Athersys Inc. is looking to raise more money from the "healthcare-focused U.S. institutional investor" with which it struck a securities purchase agreement in August.
For months, the Cleveland-based regenerative medicine company has been restructuring its operations and trying to raise the cash it needs to complete the testing and commercialization of its adult stem cell therapy, MultiStem.
Last month, Athersys agreed to sell up to $12 million in stock, stock equivalents and warrants (rights to purchase Athersys shares at a specific price and on a specific date) to an unnamed institutional investor.
The securities sale closed on Aug. 17 and netted about $11 million for Athersys, according to a regulatory filing. At the time, Athersys said it would use the money "for general corporate purposes."
On Friday, Athersys said it had amended the security purchase agreement to extend the exercise period of the warrants to seven years from five, among other changes.
In return, Athersys said it would issue additional warrants to the same institutional investor that could be worth up to $12.8 million, if exercised.
The amended agreement "provides more financial flexibility going forward as well as a commitment for the investor... to participate in future financings, if requested," Athersys CEO Daniel Camardo said in a statement.
"As Athersys continues to pursue licensing and other business development opportunities for our proprietary technology, this amendment can help facilitate future transactions with financial and strategic investors," Camardo added, calling his company's investor "a prominent health care focused institutional investor that embraces the value of our MultiStem cell therapy and is responsive to our priorities."
In June, Athersys embarked on a financial and operational restructuring to lower its cost and conserve cash while completing the testing and commercialization of MultiStem to treat certain stroke patients.
In late August, Athersys did a reverse stock split that combined 25 of its shares into one share so that it could meet the $1-per-share minimum bid price requirement of the Nasdaq Stock Market.
Athersys shares (Nasdaq: ATHX), which started Friday at $1.16, had risen 50% to $1.76 by 1 p.m.
