Common Stock and Warrants
December 31, 2017, Asterias had outstanding 54,051,142 Series A Shares and no Series B Shares. At December 31, 2016, Asterias
had outstanding 47,466,596 Series A Shares and no Series B Shares. All outstanding Series B Shares were converted into Series
A Shares on October 3, 2014.
October 16, 2017, Asterias completed the sale, in a registered direct offering, of 4,000,000 shares of its common stock, at an
offering price of $2.60 per share, or net proceeds of $9.9 million.
May 13, 2016, Asterias completed the sale and the underwriters’ exercise of the overallotment for 5,889,480 shares of its
common stock and warrants to purchase 2,959,559 shares of its common stock, through an underwritten public offering (the “Asterias
Offering”), for $3.40 per unit, or net proceeds to Asterias of $18.2 million. Total financing costs were approximately $1.8
million, of which $1.3 million were allocated to the Asterias Common Stock (see Warrants classified as liability below).
The net proceeds allocated to the common stock were $12.7 million and the net proceeds allocated to the warrants were $5.5 million.
During the year ended December 31, 2016, Asterias received approximately $2.7 million in net proceeds from exercise of stock options
the year ended December 31, 2015, Asterias raised approximately $5.5 million in aggregate gross proceeds from the sale of 1,410,255
shares of common stock at a price of $3.90 per share through an underwritten public offering and a private placement. Broadwood
Partners, L.P., British & American Investment Trust PLC and Pedro Lichtinger, related parties, purchased an aggregate of 1,025,640
of the shares.
April 10, 2015, Asterias entered into an at-the-market (ATM) Sales Agreement with MLV & Co., which is now owned by B. Riley
FBR, Inc., pursuant to which Asterias may sell up to a maximum of $20.0 million of its common stock from time to time through
the Sales Agent under Asterias’ previously filed and currently effective shelf registration statement on Form S-3 (File
No. 333-200745). On March 28, 2017, Asterias entered into an amendment to this Sales Agreement. Under the Sales Agreement, as
amended, Asterias may issue and sell shares of its Series A common stock having an aggregate offering price of up to an additional
$25.0 million. During the fiscal year ended December 31, 2017, Asterias raised approximately $8.0 million in gross proceeds under
the ATM from the sale of 2,005,784 shares of its common stock at a weighted average price of $3.99. During the fiscal year ended
December 31, 2016, Asterias raised approximately $8.0 million in gross proceeds under the ATM from the sale of 1,811,522 shares
of its common stock at a weighted average price of $4.41 per share. During the fiscal year ended December 31, 2015, Asterias raised
approximately $4.8 million in gross proceeds from the sale of 685,465 shares of its common stock at a weighted average price of
$7.01 per share. As of December 31, 2017, up to approximately $22.7 million of shares of Asterias Common Stock are available for
issuance and sale pursuant to the terms of the ATM Sales Agreement.
2017, 2016 and 2015, pursuant to a services agreement with Cell Therapy Catapult Services Limited, Asterias had issued 318,748
shares, 218,520 shares and 94,479 shares, respectively of Asterias Series A common stock with a fair value of $1.2 million, $922,000
and $486,000, respectively to pay for services in lieu of cash (see Note 13).
issued 148,594 shares of common stock for proceeds of $1.1 million, pursuant to the exercise of warrants in 2016. Asterias issued
5,000,000 shares of common stock pursuant to the exercise of warrants in 2015, for net proceeds of $11.7 million.
classified as a liability
May 13, 2016, included in the Asterias Offering, Asterias issued 2,959,559 warrants (the “Asterias Offering Warrants”).
The Asterias Offering Warrants have an exercise price $4.37 per share and expire in five years of the issuance date, or May 13,
2021. The Asterias Offering Warrants also contain certain provisions in the event of a Fundamental Transaction, as defined in
the warrant agreement governing the Asterias Offering Warrants (“Warrant Agreement”), that Asterias or any successor
entity will be required to purchase, at a holder’s option, exercisable at any time concurrently with or within thirty days
after the consummation of the fundamental transaction, the Asterias Offering Warrants for cash. This cash settlement will be in
an amount equal to the value of the unexercised portion of such holder’s warrants, determined in accordance with the Black
Scholes-Merton option pricing model as specified in the Warrant Agreement.