Phase III Medical to acquire NeoStem

NeoStem operates a commercial autologous adult stem cell bank and is pioneering the pre-disease collection, processing and storage of adult stem cells for present and future medical treatment.

Phase III plans to develop this business in the adult stem cell field and to capitalize on the increasing importance the company believes adult stem cells will play in the future of regenerative medicine.

The use of adult stem cells as a treatment option for those who develop heart disease, certain types of cancer and other critical health problems is a burgeoning area of clinical research today.

Following the acquisition, the business of NeoStem will become Phase III Medical’s primary business and it will utilize the combined management team and advisors to grow and expand the company.

Pursuant to the terms of the agreement, Phase III will purchase all the assets, properties and rights of NeoStem that relate to its adult stem cell collection and storage business and assume certain of its liabilities in exchange for the issuance of 5 million shares of the company’s common stock. The transaction is subject to the satisfaction of a number of conditions to closing, including licensing and financing.

“Emerging therapies involving one’s own adult stem cells are expected to grow rapidly as regenerative medicine revolutionizes treatment options in the 21st century,” stated Dr Robin Smith, who chairs the Phase III Board of Advisors. “As a pioneer in the autologous adult stem cell collection and banking arena, NeoStem has an advantage that we believe can propel us to leadership in this new medical field.”