NEW YORK, June 8, 2010 –NeoStem, Inc. (“NeoStem” or the “Company”), an international biopharmaceutical company with operations in the U.S. and China, today announced a number of recent business updates.
The Company reported the appointment of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for fiscal year 2010, as ratified by its shareholders.
“The appointment of Deloitte & Touche LLP is just one of a number of steps the Company has taken since our acquisition of a controlling interest in Suzhou Erye Pharmaceutical Company Ltd. (“Erye”) in October 2009 that demonstrates our commitment to embracing the highest financial reporting standards,” said Robin Smith, M.D., NeoStem’s Chief Executive Officer and Chairman of the Board. “Our US GAAP qualified accounting and financial personnel have been working closely with Erye to assist their personnel with strengthening their internal controls and we are pleased to report strides being made in this effort.”
NeoStem recently raised approximately $2.5 million from a combination of option and warrant exercises and the drawdown of its equity financing facility, further strengthening the Company’s financial position. The new funding included $700,000 gross proceeds from the exercise of a warrant by a greater than 5% shareholder that is affiliated with Erye management, Fullbright Finance Limited, to purchase the Company’s common stock (these shares are restricted for sale under a lock up agreement executed in February) and gross proceeds of $1,800,000 from the issuance of common stock at $2.63 per share under an equity financing facility from Commerce Court Small Cap Value Fund, Ltd.
“We are committed to providing shareholder transparency by offering timely updates of the Company’s operations,” added Dr. Smith. “We look forward to working with our new auditor Deloitte & Touche LLP as we continue to strive to achieve the highest financial reporting standards. Furthermore, the new funding provides additional financial flexibility to execute our growth strategy. We will provide the investment community with updates in the future on key events, including the progress of the transfer of production line to the new Erye facility and developments in our recently announced collaboration with the Pontifical Council for Culture.”
About NeoStem, Inc.
NeoStem, Inc. is engaged in the development of stem cell-based therapies, pursuit of anti-aging initiatives and building of a network of adult stem cell collection centers in the U.S. and China that are focused on enabling people to donate and store their own (autologous) stem cells for their personal use in times of future medical need. The Company also has licensed various stem cell technologies, including a worldwide exclusive license to VSEL(TM) technology which uses very small embryonic-like stem cells, shown to have several physical characteristics that are generally found in embryonic stem cells, and is pursuing the licensing of other technologies for therapeutic use. NeoStem’s majority-controlled Chinese pharmaceutical operation, Suzhou Erye, manufactures and distributes generic antibiotics in China. For more information, please visit: http://www.neostem.com .
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management’s current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward looking statements include statements herein with respect to the ability to advance development of the Company’s adult stem cell therapy, ability to achieve the highest financial reporting standards, the progress of production line transfer at Erye and the impact of the collaboration with the Pontifical Council for Culture, about which no assurances can be given. The Company’s actual results could differ materially from those anticipated in these forward- looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the “Risk Factors” described in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2010 and the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 17, 2010, as well as other periodic filings made with the Securities and Exchange Commission. The Company’s further development is highly dependent on future medical and research developments and market acceptance, which is outside its control.