Over the last week the stock of FCSC has been climbing down. On Friday FCSC closed at $0.75 for a share, losing another 8.45% in value and trading four and a half times the average number of shares. It will probably not be a surprise if the decline continues in today’s session as well. After market close of Friday, the company filed a registration statement for 15 million new shares of common stock that are issuable under its 2009 Equity Incentive Plan.
That additional possible dilution follows the completion of another private placement of shares in February. Thus, the research agreement with the University of California Los Angeles announced last week could not help FCSC share price break the $1 barrier.
To repair its extreme lack of working capital, last month Fibrocell Science sold more convertible preferred stock and warrants for total proceeds of $3,436,000. Each of the 3,436 Series D Preferred Stock is convertible into a number of common shares equal to its stated value of $1,000 divided by $0.50, or a lower conversion price under certain circumstances. Also, the investors have received warrants to purchase additional 6,872,000 shares at a price of $0.50, or lower.
After the news about the raised funds, the following SEC filings of the company could maybe predict what the consequences could be. According the the filed prospectuses, certain shareholders of the company may soon resell on the market over 50 million additional shares of FCSC. These are mostly shares underlying previously issued convertible preferred stock and warrants.
