Asterias Biotherapeutics Prices Its 5.15 Million Public Offering

Asterias Biotherapeutics, Inc. (NYSE MKT: AST) revealed the pricing of an underwritten public issue of 5.15 million units. Accordingly, the price fixed was $3.40 per unit. The stock traded 25.6 percent down on Tuesday morning.

Asterias Biotherapeutics said each unit consisted of one share of common stock and 0.5 of a warrant to acquire a share of common stock at an exercise price of $4.37 per share. The company indicated that the warrants were immediately exercisable and would expire on the fifth anniversary of the date of issuance. The company clarified that both the shares and warrants were immediately separable and would be issued separately.

The company said that the issue is expected to close on May 13, subject to customary closing conditions. The company added that it granted the underwriters a 30-day option to acquire a maximum of an additional 772,059 shares of common stock and/or additional warrants to acquire a maximum of 386,029 shares of common stock to cover over-allotments, if any.

Asterias Biotherapeutics said that the gross proceeds were expected to be about $17.5 million, before deducting any underwriting discounts and commissions and other estimated offering expenses, excluding the exercise of any warrants. The company said that if the over-allotment option is exercised in full, gross proceeds of the offering were expected to be approximately $20.1 million. Asterias disclosed that it plans to use the net proceeds from this issue for general corporate purposes. That included clinical trials, research and development, capital expenditures and working capital.