Stem Cell Therapeutics Corp.
TSX VENTURE : SSS

Stem Cell Therapeutics Corp.

October 08, 2009 10:05 ET

Stem Cell Therapeutics Corp. Announces Private Placement

CALGARY, ALBERTA--(Marketwire - Oct. 8, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES 

Stem Cell Therapeutics Corp. ("SCT" or the "Corporation") (TSX VENTURE:SSS) is pleased to announce that it has entered into an agreement with J.F. Mackie & Company Ltd. (the "Agent") under which they have agreed to act as the agent, on a best-efforts basis, in connection with the sale of 8,340,000 units of the Corporation ("Units") at a price of $0.12 per Unit (the "Offering") to raise approximately $1.0 million. Each Unit will consist of one common share of the Corporation ("Common Share") and one common share purchase warrant (the "Warrants"). Each Warrant shall entitle the holder thereof to purchase one Common Share at a price of $0.15 at any time during the period of 12 months from the closing date. Additionally, SCT has granted the Agent an option to increase the Offering by up to $500,000 on the same terms. Concurrently, the Corporation will sell up to $1.0 million of additional Units on a non-brokered private placement basis on the same terms as the Offering.

The maximum gross proceeds raised should the Agent's option be fully exercised, including the concurrent non-brokered financing, will be $2.5 million. This offering is subject to approval of the TSX-Venture Exchange. The Units will be sold to accredited investors pursuant to applicable private placement exemptions and all securities issued pursuant to this offering will be subject to a four month hold period. The Offering is expected to close on or about October 29, 2009. SCT intends to use net proceeds of the Offering to support clinical development programs and for general working capital purposes.

Dr. Alan Moore, President and CEO of SCT, commented as follows:

"This financing will provide us with additional working capital to lengthen our runway after completion of the NTx™-265 stroke trial to facilitate potential partnering discussions. It will also allow us to support the initiation of a Phase II multiple sclerosis trial. We are pleased with the recruiting rate of the stroke trial to date, which currently stands at 17 enrolled patients. We have 10 sites recruiting patients at this time and expect to have additional sites recruiting by the end of the month. We are gratified with the support shown by our investors and the progress we have made at this early stage of the stroke trial."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Stem Cell Therapeutics Corp.: Stem Cell Therapeutics Corp. is a public biotechnology company (TSX VENTURE:SSS) 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 brain and nerve function lost due to disease or injury. The Company's extensive patent portfolio of owned and licensed intellectual property supports the potential expansion into future clinical programs in numerous neurological diseases such as traumatic brain injury, multiple sclerosis, Huntington's disease, Alzheimer's disease, and ALS.

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. Forward-looking statements in this news release include, but are not limited to, statements with respect to: the purposes for which the Company intends to use the net proceeds of the Offering and the expectations of the Company concerning the timing of obtaining additional patient recruiting sites for the NTx™-265 stroke trial. These forward-looking statements involve risk and uncertainties, which may include, 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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