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Lineage Cell Therapeutics Announces $14.0 Million Registered Direct Offering

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Lineage Cell Therapeutics, Inc. (LCTX) has announced a registered direct offering of 13,461,540 common shares at an offering price of $1.04 per share. The agreement with investors was entered into before the markets opened on February 6, 2024. The closing of the offering is expected soon.
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The definitive agreement by Lineage Cell Therapeutics to sell over 13 million of its common shares at a price of $1.04 each reflects a strategic move to raise capital. This type of transaction is commonly referred to as a registered direct offering, which is a direct sale of stock to a select group of investors, typically institutional ones. The fact that the shares were sold at the closing price from the previous day indicates a neutral stance towards the company's valuation, neither discounting nor inflating the share price artificially.

From a financial perspective, this capital infusion can be critical for Lineage Cell Therapeutics as it is a clinical-stage company, which often requires substantial funding to cover research and development expenses, especially in the costly field of allogeneic cell therapies. Investors will be interested in how this cash influx will be used to advance the company's pipeline and whether it can bring the company closer to profitability. In the short term, the dilutive effect of the offering may put downward pressure on the share price as the number of outstanding shares increases. However, if the funds are utilized effectively, leading to successful clinical advancements, there could be a positive long-term impact on shareholder value.

Allogeneic cell therapies are an emerging area of medicine where cells from a healthy donor are used to treat multiple patients, which contrasts with autologous therapies that use a patient's own cells. Lineage Cell Therapeutics' focus on this sector positions it within a high-growth potential market but also one that is highly competitive and research-intensive. The capital raised through this offering is likely aimed at accelerating the development of their therapies to address unmet medical needs.

Analysts within the biotech sector will closely monitor the deployment of these funds. The key to success in this space is not just securing capital but effectively channeling it towards clinical trials, regulatory approvals and potentially commercialization. Given the long lead times and high costs associated with bringing biotech products to market, the strategic allocation of capital is paramount. The company's ability to progress through clinical milestones can significantly influence its market position and investor confidence.

For stakeholders in the medical field, the progress of Lineage Cell Therapeutics in developing allogeneic cell therapies will be of significant interest. These therapies hold the promise of treating a variety of conditions with a 'one-to-many' approach, potentially reducing costs and increasing accessibility compared to personalized treatments. The success of such therapies hinges not only on clinical efficacy but also on navigating the complex regulatory environment.

Investments in this stage of a biotech company's evolution are crucial for the continuation of research and development. The outcomes of ongoing and future clinical trials will be decisive. The funds from this offering may help the company reach important clinical milestones, such as moving from early to later-stage clinical trials or expanding the indications for which their therapies can be applied. The implications of these advancements are far-reaching, potentially improving patient outcomes and creating value for shareholders if the therapies prove to be safe and effective.

CARLSBAD, Calif.--(BUSINESS WIRE)-- Lineage Cell Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing allogeneic cell therapies for unmet medical needs, today announced that it entered into a definitive agreement with certain investors for the purchase and sale of 13,461,540 of the company’s common shares in a registered direct offering at an offering price of $1.04 per common share. The price per share was the closing price of the company’s common shares on NYSE American on February 5, 2024. The parties entered into the definitive agreement before markets opened on February 6, 2024. The closing of the offering is expected to occur on or about February 8, 2024, subject to the satisfaction of customary closing conditions. Broadwood Partners, L.P., which is affiliated with Neal Bradsher, a member of the Company’s board of directors, agreed to purchase 6,730,770 common shares in the offering, and Don M. Bailey, a member of the Company’s board of directors, agreed to purchase approximately 100,000 common shares in the offering.

The aggregate gross proceeds to Lineage from the offering at the closing are expected to be $14.0 million before deducting estimated offering expenses payable by Lineage. Lineage intends to use the proceeds from the offering for general corporate purposes, which may include clinical trials, research and development activities, general and administrative costs, and to meet working capital needs.

