The common stock and warrants were sold in units at a price of $1.25 per unit, with each unit consisting of one share of common stock and a warrant to purchase 0.40 share of common stock at an exercise price of $1.50 per share.

The company received total proceeds, net of offering expenses and placement agency fees, of $11.9 million. The proceeds will be used for general corporate purposes, including working capital, product development and capital expenditures, as well as for other strategic purposes.

Martin McGlynn, president and CEO of StemCells, said: "We are keenly aware of the immediate dilutive effect of this financing. However, particularly during periods of great uncertainty in the capital markets, we firmly believe that our shareholders' interests are best served in the long run by maintaining a strong balance sheet, executing our clinical trial agenda, and aggressively pursuing nearer term commercial opportunities by promoting the use of our cell-based technologies to enable R&D in academia and the pharmaceutical industry."

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