Investor Relations (IR) Questions: StemCells Inc STEM
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Answers received: April 2013
-1- When is the last time STEM raised cash through an offering (diluted)?
-a- STEM raised $10 million in December 2011. The company initially sold 8 million shares at $1.25 per share. An additional 8 million Series B Warrants were offered and good for for 90 days at the offering price of $1.25. The Series B Warrants expired on May 2, 2012. However, each unit sold in the offering also consisted one Series A Warrant. The Series A Warrants are exercisable at $1.40 per share and expire on the fifth anniversary of the date of issuance.
-2- How much cash (not cash equivalents) does STEM have?
-b- On April 9, 2013 STEM released a PR titled, “StemCells, Inc. Closes $10 Million Debt Financing”. According to the PR, the Company's December 31, 2013 pro forma cash balance was increased to $34.4 million resulting from the debt financing and $2 million received subsequent to the end of the year from the exercise of warrants and the sale of shares of common stock.
-c- On April 11, 2013 STEM entered into an agreement with the California Institute for Regenerative Medicine (CIRM). Under the agreement, “CIRM will provide approximately $19.3 million to help fund preclinical development and IND-enabling activities of the Company's proprietary HuCNS-SC® product candidate (purified human neural stem cells) for Alzheimer's disease.” The funding will be in the form of a forgivable loan.
-d- Actual Cash and Cash Equivalents as of December 31, 2013 were reported at $8,471,000. Marketable Securities were $13,901,000.
-3- What and approximately when is the next known catalyst?
In my attempt to answer this question, I searched STEM's public filings and Press Releases but could not find anything so I sent an email to Rodney Young, STEM's CFO. In the email I ask the following:
Q: Does the company know when or have an expectation of when there will be an update of progress reported or the next anticipated milestone regarding its clinical development programs? More specifically, could you address 1) Spinal Cord Injury, 2) Pelizaeus-Merzbacher Disease (PMD), and 3) Dry Age-Related Macular Degeneration (AMD).
A: Thanks for your email. We have not disclosed the information you are asking about, and we generally have not disclosed such information. There are analyst reports that do make estimates, however.
Followup email Q&A:
Q: Can you tell what analyst(s) or report(s)?
A: We are covered by Stephen Dunn of LifeTech Capital, Jason Kolbert of Maxim Group, Andy Fein of Chardan Capital, and Keay Nakae of Asciendiant Capital. Most of these would be available to institutional investors, but I’m not sure about retail investors.
NOTE: It's not my intent to discourage anyone from investing or trading STEM. The company does have catalysts. In first 18 days of April the company announced:
Obviously, STEM has allot going on. Determining what and when the next catalyst will occur is the challenge.
-4- What is STEM's cash burn?
-e- Approximate Operating Expenses:
$23,650,000 in 2012
$29,082,000 in 2011
$30,618,000 in 2010.
-5- Does STEM have an existing line of credit and if so how much can they draw against it?
-f- In September 2012 I confirmed with management at STEM that they did not have an existing credit line. After reviewing STEM's most recent 10-K. I believe this is still the case.
-6- Does STEM have an active At-The-Market sales agreement (ATM)?
-g- Yes. The company's initial ATM was created in 2009 allowing STEM to sell up $30 million in common stock. Between June 2009 and November 2012, the company raised approximately $26.7 million through its ATM. In December 2012, the company amended the ATM, renewing it's ability to sell up to $30 million in common stock.
-h- In February 2013, the company sold 782,755 shares of common stock under the new agreement at $2.06 a share raising approximately $1,616,000.
SOURCES:
-a- STEM PR http://investor.stemcellsinc.com/phoenix.zhtml?c=86230&p=irol-newsArticle&id=1640476
-b- STEM PR http://investor.stemcellsinc.com/phoenix.zhtml?c=86230&p=irol-newsArticle&ID=1804649&highlight=
-c- STEM PR http://investor.stemcellsinc.com/phoenix.zhtml?c=86230&p=irol-newsArticle&ID=1805843&highlight=
-d- Page 41, STEM Form 10-K for the fiscal year ended 2012
-e- Page 51, STEM Form 10-K for the fiscal year ended 2012
-f- September 2012 #IRQ http://www.biotechduediligence.com/stem-irq.html
-g- Page 57, STEM Form 10-K for the fiscal year ended 2012
-h- Page 93, STEM Form 10-K for the fiscal year ended 2012
-1- When is the last time STEM raised cash through an offering (diluted)?
-a- STEM raised $10 million in December 2011. The company initially sold 8 million shares at $1.25 per share. An additional 8 million Series B Warrants were offered and good for for 90 days at the offering price of $1.25. The Series B Warrants expired on May 2, 2012. However, each unit sold in the offering also consisted one Series A Warrant. The Series A Warrants are exercisable at $1.40 per share and expire on the fifth anniversary of the date of issuance.
-2- How much cash (not cash equivalents) does STEM have?
