when treating blood cancer and blood disorders.

Published by Globes [online], Israel business news - www.globes.co.il - on February 14, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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