The securities described above are being offered and sold by Lineage pursuant to a “shelf” registration statement on Form S-3 (File No. 333-254167), including a base prospectus, previously filed with the Securities and Exchange Commission, or the SEC, on March 11, 2021, and declared effective by the SEC on March 19, 2021. Such securities may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and an accompanying base prospectus relating to the securities will be filed with the SEC. Electronic copies of the prospectus supplement and the accompanying base prospectus may be obtained, when available, by visiting the SEC’s website at http://www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Lineage Cell Therapeutics, Inc.

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical and preclinical programs are in markets with billion dollar opportunities and include five allogeneic (“off-the-shelf”) product candidates: (i) OpRegen, a retinal pigment epithelial cell therapy in Phase 2a development for the treatment of geographic atrophy secondary to age-related macular degeneration, is being developed under a worldwide collaboration with Roche and Genentech, a member of the Roche Group; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; (iii) VAC2, a dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer; (iv) ANP1, an auditory neuronal progenitor cell therapy for the potential treatment of auditory neuropathy; and (v) PNC1, a photoreceptor neural cell therapy for the potential treatment of vision loss due to photoreceptor dysfunction or damage. For more information, please visit www.lineagecell.com or follow the company on Twitter @LineageCell.

Forward-Looking Statements

Lineage cautions you that all statements, other than statements of historical facts, contained in this press release, are forward-looking statements. Forward-looking statements, in some cases, can be identified by terms such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” “contemplate,” “project,” “target,” “objective,” or the negative version of these words and similar expressions. In this press release, forward-looking statements include, but are not limited to, statements relating to the offering, the completion of the offering and the expected use of proceeds from the offering. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Lineage’s actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements in this press release, including, without limitation, risk and uncertainties related to: the satisfaction of the closing conditions related to the offering, whether Lineage will complete the offering on the anticipated terms, or at all, and those risks and uncertainties inherent in Lineage’s business and other risks discussed in Lineage’s filings with the SEC. Lineage’s forward-looking statements are based upon its current expectations and involve assumptions that may never materialize or may prove to be incorrect. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. Further information regarding these and other risks is included under the heading “Risk Factors” in Lineage’s periodic reports with the SEC, including Lineage’s most recent Annual Report on Form 10-K filed with the SEC and its other reports, which are available from the SEC’s website. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Lineage undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Lineage Cell Therapeutics, Inc. IR

Ioana C. Hone

(ir@lineagecell.com)

(442) 287-8963

LifeSci Advisors

Daniel Ferry

(daniel@lifesciadvisors.com)

(617) 430-7576

Russo Partners – Media Relations

Nic Johnson or David Schull

(Nic.johnson@russopartnersllc.com)

(David.schull@russopartnersllc.com)

(212) 845-4242

Source: Lineage Cell Therapeutics, Inc.

The offering price for Lineage Cell Therapeutics, Inc. common shares is $1.04 per share.

Lineage Cell Therapeutics, Inc. is offering 13,461,540 common shares.

The closing of the offering is expected to occur on or before a specific date, which is not mentioned in the press release.

Lineage Cell Therapeutics, Inc. entered into a definitive agreement with certain investors for the purchase and sale of common shares.

The stock ticker symbol for Lineage Cell Therapeutics, Inc. is LCTX.
Lineage Cell Therapeutics Inc

NYSE:LCTX

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Biological Product (except Diagnostic) Manufacturing
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Health Technology, Biotechnology, Manufacturing, Biological Product (except Diagnostic) Manufacturing
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Carlsbad

About LCTX

biotime, inc. is a clinical-stage biotechnology company focused on developing and commercializing novel therapies developed from what we believe to be the world's premier collection of pluripotent cell assets. the foundation of our core therapeutic technology platform is pluripotent cells that are capable of becoming any of the cell types in the human body. pluripotent cells have potential application in many areas of medicine with large unmet patient needs, including various age-related degenerative diseases and degenerative conditions for which there presently are no cures. unlike pharmaceuticals that require a molecular target, therapeutic strategies based on the use of pluripotent cells are generally aimed at regenerating or replacing affected cells and tissues, and therefore may have broader applicability than pharmaceutical products.