STEM CELL INSTITUTE RECEIVES $14 MILLION IN PRIVATE FUNDING Innovative Financing Program Wins Backing from State Officials
SACRAMENTO, CA, April 4, 2006 – The California Stem Cell Research and Cures Finance Committee today reported that six California philanthropic entities have agreed to purchase
$14 million of Bond Anticipation Notes (BANs) to fund scientific and research grants administered by the California Institute for Regenerative Medicine (CIRM).
The initial BAN investment commitments are:
|Beneficus Foundation||$2 million|
|Blum Capital Partners LP||$1 million|
|William K. Bowes Foundation||$2 million|
|The Broad Foundation||$2 million|
|Jacobs Family Trust||$5 million|
|The Moores Foundation.||$2 million|
The BANs will mature in two years at a variable interest rate payable at maturity, but no more than 5%. They will be repaid when the General Obligation bonds authorized by the California Stem Cell Research and Cures Act are issued.
“This is an important step forward,” said Robert N. Klein, chairman of the Independent Citizens’ Oversight Committee, the CIRM governing board. “Stem cell research may lead to cures and therapies for a host of chronic conditions. Without the support of private investors, our progress would slow. We cannot afford to lose more time. Thanks to the leadership of these foundations, we won’t.”
“Stem cell research is one of the greatest opportunities to improve the human condition,” said Eli Broad, founder of The Broad Foundation and a BANs investor. “California will be America’s leader in stem cell research, which will not only benefit the tremendous need of people suffering from debilitating diseases and conditions but will also help the California economy immeasurably.”
Proposition 71 was approved by voters overwhelmingly in November 2004. Litigation challenging the constitutionality of the measure has impeded the State’s ability to sell approved General Obligation bonds. [That litigation is expected to conclude next spring.]
“With the State Treasurer’s Office, we are in the process of closing the transactions to reach our BANs goal of $50 million,” said Klein. “We will close these transactions incrementally in the near future.”
CIRM was established in 2004 with the passage of the California Stem Cell Research and Cures Act. The institute is responsible for disbursing $3 billion in State funds for stem cell research to California universities and research institutions over the next ten years and is overseen and governed by the Independent Citizens Oversight Committee. For more information, please visit: www.cirm.ca.gov.