StemCells Inc. (NASDAQ: STEM) today announced that it has signed an agreement with Seaside 88 LP under which it will sell seven million of its shares of common stock to Seaside at a price of $0.865 per share. Seaside 88 LP is a private investment partnership.
The company will not issue any warrants in this offering, which will close today. Under the agreement, Seaside will buy an additional five million shares 12 weeks after the initial closing. However, this will be at the company’s discretion. After deducting expenses and fees, StemCells expects net proceeds of $5.7 million from the current offering.
Shares of StemCells are down in today’s trading. The penny stock touched a low of $0.98 in mid-day trading. At last check, it was down 4.80% to $0.948, with volume up from daily average of 826,000 to 876,467.
The penny stock has a 52-week range of $0.89-$1.86 and it currently trades below its 50-day and 200-day moving averages. The penny stock has seen support at $0.98 and has met with resistance at $1.02. The consensus recommendation on the penny stock is Buy.
Palo Alto, California-based StemCells is involved in research, development and commercialization of stem cell therapeutics. The company’s cellular medicine program targets diseases of the central nervous system and liver. The company’s lead product candidate is HuCNS-SC® cells. The product is in clinical development for the treatment of two fatal neurodegenerative disorders.
For the first quarter, StemCells reported a net loss of $6.124 million, or $0.05 per share, compared with a net loss of $9.281 million, or $0.10 per share it reported for the first quarter of 2009. The company reported first-quarter revenue of $230,000, up 307% from the first quarter of 2009.
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About BeaconEquity.com
BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
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