Pluristem Announces First Licensing Agreement with Stem Cell Innovations
News Feb 23, 2007
Pluristem Life Systems, Inc. has announced a licensing agreement and stock swap with Stem Cell Innovations, Inc. for certain marketing rights of Pluristem’s PLX I product in Asia, excluding Japan and 3-D stem cell expansion capability.
The licensing agreement provides Stem Cell with certain rights to Pluristem’s PLX I product and 3-D stem cell expansion capability, in exchange for an upfront fee of 23 million shares of Stem Cell's common stock, milestone payments and royalties.
Stem Cell CEO Dr. James Kelly commented, “We are excited with Pluristem’s 3-D stem cells expansion capability for use in conjunction with our PluriCell technology. We believe this collaboration will improve our product development capabilities, leading to better solutions for both in vivo and in vitro applications and improve our shareholder value.”
“Licensing our products and capabilities is a key event in our commercialization process,” stated Mr. Zami Aberman, CEO of Pluristem Life Systems. “Stem Cell’s decision to license PLX I for the Asian market, excluding Japan and our 3-D expansion capability is compelling evidence that our products will be developed and sold worldwide. This agreement represents a potential multimillion dollar recurring revenue stream. We believe this collaboration will lead to several synergistic solutions, benefiting million of patients worldwide. Our 3-D technology has numerous applications that we intend to develop with Stem Cell and other companies.”
Under the terms of the stock swap, Stem Cell will exchange 27 million shares of Stem Cell’s common stock for 66 million shares of Pluristem common stock and five-year warrants to purchase 66 million shares of Pluristem common stock at an exercise price of $.03 per share.