StemBioSys Closes $6.6 Million Series C Financing

Privately-held StemBioSys, Inc., based in San Antonio, announced today that it had closed on an oversubscribed $6.6 million Series C Preferred Stock financing in August. According to StemBioSys CEO Bob Hutchens, the company is investing the proceeds to support the ongoing development and commercialization of its proprietary technologies. In November of 2020, StemBioSys announced the publication of data demonstrating that its CELLvo Matrix Plus Technology supports development of an advanced testing protocol for determining the cardiac safety of drugs in development. Hutchens noted that the technology is currently being evaluated by over a dozen biopharmaceutical companies and academic laboratories in the United States and Europe. The company launched this final phase of its Series C financing round in mid-February. Hutchens noted that “By mid-April we were close to full subscription. We elected to close the round at that point to new investors and ensure that existing investors could invest if they chose to.” The company was looking to raise up to $1.7 million with this final phase of Series C. The company ended up raising over $2.3 million. “It took us a few months to get the documents in place to accommodate the oversubscription” Hutchens stated. The company has used the funds from the oversubscription to provide additional investment in automating key elements of the product manufacturing process. The company has also increased investments in sales and marketing activities to continue to grow the top line. Hutchens noted that “revenues for 2021 have already exceeded full year 2020, and we are optimistic about the remainder of this year and 2022. We have a number of customers completing their evaluation of various parts of technology and we believe that this bodes well for the future”.