NovelStem Announces Material Developments and Strategic Repositioning of the Company

Core Insights - NovelStem International Corp. is focusing on seeking a merger partner to enhance shareholder value and is initiating discussions with potential prospects [1][6] - The company has successfully extinguished approximately $3.0 million in litigation funding debt and is working to reduce its remaining liabilities [4][5][7] Financial Developments - NovelStem has liquidated its 29.5% interest in NewStem Ltd. due to insufficient funding, resulting in the reversion of technology and licenses to Yissum [2] - The company expects to recover up to $3.75 million from future monetization of the NewStem intellectual property, although the timing and value are uncertain [3][10] - As of April 7, 2025, NovelStem had 46,881,475 shares of common stock outstanding, with additional options and warrants for 9.4 million shares at an average exercise price of $0.1347 [7] Strategic Focus - The company aims to enhance its financial position to attract potential merger partners by eliminating $3.0 million in litigation debt and addressing approximately $1.7 million in notes payable and convertible debt [5][7] - The Chairman expressed optimism regarding the potential for value creation through the restructuring process, with directors and officers owning approximately 48% of total shares outstanding [6][7] Technology Overview - The NewStem technology, now under Yissum, is a bio-platform utilizing Haploid human Embryonic Stem Cells for genome-wide screenings, with applications in precision oncology and diagnostics [9][10]