PALO ALTO, Calif., Jan. 11, 2011 (GLOBE NEWSWIRE) -- StemCells, Inc. (Nasdaq:STEM) announced today that it has closed the sale of 10 million shares of common stock, at a fixed price of $1.00 per share. The Company received total proceeds, net of offering expenses and placement agency fees, of approximately $9.4 million. The common stock was sold in a registered direct offering under the Company's effective shelf registration statement previously filed with the Securities and Exchange Commission. The proceeds will be used for general corporate purposes, including working capital, product development and capital expenditures, as well as for other strategic purposes. At September 30, 2010, the Company had cash, cash equivalents, and marketable securities of $24.7 million, and together with the net proceeds of this offering, would have a pro forma cash balance of $34.1 million. No warrants were issued in the financing, although the investors were granted an option to purchase up to an additional six million shares of common stock at a price of $1.00 per share, exercisable at their election until February 18, 2011.
About StemCells, Inc.
StemCells, Inc. is engaged in the research, development, and commercialization of cell-based therapeutics and tools for use in stem cell-based research and drug discovery. In its therapeutic product development programs, StemCells is targeting disorders of the central nervous system and the liver. StemCells' lead product candidate, HuCNS-SC(R) cells (purified human neural stem cells), is currently in clinical development for spinal cord injury and the treatment of two fatal neurodegenerative disorders in children, and in preclinical development for retinal disorders such as age-related macular degeneration. StemCells also markets stem cell research products, including media and reagents, under the SC Proven(R) brand, and is developing stem cell-based assay platforms for use in pharmaceutical research, drug discovery and drug development.