BioStem Technologies Inc. (OTC: BSEM) announced it has secured $2.5 million in a private placement with its first institutional investor. The regenerative medicine company entered into a securities purchase agreement for the sale of 746,269 shares of common stock at $3.35 per share.

The company plans to use the net proceeds for working capital and general corporate purposes. The transaction is expected to close on or about May 22, 2026, subject to customary closing conditions.

"This transaction marks continued progress in the execution of our capital markets strategy, and, together with the previously announced debt retirement, strengthens our balance sheet," said Jason Matuszewski, Chairman and CEO of BioStem Technologies.

The securities purchase agreement includes anti-dilution provisions that could require BioStem to issue additional shares or pre-funded warrants to the investor in connection with certain future securities offerings.

The offering is being conducted under an exemption from registration requirements under Section 4(a)(2) of the Securities Act of 1933 and Regulation D. The company has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares.

BioStem Technologies develops, manufactures and commercializes allograft products derived from perinatal tissue for use in regenerative medicine applications across various medical specialties.