STELLAR BIOTECH INC (OTCMKTS:SBOTF) Raises $12 Million In Addition To $10 Million

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Dallas, Texas 10/14/2013 (Financialstrend) – British Columbia incorporated and California based STELLAR BIOTECH INC (OTCMKTS:SBOTF) on October 3 filed mandatory Form D with SEC reporting its exercise of option and issuing of warrants. Company has raised $12 million as proceeds from this exercise and will net close to $11.5 million after deduction of $512 K of commission paid out to private placement agency. The warrants were bought by New York based “Newport Coast Securities, Inc.” in a private placement transaction.

This raising of funds comes days after its September 10 announcement of raising $10 million. The development stage bio firm hopes to use the proceeds to initiate “product research” including aquaculture profiling. It will also be using part of the proceeds for capital expenditure.

 The stock has total of 71 million shares outstanding. During trading on October 11, the stock appreciated by close to 2.6% to end the day at $1.58 per share. Its previous day close price was $1.54 per share. In spite of appreciation in share price, the trading volumes through the day were low. Only 178,083 of the shares of this biotech firm got traded in comparison to 65 day average trading volume of 377185. In comparison to SBOTF 2.6% rally, Dow Jones was up only by 0.73% while the health care index was up only by 0.47%.

Part of the $ 10 million investment comes from Tiwan based biotech firm “Amaran Biotechnology Inc.” This privately-held firm ploughed in $5 million into SBOTF as part of the private placement.

Stellar Biotechnologies President Frank Oakes has been quoted as saying that “This $10 million financing is significant for Stellar on many fronts. This strengthens our balance sheet at a pivotal time of Stellar’s growth while the investment from Amaran Biotechnology, Inc. represents active support from life science industry.” Investors in this biotech firm would be hoping that with the latest infusion of capital, the stock can rally back to its 52 week high valuations.

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