(MENAFN- ProactiveInvestors - N.America) Shares in International Stem Cell Corp(OTCBB:ISCO) plummeted as it announced it is to raise $6.3mln through a private placement to funds its Phase I clinical trial for ISC-hpNSC its treatment for Parkinson's.
The firm entered into the definitive agreements with two institutional healthcare investors and management.
At the same time Semechkin bought $4.3mln of stock on the same terms as the outside investor through the conversion of $3.8 million in outstanding debt owed to him and $500000 of cash.
The closing of the offering is expected to occur around March 15 subject to certain conditions.
The biotech company is developing novel stem cell-based therapies and biomedical products and chief executive Andrey Semechkin said the fundraise 'and attests to the potential of our technology'.
'With enrollment of patients already underway we look forward to the end of this year for preliminary safety and efficacy clinical data' he added.
Shares which have gained 7.9% since the start of the year slipped back more than 8% to $3.63 on Thursday.
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