Creative Medical Technology Announces $17 Million Mark-to-Market Private Placement Under Nasdaq Rules

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PHOENIX, April 29, 2022 /PRNewswire/ — Creative Medical Technology Holdings, Inc. (“Creative Medical Technology” or the “Company”) (NASDAQ: CELZ), a leading commercial-stage biotechnology company focused on a regenerative approach to immunotherapy, of urology, neurology and orthopedics, today announced that it has entered into a securities purchase agreement with several institutional investors to purchase 7,555,556 shares of common stock (or common stock equivalents) under a private placement at market price according to Nasdaq rules. The Company will also issue investors non-registered warrants to purchase up to an aggregate of 15,111,112 common shares. The purchase price for one common share (or the equivalent of one common share) and one warrant to purchase one common share is $2.25. The warrants have an exercise price of $2.00 per share, will be immediately exercisable and will expire five years after its issue. Gross proceeds from the private placement are expected to be approximately $17 million. The offering is expected to close on or about May 3, 2022subject to satisfaction of customary closing conditions.

Roth Capital Partners is acting as exclusive placement agent for the offering.

Creative Medical Technology intends to use the net proceeds received from the offering for (i) a clinical study to support the safety and efficacy of its StemSpine® stem cell regeneration procedure for the treatment of degenerative disc disease, (ii) the further development of its ImmCelzMT immunotherapy platform for the treatment of multiple indications, including stroke, (iii) the commercialization of its CaverStem® and FemCelz® programs for the treatment of male and female sexual dysfunctions, (iv) the development of other products and therapies, including OvaStemMT for treatment of premature ovarian failure and (v) working capital and general business purposes using any remaining amounts.

The offering and sale of the foregoing securities is being made in a non-public offering transaction and has not been registered under the Securities Act of 1933, as amended (the “Securities Act”). ), or applicable state securities laws. Consequently, the titles cannot be re-offered or resold in United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

Pursuant to an agreement with the investors, the Company is required to file a registration statement with the Securities and Exchange Commission covering the resale of the common stock and the common stock underlying the warrants in the private placement at no later than 15 days after today and to use its best efforts to have the registration statement declared effective as soon as possible thereafter, and in any event no later than 30 days after the date of the Agreement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, and there will be no sale of any securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification. under the securities laws of that state.

About Creative Medical Technology Holdings

Creative Medical Technology Holdings, Inc. is a commercial-stage biotechnology company specializing in stem cell technology in the fields of immunotherapy, urology, neurology and orthopedics. For more information about the company, please visit www.creativemedicaltechnology.com.

Forward-looking statements

This press release may contain forward-looking statements, including, but not limited to, comments regarding the timing and content of upcoming clinical trials and laboratory results, marketing efforts, funding, etc. Forward-looking statements relate to future events and conditions and, therefore, involve risks and uncertainties. Actual results may differ materially from those currently anticipated in these statements. See the periodic and other reports filed by Creative Medical Technology Holdings, Inc. with the Securities and Exchange Commission and available on the Commission’s website at www.sec.gov.

SOURCE Creative Medical Technology Holdings, Inc.


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