SOURCE: Living Cell Technologies

October 30, 2007 08:30 ET

Living Cell Technologies Announces A$6.4 Million Financing

Positive Market Response to Preliminary Clinical Trial Data

MELBOURNE, AUSTRALIA and AUCKLAND, NEW ZEALAND--(Marketwire - October 30, 2007) - Living Cell Technologies Limited (ASX: LCT) (PINKSHEETS: LVCLY) today announced that it has received commitments for a private placement of up to A$6.4 million from various institutional investors and high net worth clients of Taylor Collison and other Australian brokerage firms.

The terms of the placement allow up to 17.7 million ordinary shares to be sold at A$0.36 cents per share, conditional upon shareholder approval at a general meeting of shareholders on November 27. This financing is in addition to the investments being made by NaviGroup Management Ltd., and together could raise up to approximately A$15 million for the Company.

The funds will be used as working capital to further LCT's DiabeCell® clinical trials in Russia and New Zealand, as well as ongoing expansion of the pig breeding herd to meet clinical requirements.

Dr. Paul Tan, CEO of Living Cell Technologies, commented, "This investment follows on our release of preliminary positive results for our Phase I/IIa clinical trial for DiabeCell® in type I diabetes. We are encouraged by both initial patient response, and the support we are receiving from the global investment community. The combined cash infusion from this placement, as well as our recently announced agreement with NavigGroup will enable us to continue with our clinical development plans as well as enhance and expand our production facilities."

The Company recently entered into a binding agreement with NaviGroup Management for an initial placement of US$2 million, which is due on or before November 2. The agreement also gives NaviGroup an option, subject to shareholder approval, to subscribe for an additional US$6 million in shares at the lower of A$0.20 cents per share or 80% of the 30-day average closing bid price per ordinary share of the Company.

For further information:

About Living Cell Technologies:

Living Cell is developing cell-based products to treat life threatening human diseases. The Company owns a biocertified pig herd that it uses as a source of cells for treating diabetes and neurological disorders. For patients with Type 1 diabetes, the Company transplants microencapsulated islet cells so that near-normal blood glucose levels may be achieved without the need for administration of insulin or at significantly reduced levels. The company entered clinical trials for its diabetes product in 2007. For the treatment of Huntington's disease and other neurological disorders, the company transplants microencapsulated choroid plexus cells that deliver beneficial proteins and neurotrophic factors to the brain. Living Cell's technology enables healthy living cells to be injected into patients to replace or repair damaged tissue without requiring the use of immunosuppressive drugs to prevent rejection. Living Cell also offers medical-grade porcine-derived products for the repair and replacement of damaged tissues, as well as for research and other purposes.

LCT Disclaimer

This document contains certain forward-looking statements, relating to LCT's business, which can be identified by the use of forward-looking terminology such as "promising," "plans," "anticipated," "will," "project," "believe," "forecast," "expected," "estimated," "targeting," "aiming," "set to," "potential," "seeking to," "goal," "could provide," "intends," "is being developed," "could be," "on track," or similar expressions, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no assurance that any existing or future regulatory filings will satisfy the FDA's and other health authorities' requirements regarding any one or more product candidates nor can there be any assurance that such product candidates will be approved by any health authorities for sale in any market or that they will reach any particular level of sales. In particular, management's expectations regarding the approval and commercialization of the product candidates could be affected by, among other things, unexpected clinical trial results, including additional analysis of existing clinical data, and new clinical data; unexpected regulatory actions or delays, or government regulation generally; our ability to obtain or maintain patent or other proprietary intellectual property protection; competition in general; government, industry, and general public pricing pressures; and additional factors that involve significant risks and uncertainties about our products, product candidates, financial results and business prospects. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. LCT is providing this information as of October 22, 2007 and does not assume any obligation to update any forward-looking statements contained in this document as a result of new information, future events or developments or otherwise.

Contact Information

  • Contacts:
    Richard Justice
    Chief Financial Officer
    Tel: +64-9-276-2690 (x 739)
    Mobile: +64-21-223-4741

    Rachel Levine
    Investor and Media Relations
    Tel: +646-284-9439

    Dr. Paul Tan
    Chief Executive Officer
    Tel: +64-9-270-7941
    Mobile: +61-402-716-984