StemCells, Inc. (STEM) today announced the pricing of an underwritten public offering of an aggregate of 11,170,000 units at a public offering price of $1.45 per unit. Each unit consists of one share of common stock, par value $.01 per share, and a warrant to purchase one half share of common stock. The warrants have an exercise price of $1.80 per share, are exercisable immediately, and will expire five years from the date of issuance. The Company expects to receive gross proceeds of approximately $16.2 million, before deducting underwriting discounts and commissions and other estimated offering expenses. The Company has also granted the underwriters a 30 day option to purchase up to an additional 1,675,500 units to cover over allotments, if any.
Dilution, dilution, dilution.
STEM closed yesterday (02013.10.01) at $1.68. 52-week range: $1.37 - $2.50. $1.45 (which also includes a warrant) is a lot cheaper than $1.68; thus, the crash.
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