Stem Cell Therapeutics Corp.

Stem Cell Therapeutics Corp.

March 22, 2011 13:07 ET

Stem Cell Therapeutics Corp. Announces $2 Million Equity Offering

CALGARY, ALBERTA--(Marketwire - March 22, 2011) - Stem Cell Therapeutics Corp. (TSX VENTURE:SSS) ("SCT" or "Stem Cell Therapeutics") announces that it has entered into an agency agreement and has carried-out an overnight marketed offering to sell up to 18,181,819 Units at a price of $0.11 per Unit, representing gross proceeds of $2 million. Each Unit is comprised of one common share and one-half of one common share purchase warrant. Each full warrant will have an exercise price of $0.16, exercisable for a period of 3 years following the closing date of the offering. The offering is being conducted by Euro Pacific Canada Inc., as agent, and Bloom Burton & Co., as selling firm. The offering jurisdictions include the provinces of British Columbia, Alberta, Manitoba, Ontario and Nova Scotia by way of a prospectus supplement to SCT's base shelf prospectus dated March 1, 2011. The agency agreement in respect of the offering provides for a 24 hour due diligence period in favour of the agents.

SCT intends to use the net proceeds from the offering to fund the advancement of its ongoing research and development activities, working capital and other general corporate purposes, which may include SCT's clinical trial program. The transaction is expected to close on or about March 31, 2011, subject to the satisfaction of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the 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 stroke, 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. 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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