Mesoblast Completes A$170m Private Placement
March 13 2013 - 11:08PM
Regenerative medicine company Mesoblast Limited (ASX:MSB)
(USOTC:MBLTY) today announced that it has completed a private
placement of its shares, raising A$170 million. Mesoblast now has
cash reserves of approximately A$332 million. Under the placement,
26,970,979 fully paid ordinary shares were issued at A$6.30 per
share, a discount of 2.2 per cent to the closing price of the
company's shares on 1 March 2013. The total shares on issue have
now increased by 9.4 per cent to 314,811,301. The shares were
placed to a select group of existing strategic investors and new
United States and global institutional funds, including M & G
Investment Management and Capital Research. As a result of the
placement, Mesoblast's free float has increased by approximately
16.5 percent, which may positively impact the Company's weighting
within the S &P/ASX 200 index. In determining Mesoblast's free
float under S &P/ASX methodology, strategic shareholdings of
Mesoblast alliance partner Teva Pharmaceutical Industries Ltd and
Mesoblast Chief Executive Silviu Itescu, both of which remain
unchanged post the placement, are not included. The intended uses
of these funds are for continued development of Mesoblast's
proprietary Mesenchymal Precursor Cell (MPCs) technology platform,
specifically: -a Phase 3 clinical trial using MPCs for treatment of
degenerative disease of the lumbar spine -new Phase 2 clinical
trials to broaden the indications for intravenous delivery of MPCs
in the treatment of systemic inflammatory conditions -optimization
of MPC manufacturing processes and increased product inventory
staff and overheads. Professor Itescu said: "Our strengthened
financial position ensures that we can drive our independent
programs to commercial outcomes, particularly in the areas of
degenerative disease of the lumbar spine and in the treatment of
inflammatory and immune-mediated conditions."
Mesoblast
Limited Mesoblast Limited is a world leader in the
development of biologic products for the broad field of
regenerative medicine. Mesoblast's patented Mesenchymal Precursor
Cell (MPC) technology is being developed for an extensive range of
major clinical diseases, including inflammatory and immunologic
conditions of the joints and lungs, diabetes and kidney disease,
orthopedic spine conditions, and cardiovascular disorders.
www.mesoblast.com This ASX announcement does not constitute an
offer of shares for sale in the United States, or to any person
that is, or is acting for the account or benefit of, any U.S.
Person (as defined in Regulation S under the United States
Securities Act of 1933, as amended (the "Securities Act")) ("U.S.
Person"), or in any jurisdiction in which such an offer would be
illegal. The Mesoblast shares under this placement have not been,
and will not be, registered under the Securities Act or the
securities laws of any state or other jurisdiction of the United
States and may not be offered, sold or resold in the United States
(as defined in Regulation S under the Securities Act) absent
registration or an applicable exemption from the registration
requirements. This ASX announcement includes "forward-looking
statements" within the meaning of securities laws of applicable
jurisdictions. Forward-looking statements can generally be
identified by the use of forward-looking words such as "may,"
"will," "expect," "intend," "plan," "estimate," "anticipate,"
"believe," "continue," "objectives," "outlook," "guidance" or other
similar words, and include statements regarding certain plans,
strategies and objectives of management and expected financial
performance. These forward- looking statements involve known and
unknown risks, uncertainties and other factors, many of which are
outside the control of Mesoblast, and its officers, employees,
agents or associates. Actual results, performance or achievements
may vary materially from any projections and forward-looking
statements and the assumptions on which those statements are based.
Readers are cautioned not to place undue reliance on
forward-looking statements and Mesoblast assumes no obligation to
update such information.
CONTACT: Julie Meldrum
Global Head of Corporate Communications
Mesoblast Limited
T: +613 96396036
E: julie.meldrum@mesoblast.com
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