Creative Medical Technology Holdings Announces $3.8 Million Private Placement with Institutional Investors

Rhea-AI Summary

Creative Medical Technology Holdings, Inc. (CELZ) announced a definitive agreement for a private placement, raising approximately $3,788,000 from accredited institutional investors. The offering includes 15% Original Issue Discount Senior Notes totaling around $4,456,000, maturing on February 11, 2022. Additionally, the company will issue warrants for 157,184,354 shares of common stock, with an initial exercise price of $0.02835 for a five-year period. Roth Capital Partners is the sole placement agent, with the closing expected on August 11, 2021.

Positive

• Raised approximately $3,788,000 in private placement.
• Issuing warrants for 157,184,354 shares of common stock.

Negative

• The Notes in the private placement carry a 15% original issue discount, which could indicate a higher cost of capital.
• Warrants may lead to dilution of existing shareholders if exercised.

PHOENIX, Aug. 9, 2021 /PRNewswire/ -- Creative Medical Technology Holdings, Inc. ("CELZ," the "Company", "we", "our" or "us") (OTC: CELZ) today announced that it has entered into definitive agreements with accredited institutional investors for gross proceeds of approximately $3,788,000. The definitive agreements provide for the private placement of 15% Original Issue Discount Senior Notes ("Notes") in the aggregate principal amount of approximately $4,456,000. The principal amount of the Notes will be due on February 11, 2022. In addition, the Company has agreed to issue to the investors unregistered warrants for the purchase of 157,184,354 shares of common stock. Each warrant entitles the holder to purchase one share of common stock at an initial exercise price of $0.02835 for a period of five years from the date of issuance.

Roth Capital Partners is acting as the sole placement agent for the offering. The offering is expected to close on August 11, 2021, subject to customary closing conditions.

The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended or applicable under state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

This notice does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state. Any offering of the securities under the resale registration statement will only be by means of a prospectus.

About Creative Medical Technology Holdings

Creative Medical Technology Holdings, Inc. is a commercial stage biotechnology company specializing in regenerative medicine/stem cell technology in the fields of immunotherapy, urology, neurology and orthopedics and is listed on the OTC under the ticker symbol CELZ. For further information about the company, please visit www.creativemedicaltechnology.com.

Forward Looking Statements

OTC Markets has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming clinical trials and laboratory results, marketing efforts, funding, etc. Forward-looking statements address future events and conditions and, therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. See the periodic and other reports filed by Creative Medical Technology Holdings, Inc. with the Securities and Exchange Commission and available on the Commission's website at www.sec.gov.

 

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SOURCE Creative Medical Technology Holdings, Inc.

FAQ

What is the total amount raised by CELZ in the recent private placement?

Creative Medical Technology Holdings, Inc. raised approximately $3,788,000 in a private placement.

What is the maturity date for the Notes issued by CELZ?

The Notes issued in the private placement will mature on February 11, 2022.

What warrants has CELZ issued as part of the private placement?

CELZ has issued warrants for the purchase of 157,184,354 shares of common stock at an initial exercise price of $0.02835.

Who is the placement agent for the CELZ private placement?

Roth Capital Partners is acting as the sole placement agent for Creative Medical Technology Holdings' private placement.

When is the expected closing date for CELZ's private placement?

The private placement is expected to close on August 11, 2021, subject to customary closing conditions.