Histostem to acquire Stem Cell Therapy

The definitive agreement calls for closing of the acquisition by April 30, 2008, or sooner if the investment bankers working on the financial aspects of the transaction are able to close the funding round earlier. The newly combined entities will be held approximately 60% by Histostem and 40% by the existing shareholders of Stem Cell Therapy International. Upon completion of the acquisition, Stem Cell Therapy International will be renamed as AmStem International and Histostem will continue to be listed and continue to trade as a public company in Korea.

Based upon the combined financial statements of the newly reorganized company, and with the support of its investment bankers, the goal of AmStem International will be to raise up to $80 million for expansion of worldwide operations, to submit its clinical data for FDA review, and to apply for listing on a senior US Exchange such as NASDAQ or AMEX, as soon as those eligibility requirements are met.

Hoon Han, CEO and president of Histostem, said: “While maintaining our headquarters in Seoul, Korea, we are now ready to expand to the US in conjunction with Stem Cell Therapy International where we feel the opportunities are greater for us to obtain the support of the US financial markets to fund our continued research and the distribution of our technology and stem cell therapy on a worldwide basis.”