HOLLISTON, Mass., Feb. 16, 2017 /PRNewswire/ -- Biostage, Inc. (Nasdaq: BSTG), ("Biostage" or the "Company"), a
biotechnology company developing bioengineered organ implants to treat cancers and other life-threatening conditions of the
esophagus, bronchus and trachea, announced today the closing on February 15, 2017 of its previously
announced public offering of 20,000,000 shares of common stock and warrants to purchase 20,000,000 shares of common stock, for
total gross proceeds of $8.0 million. The offering was priced at $0.40 per share of common stock, with each share of common stock sold with one five-year warrant to purchase
one share of common stock, at an exercise price of $0.40 per share.
Rodman & Renshaw, a unit of H.C. Wainwright & Co., acted as exclusive placement agent
for the offering.
The securities were offered pursuant to a registration statement on Form S-1 (File No. 333-215410) previously filed with the
Securities and Exchange Commission (the "SEC") and declared effective on February 9, 2017.
The securities may be offered only by means of a prospectus. The final prospectus related to the offering has been filed with the
SEC. Copies of the final prospectus may be obtained at the SEC's website located at http://www.sec.gov, and may also be obtained from H.C. Wainwright
& Co., LLC by calling (646) 975-6996 or emailing placements@hcwco.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of
these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
About Biostage
Biostage is a biotechnology company developing bioengineered organ implants based on the company's new
Cellframe™ technology which combines a proprietary biocompatible scaffold with a patient's own stem cells to create
Cellspan™ organ implants. Cellspan implants are being developed to treat life-threatening conditions of the
esophagus, bronchus or trachea with the hope of dramatically improving the treatment paradigm for patients. Based on its
preclinical data, Biostage has selected life-threatening conditions of the esophagus as the initial clinical application of its
technology.
Cellspan implants are currently being advanced and tested in collaborative preclinical studies. Preclinical, large-animal
safety studies, conducted in compliance with the FDA Good Laboratory Practice (GLP) regulations, for the Company's Cellspan
Esophageal Implant product candidate are ongoing, in support of Biostage's goal of filing an Investigational New Drug (IND)
application with the U.S. FDA in the third quarter of 2017. The IND will seek approval to initiate clinical trials for its
esophageal implant product candidate in humans.
Forward-Looking Statements:
Some of the statements in this press release are "forward-looking" and are made pursuant to the safe harbor provision
of the Private Securities Litigation Reform Act of 1995. These "forward-looking" statements in this press release include, but
are not limited to, statements relating to the development expectations and regulatory approval of any of our products, including
those utilizing our Cellframe technology, by the U.S. Food and Drug Administration, the European Medicines Agency or otherwise,
which expectations or approvals may not be achieved or obtained on a timely basis or at all; or success with respect to any
collaborations, clinical trials and other development and commercialization efforts of our products, including those utilizing
our Cellframe technology, which such success may not be achieved or obtained on a timely basis or at all. These statements
involve risks and uncertainties that may cause results to differ materially from the statements set forth in this press release,
including, among other things, market risks and uncertainties, our ability to obtain and maintain regulatory approval for our
products; plus other factors described under the heading "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2015 or described in our other public filings. Our results may also be
affected by factors of which we are not currently aware. The forward-looking statements in this press release speak only as of
the date of this press release. Biostage expressly disclaims any obligation or undertaking to release publicly any updates or
revisions to such statements to reflect any change in its expectations with regard thereto or any changes in the events,
conditions or circumstances on which any such statement is based.
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SOURCE Biostage, Inc.