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StemCells Prices Public Offering @$0.30/Share; Total Proceeds of $8.1M


StemCells, Inc. (NASDAQ: STEM) today announced the pricing of an underwritten public offering of common stock, Series A Warrants and Series B Warrants with a public offering price of $0.30 for one share, a Series A Warrant to purchase 0.50 of a share of common stock and a Series B Warrant to purchase 0.75 of a share of common stock. The Company expects to receive gross proceeds of approximately $8.1 million, before deducting underwriting discounts and commissions and other estimated offering expenses. The Company has also granted the underwriters a 45 day option to purchase up to an additional 4,000,050 shares of common stock and/or warrants to purchase up to an additional 5,000,063 shares of common stock to cover over-allotments, if any.

The Series A Warrants have an exercise price of $0.30 per share, are exercisable immediately, and will expire two years from the date of issuance.

The Series B Warrants have an exercise price of $0.42 per share, are exercisable 12 months from the date of issuance, provided that the Company has sufficient authorized capital to allow all of the Series B Warrants to be exercised in full by the holders, and will expire on the fifth anniversary of the date they become exercisable. The Company plans to file a registration statement to cover the common stock underlying the Series B warrants upon the 12-month anniversary of the issuance of the Series B warrant, assuming the Company has a sufficient number of authorized shares of its common stock to issue shares pursuant to any exercised of the Series B warrants.

The offering is expected to close on or about March 14, 2016, subject to customary closing conditions.

Maxim Group LLC is acting as sole book-running manager and Chardan Capital Markets is acting as co-manager for the offering. Ascendiant Capital Markets, LLC is acting as financial advisor to the Company.

StemCells intends to use the net proceeds of the offering for general corporate purposes, including working capital, capital expenditures and research and development.


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