aibioLineage Cell Therapeutics closes second tranche, offering proceeds reach $30 million
Tickers LCTX
Lineage received $6 million more after shareholders approved a sale to a director's affiliate. Milestone-linked warrants could add up to $36 million.
Key facts
- Company
- Lineage Cell Therapeutics, Inc. (AMEX: LCTX)
- News type
- Financings
- Primary source
- Lineage Cell Therapeutics, Inc. 8-K (2025-01-27)
Lineage Cell Therapeutics, Inc. (NYSE American: LCTX) said on January 27, 2025 that it closed the second tranche of its registered direct offering of an aggregate of up to $66 million.
The company received $6 million in gross proceeds at the second closing. It had received $24 million at the first closing in November 2024, bringing the total to $30 million. Lineage may receive up to $36 million more if the clinical milestone-linked warrants from the offering are exercised in full for cash.
Lineage said it obtained shareholder approval of the issuance at the second closing, in satisfaction of NYSE American rules. Shareholders approved the issuance of 7,894,737 common shares and a warrant for up to 7,894,737 more, at a combined price of $0.76 per share and warrant, to Broadwood Partners, L.P., an affiliate of Neal Bradsher, a member of Lineage's board.
The warrant has an exercise price of $0.91 per share and can be exercised from May 21, 2025. It expires on the earlier of May 21, 2028 and the 90th day after Lineage publicly discloses plans to move OpRegen (also known as RG6501) into a multi-center phase 2 or 3 trial with a control or comparator arm.
A registered direct offering is a sale of registered shares to selected investors. H.C. Wainwright & Co., LLC was exclusive placement agent. The Carlsbad, California company sold the securities under a Form S-3 shelf registration declared effective on May 14, 2024.