Mesoblast Completes US$110/A$138 Million Financing Led by US Strategic Investor Group

NEW YORK, March 02, 2021 (GLOBE NEWSWIRE) -- Mesoblast Limited (Nasdaq:MESO; ASX:MSB) announced today it has entered into subscription agreements for a total of US$110 million via the issue of 60 million shares in a private placement led by a strategic US investor group (SurgCenter Development), at A$2.30 per share, a 6.5% discount to the price at the close of trading February 25, 2021. 

Based on the US$110 million private placement (A$138 million), pro-forma cash-on-hand at December 31, 2020 would be approximately US$187.5 million. The investors also receive warrants to acquire a further 15 million shares at a price of A$2.88 per share, a 25% premium to the placement price, which may raise up to a further A$43.2 million (US$34 million at the current exchange rate), on or before 15 March 2028. Mesoblast has a right to call on the funds at any time during the term, subject to a share trading price of at least A$4.32 for 45 consecutive days.

Specific use of proceeds includes:

• The private placement will provide financial strength for operational and regulatory initiatives across multiple products as the company undertakes important late-stage meetings with the United States Food & Drug Administration (FDA) in the second and third quarters of this calendar year.
  
  
• Investment in commercial supply of remestemcel-L ahead of potential approval for graft versus host disease in children and in optimized manufacturing for larger market opportunities.
  
  
• Advancing manufacturing and development of rexlemestrocel-L platform to meet commercial objectives for chronic heart failure and chronic low back pain due to degenerative disc disease following the recent completion of Phase 3 trials in these indications.
  
  
• Working capital and general corporate purposes.

About SurgCenter Development

Since its inception in 1993, SurgCenter has partnered in over 230 facilities, with a current portfolio of 80 operational facilities, located in over 20 states throughout the US. SurgCenter is an industry leader in the performance of complex spine surgery and outpatient joint replacement, and has partnered with thousands of surgeons over its three-decade history.

About Mesoblast

Mesoblast is a world leader in developing allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions. The Company has leveraged its proprietary mesenchymal lineage cell therapy technology platform to establish a broad portfolio of late-stage product candidates which respond to severe inflammation by releasing anti-inflammatory factors that counter and modulate multiple effector arms of the immune system, resulting in significant reduction of the damaging inflammatory process.