NEW YORK, May 20 /PRNewswire-Asia-FirstCall/ -- NeoStem, Inc. (NYSE Amex: NBS) ("NeoStem" or the "Company"), an international biopharmaceutical company with operations in the U.S. and China, is pleased to announce the conversion of Convertible Redeemable Series C Preferred Stock (Series C Preferred) by RimAsia Capital Partners, LP ("RimAsia"), a principal shareholder. With the conversion of the Series C Preferred, the Company will no longer be required to pay the annual dividend and expects to recognize cash savings of $408,875 per year.
RimAsia has exercised its right to convert its 8,177,512 shares of Series C Preferred, issued in October 2009 as part of the China Biopharmaceutical Holdings acquisition, into 9,086,124 shares of the Company's common stock. RimAsia is currently subject to a lock-up agreement through the end of the summer 2010.
"We are both pleased and encouraged by the recent positive developments at
NeoStem, which prompted our decision to convert all of the Series C Preferred
held by us into NeoStem common shares. By doing so now, RimAsia will release
the Company from a 5% per annum cumulative dividend charge on the income
statement, significantly improve its balance sheet by reclassifying the
principal amount (approximately $13.7 million) from its accounting treatment
as temporary equity to shareholder equity, and provide NeoStem with an
expanded primary equity base and a significantly higher market cap," said Eric
Wei, the Managing Partner of RimAsia and a member of the Company's board of
|SOURCE NeoStem, Inc.|
Copyright©2010 PR Newswire.
All rights reserved