Stem Cell Therapeutics Corp.
TSX VENTURE : SSS

Stem Cell Therapeutics Corp.

November 09, 2007 10:39 ET

Stem Cell Therapeutics Corp. Closes $12.075 Million Financing- Over-Allotment Option Exercised in Full

CALGARY, ALBERTA--(Marketwire - Nov. 9, 2007) -

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

Stem Cell Therapeutics Corp. (TSX VENTURE:SSS) ("SCT") has closed the previously announced bought deal financing with a syndicate of underwriters led by Dundee Securities Corporation (the "Underwriter") and including J.F. Mackie & Company Ltd., Fraser Mackenzie Ltd., Loewen, Ondaatje, McCutcheon Ltd. and Research Capital Corporation. Gross proceeds of $12.075 Million were raised, which includes the exercise in full of a 15% overallotment option, resulting in 34,500,000 Units (the "Units") being sold to the public pursuant to a short form prospectus. The Units were sold to the public at a price of $0.35 per Unit, with each Unit consisting of one common share of SCT and one-half of one common share purchase warrant. Each whole warrant is exercisable to acquire one additional common share of SCT at a price of $0.50 per share for 30 months.

SCT intends to use the net proceeds of the offering primarily to fully fund the clinical development of its Phase IIb stroke program. The balance will be allocated to fund other research and development programs, including traumatic brain injury and multiple sclerosis, and to meet working capital and current corporate needs.

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 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-V: 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.

For further information on Stem Cell Therapeutics Corp., visit www.stemcellthera.com.

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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