"We believe our approach to obtaining stem cells from adult liver tissue is unique, and avoids many of the ethical issues often associated with embryonic stem cells. We realize that utilization of liver stem cells for regenerative medicine is most likely years away and mandates FDA approval; therefore, the Company will continue to generate revenues from its stem cell program by pursuing immediate market opportunities in drug discovery. Indeed, our reputation as a leading provider of highly functional immortalized human hepatocytes for evaluating lead compounds and toxicology testing will facilitate the introduction of our stem cell products to the pharmaceutical industry."

The company issued 26,666,666 shares of common stock at $0.15 per share, three-year warrants to purchase 18 million shares of common stock at $0.20 per share and three-year warrants to purchase an additional 8 million shares of common stock at $0.30 per share. The shares of common stock and shares underlying the warrants have not been registered. The company expects to use the proceeds from the private placement to further develop its stem cell technology and for general corporate purposes. Mercator Group Advisors LLC and Marr Group were the lead investors in the placement.

The common stock and the warrants have not been registered under the Securities Act of 1933 or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption. MultiCell has agreed to file a registration statement covering resales of the common stock and exercise of the warrants, and is subject to penalties if the registration statement is not effective within 150 days of filing, subject to certain exceptions.

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