BioStem secures access to a $40 million equity-purchase facility

BioStem ($BSEM) Technologies entered into a committed equity facility providing potential access to as much as $40 million through share sales to Roth Principal Investments. The company controls whether to draw on the arrangement and intends to use any proceeds for working capital and general corporate purposes. The maximum amount is not cash already on its balance sheet.

Access depends on conditions including an effective resale-registration statement. Nasdaq restrictions generally limit issuance to 19.99% of existing shares unless shareholder approval is obtained or an applicable pricing exception is satisfied. Future sales can dilute existing investors, and the amount actually raised will depend on drawdowns and market prices. The facility adds financing flexibility but does not establish that BioStem has secured all planned funding upfront.

Sources:

• BioStem Technologies — equity facility terms, company release reprint