Stem Cell Therapeutics Corp.

Stem Cell Therapeutics Corp.

February 01, 2007 16:16 ET

Stem Cell Therapeutics Corp. Announces Closing of $2.0 Million Unit Offering

CALGARY, ALBERTA--(CCNMatthews - Feb. 1, 2007) -


Stem Cell Therapeutics Corp. ("SCT") (TSX VENTURE:SSS) has closed its previously announced $2.0 Million private placement of 10,000,000 units, each unit consisting of one common share of SCT and one-half of one common share purchase warrant. Each full warrant entitles the holder to purchase one additional common share of SCT for $0.25 until February 1, 2009.

The use of proceeds from the sale of the units will include: 1) completion of key support activities for receipt of final Phase IIa program results by end of 2007, 2) completion of planning for the Phase IIb program in stroke with NTx™-265 including IND submission, and 3) initiation of pre-clinical programs for a second clinical indication.

"The confidence that investors have shown by fully subscribing to this private placement has ensured that we maintain our clinical program treating stroke patients with NTx™-265," commented Dr. Alan Moore, President and CEO of SCT.

Certain registrants were paid an aggregate cash commission of $113,750 in connection with this private placement. The common shares and warrants were legended with a restricted resale period which expires on June 2, 2007.

SCT also announces that it granted options on February 1, 2007 to acquire up to 900,000 common shares of SCT, 690,000 of which were granted to directors and officers. Each grant of options is for 5 years, expiring on February 1, 2012. The options granted to directors vest immediately and all remaining options vest over three years as to one-sixth on August 1, 2007 and as to one-thirtieth each month thereafter. The options are exercisable at a price of $0.34 per common share. There are now options outstanding to purchase approximately 5.7M common shares of SCT or, approximately 8.9% of SCT's presently issued and outstanding common shares.

About NTx™-265: NTx™-265 is a therapeutic regimen of two drugs being developed by SCT for the treatment of stroke. Human chorionic gonadotropin (hCG) is the first drug administered in the regimen, and aims to increase the number of neural stem cells (NSCs) located in the brain of a patient suffering from a recent stroke. Erythropoietin (EPO) is the second drug administered in the regimen, and aims to promote the differentiation of these newly formed NSCs into new neurons. New neurons thus formed are anticipated to provide benefit to the patient through the replacement of the brain cells that were lost or damaged by the stroke. Animal studies have shown a significant recovery in motor function in animals that have received a stroke followed by the NTx™-265 therapy. Currently, SCT is enrolling patients in a phase IIa clinical trial in the United States in order to investigate the safety and efficacy of NTx™-265 in humans.

About Stem Cell Therapeutics Corp.: Stem Cell Therapeutics Corp. (SCT) is a biotechnology company focused on the development and commercialization of drug-based therapies to treat central nervous system diseases. SCT is a leader in the development of therapies that utilize drugs to stimulate a patient's own resident stem cells. The company's programs aim to repair neurological function lost due to disease or injury. Our currently enrolling phase IIa clinical program for NTx™-265 targets the treatment of stroke by repurposing approved and clinically well defined drugs. The company's extensive patent portfolio of owned and licensed intellectual property supports the potential expansion into future clinical programs in numerous neurological diseases.

These securities have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons unless an applicable exemption from U.S. registration requirements is available.

Except for historical information, this press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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