SOURCE: Living Cell Technologies

November 26, 2007 17:06 ET

Living Cell Technologies to Cancel Rights at A$0.20 Following A$6M Placement at $0.30 per Share

MELBOURNE, AUSTRALIA and AUCKLAND, NEW ZEALAND--(Marketwire - November 26, 2007) - Living Cell Technologies Limited (ASX: LCT) (PINKSHEETS: LVCLY) today announced that U.S.-based NaviGroup Management Limited has conditionally agreed to waive its 90-day right to purchase up to US$6 million of LCT's ordinary shares at $A0.20 per share, retaining its right to purchase up to US$6 million of LCT's ordinary shares at 80% of the 30-day average closing bid price for an ordinary share of LCT.

NaviGroup's waiver of its right to purchase LCT's ordinary shares at A$0.20 per share is subject to the completion of the previously announced A$6 million placement of LCT ordinary shares by Taylor Collison Limited. Pursuant to the Placement Agreement, Taylor Collison has exercised its right to reduce the placement price from A$0.36 to A$0.30 per share so that it more closely reflects LCT's current share price. NaviGroup's right to purchase additional shares in LCT and the Taylor Collison placement are subject to shareholder approval at the general meeting of shareholders on November 27, and other terms and conditions.

Funds from placements by NaviGroup and Taylor Collison would be used to further LCT's DiabeCell® clinical trials in Russia and New Zealand, as well as expanding the Company's infrastructure to meet clinical trial requirements.

LCT's Chief Financial Officer, Richard Justice said, "The changes to the NaviGroup option and the Taylor Collison placement make the terms of LCT's announced financings more equitable to shareholders and the two groups concerned. The fact that we have U.S. and Australian investors involved demonstrates the strong interest that is being generated in the Company globally."

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 November 26, 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

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

    Leslie Wolf Creutzfeldt
    Investor and Media Relations
    Tel: +1-646-284-9472