Lineage Cell Therapeutics Conducts Sale of Shares in OncoCyte Corporation

Lineage Cell Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs, announced the pricing of the sale of 4,000,000 shares of common stock of OncoCyte Corporation at a price to buyers of $1.66 per share, the closing price as of September 10, 2019. Gross proceeds from the sale were $6.6 million, before payment of $100,000 in sales commissions and offering expenses. The sale is expected to close on September 13, 2019, subject to customary closing conditions. Following the completion of the sale, Lineage will own approximately 16% or 8.4 million shares of OncoCyte’s outstanding common stock. Based on the closing price of OncoCyte’s common stock on September 10, 2019, the value of Lineage’s remaining OncoCyte shares following the closing is approximately $14.0 million. Lineage has agreed not to sell additional shares of OncoCyte common stock until January 1, 2020 or unless the OncoCyte common stock price is above $3.00.

“Our objective is to build Lineage into a premier cell therapy company. This latest transaction involving the sale of OncoCyte shares is part of a larger strategy to raise operating capital from time to time to support our three clinical-stage programs through sources other than Lineage common stock,” stated Brian M. Culley, Chief Executive Officer. “We have no plans to conduct additional sales of OncoCyte in the near-term. We continue to have other funding mechanisms at our disposal via our remaining investments in AgeX Therapeutics, Inc. and Hadasit Bio-Holdings Ltd., as well as a $21.6 million promissory note due to us in August 2020 from Juvenescence Ltd. In parallel, we continue to assess other funding and strategic alliance opportunities which may be available through our existing or future potential partners. While it is imperative to support our internal programs, we remain one of OncoCyte’s largest shareholders and are highly supportive of their short and long-term growth plans. We look forward to their continued progress toward becoming a comprehensive diagnostic content company serving the needs of lung cancer patients across disease stages.”