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SEC Filings


10-Q
FIBROCELL SCIENCE, INC. filed this Form 10-Q on 08/09/2018
Entire Document
 

We are actively monitoring our stockholders’ equity and will consider any and all options available to us to maintain compliance. There can be no assurance, however, that we will be able to maintain compliance and meet Nasdaq’s minimum stockholders’ equity requirements.

2017 Series A Preferred Stock Offering

On March 8, 2017, we completed the sale of 8,000 units (the Units) for a purchase price of $1,000 per Unit, with each Unit consisting of (i) one share of our Series A Convertible Preferred Stock (the Series A Preferred Stock), with an initial stated value of $1,000 that is convertible into shares of our common stock with a conversion price of $11.6355 and (ii) a warrant to purchase up to a number of shares of common stock equal to 100% of the conversion shares issuable on March 7, 2017 pursuant to the shares of Series A Preferred Stock purchased by each investor (collectively, the 2017 Series A Preferred Stock Offering) for the sale of $8.0 million to certain of our existing investors, including certain related parties such as Intrexon. After deducting offering expenses, net proceeds from the Series A Preferred Stock Offering, excluding the proceeds, if any, from the exercise of the warrants, was approximately $7.6 million.

2017 Common Stock and Warrant Offering

On December 11, 2017, we completed the sale of 1,542,832 shares of our common stock, pre-funded warrants to purchase an aggregate of 1,184,442 shares of our common stock and common warrants to purchase up to an aggregate of 2,727,273 shares of our common stock (the December 2017 Offering) for $10.5 million. After deducting offering expenses, net proceeds from the December 2017 Offering excluding the proceeds, if any, from the exercise of the warrants, was approximately $9.3 million.

May 2018 Registered Direct Offering and Private Placement

On May 31, 2018, we completed the sale of 2,038,224 shares of our common stock (the May 2018 Registered Direct Offering), and common warrants to purchase up to an aggregate of 1,528,668 shares of our common stock (the May 2018 Private Placement) for approximately $6.0 million. After deducting offering expenses, net proceeds from the May 2018 Registered Direct Offering and the May 2018 Private Placement was approximately $5.4 million.
 
For additional details, see Risks Related to Our Financial Position and Need for Additional Capital included within Part I, Item 1A, "Risk Factors" of our 2017 Form 10-K.

Cash Flows

Our cash flow activity is summarized below for the following periods:
 
Six months ended June 30,
($ in thousands)
2018
 
2017
Net cash flows (used in) provided by:
 
 
 
Operating activities
$
(7,476
)
 
$
(8,983
)
Investing activities
$
(83
)
 
$
(243
)
Financing activities
$
5,552

 
$
7,623


Operating Activities. Cash used in operating activities during the six months ended June 30, 2018 was approximately $7.5 million, which is approximately $1.5 million or 17% less than the six months ended June 30, 2017. This decrease was primarily the result of lower costs related to the Phase 1/2 clinical trial for FCX-007.

Investing Activities. Cash used in investing activities during both the six months ended June 30, 2018 and 2017 was related solely to equipment purchases.

Financing Activities. Cash provided by financing activities during the six months ended June 30, 2018 was approximately $5.6 million from the May 2018 Registered Direct Offering and May 2018 Private Placement. Cash provided by financing activities during the six months ended June 30, 2017 was approximately $7.6 million from the net proceeds from our Series A Preferred Stock Offering in March 2017.

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