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Fibrocell Announces Convertible Debt and Warrant Financing of Up to $25 Million

EXTON, Pa., Aug. 09, 2016 (GLOBE NEWSWIRE) -- Fibrocell Science, Inc. (FCSC) today announced that it has terminated the previously announced underwritten public offering of common stock and warrants in order to enter into another financing transaction on more favorable terms. The financing transaction provides for the issuance of up to $25.0 million in aggregate principal amount of convertible promissory notes (the Notes) and warrants to purchase common stock (the Warrants) to investors in a private placement in one or more closings (the Financing). The Financing is greater than 50% subscribed and is not subject to any minimum aggregate investment amount. The initial closing of the Financing is expected to occur as soon as reasonably possible. Fibrocell intends to use the net proceeds of the Financing for the continued clinical and pre-clinical development of its product candidates and for other general corporate purposes.

In the initial closing of the Financing, Fibrocell will issue 10-year Notes that are convertible into Fibrocell common stock at a conversion price of $1.13625 per share and will accrue interest at a rate of 4% per annum. Interest may be paid or accrued, at the option of the Company. Upon the fifth...