LCT To Raise $2.4 Million With Other Options

LCT to raise $2.4 million with option to purchase up to $9.8 million in placement by international investors

Living Cell Technologies Ltd (ASX:LCT; OTC: LVCLY) today signed a non-binding letter of intent for the sale of up to AUD$9.8 million in ordinary shares by clients of US-based investment group, NaviGroup Management Ltd.

The private placement will consist of an initial $2.4 million to occur within thirty days of today's execution of the letter, subject to the satisfactory completion of due diligence by the investor. The placement will be made within the amount of shares available under ASX listing rule 7.1*.

The non-binding letter of intent provides for a 90-day period for one or more additional placements to occur following this first tranche amount, up to an aggregate amount of $7.4 million, for a total potential closing of $9.8 million.

The initial closing will represent a total of approximately 22.4 million shares with an issue price based on 80% of the last 30 day average trading price at $0.11. Subsequent closings will be priced to be the lower of AUD$0.20, or 80% of the 30-day average closing bid price per ordinary share of the Company as quoted on the ASX. Additional shares will be subject to shareholder approval pursuant to applicable ASX rules.

NaviGroup Management represent an international group of investors. NaviGroup Management will be entitled to appoint a director on the Board of LCT. Each additional tranche will enable an additional director to represent the Investment group, up to a maximum of three directors. It is anticipated that the new directors will bring international experience in funding and finance.

"The placement will extend our international shareholding and bring in new sophisticated investors that are supportive of DiabeCell's clinical development," said Dr Paul Tan, Chief Executive Officer.

The funds will be used as working capital to further LCT's DiabeCell clinical trials in Russia and New Zealand, as well as ongoing expansion of the pig breeding herd to meet clinical requirements.

"The full amount would alleviate LCT's capital requirements for the near-term period and the company will not need to raise additional funds for some period."

This is a direct placement with the investors and will not be subject to brokerage fees. Following the initial funding of $2.4 million, the definitive agreements will not prohibit LCT from assessing further long-term funding opportunities.

"Investors are recognising the significant achievements of the Company in recent months with the start of clinical trials and product accreditation, making LCT the world leader in its field - moving closer to a commercial product," commented Dr Tan.

ENDS

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