Israeli placenta-based cell therapy products developer Pluristem Therapeutics Ltd. (Nasdaq:PSTI; DAX: PJT; TASE: PSTI PSTI) today announced it has signed a term sheet for an investment of $30 million. The investment is by China-based Innovative Medical Management Co. Ltd. a publicly listed Chinese Company active in the healthcare industry and an affiliate of Zheshang Venture Capital Co., Ltd. (ZSVC), which has $4.45 billion under management through more than 30 venture capital, private equity, angel, and buyout funds.
Pursuant to the term sheet, 16,890,000 shares of Pluristem common stock will be sold at $1.77 per share. In addition, Pluristem will issue to Innovative Medical approximately 4,422,500 warrants to purchase shares of Pluristem’s common stock with an exercise price of $2.50 per warrant, exercisable for a period of five years. The shares will be subject to a lock up agreement for 6 months after the closing of the agreement. Innovative medical Management will become the largest shareholder in Pluristem with a 17% stake.
In accordance with the term sheet, Innovative Medical will have one seat on Pluristem’s Board of Directors for as long as it holds at least 12.5% of Pluristem’s issued and outstanding stock. Innovative Medical will also have certain information, registration and pre-emptive rights as well as certain negotiation rights with respect to potential transactions of Pluristem in China.
Based in Haifa, the stem cell company has reported robust clinical trial data in multiple indications for its patented PLX (PLacental eXpanded) cells and is entering late-stage trials in several indications. The cell products release a range of therapeutic proteins in response to inflammation, ischemia, hematological disorders, and radiation damage. PLX cell products are grown using the Company's proprietary three-dimensional expansion technology. They are off-the-shelf, requiring no tissue matching prior to administration.
Published by Globes [online], Israel business news - www.globes-online.com - on October 25, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
Published by Globes [online], Israel business news - www.globes-online.com - on October 25, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016