Pluristem Therapeutics Ltd. (Nasdaq:PSTI; DAX: PJT) has signed agreements with institutional investors to raise $3 million, a week after receiving a going concern warning from its auditor. The closing of the offering of shares and warrants will close on October 12.
Pluristem says that it will use proceeds from the offering to move forward on clinical trials that it is undertaking, and for R&D. The offering follows an announcement that the office of the Chief Scientist has awarded the company a $2.3 million grant.
The offering includes 2.7 million shares and 1.1 million warrants exercisable at $1.60, exercisable over five years after a six-month vesting period.
According to IVC Online, Pluristem has raised nearly $40 million, including the current offering.
Pluristem recently began two Phase I clinical trials, one in the US and the other in Germany for its placenta-derived stem cell drug PLX-PAD for the treatment of critical limb ischemia, the end-stage of peripheral artery disease. PLX-PAD is the company's leading drug candidate.
Pluristem closed at $1.15 on Nasdaq yesterday, giving a market cap of $18 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 8, 2009
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