Boston, MA 06/23/2014 (wallstreetpr) – Cellular Biomedicine Group Inc (NASDAQ:CBMG), a biomedicine company that is engaged in the development of new treatments for degenerative and cancer diseases, can now face the future with enhanced optimism.
Last week the company generated $10 million in gross proceeds through private placement of its common stock shares. It offered nearly 1.5 million shares at selected investors at the price of $6.74 apiece.
The investors in the offering included Francis Leung, a Hong Kong investment banker. The investor said he looks forward to working with the company in realizing its vision while creating treatment technologies that improve the lives of people. He said he is confident the company will push forward its clinical trials to benefit millions of cancer patients in China and abroad.
The investor, a veteran in matters investment banking, boasts more than 30 years handling mergers and acquisitions, financial advisory, principal investments and corporate restructuring and on a personal basis, Leung is a growth capital investor. He is the chairman of CVC Asia Pacific.
Utilizing the funds
Cellular Biomedicine Group Inc (NASDAQ:CBMG) intends to use the net proceeds from the offering to fund its various clinical trials while a portion of the money will be funneled to other activities such as working capital and strategic acquisitions.
Insiders exude confidence
In addition to the outsiders that are seeking to acquire more shares of the company, insiders are equally thrilled with the future prospects of the company. There have been exciting if not huge insider purchases in the company in the recent past, with the latest being the company’s Chief Financial Officer. The CFO Tony Liu purchased 100,000 shares of the company’s common stock at the average price of $5 apiece, thus spending $0.5 million in the acquisition. The executive now directly owns 100,000 shares of Cellular Biomedicine Group Inc (NASDAQ:CBMG).
The optimism in the company as expressed by outsiders and insiders hinge on its ongoing clinical trials in the field of cancer where there are huge market opportunities due to unmet medical needs.
