Thursday, March 10, 2016

International Stem Cell Corporation (ISCO) Enters Definitive Agreement to Raise $6.3 Million to Fund Clinical Trial

Before the opening bell, International Stem Cell Corporation (OTCQB: ISCO) announced entry into a definitive agreement with two institutional healthcare investors and its management team through which the company will raise $6.3 million to fund its upcoming phase I study of human parthenogenetic neural stem cells (ISC-hpNSC). The agreement includes the initial purchase of $6.3 million of ISCO’s convertible preferred stock, in addition to common stock purchase warrants for an additional $25.7 million of the company’s common stock in the future. Through these efforts, the company is set to secure gross proceeds of $2.5 million in cash from the initial purchase, as well as conversion of $3.8 million of outstanding debt. The closing of this offering is expected to occur on or about March 15, 2016, subject to satisfaction of customary closing conditions, as described in the purchase agreement.

“The recurring investment of these healthcare focused institutional investors is in support of and attests to the potential of our technology,” Dr. Andrey Semechkin, co-chairman and chief executive officer of ISCO, stated in this morning’s news release. “The capital raised will help to drive our Phase 1 study of ISC-hpNSC® for the treatment of moderate to severe Parkinson’s disease.”

The announcement of this investment builds on what’s been a strong week for ISCO. On Monday, the company announced the commencement of enrollment for a phase I trial of its innovative ISC-hpNSC for the treatment of moderate to severe Parkinson’s disease after being granted approval by the Melbourne Health Human Research Ethics Committee. ISCO plans to initiate the study at Australia’s Royal Melbourne Hospital in the coming weeks, with management looking forward to preliminary clinical data as early as the fourth quarter of this year.

“With enrollment of patients already underway, we look forward to the end of this year for preliminary safety and efficacy clinical data,” Semechkin concluded.

ISCO’s powerful new stem cell technology, parthenogenesis, promises to significantly advance the field of regenerative medicine by addressing the problem of immune rejection. By utilizing unfertilized human eggs to derive parthenogenetic stem cells that can be immune-matched to millions of people, the company aims to enable treatment of a large percentage of the global population with a relatively small number of ISC-hpNSC lines. Through its phase I study of ISC-hpNSC for the treatment of Parkinson’s disease, the company is targeting a dramatically underserved neurodegenerative indication that directly affects more than seven million people around the world.

For more information, visit www.internationalstemcell.com

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