SOURCE: Living Cell Technologies

November 06, 2007 09:25 ET

Living Cell Technologies Receives Initial NaviGroup Funding

MELBOURNE, AUSTRALIA and AUCKLAND, NEW ZEALAND--(Marketwire - November 6, 2007) - Living Cell Technologies Limited (ASX: LCT) (PINKSHEETS: LVCLY) today announced that U.S.-based investment group NaviGroup Management Ltd., has completed the initial closing under the Share Purchase Agreement it entered into with LCT as announced on October 4, 2007. NaviGroup has paid US$2 million for the issue of 20,213,249 shares at A$0.11 per share.

Under the terms of the agreement with NaviGroup, the Company will seek shareholder approval to grant to NaviGroup a 90-day option to subscribe for an additional US$6 million at the lower of A$0.20 per share or 80% of the 30-day average closing bid price per ordinary share of the Company.

The combination of these funds and the placement by Taylor Collison Limited, as announced on October 30, 2007, could raise up to A$15 million for the Company. The terms of the Taylor Collison placement provide for up to 17.7 million ordinary shares to be issued at A$0.36 per share, conditional upon shareholder approval at a general meeting of shareholders scheduled for November 27, 2007.

The combined funds place the Company in a strong financial position to further LCT's DiabeCell® clinical trials in Russia and New Zealand. The funding also allows the Company to further commercial development of DiabeCell®.

LCT's Chief Financial Officer, Richard Justice, said, "We are very pleased with this initial placement as it will significantly increase our shareholder base and enhance our international profile. NaviGroup has strong international funding and business experience and a solid understanding of the diabetes market."

As a result of the latest closing, the holders of convertible notes issued by the company in June 2006 are entitled to receive options to purchase approximately 8.8 million shares in the Company at an exercise price of A$0.01 per option. The noteholders are entitled to these options by way of compensation as a result of the Company raising capital (with NaviGroup) at less than the conversion price for the notes, namely A$0.175 per share

For further information: www.lctglobal.com

About Living Cell Technologies: www.lctglobal.com

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 6, 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
    Email: rlevine@hfgcg.com

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