-b- On April 9, 2013 STEM released a PR titled, “StemCells, Inc. Closes $10 Million Debt Financing”. According to the PR, the Company's December 31, 2013 pro forma cash balance was increased to $34.4 million resulting from the debt financing and $2 million received subsequent to the end of the year from the exercise of warrants and the sale of shares of common stock.
-c- On April 11, 2013 STEM entered into an agreement with the California Institute for Regenerative Medicine (CIRM). Under the agreement, “CIRM will provide approximately $19.3 million to help fund preclinical development and IND-enabling activities of the Company's proprietary HuCNS-SC® product candidate (purified human neural stem cells) for Alzheimer's disease.” The funding will be in the form of a forgivable loan.
-d- Actual Cash and Cash Equivalents as of December 31, 2013 were reported at $8,471,000. Marketable Securities were $13,901,000.
-3- What and approximately when is the next known catalyst?
In my attempt to answer this question, I searched STEM's public filings and Press Releases but could not find anything so I sent an email to Rodney Young, STEM's CFO. In the email I ask the following:
Q: Does the company know when or have an expectation of when there will be an update of progress reported or the next anticipated milestone regarding its clinical development programs? More specifically, could you address 1) Spinal Cord Injury, 2) Pelizaeus-Merzbacher Disease (PMD), and 3) Dry Age-Related Macular Degeneration (AMD).
A: Thanks for your email. We have not disclosed the information you are asking about, and we generally have not disclosed such information. There are analyst reports that do make estimates, however.
Followup email Q&A:
Q: Can you tell what analyst(s) or report(s)?
A: We are covered by Stephen Dunn of LifeTech Capital, Jason Kolbert of Maxim Group, Andy Fein of Chardan Capital, and Keay Nakae of Asciendiant Capital. Most of these would be available to institutional investors, but I’m not sure about retail investors.
NOTE: It's not my intent to discourage anyone from investing or trading STEM. The company does have catalysts. In first 18 days of April the company announced:
- It had closed on $10 million debt financing.
- It had entered into an agreement with CIRM to provide $19.3 million for STEM's study on Alzheimer's disease.
- It will participate at the 2013 Regen Med Investor Day in New York.
- It added Byers Eye Institute at Stanford as the second site for its phase I/II clinical trial in dry age-Related macular degeneration.
Obviously, STEM has allot going on. Determining what and when the next catalyst will occur is the challenge.
-4- What is STEM's cash burn?
-e- Approximate Operating Expenses:
$23,650,000 in 2012
$29,082,000 in 2011
$30,618,000 in 2010.
-5- Does STEM have an existing line of credit and if so how much can they draw against it?
-f- In September 2012 I confirmed with management at STEM that they did not have an existing credit line. After reviewing STEM's most recent 10-K. I believe this is still the case.
-6- Does STEM have an active At-The-Market sales agreement (ATM)?
-g- Yes. The company's initial ATM was created in 2009 allowing STEM to sell up $30 million in common stock. Between June 2009 and November 2012, the company raised approximately $26.7 million through its ATM. In December 2012, the company amended the ATM, renewing it's ability to sell up to $30 million in common stock.
-h- In February 2013, the company sold 782,755 shares of common stock under the new agreement at $2.06 a share raising approximately $1,616,000.
SOURCES:
-a- STEM PR http://investor.stemcellsinc.com/phoenix.zhtml?c=86230&p=irol-newsArticle&id=1640476
-b- STEM PR http://investor.stemcellsinc.com/phoenix.zhtml?c=86230&p=irol-newsArticle&ID=1804649&highlight=
-c- STEM PR http://investor.stemcellsinc.com/phoenix.zhtml?c=86230&p=irol-newsArticle&ID=1805843&highlight=
-d- Page 41, STEM Form 10-K for the fiscal year ended 2012
-e- Page 51, STEM Form 10-K for the fiscal year ended 2012
-f- September 2012 #IRQ http://www.biotechduediligence.com/stem-irq.html
-g- Page 57, STEM Form 10-K for the fiscal year ended 2012
-h- Page 93, STEM Form 10-K for the fiscal year ended 2012
Answers received: September 2012
1) When is the last time STEM raised cash through an offering (diluted)?
The last time we did a public offering was in December 2011.
2) How much cash (not cash equivalents) does STEM have?
We reported a pro forma cash balance of $18.2mm as of June 30, 2012.
3) What and approximately when is the next known catalyst?
N/A
4) What is STEM's quarterly cash burn?
Our cash used in operations over the first six months of 2012 was approximately $10mm.
5) Does STEM have an existing line of credit and if so how much can they draw against it?
We do not have a line of credit.
1) When is the last time STEM raised cash through an offering (diluted)?
The last time we did a public offering was in December 2011.
2) How much cash (not cash equivalents) does STEM have?
We reported a pro forma cash balance of $18.2mm as of June 30, 2012.
3) What and approximately when is the next known catalyst?
N/A
4) What is STEM's quarterly cash burn?
Our cash used in operations over the first six months of 2012 was approximately $10mm.
5) Does STEM have an existing line of credit and if so how much can they draw against it?
We do not have a line of credit.