BioStem Technologies Inc. (NASDAQ: BSEM) announced it has entered into a committed equity facility with Roth Principal Investments, LLC, providing access to up to $40 million in capital through private placements of common stock.
Under the terms of the arrangement, BioStem retains the discretion to determine when and how much of the facility to draw, with no obligation to utilize the full $40 million available. Net proceeds from any issued shares will be directed toward working capital and general corporate purposes, according to the company's filing.
The facility is structured subject to conditions outlined in the purchase agreement, including the filing and subsequent effectiveness of a registration statement with the U.S. Securities and Exchange Commission governing Roth's resale of the shares. The company noted that, prior to the agreement's execution, Nasdaq rules prevent BioStem from issuing shares representing more than 19.99% of its outstanding common stock without first obtaining shareholder approval or satisfying specified minimum price requirements.
CR Financial Holdings Inc., identified as a parent or affiliate entity linked to Roth, is associated with the transaction.
BioStem Technologies, headquartered in Pompano Beach, Florida, develops, manufactures, and commercializes perinatal tissue allograft products for regenerative medicine applications. Its quality management system holds accreditation from the American Association of Tissue Banks.
