NovelStem Now an SEC-Reporting Company, Secures Commitment for up to $600K in Bridge Funding, Provides Financial Update
Summary
The G&A increase included $142,000 in accounting and other professional fees associated with the preparation of the Companys Form 10, as well as a $21,000 increase in directors and officers insurance expense.NovelStem recorded contra expenses of $310,000 in the aggregate in the first six months of 2022, representing a nonrecourse reimbursement from Omni Bridgeway pursuant to an agreement to fund arbitration proceedings relating to the Companys investment in NetCo Partners. NovelStem entered into an agreement with its Executive Chairman, Jan Loeb, and its Board Member, Jerry Wolasky, to borrow up to an aggregate of $600,000 for working capital needs, $200,000 of which has been funded as of the date of this release. The loan agreement provides for an interest rate of 8% per annum and matures on January 31, 2024, unless the lenders agree to extend the due date.Jan Loeb commented, "Regaining fully-reporting public company status is an important milestone which provides greater transparency for investors and should help us achieve our long-term strategic vision. Forward-looking statements generally are identified by the words "expects," "anticipates," "believes," "intends," "estimates," "should," "would," "strategy," "plan," and similar expressions. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous potential risks and uncertainties, including, but not limited to, the success of NewStems research and future commercialization of its diagnostics utilizing human haploid pluripotent stem cells, competition in the area of genetic diagnostics, the ability to retain key personnel involved in research and development, the ability to secure appropriate regulatory approvals, the ability to fund future investment in NewStem and other risks and uncertainties described in the section entitled "Risk Factors" in NovelStems Registration Statement on Form 10.