NovelStem Provides Shareholder Update
BOCA RATON, Fla., May 08, 2019 (GLOBE NEWSWIRE) -- NovelStem International Corp. (OTC Pink: NSTM ) is focused on the substantial commercial potential of stem-cell-based diagnostic technology to aid the selection of cancer chemotherapy agents, which technology is being developed by its 20%-owned affiliate, NewStem Ltd. NovelStem expects to provide a shareholder update on NewStem’s progress within the next month.
NovelStem announced today that its 50% owned Netco Partners unit has executed an agreement with Hanover Square Press, an imprint of HarperCollins, to relaunch the “Net Force” book series. Hanover Square Press acquired publishing rights to four novels and four e-novellas in the series and anticipates the first launch, Net Force: Dark Web, to take place in October with one novel and one e-novella expected per year. Netco Partners received an undisclosed upfront royalty advance from Hanover Square for print and digital rights.
Investors in a July 2018 NovelStem private placement agreed to waive their participation in distributions “reasonably expected to exceed $500,000” generated from the Netco Partners joint venture within the first 18 months following the private placement. Reflecting the terms and timing of expected payments from the multi-year publishing agreement, NovelStem does not expect to receive sufficient payments within the first 18-month period to warrant a special distribution to NovelStem shareholders. All proceeds received by NovelStem as a result of its interest in Netco Partners from the publishing agreement will benefit all NovelStem shareholders primarily through the funding of future NewStem investments.
About NovelStem International Corp. www.novelstem.com NovelStem has a 20% stake in NewStem Ltd. which is advancing novel stem-cell-based diagnostic technology for predicting patients’ resistance to chemotherapy and allowing for better, targeted cancer treatments with the potential to reduce incidents of chemotherapy resistance. NovelStem secured the right to increase its ownership up to 33% based on the completion of up to $2 million in follow-on contributions – at the same price - over the next 9 months. NovelStem also retains ownership stake of 50% in Netco Partners, which owns Net Force. NovelStem has 35.4 million common shares outstanding and substantial net operating loss carryforwards.
About NewStem Ltd.NewStem Ltd. which is advancing novel stem-cell-based diagnostic technology for predicting patients’ resistance to chemotherapy, allowing for better, targeted cancer treatments with the potential to reduce incidents of chemotherapy resistance. NewStem is a spinoff of Yissum, The Hebrew University of Jerusalem’s technology-transfer company. NewStem’s diagnostic solutions are based on the research of human haploid pluripotent stem cells (hHPSCs) by Professor Nissim Benvenisty of the Azrieli Center for Stem Cells and Genetic Research. NewStem holds the intellectual property, reagents and experience required for hHPSC isolation, differentiation, genetic manipulation, immunogenicity and tumorigenicity.
NovelStem Investor RelationsBill Jones or David Collins – Catalyst IR(212) 924-9800NSTM@catalyst-ir.com