StemCells to acquire UK's Stem Cell Sciences

The USA's StemCells is to acquire UK-based Stem Cell Sciences for 2,650,000 shares of StemCells' common stock and around $715,000 in cash.  Under the terms of the agreement, StemCells will acquire all of the  operating assets and liabilities of SCS, including its R&D facilities in  Cambridge, UK, and near Melbourne, Australia, as well as its  intellectual property portfolio. It is expected that most of SCS' 20  full-time staff will remain with StemCells upon completion of the  transaction.

The transaction is forecast to close within two months, after which SCS  expects to wind down its operations and distribute proceeds from the  sale of the acquisition shares, less expenses, to its stockholders.

Martin McGlynn, chief executive of StemCells, said: "this proposed  acquisition will combine three distinct stem cell platforms, adult,  embryonic and induced pluripotent stem cells, for both therapeutic and  drug discovery applications, and will position StemCells to diversify  and pursue near-term commercialization opportunities while continuing to  develop our cell-based therapeutic products."