NeoStem, Inc. Comments on Recent Selling Pressure
NEW YORK, May 28, 2008 -- Responding to the decline in NeoStem, Inc.'s market capitalization during the past four trading days, Robin Smith, CEO, NeoStem said, "We know of no business development at the Company that would lead to the sudden decline in our share price."
Dr. Smith continued, "As announced on May 21, 2008, we received a private placement financing in a total amount of $900,000, which includes a strategic investment from the New England Cryogenic Center, Inc., one of the largest full-service cryogenic laboratories in the world and participation by management. These funds will be instrumental in executing on our plans to educate potential clientele about our services, especially in the Northeast." The private placement was of units with each unit priced at $1.20 and consisting of one share of common stock and a warrant to buy one share of common stock at $1.75 per share.
In addition, on May 27, 2008, NeoStem announced that an agreement had been signed with the Hospital's James Graham Brown Cancer Center to become a NeoStem collection center for adult stem cells. NeoStem has now signed its first agreement with a hospital to become a stem cell collection center and it believes this unique corporate and academic relationship will assist in propelling the adult stem cell field forward.
"We remain extremely excited by the growth prospects for NeoStem and are pleased to see the recent article written by Alan Boyle, Science Editor, MSNBC, entitled "Stem Cell Banks Could Pay Medical Dividends." The link reference is http://www.msnbc.msn.com/id/24797415/
About NeoStem, Inc.
NeoStem has a growing nationwide network of adult stem cell collection centers, enabling people to donate and store their own (autologous) stem cells when they are young and healthy for their personal use in times of future medical need. The Company has also recently entered into research and development through the acquisition of a worldwide exclusive license to technology to identify and isolate VSELs (very small embryonic-like stem cells), which have been shown to have several physical characteristics that are generally found in embryonic stem cells.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in the Company's periodic filings with the Securities and Exchange Commission. Further, the Company cautions that its very small embryonic-like (VSEL) stem cell technology is in early stages of research and the reference to Alan Boyle's article is only intended to show the interest in stem cell banking generally and not to imply anything about the Company's products and services. The Company's further development is highly dependent on future medical developments and market acceptance which is outside its control.