StemCells Inc Announces Pricing of Public Offering To Raise Up To $20 Million

StemCells, Inc.announced the pricing of an underwritten public offering of an aggregate of 8,000,000 units and 8,000,000 Series B Warrants, each to purchase one unit, at a public offering price of $1.25 per unit for gross proceeds of $10 million, before deducting underwriting discounts and commissions and other estimated offering expenses. Each Unit consists of (i) one share of the common stock, par value $.01 per share, of the Company's common stock and (ii) one Series A Warrant to purchase one share of common stock. The Series A Warrants are immediately exercisable at an initial exercise price of $1.40 per share and expire on the fifth anniversary of the date of issuance. The Series B Warrants are exercisable immediately at an exercise price of $1.25 per Unit. The Series B Warrants will expire at the close of business on the ninetieth trading day after the date of issuance. If all Series B Warrants are exercised, the Company would receive additional gross proceeds of $10 million. The offering is expected to close on or about December 21, 2011, subject to customary closing conditions. Roth Capital Partners, LLC and Chardan Capital Markets, LLC are acting as underwriters for the offering. LifeTech Capital, a division of Aurora Capital 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 and operational purposes, including product development.