MARLBOROUGH, Mass.--(BUSINESS WIRE)--Ocata Therapeutics, Inc. (NASDAQ:OCAT), a clinical stage biotechnology company focused on the development and commercialization of Regenerative Ophthalmology™, today announced the pricing of an underwritten offering of 5,500,000 shares of its common stock together with accompanying warrants to purchase an aggregate of 2,750,000 shares of common stock. The combined offering price of each share of common stock and accompanying warrant was $5.50. The gross proceeds to Ocata Therapeutics from this offering are expected to be $30.25 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by Ocata Therapeutics. The warrants will be exercisable at $7.48 per share, will be exercisable beginning on December 22, 2015 and will expire on December 22, 2020. The shares of common stock and warrants are immediately separable and will be issued separately. Ocata Therapeutics has granted the underwriters a 30-day option to purchase up to an additional 825,000 shares of common stock and/or warrants to purchase 412,500 shares of common stock to cover over-allotments, if any. Ocata Therapeutics intends to use the net proceeds from the sale of the offered securities to fund its clinical activities, including the commencement of its Phase 2 AMD and pivotal SMD clinical trials, the advancement of its pre-clinical studies in other ocular indications and other programs, and for general corporate purposes, which may include, but are not limited to, working capital, potential business development activities, ongoing research and development activities, funding regulatory approval application processes, and capital expenditures.
All of the shares and accompanying warrants in the offering are to be sold by Ocata Therapeutics. The offering is expected to close on or about June 22, 2015, subject to the satisfaction of customary closing conditions. Additional details regarding the offering will be included in a Form 8-K filed by Ocata Therapeutics with the Securities and Exchange Commission.
Jefferies LLC and Cowen and Company, LLC are acting as joint bookrunners for the offering. Raymond James & Associates, Inc. is acting as co-manager for the offering.
The securities described above are being offered pursuant to a shelf registration statement (File No. 333-199311), which was declared effective by the United States Securities and Exchange Commission (“SEC”) on November 14, 2014. A final prospectus supplement relating to the offering will be filed with the SEC and will be available on the SEC's web site at www.sec.gov. When available, copies of the final prospectus supplement and accompanying prospectus may be obtained by contacting Jefferies LLC, 520 Madison Avenue, 12th Floor, New York, NY 10022, Attention: Prospectus Department, or by email to email@example.com; or Cowen and Company, LLC, c/o Broadridge Financial Services, Attention: Prospectus Department, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (631) 274-2806, or by fax at (631) 254-7140.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Ocata Therapeutics, Inc.
Ocata Therapeutics, Inc. is a biotechnology company focused on the development and commercialization of novel therapies based on terminally differentiated cells.
Forward-Looking Information is Subject to Risk and Uncertainty
Certain of the statements made in this press release are forward looking, such as those, among others, relating to Ocata Therapeutics' expectations regarding the completion of the offering. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include, without limitation, risks and uncertainties related to market and other conditions, the satisfaction of customary closing conditions related to the offering and the impact of general economic, industry or political conditions in the United States or internationally. There can be no assurance that Ocata Therapeutics will be able to complete the offering on the anticipated terms, or at all. Additional risks and uncertainties relating to Ocata Therapeutics and its business can be found in Ocata Therapeutics’ periodic reports, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. Forward-looking statements are based on the beliefs, opinions, and expectations of Ocata’s management at the time they are made, and Ocata Therapeutics does not assume any obligation to update its forward-looking statements if those beliefs, opinions, expectations, or other circumstances should change.