BioStem Secures Up To $40 Mln Committed Equity Facility

(RTTNews) - BioStem Technologies (BSEM), a regenerative medicine company focused on perinatal tissue allograft products, has entered into a $40 million committed equity facility (CEF) with Roth Principal Investments, an affiliate of Roth Capital Partners.

Under the agreement, BioStem may, at its discretion and subject to certain conditions, issue and sell up to $40 million of common stock to Roth through private placements, following the filing and effectiveness of an SEC registration statement covering the resale of the shares.

Under Nasdaq rules, BioStem cannot issue Roth more than 19.99% of its outstanding shares, unless shareholder approval is obtained or the shares are issued at or above the applicable Nasdaq minimum price.

BioStem develops, manufactures, and commercializes perinatal tissue allograft products, including its Neox, Clarix, VENDAJE, and American Amnion product lines.

The company intends to use any net proceeds for working capital and general corporate purposes.

BSEM closed Friday's trade at $4.74, up 8.72%.