UPDATE 1-Pluristem plans to raise $35.8 mln on Nasdaq

Thu Jan 27, 2011 11:21am EST

* Prices offering of 11 million units at $3.25 each

* Shares down 25 percent on Nasdaq

(Releads with pricing of offering)

TEL AVIV, Jan 27 (Reuters) - Pluristem Therapeutics (PSTI.O) intends to raise $35.8 million in its secondary offering on Nasdaq to fund advanced clinical trials, the Israeli stem cell therapy company said on Thursday.

Its shares were down 25 percent on the news to $3.15.

Pluristem said it has priced 11 million units at $3.25 each, with each unit consisting of one share and one warrant to purchase 0.4 of a share. The offering is expected to close on or about Feb. 1.

Each warrant will be exercisable for five years at a price of $4.20. The company granted underwriters a 30-day option to buy up to 1.65 million shares and warrants to purchase up to 660,000 shares of common stock to cover over-allotments, if any.

The Tel Aviv Stock Exchange suspended trading in Pluristem (PSTI.TA) shares on Thursday until the pricing for the U.S. offering was completed.

Pluristem said it plans to use the proceeds from the offering to conduct clinical trials, research and product development activities and for general corporate purposes.

The company said last week it won U.S. and European approval to conduct an advanced trial for its treatment of peripheral artery disease (PAD), a degenerative disorder.

The biotech company has completed early Phase I trials and said it will be able to conduct an advanced Phase II/III trial in both Europe and the United States to treat the end stage of PAD, known as critical limb ischemia.

PAD is an obstruction of blood vessels, usually in the leg, causing pain, difficulty in walking and leading eventually to amputation.

Pluristem will also conduct a Phase II trial to test its treatment on an earlier stage of the disease.

In December it filed with the U.S. Securities and Exchange Commission for a shelf offering of up to $75 million.

Pluristem shares reached a year high of $4.38 on Nasdaq on Wednesday, before closing up 6.1 percent at $4.20.

Oppenheimer & Co is acting as the bookrunner and Needham & Co is co-lead manager for the offering. (Reporting by Tova Cohen)

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