SCOTCH PLAINS, N.J.--(BUSINESS WIRE)--Stem Cell Innovations, Inc. (OTCBB: SCLL) announced today that it had raised $1 million through the issuance to an existing investor of a secured convertible note and warrants to purchase 10,000,000 shares of the Company’s common stock. The convertible note, due November 16, 2007, is in the principal amount of $1 million, bears interest at the rate of 10% per annum, is secured by all the assets of the Company and its subsidiaries, and is convertible into 10,000,000 shares of the Company’s common stock. The warrants are exercisable until November 16, 2011 at a price of $.12 per share. The note and the warrants are subject to full ratchet antidilution provisions. The investor has committed to invest an additional $1 million on the same terms, within 60 days of the closing date, subject to the continued satisfaction by the Company of the conditions required to be satisfied with respect to the current offering. The Company paid a fee equal to $25,000 and 250,000 shares of common stock in connection with the transaction and will pay the same fee upon the completion of the additional $1 million investment.
