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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