BioStem Technologies secures $40M committed equity facility

BioStem Technologies, Inc. (NASDAQ: BSEM) has entered into a $40 million Committed Equity Facility (CEF) with Roth Principal Investments, LLC, an affiliate of CR Financial Holdings, Inc., the holding company for Roth Capital Partners, according to a press release.

The agreement allows, but does not obligate, BioStem to issue and sell up to $40 million in shares of its common stock to Roth through a private placement. The company said it intends to use any net proceeds for working capital and general corporate purposes.

Under applicable Nasdaq rules, BioStem may not issue shares exceeding 19.99% of shares outstanding at the time of the agreement's execution without shareholder approval, unless the average price per share paid by Roth meets or exceeds the applicable minimum price under Nasdaq rules.

The facility becomes accessible following the filing and effectiveness of a registration statement with the U.S. Securities and Exchange Commission to register the resale of shares issuable under the agreement. BioStem stated it is under no obligation to utilize the full amount available under the CEF.

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