StemCells has entered into an equity purchase financing agreement with Lincoln Park Capital Fund under which the Company has the right to sell up to $30.0 million of common stock to Lincoln Park.
Proceeds from any sales of stock in the equity purchase financing will be used for general corporate purposes.
According to the SEC filing the full sum of the equity purchase financing deal is $30.6 million.
Under the terms of the equity purchase financing agreement, Lincoln Park will immediately purchase $3.0 million in shares of StemCells common stock at a purchase price of $1.823 per share, which was the average of the prior ten trading days' volume weighted average price.
Furthermore, for a period of three years, the Company has the right, at its sole discretion, to sell additional amounts up to $27.0 million of common stock to Lincoln Park subject to certain limitations.
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