Stem Cell Therapeutics Corp.

Stem Cell Therapeutics Corp.

November 29, 2007 19:58 ET

Stem Cell Therapeutics Corp. Announces Third Quarter 2007 Financial Results

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2007) - Stem Cell Therapeutics Corp. ("SCT") (TSX VENTURE:SSS) today announced its financial results for the period ended September 30, 2007.

Selected Highlights

During the third quarter of 2007 and up to November 29, 2007, SCT achieved the following milestones:

- On July 25, 2007, SCT initiated a pre-clinical comparator study designed to characterize the neuro-regenerative effects of stem cell proliferative agents plus Erythropoietin (EPO) in an animal model of traumatic brain injury (TBI).

- On September 25, 2007, SCT announced the grant of the Japanese patent number 3993560 and entitled "Combined Regulation of Neural Cell Production" to its subsidiary Stem Cell Therapeutics Inc.

- On October 15, 2007, SCT announced the appointment of Mr. Scott Tannas, Founder, President and Chief Executive Officer of the Western Financial Group, to the Board of Directors. SCT also announced that Dr. J.P. Castaigne had resigned from SCT's Board of Directors in order to focus on his current obligations at Angiochem Inc.

- On November 9, 2007, SCT closed a $12.075 million bought deal financing.

- On November 13, 2007, SCT appointed Dr. Francesco Bellini, Chairman, President and Chief Executive Officer of Neurochem Inc., an industry leader in the development of therapeutic drugs for the central nervous system, to its Board of Directors.

"NTx™-265, our lead product for treating stroke, continues to be tested on human stroke patients in a Phase IIa clinical trial at multiple sites. Additionally, we are proceeding with our planned Phase IIb program in stroke and have made great strides in both our US and Canadian regulatory filing requirements with regards to the development of an Investigational New Drug application for the FDA and filing of a Clinical Trial Application with Health Canada for our planned double-blind, randomized, placebo-controlled clinical trial focused on efficacy and safety measures." said Dr. Alan Moore, President and CEO of SCT.

Capital Position

As of September 30, 2007, the working capital (current assets minus current liabilities) for SCT was a deficiency of $80,301 (compared to a surplus of $408,938 as of December 31, 2006).

On November 9, 2007 SCT completed a $12.075 million financing. The net proceeds from this offering increased SCT's working capital to an estimated $10.8 million as of November 9, 2007.

At September 30, 2007 there were 68,386,864 common shares, 6,120,000 class B shares, 5,636,889 common share options, and 6,937,500 common share purchase warrants outstanding. As of November 29, 2007 there are 103,279,864 common shares, 6,120,000 class B shares, 8,015,556 common share options (including 2,500,000 new options described in 'Stock Options' below), and 25,912,500 common share purchase warrants outstanding.

Financial Review

SCT recorded a net loss of $1,276,496 ($0.02 per share) for the three month period ended September 30, 2007. Research and development costs for the period were $544,834, general and administrative expenses were $220,165, professional fees were $242,631 and interest income was $35,242.

Stock Options

SCT has granted a total of 2,500,000 new options to officers, directors, employees and consultants under its stock option plan, effective November 28, 2007. Each option entitles the holder to purchase one common share at $0.35 per share for a period of five years, subject to vesting provisions where applicable.

The granting of options is subject to approval by the TSX-Venture Exchange. The options were awarded in accordance with the Stock Option Plan approved by Shareholders at SCT's Annual General Meeting held May 10, 2005 and by the TSX-Venture Exchange on May 18, 2005.

Investor Relations

SCT has terminated its investor and media relations consulting contract with MaisonBrison Inc. effective November 30, 2007.

About NTx™-265: NTx™-265 is a therapeutic regimen of two approved and clinically well-defined drugs, human Chorionic Gonadotropin (hCG) and Erythropoietin (EPO), targeting the treatment of stroke. The objective of the regimen is to stimulate the growth and differentiation of new neurons to replace the brain cells that were lost or damaged by the stroke. Animal studies have shown a significant recovery in motor function after receiving the NTx™-265 regimen 24-48 hours post stroke. Similar results have been found in SCT's currently enrolling phase IIa safety trial, as announced on April 10, 2007. SCT plans to initiate a multi-centre, double-blind, placebo-controlled Phase IIb study for NTx™-265 with primary endpoints of efficacy by the end of this year.

About Stem Cell Therapeutics Corp.: Stem Cell Therapeutics Corp. is a Canadian 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 neurological 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.

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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