Subject: RE: adult stem cell opp
From: "Neil Callahan \(Rosemont Seneca\)" <[email-masked]>
To: "'John DeLoche'" <[email-masked]>, "'Devon Archer'" <[email-masked]>, "'Hunter Biden'" <[email-masked]>, "'Eric Schwerin'" <[email-masked]>, <[email-masked]>
Date: Sun, 24 Feb 2013 11:10:25 -0500

Huge raise, what are the use of proceeds – building out facilities?  Let’s build a file and review.

Neil Callahan

Rosemont Seneca Partners

401 Greenwich Street, Suite 300

New York, New York 10013

917-945-9516 (m)

866-749-8879 (f)

www.rosemontsenecatech.com <http://www.rosemontsenecatech.com/> 

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From: John DeLoche [mailto:[email-masked]] 
Sent: Saturday, February 23, 2013 6:37 PM
To: Neil Callahan; Devon Archer; Hunter Biden; Eric Schwerin; [email-masked]
Subject: Fwd: adult stem cell opp

Trent is an RSTP I LP who has expressed interest in RSTP II. Lets take a look at this deal. 

Best,

John

Sent from my iPad

Begin forwarded message:

From: Trent Gegax <[email-masked]>
Date: February 23, 2013, 2:14:30 PM PST
To: John DeLoche <[email-masked]>
Cc: Greg Arrese <[email-masked]>
Subject: adult stem cell opp

howdy, john. yesterday my father and I had an interesting update call with one of our life-sciences portfolio cos, san diego-based stemedica <http://www.stemedica.com/> , in the adult stem cell space. they're finishing a big 'rolling raise' and are down to their last 7m (we're considering adding to our position) of their 72m preferred raise (148m pre-money, 220m post-money).

you came to mind because stemedica feels like it's about at the stage that counsyl was at when you introduced it to us, tho it's taken stemedica longer to develop than counsyl (we initially invested in 2007). maybe chalk that up to being in the controversial stem cell space, maybe not.

any rate, let me know if you want access to their data room and, if further interested, i'll intro you to stemedica ceo maynard howe, who started two other life sciences cos that we invested in and that went ipo. my father tom is friends with maynard and has known the prolific howe family for decades. 

ceo maynard expects stemedica to be cashflow poz q313; their first big pharma deal to give them a 1b valuation; and midcase valuation in 5 yrs to be 3b. maynard has invested millions of his own money and plans to return all of investors money via dividends within two yrs.

ip is stemedica's edge. the short story on the extension of the current raise is that they had an ip discovery that they decided to button down rather than use raised funds to ramp sales.

interesting recent developments include aggressive interest from tx gov perry, a stem cell fan who wants tx to unseat ca as the stem cell capital of the u.s.; a big addition to the board; and significant jv with leading public life-sciences firm.

let me know if you'd like to see more.

best,

trent

T. Trent Gegax

www.gramercyfund.com

917.592.1686

@gegax