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

NEW YORK, March 08, 2021 (GLOBE NEWSWIRE) -- Mesoblast Limited (Nasdaq:MESO; ASX:MSB), global leader in allogeneic cellular medicines for inflammatory diseases, announced today the successful completion and settlement of its US$110 million private placement led by a strategic US investor group, that was announced on Tuesday, March 2, 2021.

The US$110 million (A$138 million) was raised via the issue of 60 million shares at A$2.30 per share, and was led by a strategic investment from the principals of SurgCenter Development, one of the largest private operators of ambulatory surgical centers in the US specializing in spine, orthopaedic and total joint procedures. Based on the US$110 million private placement, pro-forma cash-on-hand at December 31, 2020 would be approximately US$187.5 million.

As announced on Tuesday, March 2, 2021, the use of the proceeds from the capital raising include:

• Operational and regulatory initiatives in support of the Company’s activities for regulatory meetings with United States Food & Drug Administration (FDA) in the coming quarters. These activities relate to its product candidates for steroid-refractory acute graft versus host disease (SR-aGvHD) in children, chronic heart failure and chronic lower back pain.
  
  
• Building commercial inventory of remestemcel-L ahead of potential approval for SR-aGvHD in children.
  
  
• Continuing to invest in manufacturing optimization and scale-up of rexlemestrocel-L and remestemcel-L platforms for larger market opportunities.

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.

Mesoblast has a strong and extensive global intellectual property portfolio with protection extending through to at least 2040 in all major markets. The Company’s proprietary manufacturing processes yield industrial-scale, cryopreserved, off-the-shelf, cellular medicines. These cell therapies, with defined pharmaceutical release criteria, are planned to be readily available to patients worldwide.