LCT to Receive US$6.0M through Exercise of Option
Living Cell Technologies to Receive US$6.0M through Exercise of Option
January 9, 2008 – Melbourne, Australia and Auckland, New Zealand - Living Cell Technologies Limited (ASX:LCT; OTC: LVCLY.PK) today announced that Palmert Members Limited (a British Virgin Island company) will purchase 24,150,408 ordinary shares of LCT at A$0.29 per share for an aggregate purchase price of US$6.0 million. Palmert will make this investment through exercising an option that was granted to NaviGroup Management Limited and assigned to Palmert by NaviGroup. The option, which expires on January 24, 2008 was exercised on December 20, 2007 and allows the holder to purchase up to US$6.0 million of LCT’s ordinary shares at 80% of the 30-day average closing bid price per ordinary share of the Company. The issue of these shares will occur at an exchange rate of US$0.8567 per AU$1.00 and is subject to certain shareholder approvals.
NaviGroup has the right on completion of the total of US$8.0 million placement to appoint up to three members of LCT's Board of Directors, of which up to two may be replacements of existing directors. The first US$2million placement was announced on November 6 and the appointment of Dr Robert Caspari to the LCT Board as the first NaviGroup appointment was announced yesterday, January 8, 2008.
Palmert is part of a Russian investment group whose investments include companies involved in metals, mining, and biotechnology among others. Palmert is independent from NaviGroup and does not have an affiliation with any of the parties involved in LCT’s clinical trial in Russia.
The exercise of the option by Palmert, the private placement of A$6 million announced on November 30, and the previous investment in LCT by Navigroup, together bring the total of recent capital raised by LCT to an amount in excess of A$14 million. The combined funds place the Company in a strong financial position to achieve its immediate goals of supporting DiabeCell® Phase I/IIa clinical trials in Russia and New Zealand, as well as expansion of its infrastructure to meet clinical trial requirements.